Purple Innovation (PRPL) 10-Q 17 May 21 2021 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 14, 2021
Document Information Line Items
Entity Registrant Name	PURPLE INNOVATION, INC.
Trading Symbol	PRPL
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001643953
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-37523
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-4078206
Entity Address, Address Line One	4100 NORTH CHAPEL RIDGE ROAD
Entity Address, Address Line Two	SUITE 200
Entity Address, City or Town	LEHI
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84043
City Area Code	(801)
Local Phone Number	756-2600
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Class A common stock
Document Information Line Items
Entity Common Stock, Shares Outstanding		66,302,767
Class B common stock
Document Information Line Items
Entity Common Stock, Shares Outstanding		448,279

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 103,815	$ 122,955
Accounts receivable, net	41,618	29,111
Inventories, net	63,282	65,726
Prepaid inventory	1,337	826
Other current assets	7,772	10,453
Total current assets	217,824	229,071
Property and equipment, net	73,831	61,486
Operating lease right-of-use assets	52,972	41,408
Intangible assets, net	10,251	9,945
Deferred income taxes	210,380	211,244
Other long-term assets	1,510	1,578
Total assets	566,768	554,732
Current liabilities:
Accounts payable	60,269	69,594
Accrued sales returns	8,280	8,428
Accrued compensation	9,774	14,209
Customer prepayments	7,901	6,253
Accrued sales tax	3,930	6,015
Accrued rebates and allowances	5,564	10,891
Operating lease obligations – current portion	3,632	3,235
Other current liabilities	15,318	13,583
Total current liabilities	114,668	132,208
Debt, net of current portion	40,906	41,410
Operating lease obligations, net of current portion	60,948	48,936
Warrant liabilities	19,415	92,708
Tax receivable agreement liability, net of current portion	166,029	165,426
Other long-term liabilities, net of current portion	7,261	6,503
Total liabilities	409,227	487,191
Commitments and contingencies (Note 13)
Stockholders’ equity:
Additional paid-in capital	401,842	333,047
Accumulated deficit	(245,032)	(265,856)
Total stockholders’ equity	156,817	67,197
Noncontrolling interest	724	344
Total stockholders’ equity	157,541	67,541
Total liabilities and stockholders’ equity	566,768	554,732
Class A Common Stock
Stockholders’ equity:
Common stock, value	7	6
Total stockholders’ equity	7	6
Class B Common Stock
Stockholders’ equity:
Common stock, value
Total stockholders’ equity

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares shares in Thousands	Mar. 31, 2021	Dec. 31, 2020
Class A Common Stock
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	210,000	210,000
Common stock, shares issued	66,303	63,914
Common stock, shares outstanding	66,303	63,914
Class B Common Stock
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	90,000	90,000
Common stock, shares issued	448	536
Common stock, shares outstanding	448	536

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenues, net	$ 186,429	$ 122,375
Cost of revenues	98,905	69,193
Gross profit	87,524	53,182
Operating expenses:
Marketing and sales	54,368	36,684
General and administrative	14,526	7,548
Research and development	1,723	1,445
Total operating expenses	70,617	45,677
Operating income	16,907	7,505
Other income (expense):
Interest expense	(570)	(1,389)
Other income (expense), net	(68)	90
Tax receivable agreement income (expense)	174	(122)
Change in fair value – warrant liabilities	9,147	21,633
Total other income, net	8,683	20,212
Net income before income taxes	25,590	27,717
Income tax benefit (expense)	(4,651)	284
Net income	20,939	28,001
Net income attributable to noncontrolling interest	115	11,166
Net income attributable to Purple Innovation, Inc.	$ 20,824	$ 16,835
Net income per share:
Basic (in Dollars per share)	$ 0.32	$ 0.74
Diluted (in Dollars per share)	$ 0.17	$ 0.43
Weighted average common shares outstanding:
Basic (in Shares)	64,592	22,675
Diluted (in Shares)	68,372	25,327

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Class A Common Stock	Class B Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total Stockholders’ Equity	Noncontrolling Interest	Total
Balance at Dec. 31, 2019	$ 2	$ 3	$ 2,822	$ (28,989)	$ (26,162)	$ (2,378)	$ (28,540)
Balance (in Shares) at Dec. 31, 2019	22,494	31,394
Net income				16,835	16,835	11,166	28,001
Stock-based compensation			250		250		250
Stock-based compensation (in Shares)	3
Exchange of stock
Exchange of stock (in Shares)	1,124	(1,124)
Exercise of warrants			17		17		17
Exercise of warrants (in 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	$ 2	$ 3	2,792	(12,154)	(9,357)	8,668	(689)
Balance (in Shares) at Mar. 31, 2020	23,622	30,270
Balance at Dec. 31, 2020	$ 6		333,047	(265,856)	67,197	344	67,541
Balance (in Shares) at Dec. 31, 2020	63,914	536
Net income				20,824	20,824	115	20,939
Stock-based compensation			479		479		479
Stock-based compensation (in Shares)
Exchange of stock
Exchange of stock (in Shares)	88	(88)
Exercise of warrants	$ 1		64,261		64,262		64,262
Exercise of warrants (in Shares)	2,291
Exercise of stock options			83		83		83
Exercise of stock options (in Shares)	10
Tax Receivable Agreement Liability			(777)		(777)		(777)
Deferred income taxes			971		971		971
Accrued distributions			(99)		(99)		(99)
Innohold indemnification payment			4,142		4,142		4,142
Impact of transactions affecting NCI			(265)		(265)	265
Balance at Mar. 31, 2021	$ 7		$ 401,842	$ (245,032)	$ 156,817	$ 724	$ 157,541
Balance (in Shares) at Mar. 31, 2021	66,303	448

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net income	$ 20,939	$ 28,001
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,549	1,778
Non-cash interest	129	1,375
Change in fair value – warrant liabilities	(9,147)	(21,633)
Tax receivable agreement (income) expense	(174)	122
Stock-based compensation	479	250
Non-cash lease expense	953	682
Deferred income taxes	1,835
Changes in operating assets and liabilities:
Accounts receivable	(12,507)	5,422
Inventories	2,444	5,516
Prepaid inventory and other assets	2,109	(2,399)
Accounts payable	(10,408)	(13,217)
Accrued sales returns	(148)	(534)
Accrued compensation	(4,435)	(801)
Customer prepayments	1,648	(2,720)
Accrued rebates and allowances	(5,327)	(2,172)
Operating lease obligations	(809)	(423)
Other accrued liabilities	1,479	489
Net cash used in operating activities	(9,391)	(264)
Cash flows from investing activities:
Purchase of property and equipment	(12,285)	(4,520)
Investment in intangible assets	(69)	(2,328)
Net cash used in investing activities	(12,354)	(6,848)
Cash flows from financing activities:
Payments on term loan	(563)
Proceeds from InnoHold indemnification payment	4,142
Tax receivable agreement payment	(628)
Distributions to members	(545)
Proceeds from exercise of warrants	116	12
Proceeds from exercise of stock options	83
Net cash provided by financing activities	2,605	12
Net decrease in cash	(19,140)	(7,100)
Cash and cash equivalents, beginning of the year	122,955	33,478
Cash and cash equivalents, end of the period	103,815	26,378
Supplemental disclosures of cash flow information:
Cash paid during the year for interest	430	14
Cash paid during the year for income taxes	519	63
Supplemental schedule of non-cash investing and financing activities:
Property and equipment included in accounts payable	4,168	883
Non-cash leasehold improvements	701	615
Accrued distributions	99	196
Tax receivable agreement liability	777	221
Deferred income taxes	971
Exercise of liability warrants	$ 64,146	$ 5

Organization

Organization	3 Months Ended
	Mar. 31, 2021
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 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”). 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
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. As of March 31, 2021, Purple Inc. held approximately 99% of the common units of Purple LLC and Purple LLC Class B Unit holders held approximately 1% of the common units in Purple LLC. 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 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 2020 audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K/A filed May 10, 2021. The unaudited condensed consolidated financial statements were prepared on the same basis as the audited consolidated 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 31, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2021 or for any other interim period or other future year. On December 31, 2020, the Company ceased to be an emerging growth company (“EGC”) and was no longer exempt from certain reporting requirements that apply to public companies. As an EGC prior to this date, Purple Inc. had elected to use extended transition periods available to private companies for complying with new or revised accounting standards. 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, 2021, Purple Inc. had approximately a 99% 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. The holders of Purple LLC Class B Units held approximately 1% of the economic interest in Purple LLC. For further discussion see Note 13 — Stockholders’ Equity. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on net income, cash flows or shareholders’ equity previously reported. Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. 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. The Company regularly makes significant estimates and assumptions including, but not limited to, estimates that affect revenue recognition, accounts receivable and allowance for doubtful accounts, valuation of inventories, cost of revenues, sales returns, warranty returns, warrant liability, stock based compensation, the recognition and measurement of loss contingencies, estimates of current and deferred income taxes, deferred income tax valuation allowances and amounts associated with the Company’s tax receivable agreement with InnoHold. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. Actual results could differ materially from those estimates. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ ”) . The Company determines if an agreement contains a lease at the inception of a contract. For leases with an initial term greater than 12 months, a related lease liability is recorded on the balance sheet at the present value of future payments discounted at the estimated fully collateralized incremental borrowing rate (discount rate) corresponding with the lease term. In addition, an ROU asset is recorded as the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any tenant improvement allowance incentives received. The Company calculates the present value of future payments using its incremental borrowing rate when the discount rate implicit in the lease is not known. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The Company determines the applicable incremental borrowing rate at the lease commencement date based on the rates of its secured borrowings, which is then adjusted for the appropriate lease term and risk premium. In determining the Company's ROU assets and operating lease liabilities, the Company applies these incremental borrowing rates to the minimum lease payments within each lease agreement. Operating lease expense is recognized on a straight-line basis over the lease term. Tenant incentive allowances received from the lessor are amortized through the ROU asset as a reduction of rent expense over the lease term. Any variable lease costs are expensed as incurred. Leases with an initial term of 12 months or less (short-term leases) are not recorded as ROU assets and corresponding lease liabilities. Short-term lease expense is recognized on a straight-line basis over the lease term. ROU assets are assessed for impairment as part of the impairment of long-lived assets, which is performed whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Revenue Recognition 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. 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 that relate to borrowings are presented in the condensed consolidated balance sheet as a direct reduction 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. Debt issuance costs that relate to revolving lines of credit are carried as an asset in the condensed consolidated balance sheet and amortized to interest expense on a straight-line basis over the term of the related line of credit facility. Refer to Note 8 – Debt Warrant Liabilities The Company accounted for its Incremental Loan Warrants as liability warrants under the provisions of ASC 480 - Distinguishing Liabilities from Equity The Company accounted for its public warrants in accordance with ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity” (“ASC 815”), under which these warrants did not meet the criteria for equity classification and were recorded as liabilities. Since the public warrants met the definition of a derivative as contemplated in ASC 815, these warrants were measured at fair value at inception and at each reporting date in accordance with ASC 820, Fair Value Measurement, with changes in fair value recognized in earnings in the period of change. The Company determined the fair value of the public warrants based on their public trading price. All of the public warrants were exercised during fiscal 2020. The Company accounts for its sponsor warrants in accordance with ASC 815, under which these warrants do not meet the criteria for equity classification and must be recorded as liabilities. Since the sponsor warrants meet the definition of a derivative as contemplated in ASC 815, these warrants are measured at fair value at inception and at each reporting date in accordance with ASC 820, Fair Value Measurement, with changes in fair value recognized in earnings in the period of change. The Company uses the Black Scholes model to determine the fair value of the liability associated with the sponsor warrants. The model uses key assumptions and inputs such as exercise price, fair market value of common stock, risk free interest rate, warrant life and expected volatility. At March 31, 2021, there were 1.9 million sponsor warrants outstanding. 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 instruments is estimated to be face value based on the contractual terms of the debt arrangements and market-based expectations. The public warrant liabilities are Level 1 instruments as they have quoted market prices in an active market. The sponsor and Incremental Loan warrant liabilities are Level 3 instruments and use internal models 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 generally 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 generally increase (decrease) in value if the expected average life or expected volatility were to increase (decrease). The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: March 31, (In thousands) Level 2021 2020 Public warrants 1 $ — $ 11,272 Sponsor warrants 3 19,415 4,531 Incremental Loan warrants 3 — 7,989 The following table summarizes the Company’s total Level 3 liability activity for the three months ended March 31, 2021 and 2020: (In thousands) Sponsor Incremental Total Level Fair value as of December 31, 2019 $ 7,689 $ 21,622 $ 29,311 Fair value transfer to Level 1 measurement (117 ) — (117 ) Change in valuation inputs (1) (3,041 ) (13,633 ) (16,674 ) Fair value as of March 31, 2020 $ 4,531 $ 7,989 $ 12,520 Fair value as of December 31, 2020 $ 92,708 $ — $ 92,708 Fair value of warrants exercised (64,146 ) — (64,146 ) Change in valuation inputs (1) (9,147 ) — (9,147 ) Fair value as of March 31, 2021 $ 19,415 $ — $ 19,415 (1) Changes in valuation inputs are recognized in the change in fair value – warrant liabilities in the Consolidated Statements of Income. Income Taxes In calculating the provision for interim income taxes, in accordance with ASC Topic 740, an estimated annual effective tax rate is applied to year-to-date ordinary income. At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. This differs from the method utilized at the end of an annual period. For annual periods, 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 the non-taxable nature of the change in fair value of the warrant liability. 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 income tax benefit (expense) line in the accompanying condensed consolidated statements of income. 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 Per Share Basic net income per common share is calculated by dividing net income attributable to common shareholders by the weighted average number of shares of Class A Stock outstanding each period. Diluted net income 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 represents 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 Class A Stock. Recent Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. This standard is currently effective and upon adoption may be applied prospectively to contract modifications made on or before December 31, 2022, when the reference rate replacement activity is expected to be completed. The interest rate on the Company’s term loan is based on LIBOR. The Company plans to apply the amendments in this update to account for any contract modifications that result from changes in the reference rate used. The Company does not expect these amendments to have a material impact on its condensed consolidated financial statements and related disclosures. 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. The adoption of this standard by the Company on January 1, 2021 did not have a material impact on the Company’s financial position, results of operations, or cash flows. Internal-Use Software 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. Because the Company lost its EGC status on December 31, 2020, the standard became effective for the Company for its annual period beginning January 1, 2020, and interim periods within the annual period beginning January 1, 2021. The Company elected to apply the amendments on a prospective basis. Adoption of this standard did not have a material impact on the Company’s financial position, results of operations, or cash flows. Measurement of Credit Losses In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which was further updated and clarified by the FASB through issuance of additional related ASUs. This guidance replaces the existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost based on expected credit losses. The estimate of expected credit losses requires the incorporation of historical information, current conditions, and reasonable and supportable forecasts. These updates are effective for public companies, excluding Smaller Reporting Companies (“SRC”), for annual periods beginning after December 15, 2019, including interim periods therein. The standard is effective for all other entities for annual periods beginning after December 15, 2022, including interim periods therein. Since the Company was considered an SRC on the deferral date of this standard, the guidance is effective for the Company’s interim and annual financial periods beginning January 1, 2023. This standard is to be applied utilizing a modified retrospective approach. The Company is currently evaluating the impact of this standard on its accounts receivable, cash and cash equivalents, and any other financial assets measured at amortized cost and do not expect that adoption will have a material impact on its consolidated financial statements or related disclosures.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
	Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	3. 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 Disaggregated Revenue 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 and contact center. The Wholesale channel includes all product sales to traditional third-party retailers for both 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. The following tables present the Company’s revenue disaggregated by sales channel and product category (in thousands): Three Months Ended Channel 2021 2020 Direct-to-consumer $ 124,904 $ 80,687 Wholesale partner 61,525 41,688 Revenues, net $ 186,429 $ 122,375 Three Months Ended Product 2021 2020 Bedding $ 171,843 $ 114,501 Other 14,586 7,874 Revenues, net $ 186,429 $ 122,375 Contract Balances Payment for sale of products through the direct-to-consumer online channels, third-party online retailers, Company showrooms and contact center is collected at point of sale in advance of shipping the products. Amounts received for unshipped products are recorded as customer prepayments. Customer prepayments totaled $7.9 million and $6.3 million at March 31, 2021 and December 31, 2020, respectively. During the three months ended March 31, 2021 and 2020, the Company recognized all revenue that was deferred in customer prepayments at December 31, 2020 and 2019, respectively.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2021
Inventory Net [Abstract]
Inventories	4. Inventories Inventories consisted of the following (in thousands): March 31, December 31, 2021 2020 Raw materials $ 27,759 $ 26,372 Work-in-process 3,260 3,593 Finished goods 33,284 36,280 Inventory obsolescence reserve (1,021 ) (519 ) Inventories, net $ 63,282 $ 65,726

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	5. Property and Equipment Property and equipment consisted of the following (in thousands): March 31, December 31, 2021 2020 Equipment $ 37,033 $ 30,508 Equipment in progress 21,216 18,648 Leasehold improvements 19,981 15,758 Furniture and fixtures 5,294 5,160 Office equipment 3,547 3,185 Total property and equipment 87,071 73,259 Accumulated depreciation (13,240 ) (11,773 ) Property and equipment, net $ 73,831 $ 61,486 Equipment in progress reflects equipment, primarily related to mattress manufacturing, which is being constructed and was not in service at March 31, 2021 or December 31, 2020. Depreciation expense was $1.5 million and $1.2 million during the three months ended March 31, 2021 and 2020, respectively.

Leases

Leases	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Leases	6. Leases The Company leases its manufacturing and distribution facilities, corporate offices, showrooms and certain equipment under non-cancelable operating leases with various expiration dates through 2036. The Company’s office and manufacturing leases provide for initial lease terms up to 16 years, while retail showrooms have initial lease terms of up to seven years. Certain leases may contain options to extend the term of the original lease. The exercise of lease renewal options is at the Company’s discretion. Any lease renewal options are included in the lease term if exercise is reasonably certain at lease commencement. The Company also leases vehicles and other equipment under both operating and finance leases with initial lease terms of three to five years. The ROU asset for finance leases was $0.8 million and $0.6 million as of March 31, 2021 and December 31, 2020, respectively. The following table presents the Company’s lease costs (in thousands): Three Months Ended 2021 2020 Operating lease costs $ 1,807 $ 1,208 Variable lease costs 95 8 Short-term lease costs 56 58 Total lease costs $ 1,958 $ 1,274 The table below reconciles the undiscounted cash flows for each of the first five years and total remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet at March 31, 2021 (in thousands): 2021 (excluding the three months ended March 31, 2021) (1) $ (1,768 ) 2022 8,432 2023 7,851 2024 7,874 2025 7,903 Thereafter 62,996 Total operating lease payments 93,288 Less – lease payments representing interest (28,708 ) Present value of operating lease payments $ 64,580 (1) – Amount consists of $4.8 million of undiscounted cash flows offset by $6.6 million of tenant improvement allowances which are expected to be fully utilized in fiscal 2021. As of March 31, 2021 and December 31, 2020, the weighted-average remaining term of operating leases was 12.3 years and 11.8 years, respectively, and the weighted-average discount rate of operating leases was 5.60% and 6.18%, respectively. The following table provides supplemental information related to the Company’s condensed consolidated statement of cash flows for the three months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 Cash paid for amounts included in present value of operating lease liabilities $ 809 $ 423 Right-of-use assets obtained in exchange for operating lease liabilities 12,517 2,381

Other Current Liabilities

Other Current Liabilities	3 Months Ended
	Mar. 31, 2021
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]
Other Current Liabilities	7. Other Current Liabilities Other current liabilities consisted of the following (in thousands): March 31, December 31, 2021 2020 Warranty accrual – current portion $ 3,046 $ 2,806 Long-term debt – current portion 2,007 $ 2,004 Tax receivable agreement liability – current portion 5,916 6,545 Insurance financing 1,253 910 Income taxes payable 1,926 — Other 1,170 1,318 Total other current liabilities $ 15,318 $ 13,583

Debt

Debt	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Debt	8. Debt Debt consisted of the following (in thousands): March 31, December 31, 2021 2020 Term loan $ 43,875 $ 44,438 Less: unamortized debt issuance costs (962 ) (1,024 ) Total debt 42,913 43,414 Less: current portion of debt (2,007 ) (2,004 ) Long-term debt, net $ 40,906 $ 41,410 Term Loan and Revolving Line of Credit On September 3, 2020, Purple LLC entered into a financing arrangement with KeyBank National Association and a group of financial institutions (the “2020 Credit Agreement”). The 2020 Credit Agreement provides for a $45.0 million term loan and a $55.0 million revolving line of credit. The borrowing rates for the term loan are based on Purple LLC’s leverage ratio, as defined in the 2020 Credit Agreement, and can range from LIBOR plus a 3.00% to 3.75% margin with a LIBOR minimum of 0.50%. The initial borrowing rate of 3.50% is based on LIBOR plus 3.00%. The term loan will be repaid in accordance with a five-year amortization schedule and may be prepaid in whole or in part at any time without premium or penalty, subject to reimbursement of certain costs. There may be mandatory prepayment obligations based on excess cash flow. Pursuant to a Pledge and Security Agreement between Purple LLC, KeyBank and the Company (the “Security Agreement”), the 2020 Credit Agreement is secured by a perfected first-priority security interest in the assets of Purple LLC and the Company, including a security interest in all intellectual property. Also, the Company agreed to an unconditional guaranty of the payment of all obligations and liabilities of Purple LLC under the 2020 Credit Agreement. The Security Agreement contains a pledge, as security for the Company’s guaranty, of all its ownership interest in Purple LLC. The 2020 Credit Agreement also provides for standard events of default, such as for non-payment and failure to perform or observe covenants, and contains standard indemnifications benefitting the lenders. The 2020 Credit Agreement includes representations, warranties and certain covenants of Purple LLC and the Company. While any amounts are outstanding under the 2020 Credit Agreement, Purple LLC is subject to several affirmative and negative covenants, including covenants regarding dispositions of property, investments, forming or acquiring subsidiaries, business combinations or acquisitions, incurrence of additional indebtedness, and transactions with affiliates, among other customary covenants, subject to certain exceptions. In particular, Purple LLC is (i) subject to annual capital expenditure limits that can be adjusted based on the Company achieving certain net leverage ratio thresholds as provided in the 2020 Credit Agreement, (ii) restricted from incurring additional debt up to certain amounts, subject to limited exceptions, as set forth in the 2020 Credit Agreement, and (iii) maintain minimum consolidated net leverage and fixed charge coverage ratio thresholds at certain measurement dates (as defined in the 2020 Credit Agreement). Purple LLC is also restricted from paying dividends or making other distributions or payments on its capital stock, subject to limited exceptions. If the Company or Purple LLC fail to perform their obligations under these and other covenants, or should any event of default occur, the revolving loan commitments under the 2020 Credit Agreement may be terminated and any outstanding borrowings, together with accrued interest, could be declared immediately due and payable. As of March 31, 2021, the Company was in compliance with all of the covenants related to the 2020 Credit Agreement. The $55.0 million revolving credit facility established under the 2020 Credit Agreement has a term of five years and carries the same interest provisions as the term debt. A commitment fee is due quarterly based on the applicable margin applied to the unused total revolving commitment. The agreement for this revolving credit facility contains customary covenants and events of default. As of March 31, 2021, there was no balance outstanding on the revolving credit facility. The Company incurred $2.5 million in debt issuance costs for the 2020 Credit Agreement. These costs relate to the entire credit arrangement and therefore were allocated between the term loan and the revolving line of credit. The Company determined $1.1 million of the debt issuance costs related to the term debt and are presented in the condensed consolidated balance sheet as a direct reduction from the carrying amount of the debt liability. This amount is being amortized into interest expense using an effective interest rate over the duration of the debt. The remaining $1.4 million of debt issuance costs were allocated to the revolving line of credit facility. This amount is classified as other assets and is being amortized to interest expense on a straight-line basis over the term of the revolving credit facility. Interest expense under the 2020 Credit Agreement totaled $0.6 million for the three months ended March 31, 2021. Related Party Loan On March 27, 2020, the Company entered into an amendment to Purple LLC’s Credit Agreement dated February 3, 2018 and all subsequent amendments and agreements (collectively referred to as the “Related Party Loan”) that provided for the deferral of the full amount of the interest payment due on March 31, 2020 and June 30, 2020 to reduce cash disbursements during the COVID-19 pandemic. The Company accounted for this amendment as a modification of existing debt in accordance with ASC 470 - Debt On September 3, 2020, the Company paid $45.0 million to retire, in full, all indebtedness related to the Related Party Loan. The payment included $25.0 million for the original loan under the agreement, $10.0 million for a subsequent incremental loan, $6.6 million for paid-in-kind interest, $2.5 million for a prepayment fee and $0.9 million for accrued interest. As a result of paying off the Related Party Loan during the third quarter of fiscal 2020, the Company recognized a $5.8 million loss on extinguishment of debt.

Warrant Liabilities

Warrant Liabilities	3 Months Ended
	Mar. 31, 2021
Warrant Liabilities [Abstract]
Warrant Liabilities	9. Warrant Liabilities On February 26, 2019, two of the lenders who originally financed the Related Party loan (the “Incremental Lenders”) funded a $10.0 million increase in the loan and received 2.6 million warrants (“Incremental Loan 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. In May 2020, Tony Pearce or Terry Pearce individually or together ceased to beneficially own at least 50% of the voting securities of the Company. As a result, the exercise price of the warrants was reduced to zero based on the formula established in the agreement. The Company accounted for the Incremental Loan Warrants as liabilities in accordance with ASC 480 - Distinguishing Liabilities from Equity For the three months ended March 31, 2020, the Company recorded a $13.6 million gain on the decrease in fair value of the Incremental Loan Warrants. The fair value of the Incremental Loan Warrants was calculated using a Monte Carlo Simulation of a Geometric Brownian Motion stock path model. The following are the assumptions used in calculating fair value on March 31, 2020: Trading price of common stock on measurement date $ 5.68 Exercise price $ 5.74 Risk free interest rate 0.37 % Warrant life in years 3.9 Expected volatility 44.16 % Expected dividend yield — Probability of warrant re-price 50.00 % The public and sponsor warrants that were issued in connection with the Company’s IPO and simultaneous private placement contain certain provisions that do not meet the criteria for equity classification and therefore must be recorded as liabilities. The liability for these warrants was recorded at fair value on the date of the Business Combination and subsequently re-measured to fair value at each reporting date or exercise date with changes in the fair value included in earnings. During the three months ended March 31, 2021, 6.6 million sponsor warrants were exercised resulting in the issuance of 2.3 million shares of Class A common stock. The 1.9 million sponsor warrants outstanding at March 31, 2021 had a fair value of $19.4 million. All of the public warrants were exercised during fiscal 2020. At March 31, 2020 the fair value of the 18.8 million public warrants and the 9.6 million sponsor warrants outstanding was $15.8 million. The Company used public trading prices of the public warrants to determine their fair value. The Company determined the fair value of the sponsor warrants using the Black Scholes model with the following assumptions: March 31, 2021 2020 Trading price of common stock on measurement date $ 31.65 $ 5.68 Exercise price $ 5.75 $ 5.75 Risk free interest rate 0.16 % 0.29 % Warrant life in years 1.8 2.8 Expected volatility 53.48 % 55.84 % Expected dividend yield — — During the three months ended March 31, 2021 and 2020, the Company recognized gains of $9.1 million and $8.0 million, respectively, in its condensed consolidated statements of income related to decreases in the fair value of the public and sponsor warrants exercised during the respective periods or that were outstanding at the end of the respective periods.

Other Long-Term Liabilities

Other Long-Term Liabilities	3 Months Ended
	Mar. 31, 2021
Other Longterm 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, 2021 2020 Warranty accrual $ 9,375 $ 8,397 Other 932 912 Total 10,307 9,309 Less: current portion of warranty accrual (3,046 ) (2,806 ) Other long-term liabilities, net of current portion $ 7,261 $ 6,503

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
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 its members 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 was amended and replaced by the Third Amended and Restated Limited Liability Company Agreement (the “Third Purple LLC Agreement”) on September 3, 2020. The Second Purple LLC Agreement and the Third Purple LLC Agreement do not include any mandatory distributions, other than tax distributions. During the three months ended March 31, 2021, the Company paid $0.2 million in tax distributions under the Third Purple LLC Agreement. At March 31, 2021, the Company’s condensed consolidated balance sheet had $0.2 million of accrued tax distributions included in other current liabilities. Service Agreement In October 2017, the Company entered into an electric service agreement with the local power company in Grantsville, Utah. 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, 2021, the early termination penalty was $0.8 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. 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 agreed to a further discount per gallon. During the three months ended March 31, 2021 and 2020, the Company made purchases under the contract totaling $3.6 million and $2.4 million, respectively. As of March 31, 2021, the Company had met its commitment under the purchase contract. 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 Business Combination, to secure 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 were deposited in an escrow account for up to three years from the date of the Business Combination pursuant to a contingency escrow agreement. In September 2020, an amendment to the escrow agreement was signed whereby the 0.5 million shares of Class B Stock and 0.5 million Class B Units held in escrow were exchanged for $5.0 million. On February 3, 2021 the Company received $4.1 million from InnoHold as reimbursement for amounts that qualified for indemnification from the $5.0 million being held in escrow. The remaining $0.9 million in escrow was returned to InnoHold. The amount received from InnoHold was recorded as additional paid-in capital in the condensed consolidated balance sheet. Subscription Agreement and Preemptive Rights In February 2018, in connection with the Business Combination, the Company entered into a subscription agreement with Coliseum Capital Partners (“CCP”) and Blackwell Partners LLC – Series A (“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 Coliseum Co-Invest Debt Fund, L.P. (“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, including CCP, Blackwell and CDF, 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. Under the Registration Rights Agreement dated February 2, 2018 between the Company and CCP, Blackwell, and CDF (the “Coliseum Investors”), the Coliseum Investors have the right to make written demands for up to three registrations of certain Warrants and shares of Class A Stock held by them, including in underwritten offerings. In an underwritten offering of such Warrants and shares of Class A Stock by the Coliseum Investors, the Company will pay underwriting discounts and commissions and certain expenses incurred by the Coliseum Investors. The holders of the Incremental Loan 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, pursuant to which, the Company issued 2.6 million shares of Class A common stock in exchange for the Incremental Loan Warrants on November 9, 2020. 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 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 Stock. The Company filed a second registration statement on Form S-3 that was declared effective on May 14, 2020, pursuant to which InnoHold sold 12.4 million shares of Class A Stock. The Company filed a third and final registration statement on Form S-3 that was declared effective on September 9, 2020, pursuant to which InnoHold sold 16.8 million shares of Class A Stock. Purple LLC Class B Unit Exchange Right On February 2, 2018, in connection with the closing of the Business Combination, 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. 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, 2021 and 2020, 0.1 million and 1.1 million, respectively, of Paired Securities were exchanged for shares of Class A Stock. Maintenance of One-to-One Ratios The Third 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 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 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 brought a motion to strike that was resolved on consent. Pleadings are now closed, and the action is proceeding under case management. Counsel for the defendant was removed from the record at their own request by Court Order. The Court further ordered the defendant to either appoint counsel or file a motion to permit an officer or director to represent the defendant in legal proceedings. On November 6, 2020, the defendant informally requested that the Court permit Mr. Henderson, the CEO and shareholder of the defendant, to represent the defendant in the action until such time as a lawyer could be appointed. Purple opposed this informal request, and it was denied by the Court. After granting PerfectSense a final extension of time to either appoint counsel or file a motion to permit Mr. Henderson to represent the defendant, PerfectSense appointed new counsel. The parties are engaged in litigation discovery and recently exchanged affidavits of documents. On September 20, 2020, Purple LLC filed a complaint at the U.S. Court of International Trade seeking to recover approximately $7.0 million of Section 301 duties paid at the time of importation on certain Chinese-origin goods. More than 4,000 other complaints have been filed by other companies seeking similar refunds. On March 12, 2021 the United States filed a master answer that applies to all the Section 301 cases, including the Company’s. If successful, this litigation could result in a refund of some or all of the Section 301 duties. On October 13, 2020, Purple LLC filed a lawsuit against Responsive Surface Technology, LLC and its parent company, PatienTech, LLC (collectively referred to as “ReST”) in the United States District Court for the District of Utah. The lawsuit arises from ReST’s multiple breaches of its obligations to Purple LLC, including infringing upon Purple LLC’s trademarks, patents, and trade dress, among other claims. Purple seeks monetary damages, injunctive relief, and declaratory judgment based on certain conduct by ReST (“Case I”). On October 21, 2020, shortly after the complaint was filed in Case I, ReST filed a retaliatory lawsuit against Purple LLC, Gary DiCamillo, Adam Gray, Joseph Megibow, Terry Pearce, and Tony Pearce, also in the United States District Court for the District of Utah (“Case II”). Subsequently, the two cases were consolidated into one. Case II (now combined with Case I) involves many of the same facts and transactions as Case I. On January 19, 2021, ReST filed a motion to compel arbitration of the claims in Case I. Purple LLC opposed the motion to compel arbitration, arguing that ReST waived any rights they may have had to arbitration and that all the claims in both cases should stay in the courts. Briefing is complete on ReST’s motion to compel arbitration, and the Court has set a hearing for May 25, 2021 to hear argument from the lawyers on the motion. On March 5, 2021, Purple LLC, Gary DiCamillo, Adam Gray, Joseph Megibow, Terry Pearce, and Tony Pearce, filed a motion to dismiss the claims set forth in Case II. Briefing on the motion to dismiss is ongoing. Purple LLC seeks over $4 million in damages from ReST, whereas ReST claims that Purple is liable to it for tens of millions of dollars. The outcome of this litigation cannot be predicted at this early stage. However, Purple intends to vigorously pursue its claims and defend against the claims made by ReST. On November 19, 2020, Purple LLC sued Advanced Comfort Technologies, Inc., dba Intellibed (“Intellibed”) in the U.S. District Court for the District of Utah for patent infringement, trademark infringement, trade secret misappropriation, and a number of related state law based claims. The principal allegations are that Intellibed has manufactured and sold unauthorized, infringing products under the Sleepy’s brand name owned by third-party Mattress Firm. Purple LLC also requested declaratory relief related to certain assignment terms of a license agreement in which Purple LLC is the licensor and Intellibed is the licensee. On December 14, 2020, Intellibed filed a motion to dismiss Counts I through XI of Purple LLC’s Complaint on the ground that these Counts fail to state a claim upon which relief can be granted. On December 15, 2020, Intellibed filed an Answer to Purple LLC’s complaint and also asserted against Purple LLC a total of eight counterclaims, including a number of declaratory judgment claims, breach of contract, and tortious interference claims. Intellibed’s main allegations are that its use of Purple LLC’s patents, trademark, and trade secrets in connection with Mattress Firm’s Sleepy’s products is authorized under the license agreement. On January 19, 2021, Purple LLC filed a motion to dismiss Intellibed’s fifth, sixth, seventh, and eighth counterclaims on the ground that these counterclaims fail to state a claim upon which relief can be granted. Briefing on Purple LLC’s partial motion to dismiss was completed on March 2, 2021. On January 19, 2021, Purple LLC also filed an Answer to Intellibed’s counterclaims, which were not subject to Purple LLC’s motion to dismiss. On January 27, 2021, Purple LLC filed a First Amended Complaint in response to Intellibed’s initial motion to dismiss. On February 10, 2021, Intellibed filed a motion to dismiss Counts I through XI of Purple LLC’s First Amended Complaint. Briefing on Intellibed’s partial motion to dismiss was completed on March 24, 2021. Both motions to dismiss are still pending before the Court. The case is in the early stages. No substantial discovery has taken place. The Court has not yet entered a Scheduling Order governing the case, and no trial date has been set. 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, 2021
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 were also Lenders under the Amended and Restated Credit Agreement. In 2018, the Lenders agreed to make the Related Party Loan in an aggregate principal amount of $25.0 million pursuant to an agreement entered into as part of the Business Combination. In conjunction with this 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, the Incremental Lenders funded a $10.0 million increase in the Related Party Loan and 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. In accordance with an amendment to the Related Party Loan dated March 27, 2020, the Company did not make any cash interest payments to the Lenders during the first and second quarters of 2020. On September 3, 2020, the Company paid $45.0 million to retire, in full, the Related Party Loan. The payment included the $25.0 million original loan under the agreement, $10.0 million for the subsequent incremental loan, $6.6 million of paid-in-kind interest, $2.5 million in a prepayment fee and $0.9 million in accrued interest .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. In May 2020, pursuant to the terms of the warrant agreement upon the condition that Tony Pearce or Terry Pearce individually or together ceased to beneficially own at least 50% of the voting securities of the Company, the exercise price of the Incremental Loan Warrants was adjusted to zero. On November 9, 2020, the Company issued 2.6 million shares of Class A common stock in exchange for the Incremental Loan Warrants held by the Incremental Lenders. Purple Founder Entities TNT Holdings, LLC (herein “TNT Holdings”), EdiZONE, (wholly owned by TNT Holdings) and InnoHold (the “Purple Founder Entities”) were entities under common control with Purple LLC prior to the Business Combination. TNT Holdings and InnoHold are majority owned and controlled by Terry Pearce and Tony Pearce (the “Purple Founders”), who were appointed to the Company’s Board of Directors following the Business Combination. InnoHold was a majority shareholder of the Company until it sold a portion of its interests in a secondary public offering in May 2020 and the remainder of its interests in a secondary public offering in September 2020. The Purple Founders also resigned as employees of the Company and retired from the Board in August 2020. TNT Holdings owns the Alpine facility Purple LLC has been leasing since 2010. 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 $0.2 million in rent expense to TNT Holdings for the building lease of the Alpine facility for the three months ended March 31, 2021 and 2020, respectively. The Company continues to lease the Alpine facility that was formerly the Company headquarters, for use in production, research and development and video production. During the three months ended March 31, 2021, certain current and former employees of the Company who received distributions of Paired Securities from InnoHold exchanged 0.1 million of Paired Securities for Class A Stock. On November 9, 2018, Purple LLC and EdiZONE executed the Second Amended and Restated Confidential Assignment and License Back Agreement (the “Revised License Agreement”), pursuant to which EdiZONE assigned all of its comfort and cushioning intellectual property to Purple LLC and further limited the subset of such intellectual property licensed back to EdiZONE to only those uses that enabled EdiZONE to comply with its obligations under previously existing contracts, agreements and licenses. On August 14, 2020, Purple LLC entered into a separate agreement whereby EdiZONE, for consideration of $8.5 million, assigned a license agreement with Advanced Comfort Technologies, Inc., dba Intellibed (“Intellibed”), and related royalties payable thereunder, to Purple LLC, along with the trademarks GEL MATRIX and INTELLIPILLOW. In connection with such assignment, the Company agreed to indemnify EdiZONE against claims by Intellibed relating to EdiZONE’s breach under the agreement. During the three months ended March 31, 2021, Purple LLC paid InnoHold through withholding payments directly to various states, an aggregate of $0.3 million in required tax distributions pursuant to the Third Purple LLC Agreement.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2021
Stockholders' Equity Note [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, 2021, 66.3 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 fiscal 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 Third 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 Class B Stock were issued to InnoHold as part of the equity consideration. InnoHold subsequently transferred a portion of its shares to permitted transfers and exchanged its remaining shares for Class A Stock that it sold. All of the 0.4 million shares of Class B Stock outstanding at March 31, 2021 were held by other parties. 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, 2021, there were no shares of preferred stock outstanding. Public and Sponsor Warrants There were 15.5 million public warrants issued in connection with GPAC’s formation and IPO and 12.8 million 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. On October 27, 2020, the Company provided notice to the holders of the public warrants that the Company was exercising its right under the terms of the Public Warrants to redeem such warrants by paying to the warrant holders the redemption price of $0.01 per warrant on November 30, 2020. Any exercise of the warrants prior to that date was to be done on a cashless basis, in accordance with the terms of the warrants. All of the public warrants were exercised or redeemed by November 30, 2020. During the three months ended March 31, 2021, 6.6 million sponsor warrants were exercised resulting in the issuance of 2.3 million shares of Class A common stock. At March 31, 2021, there were 1.9 million warrants outstanding all of which were sponsor warrants. Incremental Loan Warrants In connection with the Amended and Restated Credit Agreement, the Company issued to the Incremental Lenders 2.6 million Incremental Loan Warrants to purchase 2.6 million shares of the Company’s Class A Stock. Each Incremental Loan Warrant entitled 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. In May 2020, Tony Pearce and Terry Pearce individually or together ceased to beneficially own at least 50% of the voting securities of the Company. As a result, the exercise price of the warrants was reduced to zero based on the formula established in the agreement. On October 27, 2020, the Company provided notice to the holders of the Incremental Loan Warrants that the Company was exercising its right to redeem such warrants by paying to the warrant holders the redemption price of $0.01 per warrant on November 30, 2020. Any exercise of the warrants prior to that date was to be done on a cashless basis, in accordance with the terms of the warrants. On November 9, 2020, upon the exercise of all the Incremental Loan Warrants, the Company issued 2.6 million shares of Class A common stock in exchange for the Incremental Loan Warrants held by the Incremental Lenders. Noncontrolling Interest Noncontrolling interest (“NCI”) is the membership interest in Purple LLC held by holders other than the Company. Upon the close of the Business Combination, and at December 31, 2018, InnoHold’s and other Class B Unit holders’ combined NCI percentage in Purple LLC was approximately 82%. At March 31, 2021, the combined NCI percentage in Purple LLC was approximately 1%. 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, 2021
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 are 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 from the statutory rate. The primary factors impacting the expected tax are the allocation of tax benefit to noncontrolling interest and the non-taxable nature of the change in fair value of the warrant liability. Prior to the second quarter of 2020, the Company maintained a full valuation allowance on its net deferred tax assets which are comprised primarily of basis differences in Purple LLC. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income sufficient to utilize the deferred tax assets on income tax returns. In periods prior to the second quarter of 2020, management made the determination that its net deferred tax assets were not more likely than not going to be realized because the Company was in a three-year cumulative loss position and the generation of future taxable income was uncertain. Considering this and other factors, the Company maintained a full valuation allowance of $44.3 million through the period ending March 31, 2020. During fiscal 2020, the Company achieved three-year cumulative income for the first time and determined that it would likely generate sufficient taxable income to utilize some of its deferred tax assets. Based on this and other positive evidence, the Company concluded it was more likely than not that some of its deferred tax assets would be realized and that a full valuation allowance for its deferred tax assets was no longer appropriate. As a result, $35.5 million of the valuation allowance associated with the Company’s federal and state deferred tax assets was released during 2020 and recorded as an income tax benefit. The deferred tax assets at March 31, 2021 totaled $210.4 million, which is net of a $69.7 million valuation allowance that has been recorded against the residual outside partnership basis for the amount the Company believes is not more likely than not realizable. As a result, there was an overall increase of $17.8 million in the valuation allowance from December 31, 2020 to March 31, 2021, primarily as a result of an increase in the residual outside partnership basis. The Company currently estimates its annual effective income tax rate to be 26.35%. The annualized effective tax rate for the Company differs from the federal rate of 21% primarily due to the non-taxable nature of the change in fair value of the warrant liability and state and local income taxes. For the three months ended March 31, 2021, the Company has recorded income tax expense of $4.7 million. The effective tax rate for the three months ended March 31, 2021 was 18.20%, which is less than the federal statutory rate because the gain related to the change in fair value of the warrant liability is excluded from taxable income for income tax purposes. 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. On March 11, 2021, Congress passed, and the President signed into law, the American Rescue Plan Act, 2021 (the “ARP”), which includes certain business tax provisions. At this point the Company does not believe that these changes will have a material impact on its income tax provision for 2021. The Company will continue to evaluate the impact of new legislation on its financial position, results of operations, and cash flows. In connection with the Business Combination, the Company entered into a 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 tax receivable agreement 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 tax receivable agreement 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 the initial merger transaction and the subsequent exchanges of Class B Units for Class A Stock, the potential future tax receivable agreement liability is $171.9 million. Of the tax receivable agreement liability recorded during the three months ended March 31, 2021, $0.8 million relates to current year exchanges and was recorded as an adjustment to stockholders’ equity and $0.2 million was recorded as income in the condensed consolidated statement of income to reflect the impact of the change in rate associated with state income taxes. The Company has no federal net operating loss (“NOL”) carryforwards after utilization of the remaining carryforwards in 2020. 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 income. Accrued interest and penalties would be included on the related tax liability line in the consolidated balance sheet. As of March 31, 2021, no uncertain tax positions were recognized as liabilities in the condensed consolidated financial statements.

Net Income Per Common Share

Net Income Per Common Share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Net Income Per Common Share	15. Net Income Per Common Share 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 2021 2020 Numerator: Net income attributable to Purple Innovation, Inc. – basic $ 20,824 $ 16,835 Less: dilutive effect of change in fair value – warrant liabilities (9,147 ) (5,958 ) Net income attributable to Purple Innovation, Inc. – diluted $ 11,677 $ 10,877 Denominator: Weighted average shares—basic 64,592 22,675 Add: dilutive effects of equity awards 1,545 1,390 Add: dilutive effects of warrants 2,235 1,262 Weighted average shares—diluted 68,372 25,327 Net income per common share: Basic $ 0.32 $ 0.74 Diluted $ 0.17 $ 0.43 For the three months ended March 31, 2021, the Company excluded 0.4 million Paired Securities convertible into shares of Class A Stock as the effect was anti-dilutive. 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.

Equity Compensation Plans

Equity Compensation Plans	3 Months Ended
	Mar. 31, 2021
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. As of March 31, 2021, an aggregate of 1.9 million shares remain available for issuance or use under the 2017 Incentive Plan. Employee Stock Options In March 2021, the Company granted 0.1 million stock options under the Company’s 2017 Equity Incentive Plan to certain management of the Company. The stock options have an exercise price of $32.28 per option. The stock options expire in five years and vest over a four-year Fair market value $ 11.71 Exercise price $ 32.28 Risk free interest rate 0.45 % Expected term in years 3.46 Expected volatility 52.46 % Expected dividend yield — The following table summarizes the Company’s total stock option activity for the three months ended March 31, 2021: Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Intrinsic Value $ Options outstanding as of January 1, 2021 2,234 $ 8.71 3.5 $ 54,133 Granted 55 32.28 — — Exercised (10 ) 8.31 — — Forfeited/cancelled (5 ) 8.07 — — Options outstanding as of March 31, 2021 2,274 $ 9.28 3.3 $ 50,905 Outstanding and exercisable stock options as of March 31, 2021 are as follows: Options Outstanding Options Exercisable Exercise Prices Number of Options Outstanding Weighted (Years) Number of Options Exercisable Weighted Intrinsic $ 5.75 210 2.89 90 2.89 $ 2,336 5.95 538 2.50 325 2.50 8,354 6.51 261 3.14 105 3.14 2,653 6.65 173 3.11 65 3.11 1,617 7.99 19 3.67 5 3.67 111 8.17 225 3.50 62 3.50 1,468 8.32 216 3.25 70 3.25 1,634 8.55 179 3.50 64 3.50 1,467 12.76 25 3.95 6 3.95 118 13.12 191 4.13 48 4.13 884 15.12 3 4.13 1 4.13 14 21.70 179 4.50 — — — 32.28 55 4.96 — — — The following table summarizes the Company’s unvested stock option activity for the three months ended March 31, 2021: Options (in thousands) Weighted Average Grant Date Fair Value Nonvested options as of January 1, 2021 1,568 3.20 Granted 55 11.71 Vested (185 ) 2.50 Forfeited (5 ) 2.31 Nonvested options as of March 31, 2021 1,433 3.61 The estimated fair value of Company stock options, less expected forfeitures, is amortized over the options vesting period on a straight-line basis. The Company recognized $0.5 million and $0.2 million in stock-based compensation expense related to stock options during the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, outstanding stock options had $4.8 million of unrecognized stock compensation cost with a remaining recognition period of 2.3 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, 2021, 0.4 million of the Paired Securities remain to be exchanged for Class A Stock by the incentive unit holders. Aggregate Non-Cash Stock-Based 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-based 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-Based Compensation 2021 2020 Cost of revenues $ 45 $ 35 Marketing and sales 104 60 General and administrative 324 151 Research and development 6 4 Total non-cash stock-based compensation $ 479 $ 250

Employee Retirement Plan

Employee Retirement Plan	3 Months Ended
	Mar. 31, 2021
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’s matching contribution expense was $0.7 million and $0.4 million for the three months ended March 31, 2021 and 2020, respectively.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2021
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. As of March 31, 2021, Purple Inc. held approximately 99% of the common units of Purple LLC and Purple LLC Class B Unit holders held approximately 1% of the common units in Purple LLC. 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 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 2020 audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K/A filed May 10, 2021. The unaudited condensed consolidated financial statements were prepared on the same basis as the audited consolidated 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 31, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2021 or for any other interim period or other future year. On December 31, 2020, the Company ceased to be an emerging growth company (“EGC”) and was no longer exempt from certain reporting requirements that apply to public companies. As an EGC prior to this date, Purple Inc. had elected to use extended transition periods available to private companies for complying with new or revised accounting standards.
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, 2021, Purple Inc. had approximately a 99% 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. The holders of Purple LLC Class B Units held approximately 1% of the economic interest in Purple LLC. For further discussion see Note 13 — Stockholders’ Equity.
Reclassification	Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on net income, cash flows or shareholders’ equity previously reported.
Use of Estimates	Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to establish accounting policies and to make estimates and judgments that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. 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. The Company regularly makes significant estimates and assumptions including, but not limited to, estimates that affect revenue recognition, accounts receivable and allowance for doubtful accounts, valuation of inventories, cost of revenues, sales returns, warranty returns, warrant liability, stock based compensation, the recognition and measurement of loss contingencies, estimates of current and deferred income taxes, deferred income tax valuation allowances and amounts associated with the Company’s tax receivable agreement with InnoHold. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. Actual results could differ materially from those estimates.
Leases	Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ ”) . The Company determines if an agreement contains a lease at the inception of a contract. For leases with an initial term greater than 12 months, a related lease liability is recorded on the balance sheet at the present value of future payments discounted at the estimated fully collateralized incremental borrowing rate (discount rate) corresponding with the lease term. In addition, an ROU asset is recorded as the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any tenant improvement allowance incentives received. The Company calculates the present value of future payments using its incremental borrowing rate when the discount rate implicit in the lease is not known. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The Company determines the applicable incremental borrowing rate at the lease commencement date based on the rates of its secured borrowings, which is then adjusted for the appropriate lease term and risk premium. In determining the Company's ROU assets and operating lease liabilities, the Company applies these incremental borrowing rates to the minimum lease payments within each lease agreement. Operating lease expense is recognized on a straight-line basis over the lease term. Tenant incentive allowances received from the lessor are amortized through the ROU asset as a reduction of rent expense over the lease term. Any variable lease costs are expensed as incurred. Leases with an initial term of 12 months or less (short-term leases) are not recorded as ROU assets and corresponding lease liabilities. Short-term lease expense is recognized on a straight-line basis over the lease term. ROU assets are assessed for impairment as part of the impairment of long-lived assets, which is performed whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.
Revenue Recognition	Revenue Recognition 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. 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 that relate to borrowings are presented in the condensed consolidated balance sheet as a direct reduction 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. Debt issuance costs that relate to revolving lines of credit are carried as an asset in the condensed consolidated balance sheet and amortized to interest expense on a straight-line basis over the term of the related line of credit facility. Refer to Note 8 – Debt
Warrant Liabilities	Warrant Liabilities The Company accounted for its Incremental Loan Warrants as liability warrants under the provisions of ASC 480 - Distinguishing Liabilities from Equity The Company accounted for its public warrants in accordance with ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity” (“ASC 815”), under which these warrants did not meet the criteria for equity classification and were recorded as liabilities. Since the public warrants met the definition of a derivative as contemplated in ASC 815, these warrants were measured at fair value at inception and at each reporting date in accordance with ASC 820, Fair Value Measurement, with changes in fair value recognized in earnings in the period of change. The Company determined the fair value of the public warrants based on their public trading price. All of the public warrants were exercised during fiscal 2020.
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 instruments is estimated to be face value based on the contractual terms of the debt arrangements and market-based expectations. The public warrant liabilities are Level 1 instruments as they have quoted market prices in an active market. The sponsor and Incremental Loan warrant liabilities are Level 3 instruments and use internal models 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 generally 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 generally increase (decrease) in value if the expected average life or expected volatility were to increase (decrease). The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: March 31, (In thousands) Level 2021 2020 Public warrants 1 $ — $ 11,272 Sponsor warrants 3 19,415 4,531 Incremental Loan warrants 3 — 7,989 The following table summarizes the Company’s total Level 3 liability activity for the three months ended March 31, 2021 and 2020: (In thousands) Sponsor Incremental Total Level Fair value as of December 31, 2019 $ 7,689 $ 21,622 $ 29,311 Fair value transfer to Level 1 measurement (117 ) — (117 ) Change in valuation inputs (1) (3,041 ) (13,633 ) (16,674 ) Fair value as of March 31, 2020 $ 4,531 $ 7,989 $ 12,520 Fair value as of December 31, 2020 $ 92,708 $ — $ 92,708 Fair value of warrants exercised (64,146 ) — (64,146 ) Change in valuation inputs (1) (9,147 ) — (9,147 ) Fair value as of March 31, 2021 $ 19,415 $ — $ 19,415 (1) Changes in valuation inputs are recognized in the change in fair value – warrant liabilities in the Consolidated Statements of Income.
Income Taxes	Income Taxes In calculating the provision for interim income taxes, in accordance with ASC Topic 740, an estimated annual effective tax rate is applied to year-to-date ordinary income. At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year. This differs from the method utilized at the end of an annual period. For annual periods, 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 the non-taxable nature of the change in fair value of the warrant liability. 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 income tax benefit (expense) line in the accompanying condensed consolidated statements of income. 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 Per Share	Net Income Per Share Basic net income per common share is calculated by dividing net income attributable to common shareholders by the weighted average number of shares of Class A Stock outstanding each period. Diluted net income 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 represents 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 Class A Stock.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. This standard is currently effective and upon adoption may be applied prospectively to contract modifications made on or before December 31, 2022, when the reference rate replacement activity is expected to be completed. The interest rate on the Company’s term loan is based on LIBOR. The Company plans to apply the amendments in this update to account for any contract modifications that result from changes in the reference rate used. The Company does not expect these amendments to have a material impact on its condensed consolidated financial statements and related disclosures. 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. The adoption of this standard by the Company on January 1, 2021 did not have a material impact on the Company’s financial position, results of operations, or cash flows. Internal-Use Software 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. Because the Company lost its EGC status on December 31, 2020, the standard became effective for the Company for its annual period beginning January 1, 2020, and interim periods within the annual period beginning January 1, 2021. The Company elected to apply the amendments on a prospective basis. Adoption of this standard did not have a material impact on the Company’s financial position, results of operations, or cash flows. Measurement of Credit Losses In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which was further updated and clarified by the FASB through issuance of additional related ASUs. This guidance replaces the existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost based on expected credit losses. The estimate of expected credit losses requires the incorporation of historical information, current conditions, and reasonable and supportable forecasts. These updates are effective for public companies, excluding Smaller Reporting Companies (“SRC”), for annual periods beginning after December 15, 2019, including interim periods therein. The standard is effective for all other entities for annual periods beginning after December 15, 2022, including interim periods therein. Since the Company was considered an SRC on the deferral date of this standard, the guidance is effective for the Company’s interim and annual financial periods beginning January 1, 2023. This standard is to be applied utilizing a modified retrospective approach. The Company is currently evaluating the impact of this standard on its accounts receivable, cash and cash equivalents, and any other financial assets measured at amortized cost and do not expect that adoption will have a material impact on its consolidated financial statements or related disclosures.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Schedule of the fair value hierarchy of the valuation inputs the company utilized to determine such fair value	March 31, (In thousands) Level 2021 2020 Public warrants 1 $ — $ 11,272 Sponsor warrants 3 19,415 4,531 Incremental Loan warrants 3 — 7,989
Schedule of company’s total level 3 liability activity	(In thousands) Sponsor Incremental Total Level Fair value as of December 31, 2019 $ 7,689 $ 21,622 $ 29,311 Fair value transfer to Level 1 measurement (117 ) — (117 ) Change in valuation inputs (1) (3,041 ) (13,633 ) (16,674 ) Fair value as of March 31, 2020 $ 4,531 $ 7,989 $ 12,520 Fair value as of December 31, 2020 $ 92,708 $ — $ 92,708 Fair value of warrants exercised (64,146 ) — (64,146 ) Change in valuation inputs (1) (9,147 ) — (9,147 ) Fair value as of March 31, 2021 $ 19,415 $ — $ 19,415 (1) Changes in valuation inputs are recognized in the change in fair value – warrant liabilities in the Consolidated Statements of Income.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	3 Months Ended
	Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Schedule of revenue disaggregated by sales channel and product	Three Months Ended Channel 2021 2020 Direct-to-consumer $ 124,904 $ 80,687 Wholesale partner 61,525 41,688 Revenues, net $ 186,429 $ 122,375 Three Months Ended Product 2021 2020 Bedding $ 171,843 $ 114,501 Other 14,586 7,874 Revenues, net $ 186,429 $ 122,375

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2021
Inventory Disclosure [Abstract]
Schedule of inventories	March 31, December 31, 2021 2020 Raw materials $ 27,759 $ 26,372 Work-in-process 3,260 3,593 Finished goods 33,284 36,280 Inventory obsolescence reserve (1,021 ) (519 ) Inventories, net $ 63,282 $ 65,726

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	March 31, December 31, 2021 2020 Equipment $ 37,033 $ 30,508 Equipment in progress 21,216 18,648 Leasehold improvements 19,981 15,758 Furniture and fixtures 5,294 5,160 Office equipment 3,547 3,185 Total property and equipment 87,071 73,259 Accumulated depreciation (13,240 ) (11,773 ) Property and equipment, net $ 73,831 $ 61,486

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Schedule of lease costs	Three Months Ended 2021 2020 Operating lease costs $ 1,807 $ 1,208 Variable lease costs 95 8 Short-term lease costs 56 58 Total lease costs $ 1,958 $ 1,274
Schedule of undiscounted cash flows for each of the first five years and total remaining years to the operating lease liabilities	2021 (excluding the three months ended March 31, 2021) (1) $ (1,768 ) 2022 8,432 2023 7,851 2024 7,874 2025 7,903 Thereafter 62,996 Total operating lease payments 93,288 Less – lease payments representing interest (28,708 ) Present value of operating lease payments $ 64,580 (1) – Amount consists of $4.8 million of undiscounted cash flows offset by $6.6 million of tenant improvement allowances which are expected to be fully utilized in fiscal 2021.
Schedule of supplemental information related to the company’s consolidated statement of cash flows	Three Months Ended 2021 2020 Cash paid for amounts included in present value of operating lease liabilities $ 809 $ 423 Right-of-use assets obtained in exchange for operating lease liabilities 12,517 2,381

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2021
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract]
Schedule of other current liabilities	March 31, December 31, 2021 2020 Warranty accrual – current portion $ 3,046 $ 2,806 Long-term debt – current portion 2,007 $ 2,004 Tax receivable agreement liability – current portion 5,916 6,545 Insurance financing 1,253 910 Income taxes payable 1,926 — Other 1,170 1,318 Total other current liabilities $ 15,318 $ 13,583

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Schedule of long-term debt	March 31, December 31, 2021 2020 Term loan $ 43,875 $ 44,438 Less: unamortized debt issuance costs (962 ) (1,024 ) Total debt 42,913 43,414 Less: current portion of debt (2,007 ) (2,004 ) Long-term debt, net $ 40,906 $ 41,410

Warrant Liabilities (Tables)

Warrant Liabilities (Tables)	3 Months Ended
	Mar. 31, 2021
Warrant Liabilities (Tables) [Line Items]
Schedule of fair value of the incremental loan warrants	Trading price of common stock on measurement date $ 5.68 Exercise price $ 5.74 Risk free interest rate 0.37 % Warrant life in years 3.9 Expected volatility 44.16 % Expected dividend yield — Probability of warrant re-price 50.00 %
Black Scholes Model [Member]
Warrant Liabilities (Tables) [Line Items]
Schedule of fair value of the incremental loan warrants	March 31, 2021 2020 Trading price of common stock on measurement date $ 31.65 $ 5.68 Exercise price $ 5.75 $ 5.75 Risk free interest rate 0.16 % 0.29 % Warrant life in years 1.8 2.8 Expected volatility 53.48 % 55.84 % Expected dividend yield — —

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	3 Months Ended
	Mar. 31, 2021
Other Longterm Liabilities [Abstract]
Schedule of other long-term liabilities	March 31, December 31, 2021 2020 Warranty accrual $ 9,375 $ 8,397 Other 932 912 Total 10,307 9,309 Less: current portion of warranty accrual (3,046 ) (2,806 ) Other long-term liabilities, net of current portion $ 7,261 $ 6,503

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Schedule of basic and diluted weighted average shares outstanding and earnings per share	Three Months Ended 2021 2020 Numerator: Net income attributable to Purple Innovation, Inc. – basic $ 20,824 $ 16,835 Less: dilutive effect of change in fair value – warrant liabilities (9,147 ) (5,958 ) Net income attributable to Purple Innovation, Inc. – diluted $ 11,677 $ 10,877 Denominator: Weighted average shares—basic 64,592 22,675 Add: dilutive effects of equity awards 1,545 1,390 Add: dilutive effects of warrants 2,235 1,262 Weighted average shares—diluted 68,372 25,327 Net income per common share: Basic $ 0.32 $ 0.74 Diluted $ 0.17 $ 0.43

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Schedule of fair market value using Black-Scholes method	Fair market value $ 11.71 Exercise price $ 32.28 Risk free interest rate 0.45 % Expected term in years 3.46 Expected volatility 52.46 % 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 $ Options outstanding as of January 1, 2021 2,234 $ 8.71 3.5 $ 54,133 Granted 55 32.28 — — Exercised (10 ) 8.31 — — Forfeited/cancelled (5 ) 8.07 — — Options outstanding as of March 31, 2021 2,274 $ 9.28 3.3 $ 50,905
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 $ 5.75 210 2.89 90 2.89 $ 2,336 5.95 538 2.50 325 2.50 8,354 6.51 261 3.14 105 3.14 2,653 6.65 173 3.11 65 3.11 1,617 7.99 19 3.67 5 3.67 111 8.17 225 3.50 62 3.50 1,468 8.32 216 3.25 70 3.25 1,634 8.55 179 3.50 64 3.50 1,467 12.76 25 3.95 6 3.95 118 13.12 191 4.13 48 4.13 884 15.12 3 4.13 1 4.13 14 21.70 179 4.50 — — — 32.28 55 4.96 — — —
Schedule of unvested stock option activity	Options (in thousands) Weighted Average Grant Date Fair Value Nonvested options as of January 1, 2021 1,568 3.20 Granted 55 11.71 Vested (185 ) 2.50 Forfeited (5 ) 2.31 Nonvested options as of March 31, 2021 1,433 3.61
Schedule of total non-cash stock compensation and the associated line item on the statement of operations	(in thousands) Three Months Ended Non-Cash Stock-Based Compensation 2021 2020 Cost of revenues $ 45 $ 35 Marketing and sales 104 60 General and administrative 324 151 Research and development 6 4 Total non-cash stock-based compensation $ 479 $ 250

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)shares
Accounting Policies [Abstract]
Economic interest	99.00%
Liabilities percentage	100.00%
Interest rate	1.00%
Operating lease right of use assets	$ 27.9
Operating lease liabilities	33
Pre-existing liabilities	$ 5.1
Sponsor warrants outstanding | shares	1.9

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - Schedule of the fair value hierarchy of the valuation inputs the company utilized to determine such fair value - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Level 1 [Member] | Public Warrants [Member]
Summary of Significant Accounting Policies (Details) - Schedule of the fair value hierarchy of the valuation inputs the company utilized to determine such fair value [Line Items]
Fair value of warrants		$ 11,272
Level 3 [Member] | Sponsor Warrants [Member]
Summary of Significant Accounting Policies (Details) - Schedule of the fair value hierarchy of the valuation inputs the company utilized to determine such fair value [Line Items]
Fair value of warrants	19,415	4,531
Level 3 [Member] | Incremental Loan Warrants [Member]
Summary of Significant Accounting Policies (Details) - Schedule of the fair value hierarchy of the valuation inputs the company utilized to determine such fair value [Line Items]
Fair value of warrants		$ 7,989

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details) - Schedule of company’s total level 3 liability activity - Level 3 [Member] - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Summary of Significant Accounting Policies (Details) - Schedule of company’s total level 3 liability activity [Line Items]
Fair value as of beginning		$ 92,708	$ 29,311
Fair value of warrants exercised		(64,146)
Fair value transfer to Level 1 measurement			(117)
Change in valuation inputs	[1]	(9,147)	(16,674)
Fair value as of ending		19,415	12,520
Sponsor Warrants [Member]
Summary of Significant Accounting Policies (Details) - Schedule of company’s total level 3 liability activity [Line Items]
Fair value as of beginning		92,708	7,689
Fair value of warrants exercised		(64,146)
Fair value transfer to Level 1 measurement			(117)
Change in valuation inputs	[1]	(9,147)	(3,041)
Fair value as of ending		19,415	4,531
Incremental Loan Warrants [Member]
Summary of Significant Accounting Policies (Details) - Schedule of company’s total level 3 liability activity [Line Items]
Fair value as of beginning			21,622
Fair value of warrants exercised
Fair value transfer to Level 1 measurement
Change in valuation inputs	[1]		(13,633)
Fair value as of ending			$ 7,989
[1]	Changes in valuation inputs are recognized in the change in fair value – warrant liabilities in the Consolidated Statements of Income.

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Customer prepayments	$ 7,901	$ 6,253

Revenue from Contracts with C_4

Revenue from Contracts with Customers (Details) - Schedule of revenue disaggregated by sales channel and product - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Channel [Member]
Disaggregation of Revenue [Line Items]
Revenues, net	$ 186,429	$ 122,375
Product [Member]
Disaggregation of Revenue [Line Items]
Revenues, net	186,429	122,375
Direct-to-consumer [Member] | Channel [Member]
Disaggregation of Revenue [Line Items]
Revenues, net	124,904	80,687
Wholesale partner [Member] | Channel [Member]
Disaggregation of Revenue [Line Items]
Revenues, net	61,525	41,688
Bedding [Member] | Product [Member]
Disaggregation of Revenue [Line Items]
Revenues, net	171,843	114,501
Other [Member] | Product [Member]
Disaggregation of Revenue [Line Items]
Revenues, net	$ 14,586	$ 7,874

Inventories (Details) - Schedul

Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Schedule of inventories [Abstract]
Raw materials	$ 27,759	$ 26,372
Work-in-process	3,260	3,593
Finished goods	33,284	36,280
Inventory obsolescence reserve	(1,021)	(519)
Inventories, net	$ 63,282	$ 65,726

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1.5	$ 1.2

Property and Equipment (Detai_2

Property and Equipment (Details) - Schedule of property and equipment - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Schedule of property and equipment [Abstract]
Equipment	$ 37,033	$ 30,508
Equipment in progress	21,216	18,648
Leasehold improvements	19,981	15,758
Furniture and fixtures	5,294	5,160
Office equipment	3,547	3,185
Total property and equipment	87,071	73,259
Accumulated depreciation	(13,240)	(11,773)
Property and equipment, net	$ 73,831	$ 61,486

Leases (Details)

Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Leases (Details) [Line Items]
Initial lease terms	16 years
Lease term	7 years
Finance lease right of use asset (in Dollars)	$ 0.8	$ 0.6
Undiscounted cash flows (in Dollars)	4.8
Tenant improvement allowances (in Dollars)	$ 6.6
Weighted-average remaining term of operating leases	12 years 3 months 18 days	11 years 9 months 18 days
Weighted-average discount rate	5.60%	6.18%
Vehicles and Other Equipment [Member] | Minimum [Member]
Leases (Details) [Line Items]
Lease term	3 years
Vehicles and Other Equipment [Member] | Maximum [Member]
Leases (Details) [Line Items]
Lease term	5 years

Leases (Details) - Schedule of

Leases (Details) - Schedule of lease costs - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of lease costs [Abstract]
Operating lease costs	$ 1,807	$ 1,208
Variable lease costs	95	8
Short-term lease costs	56	58
Total lease costs	$ 1,958	$ 1,274

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of undiscounted cash flows for each of the first five years and total remaining years to the operating lease liabilities $ in Thousands	Mar. 31, 2021USD ($)
Schedule of undiscounted cash flows for each of the first five years and total remaining years to the operating lease liabilities [Abstract]
2021 (excluding the three months ended March 31, 202)	$ (1,768)	[1]
2022	8,432
2023	7,851
2024	7,874
2025	7,903
Thereafter	62,996
Total operating lease payments	93,288
Less – lease payments representing interest	(28,708)
Present value of operating lease payments	$ 64,580
[1]	Amount consists of $4.8 million of undiscounted cash flows offset by $6.6 million of tenant improvement allowances which are expected to be fully utilized in fiscal 2021.

Leases (Details) - Schedule o_3

Leases (Details) - Schedule of supplemental information related to the company’s consolidated statement of cash flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of supplemental information related to the company’s consolidated statement of cash flows [Abstract]
Cash paid for amounts included in present value of operating lease liabilities	$ 809	$ 423
Right-of-use assets obtained in exchange for operating lease liabilities	$ 12,517	$ 2,381

Other Current Liabilities (Deta

Other Current Liabilities (Details) - Schedule of other current liabilities - Other Current Liabilities [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Other Current Liabilities (Details) - Schedule of other current liabilities [Line Items]
Warranty accrual – current portion	$ 3,046	$ 2,806
Long-term debt – current portion	2,007	2,004
Tax receivable agreement liability – current portion	5,916	6,545
Insurance financing	1,253	910
Income taxes payable	1,926
Other	1,170	1,318
Total other current liabilities	$ 15,318	$ 13,583

Debt (Details)

Debt (Details) - USD ($)	Sep. 03, 2020	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020
Debt (Details) [Line Items]
Principal amount	$ 45,000,000
Amount of revolving line of credit	55,000,000
Line of credit interest rate, description		The borrowing rates for the term loan are based on Purple LLC’s leverage ratio, as defined in the 2020 Credit Agreement, and can range from LIBOR plus a 3.00% to 3.75% margin with a LIBOR minimum of 0.50%. The initial borrowing rate of 3.50% is based on LIBOR plus 3.00%. The term loan will be repaid in accordance with a five-year amortization schedule and may be prepaid in whole or in part at any time without premium or penalty, subject to reimbursement of certain costs.
Interest expense		$ 0.6		$ 1.2
Loan Agreement [Member]
Debt (Details) [Line Items]
Amount of revolving line of credit		$ 55,000,000
Long term debt term		5 years
Debt issuance costs		$ 2,500,000
Total amount paid for the retirement	45,000,000
Original principal payment	25,000,000
Fair value of the incremental loan	10,000,000
Paid-in-kind interest	6,600,000
Prepayment fee	2,500,000
Accrued interest	$ 900,000
Loss on extinguishment of debt			$ 5,800,000
2020 Credit Agreement [Member]
Debt (Details) [Line Items]
Issuance cost related to debt		$ 1,100,000
Minimum [Member]
Debt (Details) [Line Items]
Interest rates, percentage		3.00%
Maximum [Member]
Debt (Details) [Line Items]
Interest rates, percentage		3.75%
Revolving Credit Facility [Member] | Loan Agreement [Member]
Debt (Details) [Line Items]
Debt issuance costs		$ 1,400,000

Debt (Details) - Schedule of lo

Debt (Details) - Schedule of long-term debt - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Schedule of long-term debt [Abstract]
Term loan	$ 43,875	$ 44,438
Less: unamortized debt issuance costs	(962)	(1,024)
Total debt	42,913	43,414
Less: current portion of debt	(2,007)	(2,004)
Long-term debt, net	$ 40,906	$ 41,410

Warrant Liabilities (Details)

Warrant Liabilities (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Nov. 09, 2020	Sep. 09, 2020	May 31, 2020	May 14, 2020	Dec. 31, 2019	Nov. 08, 2019
Warrant Liabilities (Details) [Line Items]
Issuance of shares	2,300
Fair value (in Dollars)	$ 19.4
Fair value of warrants outstanding (in Dollars)	15.8
Losses (in Dollars)	$ 9.1	$ 8
Sponsor Warrants [Member]
Warrant Liabilities (Details) [Line Items]
Warrants were exercised	6,600
Warrants outstanding	1,900
Warrant [Member]
Warrant Liabilities (Details) [Line Items]
Amended and restated credit agreement, description	two of the lenders who originally financed the Related Party loan (the “Incremental Lenders”) funded a $10.0 million increase in the loan and received 2.6 million warrants (“Incremental Loan 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. In May 2020, Tony Pearce or Terry Pearce individually or together ceased to beneficially own at least 50% of the voting securities of the Company. As a result, the exercise price of the warrants was reduced to zero based on the formula established in the agreement. The Company accounted for the Incremental Loan Warrants as liabilities in accordance with ASC 480 - Distinguishing Liabilities from Equity and recorded them at fair value on the date of the transaction and subsequently re-measured to fair value at each reporting date with changes in the fair value included in earnings.
Fair value of the incremental loan warrants (in Dollars)		$ 13.6
Public Warrants [Member]
Warrant Liabilities (Details) [Line Items]
Warrants were exercised	18,800
Sponsor Warrants [Member]
Warrant Liabilities (Details) [Line Items]
Warrants were exercised	9,600
Class A Common Stock [Member]
Warrant Liabilities (Details) [Line Items]
Shares Issued	1,300			2,600	16,800	2,600	12,400		11,500
Warrants outstanding	66,303	23,622	63,914					22,494
Class A Common Stock [Member] | Sponsor Warrants [Member]
Warrant Liabilities (Details) [Line Items]
Shares Issued	2,300

Warrant Liabilities (Details) -

Warrant Liabilities (Details) - Schedule of fair value of the incremental loan warrants	3 Months Ended
	Mar. 31, 2021$ / shares
Schedule of fair value of the incremental loan warrants [Abstract]
Trading price of common stock on measurement date (in Dollars per share)	$ 5.68
Exercise price (in Dollars per share)	$ 5.74
Risk free interest rate	0.37%
Warrant life in years	3 years 10 months 24 days
Expected volatility	44.16%
Expected dividend yield
Probability of warrant re-price	50.00%

Warrant Liabilities (Details)_2

Warrant Liabilities (Details) - Schedule of fair value of the incremental loan warrants - Black Scholes Model [Member] - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Warrant Liabilities (Details) - Schedule of fair value of the incremental loan warrants [Line Items]
Trading price of common stock on measurement date (in Dollars per share)	$ 31.65	$ 5.68
Exercise price (in Dollars per share)	$ 5.75	$ 5.75
Risk free interest rate	0.16%	0.29%
Warrant life in years	1 year 9 months 18 days	2 years 9 months 18 days
Expected volatility	53.48%	55.84%
Expected dividend yield

Other Long-Term Liabilities (De

Other Long-Term Liabilities (Details) - Schedule of other long-term liabilities - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Schedule of other long-term liabilities [Abstract]
Warranty accrual	$ 9,375	$ 8,397
Other	932	912
Total	10,307	9,309
Less: current portion of warranty accrual	(3,046)	(2,806)
Other long-term liabilities, net of current portion	$ 7,261	$ 6,503

Commitments and Contingencies (

Commitments and Contingencies (Details) shares in Millions, $ in Millions, $ in Millions

Sep. 09, 2019CAD ($)

Jan. 19, 2021

Sep. 20, 2019USD ($)

Feb. 28, 2018

Feb. 28, 2018

Oct. 31, 2017

Mar. 31, 2021USD ($)shares

Mar. 31, 2020USD ($)shares

Nov. 09, 2020shares

Sep. 09, 2020shares

May 31, 2020shares

May 14, 2020shares

Nov. 08, 2019shares

Commitments and Contingencies (Details) [Line Items]

Required member distributions, percentage

45.00%

Tax liability

$ 0.2

Accrued tax liability

0.2

Service agreement, description

the Company entered into an electric service agreement with the local power company in Grantsville, Utah. 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.

Termination penalty

0.8

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. In April 2019, the contract was amended to provide for a minimum purchase commitment over a four-year period ending in April 2023.

Purchases contract totaling

$ 3.6

$ 2.4

Indemnification obligations, description

In connection with the Business Combination, to secure 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 were deposited in an escrow account for up to three years from the date of the Business Combination pursuant to a contingency escrow agreement. In September 2020, an amendment to the escrow agreement was signed whereby the 0.5 million shares of Class B Stock and 0.5 million Class B Units held in escrow were exchanged for $5.0 million. On February 3, 2021 the Company received $4.1 million from InnoHold as reimbursement for amounts that qualified for indemnification from the $5.0 million being held in escrow. The remaining $0.9 million in escrow was returned to InnoHold. The amount received from InnoHold was recorded as additional paid-in capital in the condensed consolidated balance sheet.

Subscription agreement and preemptive rights, description

in connection with the Business Combination, the Company entered into a subscription agreement with Coliseum Capital Partners (“CCP”) and Blackwell Partners LLC – Series A (“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 Coliseum Co-Invest Debt Fund, L.P. (“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.

Security for perfect sense’s costs

$ 15,000

Paid for duties

$ 7

Damages, description

Purple seeks monetary damages, injunctive relief, and declaratory judgment based on certain conduct by ReST (“Case I”). On October 21, 2020, shortly after the complaint was filed in Case I, ReST filed a retaliatory lawsuit against Purple LLC, Gary DiCamillo, Adam Gray, Joseph Megibow, Terry Pearce, and Tony Pearce, also in the United States District Court for the District of Utah (“Case II”). Subsequently, the two cases were consolidated into one. Case II (now combined with Case I) involves many of the same facts and transactions as Case I.   On January 19, 2021, ReST filed a motion to compel arbitration of the claims in Case I.  Purple LLC opposed the motion to compel arbitration, arguing that ReST waived any rights they may have had to arbitration and that all the claims in both cases should stay in the courts.  Briefing is complete on ReST’s motion to compel arbitration, and the Court has set a hearing for May 25, 2021 to hear argument from the lawyers on the motion.  On March 5, 2021, Purple LLC, Gary DiCamillo, Adam Gray, Joseph Megibow, Terry Pearce, and Tony Pearce, filed a motion to dismiss the claims set forth in Case II. Briefing on the motion to dismiss is ongoing.  Purple LLC seeks over $4 million in damages from ReST, whereas ReST claims that Purple is liable to it for tens of millions of dollars.

Class A common stock [Member]

Commitments and Contingencies (Details) [Line Items]

Shares issued | shares

1.3

2.6

16.8

2.6

12.4

11.5

Securities exchanged for shares | shares

0.1

1.1

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Sep. 03, 2020	Aug. 14, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Nov. 09, 2020	Sep. 09, 2020	May 31, 2020	May 14, 2020	Nov. 08, 2019
Related Party Transactions (Details) [Line Items]
Principal amount						$ 25
Amended and restated credit agreement, description						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, the Incremental Lenders funded a $10.0 million increase in the Related Party Loan and 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. In accordance with an amendment to the Related Party Loan dated March 27, 2020, the Company did not make any cash interest payments to the Lenders during the first and second quarters of 2020. On September 3, 2020, the Company paid $45.0 million to retire, in full, the Related Party Loan. The payment included the $25.0 million original loan under the agreement, $10.0 million for the subsequent incremental loan, $6.6 million of paid-in-kind interest, $2.5 million in a prepayment fee and $0.9 million in accrued interest .
Business combination purchase share (in Shares)					4
Purchase price per share (in Dollars per share)	$ 10
Subscription agreement, description	(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.
Voting securities percentage									50.00%
Number of paired securities exchanged (in Shares)			0.1
Consideration of license agreement amount		$ 8.5
Tax distributions			$ 0.3
Class A common stock [Member]
Related Party Transactions (Details) [Line Items]
Shares issued (in Shares)			1.3				2.6	16.8	2.6	12.4	11.5
TNT [Member]
Related Party Transactions (Details) [Line Items]
Rent expense			$ 0.2	$ 0.2

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	1 Months Ended		3 Months Ended
	Nov. 30, 2020	May 31, 2020	Mar. 31, 2021	Dec. 31, 2020	Nov. 09, 2020	Sep. 09, 2020	May 14, 2020	Nov. 08, 2019	Dec. 31, 2018
Stockholders' Equity (Details) [Line Items]
Preferred stock authorized			5,000
Preferred stock par value (in Dollars per share)			$ 0.0001
Warranty, description			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.
Redemption price per warrant (in Dollars per share)	$ 0.01
Percentage of noncontrolling interest			1.00%						82.00%
Public warrants [Member]
Stockholders' Equity (Details) [Line Items]
Redemption price per warrant (in Dollars per share)	$ 0.01
Sponsor Warrants [Member]
Stockholders' Equity (Details) [Line Items]
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.
Warrants were exercised			6,600
Warrants outstanding			1,900
Public and Sponsor Warrants [Member] | Public warrants [Member]
Stockholders' Equity (Details) [Line Items]
Warrants issued			15,500
Public and Sponsor Warrants [Member] | Sponsor Warrants [Member]
Stockholders' Equity (Details) [Line Items]
Warrants issued			12,800
Tony Pearce [Member]
Stockholders' Equity (Details) [Line Items]
Warrants, description		beneficially own at least 50% of the voting securities of the Company. As a result, the exercise price of the warrants was reduced to zero based on the formula established in the agreement.
Class A common stock [Member]
Stockholders' Equity (Details) [Line Items]
Common stock authorized			210,000	210,000
Common stock, par value (in Dollars per share)			$ 0.0001	$ 0.0001
Common stock, shares outstanding			66,303	63,914
Shares issued		2,600	1,300		2,600	16,800	12,400	11,500
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. During fiscal 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.
Warrants, description			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.
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; 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.
Incremental loan amount (in Dollars)			$ 2.6
Purchase warrants, shares			2,600
Warrants to purchase of common stock price per share (in Dollars per share)			$ 5.74
Common stock issued			66,303	63,914
Class A common stock [Member] | Sponsor Warrants [Member]
Stockholders' Equity (Details) [Line Items]
Shares issued			2,300
Class A common stock [Member] | Incremental Loan Warrants [Member]
Stockholders' Equity (Details) [Line Items]
Common stock issued					2,600
Class B Common Stock [Member]
Stockholders' Equity (Details) [Line Items]
Common stock authorized			90,000	90,000
Common stock, par value (in Dollars per share)			$ 0.0001	$ 0.0001
Common stock, shares outstanding			448	536
Common stock issued			448	536
Series B Stock [Member] | InnoHold [Member]
Stockholders' Equity (Details) [Line Items]
Shares issued			44,100

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Income Taxes (Details) [Line Items]
Additional valuation allowance		$ 44,300	$ 17,800
Income tax, description	As a result, $35.5 million of the valuation allowance associated with the Company’s federal and state deferred tax assets was released during 2020 and recorded as an income tax benefit. The deferred tax assets at March 31, 2021 totaled $210.4 million, which is net of a $69.7 million valuation allowance that has been recorded against the residual outside partnership basis for the amount the Company believes is not more likely than not realizable.
Deferred tax asset, valuation allowance			$ 35,500
Annual effective income tax rate	26.35%
federal rate percentage	21.00%
Income tax expense	$ 4,651	$ (284)
Effective tax rate percentage	18.20%
Estimated future cash tax savings percent, description	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 tax receivable agreement 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.
Tax Receivable Agreement [Member]
Income Taxes (Details) [Line Items]
Tax receivable agreement, description	As a result of the initial merger transaction and the subsequent exchanges of Class B Units for Class A Stock, the potential future tax receivable agreement liability is $171.9 million. Of the tax receivable agreement liability recorded during the three months ended March 31, 2021, $0.8 million relates to current year exchanges and was recorded as an adjustment to stockholders’ equity and $0.2 million was recorded as income in the condensed consolidated statement of income to reflect the impact of the change in rate associated with state income taxes.
Corporate Taxpayers [Member]
Income Taxes (Details) [Line Items]
Income tax, description	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.
InnoHold [Member]
Income Taxes (Details) [Line Items]
Tax receivable agreement, percentage	80.00%

Net Income Per Common Share (De

Net Income Per Common Share (Details) - Class A common stock [Member] - shares shares in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Income Per Common Share (Details) [Line Items]
Excluded shares of paired securities convertible into shares	0.4	31.3
Shares issuable upon conversion of warrants and stock options		14.2
Share convertible anti-dilutive		0.1

Net Income Per Common Share (_2

Net Income Per Common Share (Details) - Schedule of basic and diluted weighted average shares outstanding and earnings per share - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator:
Net income attributable to Purple Innovation, Inc. – basic (in Dollars)	$ 20,824	$ 16,835
Less: dilutive effect of change in fair value – warrant liabilities (in Dollars)	(9,147)	(5,958)
Net income attributable to Purple Innovation, Inc. – diluted (in Dollars)	$ 11,677	$ 10,877
Denominator:
Weighted average shares—basic	64,592	22,675
Add: dilutive effects of equity awards	1,545	1,390
Add: dilutive effects of warrants	2,235	1,262
Weighted average shares—diluted	68,372	25,327
Net income per common share:
Basic (in Dollars per share)	$ 0.32	$ 0.74
Diluted (in Dollars per share)	$ 0.17	$ 0.43

Equity Compensation Plans (Deta

Equity Compensation Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 31, 2017	Mar. 31, 2021	Dec. 31, 2020
Equity Compensation Plans (Details) [Line Items]
Non cash stock compensation expense (in Dollars)		$ 0.4
Minimum [Member]
Equity Compensation Plans (Details) [Line Items]
Options expiry period		4 years
Maximum [Member]
Equity Compensation Plans (Details) [Line Items]
Options expiry period		5 years
InnoHold [Member]
Equity Compensation Plans (Details) [Line Items]
Paired securities held by InnoHold		2.5
Employee Stock Option [Member]
Equity Compensation Plans (Details) [Line Items]
Stock option granted shares (in Dollars per share)		$ 100,000
Stock option exercise price (in Dollars per share)		$ 32.28
Stock-based compensation expense (in Dollars)		$ 0.5	$ 0.2
Unrecognized compensation cost (in Dollars)		$ 4.8
Remaining recognition period		2 years 3 months 18 days
2017 Equity Incentive Plan [Member]
Equity Compensation Plans (Details) [Line Items]
Aggregate shares of common stock, granted		1.9
2016 Equity Incentive Plan [Member] | InnoHold [Member]
Equity Compensation Plans (Details) [Line Items]
Aggregate shares of common stock, granted	11.3
Aggregate shares of common stock	12
Common Class B [Member] | InnoHold [Member]
Equity Compensation Plans (Details) [Line Items]
Paired securities held by InnoHold	2.5

Equity Compensation Plans (De_2

Equity Compensation Plans (Details) - Schedule of fair market value using Black-Scholes method - Employee Stock [Member]	3 Months Ended
	Mar. 31, 2021USD ($)$ / shares
Equity Compensation Plans (Details) - Schedule of fair market value using Black-Scholes method [Line Items]
Fair market value	$ 11.71
Exercise price	$ 32.28
Risk free interest rate	0.45%
Expected term in years	3 years 5 months 15 days
Expected volatility	52.46%
Expected dividend yield | $

Equity Compensation Plans (De_3

Equity Compensation Plans (Details) - Schedule of total stock option activity $ / shares in Units, shares in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)$ / sharesshares
Schedule of total stock option activity [Abstract]
Options outstanding as of January 1, 2021 | shares	2,234
Weighted Average Exercise Price, Options outstanding as of January 1, 2021 | $ / shares	$ 8.71
Weighted Average Remaining Contractual Term in Years, Options outstanding as of January 1, 2021	3 years 6 months
Intrinsic Value, Options outstanding as of January 1, 2021 | $	$ 54,133
Options, Granted | shares	55
Weighted Average Exercise Price, Granted | $ / shares	$ 32.28
Intrinsic Value, Granted | $
Options, Exercised | shares	(10)
Weighted Average Exercise Price, Exercised | $ / shares	$ 8.31
Intrinsic Value, Exercised | $
Options, Forfeited/expired | shares	(5)
Weighted Average Exercise Price, Forfeited/expired | $ / shares	$ 8.07
Intrinsic Value, Forfeited/expired | $
Options, Options outstanding as of March 31, 2021 | shares	2,274
Weighted Average Exercise Price, Options outstanding as of March 31, 2021 | $ / shares	$ 9.28
Weighted Average Remaining Contractual Term in Years, Options outstanding as of March 31, 2021	3 years 3 months 18 days
Intrinsic Value, outstanding, Options outstanding as of March 31, 2021 | $	$ 50,905

Equity Compensation Plans (De_4

Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options $ / shares in Units, shares in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)$ / sharesshares
5.75 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 5.75
Options Outstanding Number of Options Outstanding	210
Options Outstanding Weighted Average Remaining Life (Years)	2 years 10 months 20 days
Options Exercisable, Number of Options Exercisable	90
Options Exercisable, Weighted Average Remaining Life (Years)	2 years 10 months 20 days
Options Exercisable, Intrinsic Value | $	$ 2,336
5.95 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 5.95
Options Outstanding Number of Options Outstanding	538
Options Outstanding Weighted Average Remaining Life (Years)	2 years 6 months
Options Exercisable, Number of Options Exercisable	325
Options Exercisable, Weighted Average Remaining Life (Years)	2 years 6 months
Options Exercisable, Intrinsic Value | $	$ 8,354
6.51 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 6.51
Options Outstanding Number of Options Outstanding	261
Options Outstanding Weighted Average Remaining Life (Years)	3 years 1 month 20 days
Options Exercisable, Number of Options Exercisable	105
Options Exercisable, Weighted Average Remaining Life (Years)	3 years 1 month 20 days
Options Exercisable, Intrinsic Value | $	$ 2,653
6.65 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 6.65
Options Outstanding Number of Options Outstanding	173
Options Outstanding Weighted Average Remaining Life (Years)	3 years 1 month 9 days
Options Exercisable, Number of Options Exercisable	65
Options Exercisable, Weighted Average Remaining Life (Years)	3 years 1 month 9 days
Options Exercisable, Intrinsic Value | $	$ 1,617
7.99 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 7.99
Options Outstanding Number of Options Outstanding	19
Options Outstanding Weighted Average Remaining Life (Years)	3 years 8 months 1 day
Options Exercisable, Number of Options Exercisable	5
Options Exercisable, Weighted Average Remaining Life (Years)	3 years 8 months 1 day
Options Exercisable, Intrinsic Value | $	$ 111
8.17 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 8.17
Options Outstanding Number of Options Outstanding	225
Options Outstanding Weighted Average Remaining Life (Years)	3 years 6 months
Options Exercisable, Number of Options Exercisable	62
Options Exercisable, Weighted Average Remaining Life (Years)	3 years 6 months
Options Exercisable, Intrinsic Value | $	$ 1,468
8.32 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 8.32
Options Outstanding Number of Options Outstanding	216
Options Outstanding Weighted Average Remaining Life (Years)	3 years 3 months
Options Exercisable, Number of Options Exercisable	70
Options Exercisable, Weighted Average Remaining Life (Years)	3 years 3 months
Options Exercisable, Intrinsic Value | $	$ 1,634
8.55 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 8.55
Options Outstanding Number of Options Outstanding	179
Options Outstanding Weighted Average Remaining Life (Years)	3 years 6 months
Options Exercisable, Number of Options Exercisable	64
Options Exercisable, Weighted Average Remaining Life (Years)	3 years 6 months
Options Exercisable, Intrinsic Value | $	$ 1,467
12.76 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 12.76
Options Outstanding Number of Options Outstanding	25
Options Outstanding Weighted Average Remaining Life (Years)	3 years 11 months 12 days
Options Exercisable, Number of Options Exercisable	6
Options Exercisable, Weighted Average Remaining Life (Years)	3 years 11 months 12 days
Options Exercisable, Intrinsic Value | $	$ 118
13.12 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 13.12
Options Outstanding Number of Options Outstanding	191
Options Outstanding Weighted Average Remaining Life (Years)	4 years 1 month 17 days
Options Exercisable, Number of Options Exercisable	48
Options Exercisable, Weighted Average Remaining Life (Years)	4 years 1 month 17 days
Options Exercisable, Intrinsic Value | $	$ 884
15.12 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 15.12
Options Outstanding Number of Options Outstanding	3
Options Outstanding Weighted Average Remaining Life (Years)	4 years 1 month 17 days
Options Exercisable, Number of Options Exercisable	1
Options Exercisable, Weighted Average Remaining Life (Years)	4 years 1 month 17 days
Options Exercisable, Intrinsic Value | $	$ 14
21.70 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 21.70
Options Outstanding Number of Options Outstanding	179
Options Outstanding Weighted Average Remaining Life (Years)	4 years 6 months
Options Exercisable, Number of Options Exercisable
Options Exercisable, Weighted Average Remaining Life (Years)
Options Exercisable, Intrinsic Value | $
32.28 [Member]
Equity Compensation Plans (Details) - Schedule of outstanding and exercisable stock options [Line Items]
Options Outstanding, Exercise Prices | $ / shares	$ 32.28
Options Outstanding Number of Options Outstanding	55
Options Outstanding Weighted Average Remaining Life (Years)	4 years 11 months 15 days
Options Exercisable, Number of Options Exercisable
Options Exercisable, Weighted Average Remaining Life (Years)
Options Exercisable, Intrinsic Value | $

Equity Compensation Plans (De_5

Equity Compensation Plans (Details) - Schedule of unvested stock option activity shares in Thousands	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Schedule of unvested stock option activity [Abstract]
Options, Nonvested options as of January 1, 2021 | shares	1,568
Weighted Average Grant Date Fair Value, Nonvested options as of January 1, 2021 | $ / shares	$ 3.20
Options, Granted | shares	55
Weighted Average Grant Date Fair Value, Granted | $ / shares	$ 11.71
Options, Vested | shares	(185)
Weighted Average Grant Date Fair Value, Vested | $ / shares	$ 2.50
Options, Forfeited | shares	(5)
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	$ 2.31
Options, Nonvested options as of March 31, 2021 | shares	1,433
Weighted Average Grant Date Fair Value, Nonvested options as of March 31, 2021 | $ / shares	$ 3.61

Equity Compensation Plans (De_6

Equity Compensation Plans (Details) - Schedule of total non-cash stock compensation and the associated line item on the statement of operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Equity Compensation Plans (Details) - Schedule of total non-cash stock compensation and the associated line item on the statement of operations [Line Items]
Total non-cash stock compensation	$ 479	$ 250
Cost of revenues [Member]
Equity Compensation Plans (Details) - Schedule of total non-cash stock compensation and the associated line item on the statement of operations [Line Items]
Total non-cash stock compensation	45	35
Marketing and sales [Member]
Equity Compensation Plans (Details) - Schedule of total non-cash stock compensation and the associated line item on the statement of operations [Line Items]
Total non-cash stock compensation	104	60
General and administrative [Member]
Equity Compensation Plans (Details) - Schedule of total non-cash stock compensation and the associated line item on the statement of operations [Line Items]
Total non-cash stock compensation	324	151
Research and development [Member]
Equity Compensation Plans (Details) - Schedule of total non-cash stock compensation and the associated line item on the statement of operations [Line Items]
Total non-cash stock compensation	$ 6	$ 4

Employee Retirement Plan (Detai

Employee Retirement Plan (Details) - USD ($) $ in Millions	3 Months Ended		7 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Jul. 31, 2018
Retirement Benefits [Abstract]
Employee retirement plan, description			The plan provides for Company matching of employee contributions up to 5% of eligible earnings.
Contribution expense	$ 0.7	$ 0.4