Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 22, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39312 | ||
Entity Registrant Name | PLBY GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 37-1958714 | ||
Entity Address, Address Line One | 10960 Wilshire Blvd | ||
Entity Address, Address Line Two | Suite 2200 | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90024 | ||
City Area Code | (310) | ||
Local Phone Number | 424-1800 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Trading Symbol | PLBY | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 84 | ||
Entity Common Stock, Shares Outstanding (in shares) | 72,643,445 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement for its 2024 Annual Meeting of Stockholders, or Proxy Statement, to be filed within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, are incorporated by reference in Part III. Except with respect to information specifically incorporated by reference in this Annual Report on Form 10-K, the Proxy Statement shall not be deemed to be filed as part hereof. | ||
Entity Central Index Key | 0001803914 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 243 |
Auditor Name | BDO USA, P.C. |
Auditor Location | Los Angeles, California |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net revenues | $ 142,950 | $ 185,536 |
Costs and expenses: | ||
Cost of sales | (54,777) | (82,945) |
Selling and administrative expenses | (123,554) | (150,535) |
Impairments | (154,884) | (283,500) |
Contingent consideration fair value remeasurement gain | 436 | 29,173 |
Gain on sale of the aircraft | 0 | 5,689 |
Other operating (expense) income, net | (540) | 482 |
Total operating expense | (333,319) | (481,636) |
Operating loss | (190,369) | (296,100) |
Nonoperating (expense) income: | ||
Interest expense | (23,293) | (17,719) |
Gain (loss) on extinguishment of debt | 6,133 | (1,266) |
Fair value remeasurement gain | 6,505 | 9,401 |
Other income (expense), net | 806 | (711) |
Total nonoperating expense | (9,849) | (10,295) |
Loss from continuing operations before income taxes | (200,218) | (306,395) |
Benefit from income taxes | 13,770 | 55,704 |
Net loss from continuing operations | (186,448) | (250,691) |
Income (loss) from discontinued operations, net of tax | 6,030 | (27,013) |
Net loss | (180,418) | (277,704) |
Net loss attributable to PLBY Group, Inc. | $ (180,418) | $ (277,704) |
Net loss per share from continuing operations, basic (in dollars per share) | $ (2.60) | $ (5.28) |
Net loss per share from continuing operations, diluted (in dollars per share) | (2.60) | (5.28) |
Net income (loss) per share from discontinued operations, basic (in dollars per share) | 0.07 | (0.58) |
Net income (loss) per share from discontinued operations, diluted (in dollars per share) | 0.07 | (0.58) |
Net loss per share, basic (in dollars per share) | (2.53) | (5.86) |
Net loss per share, diluted (in dollars per share) | $ (2.53) | $ (5.86) |
Weighted average shares used in computing net loss per share, basic (in shares) | 71,319,437 | 47,420,376 |
Weighted average shares used in computing net loss per share, diluted (in shares) | 71,319,437 | 47,420,376 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (180,418) | $ (277,704) |
Other comprehensive loss: | ||
Foreign currency translation adjustment | (765) | (20,420) |
Other comprehensive loss | (765) | (20,420) |
Comprehensive loss | $ (181,183) | $ (298,124) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 28,120 | $ 31,815 |
Restricted cash | 1,587 | 0 |
Receivables, net of allowance for credit losses | 7,496 | 14,214 |
Inventories, net | 13,000 | 20,612 |
Prepaid expenses and other current assets | 7,802 | 16,276 |
Assets held for sale | 11,692 | 37,801 |
Total current assets | 69,697 | 120,718 |
Restricted cash | 1,969 | 3,809 |
Property and equipment, net | 13,514 | 13,804 |
Operating right-of-use assets | 25,284 | 28,082 |
Goodwill | 54,899 | 123,217 |
Other intangible assets, net | 157,901 | 236,137 |
Contract assets, net of current portion | 8,716 | 13,680 |
Other noncurrent assets | 2,274 | 15,137 |
Total assets | 334,254 | 554,584 |
Current liabilities: | ||
Accounts payable | 14,500 | 13,630 |
Accrued agency fees and commissions | 901 | 7,785 |
Deferred revenues, current portion | 9,205 | 10,480 |
Long-term debt, current portion | 304 | 2,050 |
Operating lease liabilities, current portion | 6,955 | 6,278 |
Other current liabilities and accrued expenses | 27,066 | 25,566 |
Liabilities held for sale | 0 | 27,126 |
Total current liabilities | 58,931 | 92,915 |
Deferred revenues, net of current portion | 4,641 | 21,406 |
Long-term debt, net of current portion | 190,115 | 191,125 |
Deferred tax liabilities, net | 9,304 | 27,414 |
Operating lease liabilities, net of current portion | 24,621 | 26,695 |
Mandatorily redeemable preferred stock, at fair value | 0 | 39,099 |
Other noncurrent liabilities | 957 | 886 |
Total liabilities | 288,569 | 399,540 |
Commitments and contingencies (Note 15) | ||
Redeemable noncontrolling interest | (208) | (208) |
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value per share, 5,000,000 shares authorized, 50,000 shares designated Series A preferred stock, of which 0 shares were issued and outstanding as of December 31, 2023; 50,000 shares were issued and outstanding as of December 31, 2022 | 0 | 0 |
Common stock, $0.0001 par value; 150,000,000 shares authorized at December 31, 2023 and 2022; 74,783,683 shares issued and 72,533,754 shares outstanding at December 31, 2023; 47,737,699 shares issued and 47,037,699 shares outstanding at December 31, 2022 | 7 | 5 |
Treasury stock, at cost: 2,249,929 shares and 700,000 shares at December 31, 2023 and 2022, respectively | (5,445) | (4,445) |
Additional paid-in capital | 690,055 | 617,233 |
Accumulated other comprehensive loss | (24,910) | (24,145) |
Accumulated deficit | (613,814) | (433,396) |
Total stockholders’ equity | 45,893 | 155,252 |
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity | $ 334,254 | $ 554,584 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock designated (in shares) | 50,000 | 50,000 |
Preferred stock issued (in shares) | 0 | 50,000 |
Preferred stock outstanding (in shares) | 0 | 50,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock issued (in shares) | 74,783,683 | 47,737,699 |
Common stock outstanding (in shares) | 72,533,754 | 47,037,699 |
Treasury stock (in shares) | 2,249,929 | 700,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Rights Offering | Private Placement | Series A Preferred Stock | Common stock | Common stock Rights Offering | Common stock Private Placement | Treasury Stock | Additional Paid-in Capital | Additional Paid-in Capital Rights Offering | Additional Paid-in Capital Private Placement | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Shares outstanding at beginning of period (in shares) at Dec. 31, 2021 | 0 | 42,296,121 | |||||||||||
Stockholders' equity at beginning of period at Dec. 31, 2021 | $ 422,491 | $ 4 | $ (4,445) | $ 586,349 | $ (3,725) | $ (155,692) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Shares issued in connection with options exercise, net exercised (in shares) | 495,052 | ||||||||||||
Shares issued in connection with options exercise, net exercised | 1,924 | 1,924 | |||||||||||
Shares issued in connection with equity incentive plans (in shares) | 3,759,122 | ||||||||||||
Shares issued in connection with equity incentive plans | 1 | $ 1 | |||||||||||
Shares issued pursuant to a license, services and collaboration agreement (in shares) | 30,911 | ||||||||||||
Shares issued in connection with asset purchase (in shares) | 103,570 | ||||||||||||
Shares issued in connection with asset purchase | 1,333 | 1,333 | |||||||||||
Shares issued in connection with preferred shares agreement (in shares) | 50,000 | ||||||||||||
Shares issued in connection with the settlement of the performance holdback contingent consideration relating to the acquisition of GlowUp (in shares) | 352,923 | ||||||||||||
Shares issued in connection with the settlement of the performance holdback contingent consideration relating to the acquisition of GlowUp | 260 | 260 | |||||||||||
Stock-based compensation expense and vesting of restricted stock units | 22,553 | 22,553 | |||||||||||
Reclassification of the fair value of the lock-up shares contingent consideration relating to the acquisition of Honey Birdette | 4,814 | 4,814 | |||||||||||
Other comprehensive loss | (20,420) | (20,420) | |||||||||||
Net loss | (277,704) | (277,704) | |||||||||||
Shares outstanding at end of period (in shares) at Dec. 31, 2022 | 50,000 | 47,037,699 | |||||||||||
Stockholders' equity at end of period at Dec. 31, 2022 | 155,252 | $ 5 | (4,445) | 617,233 | (24,145) | (433,396) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock (in shares) | 19,561,050 | 6,357,341 | |||||||||||
Issuance of common stock | $ 47,602 | $ 13,890 | $ 2 | $ 47,600 | $ 13,890 | ||||||||
Exchange of mandatorily redeemable preferred shares (in shares) | (50,000) | ||||||||||||
Shares issued in connection with equity incentive plans (in shares) | 1,124,281 | ||||||||||||
Shares issued pursuant to a license, services and collaboration agreement (in shares) | 3,312 | ||||||||||||
Shares issued in connection with asset purchase | 0 | ||||||||||||
Stock-based compensation expense and vesting of restricted stock units | $ 11,332 | 11,332 | |||||||||||
Shares repurchased pursuant to the 2022 Stock Repurchase Program (in shares) | (1,549,929) | ||||||||||||
Shares repurchased pursuant to the 2022 Stock Repurchase Program | $ (1,000) | (1,000) | |||||||||||
Other comprehensive loss | (765) | (765) | |||||||||||
Net loss | (180,418) | (180,418) | |||||||||||
Shares outstanding at end of period (in shares) at Dec. 31, 2023 | 0 | 72,533,754 | |||||||||||
Stockholders' equity at end of period at Dec. 31, 2023 | $ 45,893 | $ 7 | $ (5,445) | $ 690,055 | $ (24,910) | $ (613,814) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Cash Flows From Operating Activities | ||
Net loss | $ (180,418) | $ (277,704) |
Net loss from continuing operations | (186,448) | (250,691) |
Income (loss) from discontinued operations, net of tax | 6,030 | (27,013) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 7,199 | 12,721 |
Stock-based compensation | 9,597 | 20,540 |
Fair value remeasurement of liabilities | (6,941) | (38,574) |
Loss on extinguishment of debt | (6,133) | 1,266 |
Impairments | 154,884 | 283,500 |
Amortization of right of use assets | 5,642 | 5,439 |
Deferred income taxes | (18,039) | (62,818) |
Inventory reserves | 6,935 | 3,095 |
Gain on sale of aircraft | 0 | (5,689) |
Capitalized paid-in-kind interest | 1,848 | 0 |
Other, net | 3,815 | 101 |
Changes in operating assets and liabilities: | ||
Receivables, net | 6,570 | (925) |
Inventories | (469) | (1,069) |
Contract assets | (1,228) | 1,153 |
Prepaid expenses and other assets | 7,518 | (2,149) |
Accounts payable | 512 | (801) |
Accrued agency fees and commissions | (6,884) | 4,424 |
Deferred revenues | (18,082) | (20,546) |
Operating lease liabilities | (6,102) | (6,397) |
Other, net | 3,018 | (6,622) |
Net cash used in operating activities - continuing operations | (42,788) | (64,042) |
Net cash (used in) provided by operating activities - discontinued operations | (503) | 4,608 |
Net cash used in operating activities | (43,291) | (59,434) |
Cash Flows From Investing Activities | ||
Purchases of property and equipment | (3,547) | (7,425) |
Net proceeds from sale of aircraft | 0 | 16,802 |
Proceeds from promissory note repayment | 1,290 | 0 |
Net cash provided by investing activities - continuing operations | 13,060 | 9,377 |
Net cash used in investing activities - discontinued operations | (109) | (624) |
Net cash provided by investing activities | 12,951 | 8,753 |
Cash Flows From Financing Activities | ||
Proceeds from issuance of common stock in rights offering, net | 47,602 | 0 |
Proceeds from issuance of common stock in registered direct offering, net | 13,890 | 0 |
Net proceeds from issuance of preferred stock | 0 | 48,250 |
Settlement of the performance holdback contingent consideration | 0 | (151) |
Repayment of long-term debt | (45,628) | (35,964) |
Proceeds from issuance of long-term debt | 11,828 | 0 |
Payment of financing costs | (508) | (2,500) |
Purchase of treasury stock | (1,000) | 0 |
Proceeds from exercise of stock options | 0 | 1,924 |
Net cash provided by financing activities - continuing operations | 26,184 | 11,559 |
Effect of exchange rate changes on cash and cash equivalents | 208 | (740) |
Net decrease in cash and cash equivalents and restricted cash | (3,948) | (39,862) |
Balance, beginning of year | 35,624 | 75,486 |
Balance, end of year | 31,676 | 35,624 |
Cash and cash equivalents and restricted cash consist of: | ||
Cash and cash equivalents | 28,120 | 31,815 |
Restricted cash | 3,556 | 3,809 |
Total | 31,676 | 35,624 |
Supplemental Disclosures | ||
Cash (refunded) paid for income taxes | (1,753) | 5,327 |
Cash paid for interest | 17,258 | 15,546 |
Supplemental Disclosure of Non-cash Activities | ||
Capitalized stock-based compensation expense | 1,735 | 2,014 |
Purchases of property and equipment | 596 | 379 |
Reclassification of the fair value of the lock-up shares contingent consideration relating to the acquisition of Honey Birdette | 0 | 4,814 |
Right-of-use assets in exchange for lease liabilities - continuing operations | 4,540 | 6,209 |
Right-of-use assets in exchange for lease liabilities - discontinued operations | 1,018 | 5,750 |
Shares issued pursuant to a license, services and collaboration agreement | 0 | 237 |
Shares issued in connection with asset purchase | 0 | 1,333 |
Shares issued in connection with the settlement of the performance holdback contingent consideration relating to the acquisition of GlowUp | 0 | 260 |
Yandy | ||
Cash Flows From Investing Activities | ||
Proceeds from sale of business | 1,000 | 0 |
TLA | ||
Cash Flows From Investing Activities | ||
Proceeds from sale of business | $ 14,317 | $ 0 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Description of Business PLBY Group, Inc. (the “Company”, “PLBY”, “we”, “our” or “us”), together with its subsidiaries, through which it conducts business, is a global consumer and lifestyle company marketing the Playboy brand through a wide range of direct-to-consumer products, licensing initiatives, and digital subscriptions and content, in addition to the sale of direct-to-consumer products under its Honey Birdette brand. We have three reportable segments: Direct-to-Consumer, Licensing and Digital Subscriptions and Content. See Note 21, Segments. Basis of Presentation The consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). As discussed in Note 3, Assets and Liabilities Held for Sale and Discontinued Operations, the Yandy Enterprises LLC (“Yandy”) and TLA Acquisition Corp. (“TLA”, owner of the Lovers business) disposal groups, previously included in the Direct-to-Consumer segment, were classified as discontinued operations in the consolidated statements of operations for all periods presented. Assets and liabilities of these businesses were classified as assets and liabilities held for sale in the consolidated balance sheets as of December 31, 2022. The sale of Yandy was completed on April 4, 2023 (the “Yandy Sale”). The sale of TLA was completed on November 3, 2023. Principles of Consolidation The consolidated financial statements include our accounts and all majority-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The Company follows a monthly reporting calendar, with its fiscal year ending on December 31. Prior to the third quarter of 2022, Honey Birdette (Aust) Pty Limited (“Honey Birdette”), which the Company acquired in August 2021, had different fiscal quarter and year ends than the Company. Honey Birdette followed a fiscal calendar widely used by the retail industry which resulted in a fiscal year consisting of a 52- or 53-week period ending on the Sunday closest to December 31. Honey Birdette’s fiscal year previously consisted of four 13-week quarters, with an extra week added to each fiscal year every five or six years. Honey Birdette’s second fiscal quarter in 2022 consisted of 14 weeks. The difference in prior fiscal periods for Honey Birdette and the Company is considered to be immaterial and no related adjustments have been made in the preparation of these consolidated financial statements. Reclassifications Certain prior period amounts in the consolidated statements of operations and consolidated balance sheets have been reclassified to conform with the current period presentation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the fina ncial statements and the reported amounts of revenues and expenses during the reporting period. We regularly assess these estimates, including but not limited to, valuation of our trademarks and trade names; valuation of our contingent consideration liabilities; valuation of our only authorized and issued preferred stock (our “Series A Preferred Stock”) ; pay-per-view and video-on-demand buys, and monthly subscriptions to our television and digital content; the adequacy of reserves associated with accounts receivable and inventory; unredeemed gift cards and store credits; licensing commission accruals; and stock-based compensation expense. We base these estimates on historical experience and on various other market-specific and relevant assumptions that we believe to be reasonable under the circumstances. Actual results could differ from these estimates and such differences could be material to the financial position and results of operations. Concentrations of Business and Credit Risk We maintain certain cash balances in excess of Federal Deposit Insurance Corporation insured limits. We periodically evaluate the credit worthiness of the financial institutions with which we maintain cash deposits. We have not experienced any losses in such accounts and do not believe that there is any credit risk to our cash. Concentration of credit risk with respect to accounts receivable is limited due to the wide variety of customers to whom our products are sold and/or licensed. The following table represents receivables from the Company’s customers exceeding 10% of our total as of December 31, 2023 and 2022: Customer December 31, December 31, Customer A * 31 % _________________ *Indicates the receivables for the customer did not exceed 10% of the Company’s total as of December 31, 2023. The following table represents revenue from the Company’s customers exceeding 10% of the total for the years ended December 31, 2023 and 2022: Year Ended December 31, Customer 2023 2022 Customer A (1) 16 % 12 % _________________ (1) The agreement with this licensee was terminated in the fourth quarter of 2023. See Note 4, Revenue Recognition. Cash Equivalents Cash equivalents are temporary cash investments with an original maturity of three months or less at the date of purchase and are stated at cost, which approximates fair value. Restricted Cash At December 31, 2023 and 2022, restricted cash was primarily related to cash collateralized letters of credit we maintained in connection with the lease of our Los Angeles headquarters, Honey Birdette’s term deposit in relation to certain of its leases, as well as cash held in escrow related to the sale of TLA. Liquidity Assessment and Management’s Plan Our revenues, results of operations and cash flows have been materially adversely impacted by negative macroeconomic factors beginning in the second quarter of 2022 and continuing through 2023. The persistently challenging macroeconomic and retail environments, including reduced consumer spending and increased price sensitivity in discretionary categories, has significantly impacted our licensees’ performance. Our net revenues from continuing operations for the year ended December 31, 2023 decreased by $42.6 million, compared to the year ended December 31, 2022, and this decline, coupled with investments into our creator platform, drove our impairment charge, operating loss and net loss. For the year ended December 31, 2023, we reported an operating loss from continuing operations of $190.4 million, and negative operating cash flows from continuing operations of $42.8 million. As of December 31, 2023, we had approximately $28.1 million in unrestricted cash and cash equivalents. As of December 31, 2023, we were in compliance with the covenants under our senior secured credit agreement (including through there being no testing of our Total Net Leverage Ratio (as defined in the A&R Credit Agreement) until for the period ending March 31, 2025). However, due to ongoing negative macroeconomic factors and their uncertain impacts on our business, results of operations and cash flows, we could experience further material decreases to net sales and operating cash flows and materially higher operating losses, and may experience difficulty remaining in compliance with such covenants. See Note 10, Debt, for further details regarding the terms of our A&R Credit Agreement and the A&R Term Loans (as such terms are defined in Note 10). We expect our capital expenditures and working capital requirements in 2024 to be largely consistent with 2023, as we continue to invest in our creator platform. We may, however, need additional cash resources, to fund our operations until the creator platform achieves a level of revenue that provides for operating profitability. To the extent that our current resources are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing, or dispose of additional assets, and there can be no assurance that we will be successful in these efforts. If the financing is not available, or if the terms of financing are less desirable than we expect, we may be forced to decrease our planned level of investment in our creator platform or scale back its operations, which could have an adverse impact on our business and financial prospects. We evaluated whether there are any conditions and events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern over the next twelve months from the date of filing this Annual Report on Form 10-K. Although consequences of ongoing macroeconomic uncertainty could adversely affect our liquidity and capital resources in the future, and cash requirements may fluctuate based on the timing and extent of many factors, such as those discussed above, we believe our existing sources of liquidity, along with proceeds from asset dispositions and savings from cost reductions initiatives, will be sufficient to meet our obligations as they become due under the A&R Credit Agreement and our other obligations for at least one year following the date of the filing of this Annual Report on Form 10-K. We may seek additional equity or debt financing in the future to satisfy capital requirements, respond to adverse developments such as changes in our circumstances or unforeseen events or conditions, or fund organic or inorganic growth opportunities. However, in the event that additional financing is required from third-party sources, we may not be able to raise it on acceptable terms or at all. The accompanying consolidated financial statements are prepared in accordance with GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accounts Receivable, Net Trade receivables are reported at their outstanding unpaid balances, less allowances for expected credit losses. The allowances for expected credit losses are increased by the recognition of bad debt expense and decreased by charge-offs (net of recoveries) or by reversals to income. In determining expected credit losses, we consider our historical level of credit losses, current economic trends, and reasonable and supportable forecasts that affect the collectability of the future cash flows. A receivable balance is written off when we deem the balance to be uncollectible. The allowance for expected credit losses was immaterial at December 31, 2023 and 2022. Inventories Inventories consist primarily of finished goods and are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, and net realizable value. Inventory reserves are recorded for excess and slow-moving inventory. Our analysis includes a review of inventory quantities on hand at period-end in relation to year-to-date sales, existing orders from customers and projections for sales in the foreseeable future. The net realizable value is determined based on historical sales experience on a style-by-style basis. The valuation of inventory could be impacted by changes in public and consumer preferences, demand for product, changes in the buying patterns of both retailers and consumers and inventory management of customers. Property and Equipment, Net Property and equipment are stated at cost, less accumulated depreciation, except for assets acquired in connection with our business combinations, which are reflected at fair value at the date of combination. Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities and are immediately expensed for preliminary project activities or post-implementation activities. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. The useful life for furniture and equipment ranges from three two Intangible Assets and Goodwill Indefinite-lived intangible assets that are not amortized but subject to annual impairment testing consist of Playboy-branded trademarks. We perform annual impairment testing on our Playboy-branded trademarks in the fourth quarter of each fiscal year or when events occur or circumstances change that would, more likely than not, reduce their fair value below the carrying value. We evaluate the indefinite-lived Playboy-branded trademarks for impairment using discounted cash flow and the relief from royalty methods. This valuation approach requires that we make a number of assumptions to estimate fair value, including projections of future revenues, market royalty rates, tax rates, discount rates and other relevant variables. The projections we use in the model are updated each time a quantitative impairment test is performed and will change over time based on the historical performance and changing business conditions. If the carrying value of the trademark exceeds its estimated fair value, an impairment charge is recognized for the excess amount. We perform annual impairment testing on goodwill in the fourth quarter of each fiscal year or when events occur or circumstances change that would, more likely than not, reduce the fair value of a reporting unit below its carrying value. We may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine it is more likely than not that the fair value of the reporting unit is greater than its carrying amount, an impairment test is unnecessary. If an impairment test is necessary, we will estimate the fair value of a related reporting unit. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is determined to be impaired, and we will proceed with recording an impairment charge equal to the excess of the carrying value over the related fair value. If we determine it is more likely than not that goodwill is not impaired, a quantitative test is not necessary. In the third quarter of 2022, as a result of macroeconomic factors, we experienced declines in revenue and profitability, causing us to test the recoverability of its goodwill and other intangible assets as of September 1, 2022. The quantitative test performed indicated that the fair value of our indefinite-lived Playboy-branded trademarks was less than their carrying value. We recognized $116.0 million of impairment charges on our indefinite-lived assets at the impairment date in the third quarter of 2022. A quantitative impairment test performed on goodwill utilized the income approach, under which fair value was determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The quantitative test performed indicated that the carrying value of certain of our reporting units exceeded their fair value. As a result, we recognized $117.4 million of impairment charges on our goodwill at the impairment date in the third quarter of 2022, excluding $16.4 million of impairment charges related to discontinued operations. In the second quarter of 2023, we experienced further declines in revenue and profitability, causing us to test the recoverability of our indefinite-lived assets, including goodwill, as of June 30, 2023. As a result, w e recognized $65.5 million of impairment charges on our indefinite-lived Playboy-branded trademarks at the impairment date in the second quarter of 2023. In addition, impairment charges on our goodwill at the impairment date were $66.7 million in the second quarter of 2023. There were no impairment charges to goodwill recognized in the third or fourth quarter of 2023. In the fourth quarter of 2023, we experienced declines in revenue related to the termination of licensing agreements with certain Chinese licensees due to material, uncured breaches resulting in collectability issues, causing us to test the recoverability of our indefinite-lived assets, including goodwill, as of October 31, 2023. As a result, we recognized $5.8 million of impairment charges on our indefinite-lived Playboy-branded trademarks at the impairment date in the fourth quarter of 2023 . Definite-lived intangible assets include distribution agreements and trade names, which we recognized in connection with our business combinations. Because these assets were recognized as identifiable intangible assets in connection with our previous business combinat ions, we do not incur costs to renew or extend their terms. All of our definite-lived intangible assets are amortized using the straight-line method over their useful lives. Impairment of Long-Lived Assets The carrying amounts of long-lived assets, including property and equipment, stores, acquired intangible assets and right-of-use operating lease assets are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate over their remaining lives. If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount of such assets is reduced to their fair value. If the useful life is shorter than originally estimated, we amortize the remaining carrying value over the revised shorter useful life. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. In the fourth quarter of 2023, we recorded $2.3 million of impairment charges related to certain Honey Birdette right-of-use assets and related leasehold improvements. We recognized $5.1 million of impairment charges on our trade names at the impairment date in the second quarter of 2023, and $46.8 million of impairment charges on our trade names and certain other assets at the impairment date in the third quarter of 2022, excluding $8.3 million of impairment charges related to discontinued operations. Assets and Liabilities Held for Sale and Discontinued Operations We classify assets and liabilities as held for sale, collectively referred to as the disposal group, when management commits to a formal plan to actively market the assets for sale at a price reasonable in relation to fair value, it is unlikely that significant changes will be made to the plan, the assets are available for immediate sale in their present condition, an active program to locate a buyer and other actions required to complete the sale have been initiated, and the sale of the assets is expected to be completed within one year. A disposal group that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The fair value of a disposal group less any costs to sell is assessed each reporting period it remains classified as held for sale and any subsequent changes are reported as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. We account for discontinued operations when assets and liabilities of a disposal group are classified as held for sale, or have been sold, and only if the disposal represents a strategic shift that has or will have a meaningful effect on our operations and financial results. We aggregate the results of operations for discontinued operations into a single line item in the consolidated statements of operations for all periods presented. General corporate overhead is not allocated to discontinued operations. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. Leases We determine if an arrangement is a lease at inception. We determine the classification of the lease, whether operating or financing, at the lease commencement date, which is the date the leased assets are made available for use. We use the non-cancelable lease term when recognizing the right-of-use (“ROU”) assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. We account for lease components and non-lease components as a single lease component. Modifications are assessed to determine whether incremental differences result in new contract terms and accounted for as a new lease or whether the additional right of use should be included in the original lease and continue to be accounted for with the remaining ROU asset. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives. Variable costs, such as common area maintenance costs and additional payments for percentage rent, are not included in the measurement of the ROU assets and lease liabilities, but are expensed as incurred. As the implicit rate of the leases is not determinable, we use an incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments in determining the present value of the lease payments. Lease expenses are recognized on a straight-line basis over the lease term. We do not recognize ROU assets on lease arrangements with a term of 12 months or less. Treasury Stock Treasury stock is stated at cost. Revenue Recognition We recognize revenue when we transfer promised goods or services in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. This is determined by following a five-step process which includes (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price and (5) recognizing revenue when or as we satisfy a performance obligation. We apply judgment to determine the nature of the promises within a revenue contract and whether those promises represent distinct performance obligations. In determining the transaction price, we do not include amounts subject to uncertainties unless it is probable that there will be no significant reversal of cumulative revenue when the uncertainty is resolved. We evaluate the nature of the license as to whether it provides a right to access or right to use the intellectual property (“IP”), which then determines whether the revenue is recognized over time or at a point in time. Sales or usage-based royalties received in exchange for licenses of IP are recognized at the later of when (1) the subsequent sale or usage occurs or (2) the performance obligation to which some or all of the sales or usage-based royalty has been allocated is satisfied. Direct-To-Consumer Products We generate revenue from the sale of intimates and other apparel and accessories, primarily through our direct-to-consumer channels (e-commerce sites and brick-and-mortar retail stores). We recognize e-commerce revenue upon delivery of the purchased goods to the buyer as our performance obligation, consisting of the sale of goods, is satisfied at this point in time when control is transferred. We recognize retail store revenue at a point in time when a store satisfies a performance obligation and transfers control of the product to the customer. Our revenue is recognized net of incentives and estimated returns. We periodically offer promotional incentives to customers, including basket promotional code discounts and other credits, that are treated as a reduction of revenue. A portion of consumer product sales is generated through third-party sellers, who list the product on their websites. These sales are either fulfilled by us or through the third-party seller’s fulfillment services. We recognize the fees retained by the third-party sellers as expenses in cost of sales for inventory provided through drop-shipment arrangements. We charge shipping fees to customers. Since control transfers to the customer after the shipping and handling activities, we account for these activities as fulfillment activities. All outbound shipping and handling costs are accounted for as fulfillment costs in cost of sales at the time revenue is recognized. Licensing We license trademarks under multi-year arrangements with consumer products, online gaming and location-based entertainment businesses. Typically, the initial contract term ranges between one Digital Subscriptions and Content Digital subscription revenue is derived from subscription sales of playboyplus.com and playboy.tv primarily, which are online content platforms. Digital subscriptions represent a stand-ready obligation to provide continuous access to the platform, which is satisfied ratably over the term of the subscription. We receive fixed consideration shortly before the start of the subscription periods from these contracts, which are primarily sold in monthly, annual, or lifetime subscriptions. Revenues from lifetime subscriptions are recognized ratably over a five-year period, representing the estimated period during which the customer accesses the platforms. Revenues from digital subscriptions are recognized ratably over the subscription period. Revenues generated from the sales of creator offerings to consumers via our creator platform on playboy.com are recognized at the point in time when the sale is processed. Revenues generated from subscriptions to our creator platform are recognized ratably over the subscription period. We record revenue from sales of our tokenized digital art and collectibles at the point in time when the control is transferred on a gross basis. We are primarily responsible for fulfillment of the promise, have inventory risk, and have the latitude in establishing pricing and selecting suppliers, among other factors. We determined that we are the principal in these transactions as we have custody and control of our digital assets prior to the sale to the customer, and discretion and latitude in establishing the price. We also license our programming content to certain cable television operators and direct-to-home satellite television operators who pay royalties based on monthly subscriber counts and pay-per-view and video-on-demand buys for the right to distribute our programming under the terms of affiliation agreements. The distinct performance obligations under such affiliation agreements include (i) a continuous transmission service to deliver live linear feeds and (ii) licenses to our functional IP that are provided over the contract term that provide the operators the right to use our content library as it exists at a point in time. For both performance obligations, our IP is the predominant or sole item to which the royalties relate. Royalties are generally collected monthly and revenue is recognized as earned. The amount of royalties due to us is reported by operators based on actual subscriber and transaction levels. Such information is generally not received until after the close of the reporting period. In these cases, we follow the variable consideration framework and constraint guidance to estimate the number of subscribers and transactions to recognize royalty amounts based on historical experience. Historical adjustments to recorded estimates have not been material. We offer sales incentives through various programs, consisting primarily of co-op marketing. We record advertising with customers as a reduction to revenue unless we receive a distinct benefit in exchange for credits claimed by the customer and can reasonably estimate the fair value of the distinct benefit received, in which case we record it as a marketing expense. Contract Assets and Contract Liabilities The timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when we have an unconditional right to consideration which will become due solely due to the passage of time. We record a contract asset when revenue is recognized prior to invoicing or payment is contingent upon transfer of control of an unsatisfied performance obligation. We record a contract liability (deferred revenue) when revenue is recognized subsequent to cash collection. For long-term non-cancelable contracts whereby we have begun satisfying the performance obligation, we will record contract assets for the unbilled consideration which is contingent upon our future performance. Contract assets and contract liabilities are netted on a contract-by-contract basis. Gift Card Liabilities We account for gift cards sold to customers by recording a liability in other current liabilities and accrued expenses in our consolidated balance sheets at the time of sale, which is recognized as revenue when redeemed or when we have determined the likelihood of redemption to be remote, referred to as gift card breakage. Depending on the jurisdiction in which we operate, gift cards sold to customers have expiration dates from three Cost of Sales Cost of sales primarily consist of merchandise costs, warehousing and fulfillment costs, agency fees, website expenses, digital platform expenses, marketplace traffic acquisition costs, credit card processing fees, personnel and affiliate costs, including stock-based compensation, costs associated with branding events, customer shipping and handling expenses, fulfillment activity costs and freight-in expenses. Selling and Administrative Expenses Selling and administrative expenses primarily consist of corporate office and retail store occupancy costs, personnel costs, including stock-based compensation, and contractor fees for accounting/finance, legal, human resources, information technology and other administrative functions, general marketing and promotional activities and insurance. Contingent Consideration Fair Value Remeasurement Gain Contingent consideration fair value remeasurement gain consists of non-cash changes in the fair value of contingent consideration recorded in conjunction with our acquisitions of GlowUp Digital Inc. (“GlowUp”) and Honey Birdette. Advertising Costs We expense advertising costs as incurred. Advertising expenses were $6.0 million and $14.4 million for the years ended December 31, 2023 and 2022, respectively, excluding $2.9 million and $10.3 million, respectively, of advertising costs related to discontinued operations. We also have various arrangements with customers pursuant to which we reimburse them for a portion of their advertising costs in the form of co-op marketing which provide advertising benefits to us. The costs that we incur for such advertising costs are recorded as a reduction of revenue. Stock-Based Compensation We measure compensation expense for all stock-based payment awards, including stock options, restricted stock units and performance stock units granted to employees, directors, and nonemployees, based on the estimated fair value of the awards on the date of grant. Compensation expense is recognized ratably in earnings, generally over the period during which the recipient is required to provide service. We adjust compensation expense based on actual forfeitures, as necessary. In the event of a modification to a previously granted award, the incremental cost of the modification is added to the unamortized cost as of the modification date and amortized over the remaining portion of the requisite service period of the modified award. Our stock options vest ratably over the contractual vesting period, which is generally three Income Taxes We record income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and attributable to operating loss and tax credit carryforwards. The carrying amounts of deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically based on the more-likely |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 inputs: Based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs: Based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 inputs: Based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities, and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. For cash equivalents, receivables and certain other current assets and liabilities at December 31, 2023 and 2022, the amounts reported approximate fair value (Level 1) due to their short-term nature. For debt, based upon the refinancing of our senior secured debt in May 2021, its amendment in August 2021, August 2022, December 2022, and February 2023, as well as its amendment and restatement in May 2023 and further amendment in November 2023, we believe that its carrying value as of December 31, 2023 and 2022 approximates fair value, as our debt is variable-rate debt that reprices to current market rates frequently. See No te 10, Debt, for additional disclosures about our debt. Our debt is classified within Level 2 of the valuation hierarchy. The fair value of our artwork is based on estimated market prices obtained from an independently prepared appraisal, or management’s judgment as to the salable value of similar works of art, and is classified within Level 2 of the valuation hierarchy. Liabilities Measured and Recorded at Fair Value on a Recurring Basis The following table summarizes the fair value of our financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Liabilities Contingent consideration liability $ — $ — $ (399) $ (399) December 31, 2022 Level 1 Level 2 Level 3 Total Liabilities Contingent consideration liability $ — $ — $ (835) $ (835) Mandatorily redeemable preferred stock — — (39,099) (39,099) Total liabilities $ — $ — $ (39,934) $ (39,934) There were no transfers of Level 3 financial instruments during the periods presented. Contingent consideration liability relates to the contingent consideration recorded in connection with our 2021 acquisition of GlowUp Digital Inc., which was acquired to build our creator platform, and represents the fair value for shares which may be still be issued and cash which may be paid to the GlowUp sellers, subject to certain indemnification obligations that remained unsettled as of December 31, 2023 and 2022. We recorded the acquisition-date fair value of these contingent liabilities as part of the consideration transferred. The fair value option was elected for these contingent liabilities, as we believe fair value best reflects the expected future economic value. The fair value of contingent and deferred consideration was estimated using either (i) a Monte Carlo simulation analysis in an option pricing framework, using revenue projections, volatility and stock price as key inputs or (ii) a scenario-based valuation model using probability of payment, certain cost projections, and either discounting (in the case of cash-settled consideration) or stock price (for share-settled consideration) as key inputs. The analysis approach was chosen based on the terms of each purchase agreement and our assessment of appropriate methodology for each case. The contingent payments and value of stock issuances are subsequently remeasured to fair value each reporting date using the same fair value estimation method originally applied with updated estimates and inputs as of December 31, 2023. We recorded $0.4 million and $29.2 million of fair value change as a result of contingent liabilities fair value remeasurement in 2023 and 2022, respectively. We classified financial liabilities associated with the contingent consideration as Level 3 due to the lack of relevant observable inputs. Changes in key inputs described above could have an impact on the payout of contingent consideration. Our Series A Preferred Stock liability, initially valued as of May 16, 2022 (the initial issuance date), and our subsequent Series A Preferred Stock liability, valued as of the August 8, 2022 (the final issuance date), were each calculated using a stochastic interest rate model implemented in a binomial lattice, in order to incorporate the various early redemption features. The fair value option was elected for Series A Preferred Stock liability, as we believe fair value best reflects the expected future economic value. Such liabilities are subsequently remeasured to fair value for each reporting date using the same valuation methodology as originally applied with updated input assumptions. In May 2023, in connection with the amendment and restatement of our senior secured credit agreement, the outstanding Series A Preferred Stock was exchanged for debt (and thereby eliminated). See Note 10, Debt, for further details. The fair value gain recorded in nonoperating income as a result of remeasurement of the fair value of our Series A Preferred Stock during the years ended December 31, 2023 and 2022 was $6.5 million, and $9.4 million, respectively. We classified financial liabilities associated with our Series A Preferred Stock as Level 3 due to the lack of relevant observable inputs. The following table provides information regarding significant unobservable inputs used in the valuation of our Series A Preferred Stock measured and recorded at fair value upon its exchange for debt in connection with the amendment and restatement of our senior secured credit agreement in May 2023 (amounts in thousands): Total Fair Value Valuation Technique Unobservable Inputs Rate $ 32,594 Binomial lattice model Preferred credit spread (annual) 18 % Yield volatility 50 % Dividend settlement Paid-in-kind (PIK) The following table provides a roll-forward of the fair value of the liabilities categorized as Level 3 for the year ended December 31, 2023 (in thousands): Contingent Consideration Mandatorily Redeemable Preferred Stock Liability Total Balance at December 31, 2022 $ 835 $ 39,099 $ 39,934 Change in fair value and other (436) (6,505) (6,941) Mandatorily redeemable preferred stock — (32,594) (32,594) Balance at December 31, 2023 $ 399 $ — $ 399 The decrease in the fair value of the contingent consideration for the year ended December 31, 2023 was primarily due to a decrease in a price per share of our common stock. Assets and Liabilities Held for Sale We initially measure an asset that is classified as held for sale at the lower of its carrying amount or fair value less costs to sell. We assess the fair value of an asset less costs to sell each reporting period that it remains classified as held for sale, and report any subsequent changes as an adjustment to the carrying amount of the asset. Assets are not depreciated or amortized while they are classified as held for sale. The assumptions used in measuring fair value of assets and liabilities held for sale are considered Level 3 inputs, which include recent purchase offers and market comparables. During the year ended December 31, 2023, impairment charges recorded in relation to assets and liabilities held for sale were immaterial. Assets Measured and Recorded at Fair Value on a Non-recurring Basis In addition to liabilities that are recorded at fair value on a recurring basis, the Company records assets and liabilities at fair value on a nonrecurring basis. Generally, the Company’s non-financial instruments, which primarily consist of goodwill, intangible assets, including digital assets, right-of-use assets and property and equipment, are not required to be measured at fair value on a recurring basis and are reported at carrying value. However, on a periodic basis whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), non-financial instruments are assessed for impairment and, if applicable, written-down to and recorded at fair value, considering market participant assumptions. Recognized losses related to the impairment of our digital assets during the year ended December 31, 2023 were immaterial, and the fair value of our digital assets was immaterial as of December 31, 2023. Recognized losses related to the impairment of our digital assets during the year ended December 31, 2022 were $4.9 million, which had a fair value of $0.3 million as of December 31, 2022. Fair value of digital assets held is predominantly based on Level 1 inputs. We use an income approach, using discounted cash flow and relief from royalty valuation models with Level 3 inputs to measure the fair value of our non-financial assets, including goodwill, indefinite-lived trademarks and definite-lived trade names, and liabilities. With respect to goodwill, key assumptions applied in an income approach using the discounted cash flow valuation model include revenue growth rates and discount rates. With respect to indefinite-lived trademarks, key assumptions used in the income approach and the relief from royalty valuation model include revenue growth rates, royalty rates, and discount rates. With respect to the definite-lived trade names, key assumptions used in the relief from royalty valuation model include revenue growth rates, royalty rates and discount rates. Our cash flow projections represent management’s most recent planning assumptions, which are based on a combination of industry outlooks, views on general economic conditions, our expected pricing plans and expected future savings. Terminal values are determined using a common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant weighted-average cost of capital and long-term growth rates. Changes in key assumptions, namely discount rates, royalty rates and growth rates, could have an impact on the fair value of our non-financial assets and liabilities. At the impairment date in the fourth quarter of 2023, we recorded impairment charges on our indefinite-lived Playboy-branded trademarks of $5.8 million. At the impairment date in the second quarter of 2023 and the third quarter of 2022, we recorded impairment charges on our intangible assets, including goodwill, indefinite-lived trademarks, trade names and certain other assets of $137.3 million and $279.2 million, respectively. See Note 8, Intangible Assets and Goodwill, for further information. The following table provides information regarding significant unobservable inputs used in the valuation of our intangible assets measured and recorded at fair value at the impairment date (dollar amounts in thousands): Fair Value Valuation Technique Unobservable Inputs Range October 31, 2023 Indefinite-lived trademarks $ 145,087 Multi-period excess earnings method Revenue growth rate (39.2)% - 52.4% Discount rate 17.0% Relief from royalty Revenue growth rate (9.9)% - 233.0% Royalty rate 7.0% Discount rate 17.0% - 30.0% June 30, 2023 Indefinite-lived trademarks 150,650 Multi-period excess earnings method Revenue growth rate (0.6)% - 52.6% Discount rate 16.0% Relief from royalty Revenue growth rate (34.5)% - 200.0% Royalty rate 7.0% Discount rate 16.0% - 28.0% Trade names 12,550 Relief from royalty Revenue growth rate 3.0% - 10.0% Royalty rate 3.0% Discount rate 17.0% Goodwill 21,176 Discounted cash flow Revenue growth rate 3.0% - 10.0% Discount rate 14.0% September 1, 2022 Indefinite-lived trademarks 216,185 Multi-period excess earnings method Revenue growth rate 2.5% - 12.3% Discount rate 18.0% Relief from royalty Revenue growth rate (5.0)% - 10.0% Royalty rate 2.0% - 7.0% Discount rate 18.0% Trade names 20,032 Relief from royalty Revenue growth rate 2.5% - 10.0% Royalty rate 0.3% - 4.0% Discount rate 19.0% - 35.0% Goodwill 90,498 Discounted cash flow Revenue growth rate 3.0% - 10.0% Discount rate 16.0% |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale and Discontinued Operations | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale and Discontinued Operations | Assets and Liabilities Held for Sale and Discontinued Operations In the second quarter of 2023, we announced plans to explore strategic disposition opportunities in our Direct-to-Consumer business as we pursue a capital-light business model focused on our most valuable brands, Playboy and Honey Birdette. On April 4, 2023, we completed the sale of all of the membership interests of our wholly-owned subsidiary, Yandy Enterprises, LLC, to an unaffiliated, private, third-party buyer (“Yandy Buyer”). The consideration paid by the Yandy Buyer for the Yandy Sale consisted of $1 million in cash and a $2 million secured promissory note, which accrued interest at 8% per annum, was payable over three years and was secured by substantially all the assets of Yandy and the Yandy Buyer’s interests in Yandy. The sale resulted in a loss of $0.3 million before income taxes. Transaction expenses incurred in connection with the sale were immaterial. In connection with the Yandy Sale, on April 4, 2023, we entered into a sublease agreement with Yandy (under its new ownership by Yandy Buyer) for Yandy’s warehouse on substantively the same terms as the original lease. As a result, Yandy’s warehouse right of use assets and related lease liabilities, including leasehold improvements associated with the lease, remained on our consolidated balance sheet as of December 31, 2023. On October 3, 2023, we entered into a Stock Purchase Agreement (the “SPA”) with LV Holding, LLC (“TLA Buyer”) for the sale of TLA (the “Transaction”). We closed the Transaction on November 3, 2023. Pursuant to the terms and subject to the conditions set forth in the SPA, TLA Buyer acquired from Playboy Enterprises, Inc., a wholly-owned subsidiary of PLBY Group, Inc. and the holder of all equity of TLA (“Seller”), all of the issued and outstanding equity interests of TLA, which held and operated the Lovers business, for approximately $13.5 million in cash (the “Purchase Price”). We also received approximately $0.8 million as part of a working capital adjustment following closing of the Transaction. Approximately $2.1 million of the Purchase Price was placed into a short-term escrow account at the closing of the Transaction in connection with a post-closing working capital adjustment, certain possible indemnification claims payable by the Seller and for certain post-closing items to be completed by Seller. The sale resulted in a gain of $7.7 million before income taxes. As of June 30, 2023, Yandy and TLA disposal groups met the criteria discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, to be classified as discontinued operations for all periods presented, as the divestiture of Yandy and TLA in the aggregate represents a strategic shift that has or will have a major effect on our operations and financial results. Their assets and liabilities are classified as current assets and liabilities held for sale in the consolidated balance sheet as of December 31, 2022. In the fourth quarter of 2023, in further pursuit of a capital-light business model and to release additional working capital, we initiated the sale of certain pieces of our artwork at auction. As of December 31, 2023, this disposal group met the criteria discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, to be classified as current assets held for sale in our consolidated balance sheet as of December 31, 2023. The following table summarizes the components of income (loss) from discontinued operations, net of tax in the accompanying consolidated statements of operations (in thousands): Year Ended December 31, 2023 2022 Net revenues $ 39,564 $ 81,397 Costs and expenses: Cost of sales (17,931) (46,697) Selling and administrative expenses (21,097) (39,620) Impairments — (24,665) Total operating expense (39,028) (110,982) Operating income (loss) 536 (29,585) Nonoperating income: Other income 77 217 Total nonoperating income 77 217 Income (loss) from discontinued operations 613 (29,368) Gain on dispositions, net before income taxes 7,489 — Income (loss) from discontinued operations before income taxes 8,102 (29,368) (Expense) benefit from income taxes (2,072) 2,355 Income (loss) from discontinued operations, net of tax $ 6,030 $ (27,013) The major classes of assets and liabilities classified as held for sale in the accompanying consolidated balance sheets were as follows (in thousands): December 31, 2023 2022 Assets Receivables, net of allowance for credit losses $ — $ 4,206 Inventories, net — 12,477 Prepaid expenses and other current assets — 1,309 Property and equipment, net — 3,571 Operating right-of-use assets — 13,183 Artwork held for sale 11,692 — Deferred tax assets — 2,121 Other intangible assets, net — 471 Other noncurrent assets — 463 Total assets held for sale $ 11,692 $ 37,801 Liabilities Accounts payable $ — $ 6,541 Deferred revenues — 282 Operating lease liabilities — 13,682 Other current liabilities and accrued expenses — 6,621 Total liabilities held for sale $ — $ 27,126 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Contract Balances Our contract assets relate to our trademark licensing revenue stream where arrangements are typically long-term and non-cancelable. Contract assets are reclassified to accounts receivable when the right to bill becomes unconditional. Our contract liabilities consist of billings or payments received in advance of revenue recognition and are recognized as revenue when transfer of control to customers has occurred. Contract assets and contract liabilities are netted on a contract-by-contract basis. Contract liabilities are classified as deferred revenue in the consolidated balance sheets as of December 31, 2023 and 2022. The following table summarizes our contract assets and certain contract liabilities (in thousands). This table excludes $4.2 million and $0.8 million of accounts receivable included in assets held for sale in the consolidated balance sheets as of December 31, 2022 and 2021, respectively, and $0.3 million and $1.1 million of contract liabilities included in assets held for sale in the consolidated balance sheets as of December 31, 2022 and 2021, respectively. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 2021 Accounts receivable $ 7,496 $ 14,214 $ 13,297 Contract Balances: Contract assets, current portion $ 1,547 $ 2,559 $ 77 Contract assets, net of current portion 8,716 13,680 17,315 Contract liabilities, current portion (9,205) (10,480) (9,930) Contract liabilities, net of current portion (4,641) (21,406) (42,532) Contract liabilities, net $ (3,583) $ (15,647) $ (35,070) The following table provides a roll-forward of our netted contract assets and contract liabilities from continuing operations (in thousands): Contract Liabilities, Net Balance at December, 31, 2021 $ (35,070) Revenues recognized that were included in gross contract liabilities at December, 31, 2021 54,840 Contract assets reclassified to accounts receivable in 2022 (28,947) Cash received in advance since prior year and remains in net contract liabilities at December, 31, 2022 (5,946) Contract modifications and terminations in 2022 (524) Balance at December, 31, 2022 $ (15,647) Revenues recognized that were included in gross contract liabilities at December, 31, 2022 (1) 41,919 Contract assets reclassified to accounts receivable in 2023 (30,295) Cash received in advance since prior year and remains in net contract liabilities at December, 31, 2023 (5,170) Contract impairments, modifications and terminations in 2023 5,610 Balance at December, 31, 2023 $ (3,583) _________________ (1) Includes $5.1 million of revenue recognized from prepaid royalty guarantees in connection with a licensing contract terminated in the fourth quarter of 2023. Future Performance Obligations In the second half of 2023, we updated the revenue recognition for certain of our licensees pursuant to their contract modifications and expected collectability, which resulted in the impairment of corresponding assets of $8.7 million. In the fourth quarter of 2023, we terminated or impaired licensing agreements with certain Chinese licensees due to material, uncured breaches resulting in collectability issues. Revenue recognized in connection with such contracts was $27.1 million during the year ended December 31, 2023, out of which $5.1 million was attributable to prepaid royalty guarantees recorded as revenue in the fourth quarter of 2023. The decrease in revenue from such licensees, compared to the comparable prior year period, was $18.5 million during the year ended December 31, 2023, excluding $5.1 million of revenues recognized from prepaid royalty guarantees upon terminations in the fourth quarter of 2023. As of December 31, 2023, unrecognized revenue attributable to unsatisfied and partially unsatisfied performance obligations under our long-term contracts was $38.8 million, of which $30.0 million relates to trademark licensing, with $8.9 million attributable to long-term licenses with Chinese licensees, $5.2 million relates to digital subscriptions and products, and $3.6 million relates to other obligations. Unrecognized trademark licensing revenue under our long-term contracts immediately prior to their terminations was $152.2 million. Due to challenging economic conditions in China, collections from certain Chinese licensees there have slowed significantly. Future contract modifications and collectability issues could further impact the revenue recognized against our ongoing contract assets. Unrecognized revenue of the Licensing revenue stream, excluding revenue from licensing agreements terminated in the fourth quarter of 2023, as discussed in Note 1, Basis of Presentation, will be recognized over the next seven years, of which 90% will be recognized in the first five years. Unrecognized revenue of the digital subscriptions and products revenue stream will be recognized over the next five years, of which 43% will be recognized in the first year. Unrecognized revenues under contracts disclosed above do not include contracts for which variable consideration is determined based on the customer’s subsequent sale or usage. Disaggregation of Revenue The following table disaggregates revenue by type (in thousands), excluding revenues from discontinued operations: Year Ended December 31, 2023 Licensing Direct-to- Digital Other Total Trademark licensing $ 44,292 $ — $ — $ — $ 44,292 Digital subscriptions and products — — 12,923 4 12,927 TV and cable programming — — 7,747 — 7,747 Consumer products — 77,984 — — 77,984 Total revenues $ 44,292 $ 77,984 $ 20,670 $ 4 $ 142,950 Year Ended December 31, 2022 Licensing Direct-to- Digital Other Total Trademark licensing $ 60,861 $ — $ — $ — $ 60,861 Magazine, digital subscriptions and products — — 9,333 789 10,122 TV and cable programming — — 9,376 — 9,376 Consumer products — 105,177 — — 105,177 Total revenues $ 60,861 $ 105,177 $ 18,709 $ 789 $ 185,536 The following table disaggregates revenue by point-in-time versus over time (in thousands), excluding revenues from discontinued operations: Year Ended December 31, 2023 2022 Point in time $ 82,395 $ 105,863 Over time 60,555 79,673 Total revenues $ 142,950 $ 185,536 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net The following table sets forth inventories, net, which are stated at the lower of cost (first-in, first-out) and net realizable value (in thousands).The table excludes $12.5 million of inventory, net, which is included in assets held for sale in the consolidated balance sheet as of December 31, 2022. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Editorial and other pre-publication costs $ 242 $ 690 Merchandise finished goods 12,758 19,922 Total $ 13,000 $ 20,612 At December 31, 2023 and 2022, reserves for slow-moving and obsolete inventory related to merchandise finished goods amounted to $5.5 million and $3.6 million, respectively. Reserves for slow-moving and obsolete inventory as of December 31, 2022 excludes $1.4 million of inventory reserves included in assets held for sale in the consolidated balance sheets as of December 31, 2022. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets are set forth in the table below (in thousands). The table excludes $1.3 million of assets included in assets held for sale in the consolidated balance sheet as of December 31, 2022. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Prepaid taxes $ — $ 2,380 Prepaid insurance 858 1,074 Contract assets, current portion 1,547 2,559 Prepaid software 1,488 3,714 Prepaid inventory not yet received 703 3,397 Promissory note receivable 1,632 — Prepaid platform fees — 951 Other 1,574 2,201 Total $ 7,802 $ 16,276 In 2023, we significantly restructured our technology expenses, and cost-excessive and under-utilized software packages were either terminated or not renewed upon expiration of applicable agreements. This resulted in a restructuring charge of $5.1 million recorded in selling and administrative expenses in the consolidated results of operations for the year ended December 31, 2023, excluding $0.4 million of costs related to discontinued operations, out of which $1.5 million was the accelerated amortization of prepaid software. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net is set forth in the table below (in thousands). The table excludes $3.6 million of property and equipment, net, included in assets held for sale in the consolidated balance sheet as of December 31, 2022. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Leasehold improvements $ 10,682 $ 9,096 Construction in progress 692 782 Equipment 3,747 3,704 Internally developed software 10,812 7,096 Furniture and fixtures 1,932 1,953 Total property and equipment, gross 27,865 22,631 Less: accumulated depreciation (14,351) (8,827) Total $ 13,514 $ 13,804 The aggregate depreciation expense related to property and equipment, net was $5.4 million and $5.6 million for the years ended December 31, 2023 and 2022, respectively. Depreciation expense related to property and equipment attributable to discontinued operations was immaterial for the years ended December 31, 2023 and 2022. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets Our indefinite-lived intangible assets that are not amortized but subject to annual impairment testing consist of $145.1 million and $216.0 million of Playboy-branded trademarks as of December 31, 2023 and 2022, respectively. Capitalized trademark costs include costs associated with the acquisition, registration and/or renewal of our trademarks. We expense certain costs associated with the defense of our trademarks. Registration and renewal costs capitalized during the years ended December 31, 2023 and 2022 were immaterial. At the impairment date in the third quarter of 2022, we recorded non-cash asset impairment charges related to a write-down of goodwill by $117.4 million (excluding $16.4 million of impairment charges related to discontinued operations), a write-down of indefinite-lived trademarks by $116.0 million, and a write-down of trade names and other assets by $45.8 million (excluding $8.3 million of impairment charges related to discontinued operations). See Note 1, Basis of Presentation and Summary of Significant Accounting Policies, for additional disclosures about impairment charges. At the impairment date in the second quarter of 2023, as a result of ongoing impacts to our revenue, including declines in consumer demand and discontinued operations, we recorded non-cash asset impairment charges In the fourth quarter of 2023, we experienced further declines in revenue related to the termination of licensing agreements with certain Chinese licensees due to material, uncured breaches resulting in collectability issues. As a result, we recognized $5.8 million of impairment charges on our indefinite-lived Playboy-branded trademarks at the impairment date in the fourth quarter of 2023. The table below summarizes our intangible assets, net (in thousands). The table excludes $0.5 million of other intangible assets, net included in assets held for sale in the consolidated balance sheets as of December 31, 2022. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Digital assets, net $ 5 $ 327 Total amortizable intangible assets, net 12,809 19,796 Total indefinite-lived intangible assets 145,087 216,014 Total $ 157,901 $ 236,137 Impairment charges related to our digital assets, comprised of the cryptocurrency “Ethereum”, were immaterial for the year ended December 31, 2023. Impairment charges related to our digital assets for the year ended December 31, 2022 were $4.9 million. Our amortizable intangible assets consisted of the following (in thousands): Weighted- Gross Carrying Accumulated Accumulated Impairments (1) Net Carrying December 31, 2023 Trade names 12 $ 71,524 $ (8,427) $ (50,825) $ 12,272 Distribution agreements 15 3,720 (3,183) — 537 Total $ 75,244 $ (11,610) $ (50,825) $ 12,809 _________________ (1) Includes the impairment charges on trade names of $5.1 million during the year ended December 31, 2023. The offset relates to foreign currency translation. The table below excludes TLA’s trade names and Yandy’s trade names and customer list as these were included in assets held for sale in the consolidated balance sheets as of December 31, 2022. Weighted- Gross Carrying Accumulated Accumulated Impairments (1) Net Carrying December 31, 2022 Trade names 12 $ 71,458 $ (6,881) $ (45,566) $ 19,011 Distribution agreements 15 3,720 (2,935) — 785 Developed technology 3 2,300 (2,300) — — Total $ 77,478 $ (12,116) $ (45,566) $ 19,796 _________________ (1) Includes the impairment charges on trade names of $44.9 million during the year ended December 31, 2022. The offset relates to foreign currency translation. The aggregate amortization expense for definite-lived intangible assets included in loss from continuing operations was $1.8 million and $7.2 million for the years ended December 31, 2023, and 2022, respectively. Amortization expense for definite-lived intangible assets attributable to discontinued operations was immaterial for the years ended December 31, 2023 and 2022. As of December 31, 2023, expected amortization expense relating to definite-lived intangible assets for the next five years and thereafter is as follows (in thousands): 2024 $ 1,445 2025 1,445 2026 1,238 2027 1,197 2028 1,197 Thereafter 6,287 Total $ 12,809 Goodwill Changes in the carrying value of goodwill for the years ended December 31, 2023 and 2022 were as follows (in thousands): Gross Goodwill Impairments Net Goodwill Balance at December 31, 2021 $ 254,214 $ — $ 254,214 Foreign currency translation adjustment in relation to Honey Birdette (13,557) — (13,557) Impairments (1) — (117,440) (117,440) Balance at December 31, 2022 $ 240,657 $ (117,440) $ 123,217 Foreign currency translation adjustment in relation to Honey Birdette (1,658) — (1,658) Impairments (1) — (66,660) (66,660) Balance at December 31, 2023 $ 238,999 $ (184,100) $ 54,899 _________________ (1) As of the impairment dates. Impairment charges on goodwill recorded in the consolidated statements of operations for the years ended December 31, 2023 and 2022 were $67.5 million and $115.2 million, respectively. The offset relates to foreign currency translation. Changes in the recorded carrying value of goodwill for the year ended December 31, 2023 by reportable segment were as follows (in thousands): Direct-to-Consumer Licensing Digital Subscriptions and Content Balance at December 31, 2022 $ 90,117 $ — $ 33,100 Foreign currency translation and other adjustments (1,658) — — Impairments (1) (66,660) — — Balance at December 31, 2023 $ 21,799 $ — $ 33,100 _________________ (1) As of the impairment date. Goodwill impairment charges recorded in the consolidated statements of operations during the year ended December 31, 2023 were $67.5 million. The difference from the amount shown in the table is due to foreign currency translation. |
Other Current Liabilities and A
Other Current Liabilities and Accrued Expense | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities and Accrued Expense | Other Current Liabilities and Accrued Expense Other current liabilities and accrued expenses are set forth in the table below (in thousands). The table excludes $6.6 million of other current liabilities and accrued expenses included in assets held for sale in the consolidated balance sheet as of December 31, 2022, respectively. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Accrued interest $ 3,040 $ 2,096 Accrued salaries, wages and employee benefits 4,157 3,850 Outstanding gift cards and store credits 1,618 1,571 Inventory in transit 564 6,510 Taxes 8,479 4,542 Accrued creator fees 2,113 460 Other 7,095 6,537 Total $ 27,066 $ 25,566 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth debt (in thousands): December 31, 2023 2022 Term loan, due 2027 $ 209,772 $ 201,613 Plus: capitalized payment-in-kind interest 1,848 — Total debt 211,620 201,613 Less: unamortized debt issuance costs (582) (1,822) Less: unamortized debt discount (20,619) (6,616) Total debt, net of unamortized debt issuance costs and debt discount 190,419 193,175 Less: current portion of long-term debt (304) (2,050) Total debt, net of current portion $ 190,115 $ 191,125 2021 New Term Loan In May 2021, we consummated the refinancing of our term loan facility (the “Refinancing”), which was scheduled to expire on December 31, 2023. Pursuant to the Refinancing’s new Credit and Guaranty Agreement (as amended, modified or supplemented from time to time, the “Credit Agreement”) with Acquiom Agency Services LLC, as the administrative agent and collateral agent, we obtained a new $160.0 million senior secured term loan (the “New Term Loan”), which was fully funded at the closing of the Refinancing. In connection with the Refinancing, we were required to pay off the prior term loan facility with an outstanding principal balance of approximately $154.7 million, as well as certain fees and expenses in connection with such payoff. We financed the payoff of the prior facility with proceeds from the New Term Loan. The New Term Loan has a six-year term and matures on May 25, 2027. The New Term Loan accrued interest at LIBOR plus 5.75%, with a LIBOR floor of 0.50% through November 2022 and a LIBOR floor of 4.76%, starting December 2022. Our obligations pursuant to the Credit Agreement were guaranteed by the Company and any current and future wholly-owned, domestic subsidiaries of the Company, subject to certain exceptions. In connection with the Credit Agreement, the Company and the other guarantor subsidiaries of the Company entered into a Pledge and Security Agreement with the collateral agent, pursuant to which we granted a senior security interest to the agent in substantially all of our assets (including the stock of certain of our subsidiaries) in order to secure our obligations under the Credit Agreement. In August 2021, in connection with the acquisition of Honey Birdette, the New Term Loan was amended to (a) obtain a $70.0 million incremental term loan for the purpose of funding the acquisition, thereby increasing the aggregate principal amount of term loan indebtedness outstanding under the Credit Agreement to $230.0 million, and (b) amend the terms of the Credit Agreement to, among other things, permit Honey Birdette and certain of its subsidiaries to guaranty the obligations under the Credit Agreement. In August 2022, we entered into the second amendment to the Credit Agreement (“Second Amendment”), which, among other things: (i) required the Company to maintain a minimum consolidated cash balance of $40 million, to be tested twice quarterly (with a 45-day cure period), subject to certain exceptions; (ii) required that the Company’s consolidated cash balance not fall below $25 million for more than five consecutive business days during any applicable test period (with a 15-day cure period to then exceed a cash balance of $40 million); (iii) increased addbacks to the determination of the Company’s consolidated EBITDA (as defined in the Credit Agreement); (iv) set Total Net Leverage Ratios for Test Periods (as such terms are defined in the Credit Agreement) ending June 30, 2022 through March 31, 2023 at 7.00 to 1.00, reducing quarterly thereafter at the step-downs specified in the Credit Agreement to 4.50 to 1.00 as of September 30, 2024, in each case subject to up to $12.5 million of cash netting; (v) increased the per annum interest rates applicable to base rate loans to 4.75% or 5.25% and the per annum interest rates applicable to LIBOR loans to 5.75% or 6.25%, in each case plus 0.25% per 0.50x increase above prior financial covenant levels during an applicable period and with the lower rates applying when the Total Net Leverage Ratio as of the applicable measurement date is 3.00 to 1.00 or less; (vi) allowed the Company to prepay the loans under the Credit Agreement at par and allowed the Company and its investors to purchase such loans from the lenders on a pro rata basis (subject to certain limitations set forth in the Credit Agreement); and (vii) increased financial reporting to the lenders and imposed certain limitations on the ability of the Company to incur further indebtedness or undertake certain transactions until the Company has significantly reduced certain leverage ratios set forth in the Credit Agreement. The cash balance requirements were subject to a dollar-for-dollar reduction for payments which reduce the outstanding principal amount of the loans under the Credit Agreement, and such requirements and limitations on the Company’s ability to make certain restricted payments (including repurchases of its stock) terminate upon achieving a pro forma total leverage ratio (as defined in the Credit Agreement) of less than 4.00 to 1.00. Two designees of the Lenders were also entitled to serve as observers of the Company’s board of directors until the Company’s total leverage ratio was less than 4.00 to 1.00. In the event that the outstanding principal amount of the loans under the Credit Agreement as of August 8, 2022 was not reduced by $10 million as of December 31, 2022, then the Company would have been required to pay to the Lenders an additional amount equal to 0.50% of the outstanding principal amount of the loans under the Credit Agreement as of December 31, 2022. The cash balance requirements were subject to a dollar-for-dollar reduction for payments which reduce the outstanding principal amount of the loans under the Credit Agreement, and were so reduced by the Company’s repayment of $25 million in December 2022, and such requirements and limitations on the Company’s ability to make certain restricted payments (including repurchases of its stock) would terminate upon the Company’s achievement of a pro forma total leverage ratio (as defined in the Credit Agreement) of less than 4.00 to 1.00. In connection with such amendment, $0.2 million of debt issuance costs were expensed as incurred, and $2.5 million of debt discount was capitalized. On December 6, 2022, we entered into Amendment No. 3 to the Credit Agreement (the “Third Amendment”), which, among other things, provided for: (i) the waiver of the Total Net Leverage Ratio (as defined in the Third Amendment) covenant for the fourth quarter of 2022; (ii) a mandatory prepayment by the Company of $25 million on or before December 30, 2022; (iii) the ability of the Company to voluntarily prepay an additional $5 million by March 1, 2023 (the “23Q1 Payment”) to waive the Total Net Leverage Ratio covenant for the first quarter of 2023; (iv) the ability of the Company to prepay $50 million (inclusive of the prepayments described above) to waive the Total Net Leverage Ratio covenant for all of 2023 and to adjust the Total Net Leverage Ratio covenant levels in subsequent periods; (v) the ability of the Company to prepay an aggregate of $65 million (inclusive of the prepayments described above) to eliminate the lenders’ then-existing board observer rights provided for under the Credit Agreement (as previously amended), to eliminate the Applicable Additional Margin (as defined in the Third Amendment), and to waive the Total Net Leverage Ratio covenant for the first quarter of 2024; (vi) the ability of the Company to prepay $75 million (inclusive of the prepayments described above) to waive the Total Net Leverage Ratio covenant for the second quarter of 2024; (vii) the ability of the Company to prepay $115 million (exclusive of the 23Q1 Payment except to the extent such payment is in excess of $5 million) to entirely waive the Total Net Leverage Ratio covenant; and (viii) a covenant by the Company to use 80% of any gross proceeds from its next common equity capital raise to prepay the debt under the Existing Credit Agreement up to an aggregate amount of $50 million, provided that, such cap would be reduced by any other voluntary prepayments after the date of the Third Amendment (exclusive of the 23Q1 Payment except to the extent such payment is in excess of $5 million). All prepayments described above would reduce the Company’s cash maintenance covenants under the Credit Agreement on a dollar-for-dollar basis. The other terms of the Credit Agreement remained substantially unchanged from the Second Amendment. The Company recorded $1.1 million of loss on partial extinguishment of debt related to the mandatory prepayment made in the fourth quarter of 2022 pursuant to the Third Amendment. Quarterly amortization payments were decreased to $0.5 million, commencing on December 31, 2022, as a result of a $25 million prepayment made in December of 2022, with the balance still due at maturity. On February 17, 2023, we entered into Amendment No. 4 to the Credit Agreement (the “Fourth Amendment”), which, among other things: (i) required that the mandatory prepayment of 80% of PLBY’s equity offering proceeds apply only to PLBY’s $50 million rights offering completed in February 2023 (thereby reducing the applicable prepayment cap to $40 million), (ii) required an additional $5 million prepayment by us as a condition to completing the Fourth Amendment, and (iii) reduced the prepayment threshold for waiving our Total Net Leverage Ratio financial covenant through June 30, 2024 to $70 million (from the prior $75 million prepayment threshold). Such $70 million of prepayments were achieved by the Company through the combination of a $25 million prepayment in December 2022, a $40 million prepayment made in connection with the Company’s rights offering in February 2023, and an additional $5 million prepayment made at the completion of the Fourth Amendment. As a result of the prepayments described above, we obtained a waiver of the Total Net Leverage Ratio covenant through the second quarter of 2024, eliminated the cash maintenance covenants, eliminated the lenders’ board observer rights and eliminated applicable additional margin which had previously been provided for under the Credit Agreement, as amended. On April 4, 2023, we entered into Amendment No. 5 to the Credit Agreement (the “Fifth Amendment”) to permit, among other things, the sale of our wholly-owned subsidiary, Yandy Enterprises, LLC, and that the proceeds of such sale would not be required to prepay the loans under the Credit Agreement (as amended through the Fifth Amendment); provided that at least 30% of the consideration for the Yandy Sale was paid in cash. On May 10, 2023 (the “Restatement Date”), we entered into an amendment and restatement of the Credit Agreement (the “A&R Credit Agreement”) to reduce the interest rate applicable to our senior secured debt and the implied interest rate on our Series A Preferred Stock, exchange (and thereby eliminate) our outstanding Series A Preferred Stock, and obtain additional covenant relief and funding. In connection with the A&R Credit Agreement, Fortress Credit Corp. and its affiliates (together, “Fortress”) became our lender with respect to approximately 90% of the term loans under the A&R Credit Agreement (the “A&R Term Loans”). Fortress exchanged 50,000 shares of our Series A Preferred Stock (representing all of our issued and outstanding preferred stock) for approximately $53.6 million of the A&R Term Loans, and we obtained approximately $11.8 million of additional funding as part of the A&R Term Loans. As a result, our Series A Preferred Stock was eliminated, and the principal balance of the A&R Term Loans under the A&R Credit Agreement became approximately $210.0 million on the Restatement Date. In connection with the A&R Credit Agreement, the original Credit Agreement’s New Term Loan was apportioned into approximately $20.6 million of Tranche A term loans (“Tranche A”) and approximately $189.4 million of Tranche B term loans (“Tranche B”, and together with Tranche A comprising the A&R Term Loans). The prior amortization payments applicable to the New Term Loan under the original Credit Agreement were eliminated. The A&R Credit Agreement only requires the smaller Tranche A be subject to quarterly amortization payments of approximately $76,000 per quarter. The benchmark rate for the A&R Term Loans is the applicable term of secured overnight financing rate as published by the U.S. Federal Reserve Bank of New York (rather than LIBOR, as under the original Credit Agreement). As of the Restatement Date, Tranche A accrues interest at SOFR plus 6.25% and 0.10% SOFR adjustment, with a SOFR floor of 0.50%. As of the Restatement Date, Tranche B accrues interest at SOFR plus 4.25% and 0.10% SOFR adjustment, with a SOFR floor of 0.50%. The stated interest rate of Tranche A and Tranche B term loans as of December 31, 2023 was 11.41% and 9.41%, respectively. The stated interest rate of the term loan pursuant to the Credit Agreement as of December 31, 2022 was 11.01%. The effective interest rate of Tranche A and Tranche B A&R Term Loans as of December 31, 2023 was 12.03% and 13.30%, respectively. The difference between the stated interest rate and effective interest rate for Tranche B as of December 31, 2023 is driven primarily by the amortization of $21.3 million of debt discount which is included in the calculation of the effective interest rate. The effective interest rate of the term loan pursuant to the Credit Agreement as of December 31, 2022 was 12.3%. We obtained additional leverage covenant relief through the first quarter of 2025, with testing of a total net leverage ratio covenant commencing following the quarter ending March 31, 2025, which covenant will be initially set at 7.25:1.00, reducing in 0.25 increments per quarter until the ratio reaches 5.25:1.00 for the quarter ending March 31, 2027. As a result of the amendment and restatement of the Credit Agreement (the “Restatement”) in the second quarter of 2023, we recorded $8.0 million of gain for partial debt extinguishment and capitalized an additional $21.3 million of debt discount while deferring and continuing to amortize an existing discount of $2.6 million, which will be amortized over the remaining term of our senior secured debt and recorded in interest expense in our consolidated statements of operations. As a result of the Restatement, fees of $0.3 million were expensed as incurred and $0.4 million of debt issuance costs were capitalized in the second quarter of 2023. In July 2023, DBD Credit Funding LLC, an affiliate of Fortress, became the administrative agent and collateral agent under the A&R Credit Agreement. In connection with the sale of TLA, on November 2, 2023, we entered into Amendment No. 1 to the A&R Credit Agreement (the “A&R First Amendment”), to permit, among other things: (a) the sale of TLA and the sale of certain other assets (and the proceeds of such sales will not be required to prepay the A&R Term Loans); and (b) the Company to elect, through August 31, 2025, to pay in cash accrued interest equal to the applicable SOFR plus 1.00%, with the remainder of any applicable accrued interest not paid in cash capitalized into the A&R Term Loans. The other terms of the A&R Credit Agreement will remain substantially unchanged from those prior to the A&R First Amendment. Compliance with the financial covenants as of December 31, 2023 and 2022 was waived pursuant to the terms of the A&R Credit Agreement and the previous Third Amendment of the Credit Agreement, respectively. On March 27, 2024, we entered into a second amendment of the A&R Credit Agreement. See Note 22, Subsequent Events for further details. Aircraft Term Loan In May 2021, we borrowed $9.0 million under a five-year term loan maturing in May 2026 to fund the purchase of an aircraft (the “Aircraft Term Loan”). In September 2022, in connection with the sale of the Aircraft , the Aircraft Term Loan was repaid in full and all related liens discharged. A loss on early extinguishment of debt, which was comprised of the write-off of certain deferred financing costs and a prepayment penalty, was $0.2 million. The following table sets forth maturities of the principal amount of our term loans as of December 31, 2023 (in thousands): 2024 $ 304 2025 304 2026 304 2027 210,708 Total $ 211,620 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest On April 13, 2015, the Company sold 25% of the membership interest in its subsidiary, After Dark LLC, to an unaffiliated third party for $1.0 million. As part of the arrangement the Company granted a put right to this party which provides the right, but not the obligation, to the third party to cause the Company to purchase all of the third party’s interest in After Dark LLC at the then fair market value. This put right can be exercised on April 13 of each year. Additionally, the put right can be exercised upon a change of control of the Company. To date, the put right has not been exercised. The Company’s controlling interest in this subsidiary requires the operations of this subsidiary to be included in the consolidated financial statements. Noncontrolling interest with redemption features, such as put options, that are not solely within our control are reported as redeemable noncontrolling interest on the consolidated balance sheets as of December 31, 2023 and 2022, between liabilities and equity. Net income or loss of After Dark LLC is allocated to its noncontrolling member interest based on the noncontrolling member interest’s ownership percentage. There were no operations attributable to redeemable noncontrolling interest that need to be reported in the consolidated statements of operations for the years ended December 31, 2023 and 2022. There was no change in the balance of the redeemable noncontrolling interest as After Dark LLC did not have any operating activities during 2023 and 2022. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Common Stock The holders of the Company’s common stock have one vote for each share of common stock. Common stockholders are entitled to dividends when, as, and if declared by the Company’s Board of Directors (the “Board”). As of December 31, 2023, no dividends had been declared by the Board. Common stock reserved for future issuance consisted of the following as of the dates shown: December 31, 2023 2022 Shares available for grant under equity incentive plans 739,178 492,786 Options issued and outstanding under equity incentive plans 2,291,328 2,599,264 Unvested restricted stock units 3,214,910 2,058,534 Vested restricted stock units not yet settled 14,994 11,761 Unvested performance-based restricted stock units 707,655 1,089,045 Shares to be issued pursuant to a license, services and collaboration agreement — 48,574 Maximum number of shares issuable to GlowUp sellers pursuant to acquisition indemnity holdback 249,116 249,116 Total common stock reserved for future issuance 7,217,181 6,549,080 Treasury Stock We held 2,249,929 and 700,000 shares of treasury stock as of December 31, 2023 and 2022, respectively. In May 2022, the Board of Directors approved a common stock repurchase program (the “2022 Stock Repurchase Program”), pursuant to which up to $50 million of shares of Company common stock may be repurchased through May 31, 2024. As of December 31, 2023, we repurchased 1,549,929 shares of our common stock as authorized pursuant to the 2022 Stock Repurchase Program, all of which shares became treasury shares upon their return to the Company. |
Mandatorily Redeemable Preferre
Mandatorily Redeemable Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Mandatorily Redeemable Preferred Stock | Mandatorily Redeemable Preferred Stock The Company has authorized 5,000,000 shares of preferred stock, with a par value of $0.0001 per share. Of the 5,000,000 authorized preferred shares, 50,000 shares are designated as “Series A Preferred Stock”. On May 16, 2022, we issued and sold 25,000 shares of Series A Preferred Stock to Drawbridge DSO Securities LLC (the “Purchaser”) at a price of $1,000 per share, resulting in total gross proceeds to us of $25.0 million. We incurred approximately $1.5 million of fees associated with the transaction, out of which $1.0 million was netted against the gross proceeds. On August 8, 2022, the Company issued and sold the remaining 25,000 shares of Series A Preferred Stock to the Purchaser at a price of $1,000 per share, resulting in additional gross proceeds to the Company of $25.0 million (the “Second Drawdown”). The Company incurred approximately $0.5 million of fees associated with the Second Drawdown, which were netted against the gross proceeds. As a result of the transaction, all of the Company’s authorized shares of Series A Preferred Stock were issued and outstanding as of August 8, 2022. Our Series A Preferred Stock liability, initially valued as of May 16, 2022 (the initial issuance date), and our subsequent Series A Preferred Stock liability, valued as of the August 8, 2022 (the final issuance date), were each calculated using a stochastic interest rate model implemented in a binomial lattice, in order to incorporate the various early redemption features. Such liabilities are subsequently remeasured to fair value for each reporting date using the same valuation methodology as originally applied with updated input assumptions. We recorded $6.5 million and $9.4 million of fair value change in nonoperating income as a result of remeasurement of the fair value of our Series A Preferred Stock during the years ended December 31, 2023 and 2022, respectively, out of which $2.6 million was a fair value remeasurement gain recorded during the year ended 2022 upon issuance of the remaining Series A Preferred Stock on August 8, 2022. On May 10, 2023, in connection with the A&R Credit Agreement, our outstanding Series A Preferred Stock was eliminated as of such date. The fair value of our Series A Preferred Stock liability was $32.6 million as of the elimination date, and $39.1 million as of December 31, 2022, which included $2.1 million of cumulative preferred dividends. The Series A Preferred Stock ranks senior and in priority of payment to the Company’s common stock with respect to distributions on liquidation, winding-up and dissolution. Each share of Series A Preferred Stock has an initial liquidation preference of $1,000 per share (the “Liquidation Preference”). Upon an involuntary liquidation event, the Liquidation Preference per share of Series A Preferred Stock will be the sum of (i) the $1,000 (subject to adjustments set forth in the Certificate of Designation), plus (ii) all accumulated and unpaid dividends thereon through, but not including, the date of such liquidation. Holders of shares of Series A Preferred Stock are entitled to cumulative dividends, which are payable quarterly in arrears in cash or, subject to certain limitations, in shares of common stock or any combination thereof, or by increasing the Liquidation Preference for each outstanding share of Series A Preferred Stock to the extent not so paid. Dividends accrue on each share of Series A Preferred Stock at the rate of 8.0% per annum from the date of issuance until the fifth anniversary of the date of issuance, and thereafter such rate will increase quarterly by 1.0%. Dividends were accumulated and not paid on the Series A Preferred Stock in 2022. The aggregate and per-share amounts of arrearages of such accumulated dividends as of December 31, 2022 were $2.1 million and $84.40, respectively. At any time, the Company has the right, at its option, to redeem the Series A Preferred Stock, in whole or in part. The Company will also be required to redeem the Series A Preferred Stock in full on September 30, 2027, or upon certain changes of control of the Company, subject to the terms of the Certificate of Designation. The redemption price will be equal to the initial Liquidation Preference of each share of Series A Preferred Stock to be redeemed multiplied by (i) if any applicable redemption date occurs on or prior to the first anniversary of the closing of a sale of the Series A Preferred Stock, 120%, (ii) if any applicable redemption date occurs after the first anniversary of the closing, but prior to or on the second anniversary of the closing, 125%, (iii) if any applicable redemption date occurs after the second anniversary of the closing, but prior to or on the third anniversary of the closing, 130%, (iv) if any applicable redemption date occurs after the third anniversary of the closing, but prior to or on the fourth anniversary of the closing, 145%, and (v) if any applicable redemption date occurs after the fourth anniversary of the closing, 160%, plus, in each case, a pro rata portion of the increase in the value of the shares of common stock repurchased with the proceeds of the offering of the Series A Preferred Stock as of the applicable redemption date, as set forth in the Certificate of Designation. The redemption price would be payable in cash or, subject to certain limitations, in shares of common stock or any combination of cash and shares of common stock, at the Company’s election. The number of shares potentially issuable in connection with a redemption is limited by applicable stock exchange rules and ownership limitations set forth in the Certificate of Designation. Holders of the Series A Preferred Stock will generally not be entitled to vote on any matter required or permitted to be voted upon by the shareholders of the Company. However, certain matters will require the approval of the holders of not less than the majority of the aggregate Liquidation Preference of the outstanding Series A Preferred Stock, voting as a separate class, including (1) the incurrence or issuance by the Company of certain indebtedness or shares of senior equity securities, (2) certain restricted payments by the Company, (3) certain consolidations, amalgamations or merger transactions involving the Company, (4) certain amendments to the organizational documents of the Company, (5) the incurrence of indebtedness or preferred equity securities by certain subsidiaries of the Company and (6) certain business activities of the Company. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In June 2018, Playboy Enterprises, Inc., a Delaware corporation (“Legacy Playboy”) adopted its 2018 Equity Incentive Plan (“2018 Plan”), under which 6,287,687 of Legacy Playboy’s common shares were originally reserved for issuance. S tock options and restricted stock unit awards previously granted under the 2018 Plan that were outstanding immediately prior to the consummation of Legacy Playboy’s 2021 business combination with the predecessor of PLBY Group, Inc. (the “Business Combination”) were accelerated and fully vested, and subsequently converted into options to purchase or the right to receive shares of our common stock. Certain of our officers retain outstanding non-qualified stock options under the 2018 Plan. On February 9, 2021, our stockholders approved our 2021 Equity and Incentive Compensation Plan (“2021 Plan” and with the 2018 Plan, the “Plans”), w hich became effective following co nsummation of the Business Combination. As of December 31, 2023 , 7,835,715 shares of common stock had been authorized for issuance under our 2021 Plan. In addition, the shares authorized for the 2021 Plan may be increased on an annual basis via an evergreen refresh mechanism for a period of up to 10 years, beginning with the fiscal year that begins January 1, 2022, in an amount equal up to 4% of the outstanding shares of common stock on the last day of the immediately preceding fiscal year. Following the effectiveness of the 2021 Plan, the 2018 Plan still remains outstanding and continues to govern outstanding awards granted thereunder. Stock Option Activity In the fourth quarter of 2023, stock option awards granted to two employees were cancelled, and those employees received new option grants with new terms (including the number of underlying shares). We accounted for this as a Type III modification pursuant to ASC 718, Compensation - Stock Compensation. As a result, the Company recorded an immaterial amount of incremental cost, which will be amortized ratably over the modified terms. Stock option activity under our Plans in 2023 was as follows: Number of Weighted- Weighted- Aggregate intrinsic value (in thousands) Balance – December 31, 2021 3,211,071 $ 7.77 7.9 $ 60,978 Granted — — — — Exercised (495,052) 3.89 — 4,028 Forfeited and cancelled (116,755) 9.83 — — Balance – December 31, 2022 2,599,264 8.41 7.2 — Granted (1) 914,574 0.66 — — Exercised — — — — Forfeited and cancelled (1) (1,222,510) 13.71 — — Balance – December 31, 2023 2,291,328 $ 2.49 6.4 $ 311 Exercisable – December 31, 2023 1,376,754 $ 3.71 4.2 $ — Vested and expected to vest as of December 31, 2023 2,291,328 $ 2.49 6.4 $ 311 _________________ (1) Includes option awards previously granted to two employees, with respect to which 1,002,534 shares were cancelled and 914,574 shares were granted in the fourth quarter of 2023. The aggregate intrinsic value is calculated as the difference between the exercise price of all outstanding and exercisable stock options and the fair value of the Company’s common stock at December 31, 2023. The grant date fair value of options that vested during the years ended December 31, 2023 and 2022 was $1.6 million and $4.4 million, respectively. There were 914,574 stock options granted during the year ended December 31, 2023. The options granted during the year ended December 31, 2023 had a weighted-average fair value of $1.05 per share at the grant date. There were no options granted during the year ended December 31, 2022. There were no options exercised during the year ended December 31, 2023. During the year ended December 31, 2022, c ash received by the Company from the exercise of options granted under share-based compensation arrangements was $1.9 million, and the total tax benefit realized from option exercises was $0.6 million. Restricted Stock Units A summary of restricted stock unit activity under our Plans in 2023 was as follows: Number of Weighted- Unvested and outstanding balance at December 31, 2021 585,075 $ 28.15 Granted 2,050,254 10.55 Vested (343,891) 21.42 Forfeited (232,904) 19.00 Unvested and outstanding balance at December 31, 2022 2,058,534 12.79 Granted 2,554,632 0.66 Vested (1,086,825) 12.53 Forfeited (311,431) 16.17 Unvested and outstanding balance at December 31, 2023 3,214,910 $ 2.91 The total fair value of restricted stock units that vested during the years ended December 31, 2023 and 2022 was approximately $1.8 million and $3.6 million, respectively. We had 14,994 and 11,761 of outstanding and fully vested restricted stock units that remained unsettled at December 31, 2023 and December 31, 2022, respectively, all of which were resolved in 2024 and 2023, respectively. As such, they were excluded from outstanding shares of common stock but were included in weighted-average shares outstanding for the calculation of basic net loss per share for the year ended December 31, 2022. The total tax benefit realized from restricted stock units vested was $0.1 million in 2023, and $0.4 million in 2022. Performance Stock Units Prior to October 9, 2023, our PSUs vested upon achieving each of certain Company stock price milestones during the contractual vesting period. The stock price milestones varied among grantees and are set forth in each grantee’s PSU grant agreement (for example, achievement of each of the following 30-day volume-weighted average prices for a share of Company common stock: $20, $30, $40 and $50). The vesting of PSUs is subject to each grantee’s continued service to the Company. On October 9, 2023 the Compensation Committee approved the amendment of performance stock units granted to five employees to eliminate the performance-based conditions and the unvested shares underlying the original awards were changed to time-based vesting over two To determine the value of PSUs with market conditions for stock-based compensation purposes, the Company uses the Monte Carlo simulation valuation model. For each path, the PSUs payoff is calculated based on the contractual terms, whereas the fair value of the PSUs is calculated as the average present value of all modeled payoffs. The determination of the grant date fair value of PSUs issued is affected by a number of variables and subjective assumptions, including (i) the fair value of the Company’s common stock of $9.83, (ii) the expected common stock price volatility over the expected life of the award of 55%, (iii) the term of the award of 7 years, (iv) risk-free interest rate of 2.9%, (v) the exercise price as described above, and (vi) the expected dividend yield of 0%. Forfeitures are recognized when they occur. There were no performance stock units that vested in 2023. The total tax impact realized from performance stock units vested in 2022 was $1.0 million of expense. The Company used the same model to calculate the derived service period for each tranche of performance-based stock corresponding to each stock price threshold, resulting in a weighted average derived service period of 3.8 years for the 2022 grants. For milestones that have not been achieved, such PSUs vest over the derived requisite service period and the fair value of such awards is estimated on the grant date using Monte Carlo simulations. To determine the value of PSUs with performance conditions that were granted in 2023, for stock-based compensation purposes, the Company uses the grant date closing price of the Company’s common stock. The probability of the vesting conditions being met is reevaluated each reporting period. A summary of PSU activity under our 2021 Plan in 2023 was as follows: Number of Weighted- Unvested and outstanding balance at December 31, 2021 544,036 $ 20.49 Granted 571,419 5.68 Vested — — Forfeited (26,410) 20.49 Unvested and outstanding balance at December 31, 2022 1,089,045 12.72 Granted 72,000 0.64 Vested — — Forfeited (453,390) 13.80 Unvested and outstanding balance at December 31, 2023 (1) 707,655 $ 10.80 _________________ (1) Includes 635,655 PSU awards previously granted to five employees, which were modified in the fourth quarter of 2023. There were no PSUs that vested during the years ended December 31, 2023 or 2022. Stock Options Granted To determine the value of stock option awards for stock-based compensation purposes, the Company uses the Black-Scholes option-pricing model and the assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment. Fair value of common stock – The Board of Directors determined the fair value of the common stock by considering a number of objective and subjective factors including: the valuation of comparable companies, our operating and financial performance, the lack of liquidity of our common stock, transactions in our common stock, and general and industry specific economic outlook, among other factors. Subsequent to the Business Combination, the fair value of our common stock is based on the quoted price of our common stock. Expected term — For employee awards granted at-the-money, we estimate the expected term based on the simplified method, which is the midpoint between the vesting date and the end of the contractual term for each award since our historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. For non-employee awards and employee awards granted out-of-the-money, our best estimate of the expected term is the contractual term of the award. Volatility — We derive the volatility from the average historical stock volatilities of several peer public companies over a period equivalent to the expected term of the awards as we do not have sufficient historical trading history for our stock. We selected companies with comparable characteristics to us, including enterprise value, risk profiles, and position within the industry and with historical share price information sufficient to meet the expected terms of the stock options. We will continue to apply this process until a sufficient amount of historical information regarding the volatility of our own stock price becomes available. Risk-free interest rate — The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant, the term of which is consistent with the expected life of the award. Dividend yield — We have never paid dividends on our common stock and have no plans to pay dividends on our common stock. Therefore, we used an expected dividend yield of zero. For options granted during the applicable period, we estimated the fair value of each option on the date of grant using the Black-Scholes option pricing model and applying the weighted-average assumptions in the following table: Year Ended December 31, 2023 (1) 2022 Fair value of common stock $0.66 $4.63 - $28.08 Expected term, in years 6 5.49 - 5.86 Expected volatility 72 % 45% - 47% Risk-free interest rate 4.64 % 0.57% - 1.27% Expected dividend yield 0% 0% _________________ (1) Assumptions relate to options canceled and granted in the fourth quarter of 2023. For options subject to modification accounting in the applicable period, we estimate the fair value of each applicable option on the date before and after the modification using the Black-Scholes option pricing model and applying the weighted-average assumptions in the above table. Stock-Based Compensation Expense Stock-based compensation expense under our Plans was as follows (in thousands): Year Ended December 31, 2023 2022 Cost of sales (1) $ 629 $ 2,663 Selling and administrative expenses 8,968 17,877 Total $ 9,597 $ 20,540 _________________ (1) Cost of sales for the year ended December 31, 2023 includes a net reversal of $1.0 million of stock-based compensation expense associated with equity awards granted to an independent contractor for services pursuant to the terms of a license services and collaboration agreement. Cost of sales for the year ended December 31, 2022 includes $2.1 million of stock-based compensation expense associated with equity for an independent contractor for services pursuant to the terms of a license, services and collaboration agreement. (2) Selling and administrative expenses for the year ended December 31, 2023 includes $2.3 million of accelerated amortization of stock-based compensation expense for certain equity awards, offset by a $2.4 million reduction in stock-based compensation expense due to forfeitures of certain equity grants during the year ended December 31, 2023. The expense presented in the table above is net of capitalized stock-based compensation relating to software development costs of $1.7 million and $2.0 million during the years ended December 31, 2023 and 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases Our principal lease commitments are for office, retail store and warehouse spaces under noncancelable operating leases with contractual terms expiring from 2023 to 2033. Some of these leases contain renewal options and rent escalations. We had $1.4 million and $1.7 million in cash collateralized letters of credit related to our corporate headquarters lease as of December 31, 2023 and 2022, respectively. We sublease a part of our New York office space for a period approximating the remaining term of our lease. Our New York office lease expires in 2024. In conjunction with the sale of Yandy in the second quarter of 2023, we entered into a sublease agreement with the buyer of Yandy in relation to its warehouse and office space for the remaining term of the lease, which expires in 2031. In relation to the operations of Honey Birdette, we had 62 retail stores and two office spaces as of December 31, 2023, which Honey Birdette leases and operates in Australia, the United States and the United Kingdom for the purpose of selling its products to customers. The majority of the leases are triple net leases, for which Honey Birdette, as a lessee, is responsible for paying rent as well as common area maintenance, insurance and taxes. Lease terms run between two d 10 years in length, with the average lease term being approximately five years and, in many cases, include renewal options. Lease cost associated with operating leases is charged to selling, general and administrative expense, with an immaterial amount charged to cost of sales, in the year incurred and is included in our consolidated statements of oper ations. Most of our leases include one or more options to renew, with renewal terms that generally can extend the lease term for an additional four As of December 31, 2023 and 2022 the weighted average remaining term of these operating le ases from continuing operations was 5.2 years and 5.8 years, respectively, and the weighted average discount rate used to estimate the net present value of the operating lease liabilities was 7.0% and 5.8%, respectively . Cash payments for amounts included in the measurement of operating lease liabilities attributable to continuing operations were $8.8 million and $9.1 million for the years ended December 31, 2023 and 2022, respectively. Right of use assets obtained in exchange for new operating lease liabilities were $4.5 million and $6.2 million for the years ended December 31, 2023 and 2022, respectively. Right-of-use assets obtained in exchange for new operating lease liabilities attributable to discontinued operations for the years ended December 31, 2023 and 2022 were $1.0 million and $5.8 million, respectively. Net lease cost recognized in our consolidated statements of operations as of December 31, 2023 and 2022 is summarized in the table below (in thousands). The table excludes TLA’s total net lease cost of $3.7 million and $6.2 million for the years ended December 31, 2023 and 2022, respectively, which is included in discontinued operations in the consolidated statements of operations. Year Ended December 31, 2023 2022 Operating lease cost $ 7,989 $ 7,143 Variable lease cost 1,369 816 Short-term lease cost 2,086 1,932 Sublease income (669) (259) Net lease cost $ 10,775 $ 9,632 Maturities of our operating lease liabilities as of December 31, 2023 were as follows (in thousands): Years ending December 31: Amounts 2024 $ 9,027 2025 7,905 2026 7,280 2027 4,973 2028 2,640 Thereafter 6,726 Total undiscounted lease payments 38,551 Less: imputed interest (6,975) Total operating lease liabilities $ 31,576 Operating lease liabilities, current portion $ 6,955 Operating lease liabilities, noncurrent portion $ 24,621 Legal Contingencies From time to time, we may have certain contingent liabilities that arise in the ordinary course of our business activities. We accrue a liability for such matters when it is probable that future expenditures will be made and that such expenditures can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. AVS Case In March 2020, our subsidiary Playboy Enterprises International, Inc. (together with its subsidiaries, “PEII”) terminated its license agreement with a licensee, AVS Products, LLC (“AVS”), for AVS’s failure to make required payments to PEII under the agreement, following notice of breach and an opportunity to cure. On February 6, 2021, PEII received a letter from counsel to AVS alleging that the termination of the contract was improper, and that PEII failed to meet its contractual obligations, preventing AVS from fulfilling its obligations under the license agreement. On February 25, 2021, PEII brought suit against AVS in Los Angeles Superior Court to prevent further unauthorized sales of Playboy-branded products and for disgorgement of unlawfully obtained funds. On March 1, 2021, PEII also brought a claim in arbitration against AVS for outstanding and unpaid license fees. PEII and AVS subsequently agreed that the claims PEII brought in arbitration would be alleged in the Los Angeles Superior Court case instead, and on April 23, 2021, the parties entered into and filed a stipulation to that effect with the court. On May 18, 2021, AVS filed a demurrer, asking for the court to remove an individual defendant and dismiss PEII’s request for a permanent injunction. On June 10, 2021, the court denied AVS’s demurrer. AVS filed an opposition to PEII’s motion for a preliminary injunction to enjoin AVS from continuing to sell or market Playboy-branded products on July 2, 2021, which the court denied on July 28, 2021. On August 10, 2021, AVS filed a cross-complaint for breach of contract, breach of the implied covenant of good faith and fair dealing, quantum meruit and declaratory relief. As in its February 2021 letter, AVS alleges its license was wrongfully terminated and that PEII failed to approve AVS’ marketing efforts in a manner that was either timely or that was commensurate with industry practice. AVS is seeking to be excused from having to perform its obligations as a licensee, payment of the value for services rendered by AVS to PEII outside of the license, and damages to be proven at trial. The court heard PEII’s motion for summary judgment on June 6, 2023, and dismissed six out of 10 of AVS’ causes of action. AVS’ contract-related claims remain to be determined at trial, which is set for September 30, 2024. The parties are currently engaged in discovery. We believe AVS’ remaining claims and allegations are without merit, and we will defend this matter vigorously. TNR Case |
Severance Costs
Severance Costs | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Severance Costs | Severance Costs We incurred severance costs during 2022 and 2023 due to the reduction of headcount to shift our business to a capital-light model. Severance costs are recorded in selling, general and administrative expenses in the consolidated statements of operations, with an immaterial amount recorded in cost of sales, and in accrued salaries, wages, and employee benefits in our consolidated balance sheets. Severance costs in our consolidated statements of operations were as follows (in thousands): Year Ended December 31, 2023 2022 Direct-to-Consumer $ 1,194 $ 10 Licensing 53 43 Digital Subscriptions and Content 1,019 646 Corporate 1,257 1,476 Total $ 3,523 $ 2,175 The following is a reconciliation of the beginning and ending severance costs balances recorded in accrued salaries, wages, and employee benefits in our consolidated balance sheets (in thousands): Employee Separation Costs Balance at December 31, 2022 $ 1,192 Costs incurred and charged to expense 3,660 Costs paid or otherwise settled (3,668) Balance at December 31, 2023 $ 1,184 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table sets forth the domestic and foreign components of loss before income taxes (in thousands): Year Ended December 31, 2023 2022 US $ (113,039) $ (139,796) Foreign (87,179) (166,599) Total $ (200,218) $ (306,395) The following table sets forth income tax benefit (in thousands): Year Ended December 31, 2023 2022 Current expense from income taxes: Federal $ — $ (296) State (244) (539) Foreign (4,044) (5,375) Total current expense from income taxes (4,288) (6,210) Deferred benefit (expense) from income taxes: Federal 13,886 42,121 State 1,737 3,754 Foreign 2,435 16,039 Total deferred benefit (expense) from income taxes 18,058 61,914 Total $ 13,770 $ 55,704 The following table sets forth a reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate: Year Ended December 31, 2023 2022 Federal income tax rate 21.0 % 21.0 % State income tax, net of federal benefit 1.6 1.1 Foreign withholding taxes, net of credits (1) (1.6) (1.4) Change in the statutory rate (0.3) 0.1 Change in valuation allowance (6.6) 1.1 Equity compensation (2) (1.3) (0.3) Foreign rate differential 0.7 1.5 Adjustment to deferred taxes 0.3 0.3 Impairments (7.1) (7.9) Contingent consideration 0.1 1.9 Foreign income inclusion (0.4) — Other 0.5 0.8 Effective rate 6.9 % 18.2 % _________________ (1) Forei gn withholding taxes, net of credits relate to foreign tax withholding on royalties received from various foreign jurisdictions. (2) The 2023 and 2022 equity compensation adjustments are mainly related to shortfall and the officer compensation limitations. On August 16, 2022, the Inflation Reduction Act (“IRA”) was signed into law in the United States and includes a 15% book minimum tax on corporations with financial accounting profits over $1 billion and a 1% excise tax on certain stock buybacks. The IRA also contains numerous clean energy tax incentives related to electricity production, carbon sequestration, alternative vehicles and fuels, and residential and commercial energy efficiency. The IRA did not have any material impact on the Company’s consolidated financial statements for the years ended December 31, 2023 and 2022. As of December 31, 2023, the Company had an immaterial amount of unremitted earnings related to certain foreign subsidiaries. The Company intends to continue to reinvest its foreign earnings indefinitely and does not expect to incur any significant United States taxes related to such amounts. Deferred tax assets and liabilities are recognize d for the expected future tax consequences attributable to differences between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to apply in the years in which the temporary differences are expected to reverse. The following table sets forth the significant components of deferred tax assets and liabilities (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 81,201 $ 69,470 Deferred revenue 1,834 1,763 Stock compensation 1,839 2,791 Investment in partnership 2,729 5,570 Property and equipment 147 — Lease liabilities 7,451 6,541 Other deductible temporary differences 10,782 5,867 Total deferred tax assets 105,983 92,002 Less valuation allowance (72,141) (58,926) Deferred tax assets, net $ 33,842 $ 33,076 Deferred tax liabilities: Property and equipment $ — $ (30) Intangible assets (36,730) (54,601) Right of use assets (6,416) (5,575) Other deductible temporary differences — (284) Total deferred tax liabilities (43,146) (60,490) Deferred tax liabilities, net $ (9,304) $ (27,414) The realization of deferred income tax assets may be dependent on the Company’s ability to generate sufficient income in future years in the associated jurisdiction to which the deferred tax assets relate. The Company considers all available positive and negative evidence, including scheduled reversals of deferred income tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Based on the review of all positive and negative evidence, including a three-year cumulative pre-tax loss, the Company concluded that except for the deferred tax liability recorded on certain indefinite life intangibles, it should record a full valuation allowance against all other net deferred income tax assets at December 31, 2023 and 2022 as none of these deferred income tax assets were more likely than not to be realized as of the balance sheet dates. However, the amount of the deferred income tax assets considered realizable may be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence in the form of cumulative losses is no longer present. Based on the level of historical operating results the Company has recorded a valuation allowan ce of $72.1 million and $58.9 million as of December 31, 2023 and 2022, respectively. During the years ended December 31, 2023 and 2022, the Company’s valuation allowance increased by $13.2 million and decreased by $4.7 million , respectively. The increase in valuation allowance in 2023 was primarily driven by the increase of federal and foreign NOLs, partly offset by the impairment of intangibles. The decrease in valuation allowance in 2022 was primarily driven by the impairment of intangibles. As of December 31, 2023, the Company had U.S. federal and state NOL carryforwards of $328.0 million and $137.8 million, respectively, available to offset taxable income in tax year 2023 and thereafter. Of the $328.0 million in federal NOL carryforwards, $145.7 million can be carried forward indefinitely, and the remaining NOL carryforwards start to expire in 2028. Of the $137.8 million in state NOL carryforwards, $8.0 million can be carried forward indefinitely and the remaining start to expire in 2028. The Company also had Australian NOLs of $11.4 million that can be carried forward indefinitely. Tax laws impose restrictions on the utilization of NOL carryforwards in the event of a change in ownership of the Company as defined by Internal Revenue Code Sections 382 and 383. The Company has experienced ownership changes in the past that impact the availability of its net operating losses and tax credits. The Company’s ability to utilize existing carryforwards could be substantially restricted should there be additional ownership changes in the future. A summary of changes to the amount of unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2023 2022 Balance at the beginning of the year $ 751 $ 751 Increase (decrease) for positions taken in the prior year — — Increase (decrease) for positions taken in the current year 456 — Decrease related to settlements with taxing authorities — — Decrease from lapse in statute of limitations (611) — Balance at the end of the year $ 596 $ 751 The Company records a tax benefit from uncertain tax positions only if it is more likely than not the tax position will be sustained with the taxing authority having full knowledge of all relevant information. The Company records a reduction to deferred tax assets for unrecognized tax benefits from uncertain tax positions as discrete tax adjustments in the first period that the more-likely-than-not threshold is not met. For the year ended December 31, 2023, the Company recorded unrecognized net tax benefits of $0.2 million. The unrecognized tax benefits are related to foreign withholding taxes on the Company’s licensing revenue, allocation of expenses between foreign jurisdictions and permanent establishment risk in a foreign country. The reversal of the uncertain tax benefits would affect the effective tax rate. The Company has not incurred any material interest or penalties as of the current reporting period with respect to income tax matters. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. We estimate that none of the unrecognized tax benefits will be recognized over the next 12 months. As of December 31, 2023 and 2022, there were no material interest and penalties associated with unrecognized tax benefits recorded in the Company’s consolidated statements of operations or consolidated balance sheets. The Company is subject to examinations by taxing authorities for income tax returns filed in the U.S. federal and states as well as foreign jurisdictions. The Company is no longer subject to income tax examination by the U.S. federal, state or local tax authorities for years ended December 31, 2018 or prior; however, its tax attributes, such as NOL carryforwards, are still subject to examination in the year they are used. In our foreign tax jurisdictions, the statute of limitation for tax years after 2018 remain open for examinations in Australia, and for tax years after 2021 in the UK. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table presents the reconciliation of weighted-average shares used in computing net loss per share, basic and diluted: Year Ended December 31, 2023 2022 Numerator: Net loss from continuing operations $ (186,448) $ (250,691) Income (loss) from discontinued operations, net of tax 6,030 (27,013) Net loss attributable to PLBY Group, Inc. $ (180,418) $ (277,704) Denominator: Weighted average common shares outstanding - basic 71,319,437 47,420,376 Dilutive potential common stock outstanding: — — Stock options and RSUs — — Weighted average common shares outstanding - diluted 71,319,437 47,420,376 Basic loss per share from continuing operations $ (2.60) $ (5.28) Basic income (loss) per share from discontinued operations 0.07 (0.58) Basic net loss per share $ (2.53) $ (5.86) Diluted loss per share from continuing operations $ (2.60) $ (5.28) Diluted income (loss) per share from discontinued operations 0.07 (0.58) Diluted net loss per share $ (2.53) $ (5.86) The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect: Year Ended December 31, 2023 2022 Stock options to purchase common stock 2,291,328 2,599,264 Unvested restricted stock units 3,214,910 2,058,534 Unvested performance-based restricted stock units 707,655 1,089,045 Total 6,213,893 5,746,843 |
Accrued Salaries, Wages, and Em
Accrued Salaries, Wages, and Employee Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Accrued Salaries, Wages, and Employee Benefits | Accrued Salaries, Wages, and Employee Benefits Our U.S. Employee Investment Savings Plan is a defined-contribution plan consisting of two components: a 401(k) plan and a profit-sharing plan. Eligible employees may participate in our 401(k) plan upon their date of hire. The 401(k) plan offers several mutual fund investment options. The purchase of our stock has never been an option. We make matching contributions to the 401(k) plan based on each participating employee’s contributions and eligible compensation. The matching contribution expense related to this plan and attributable to the continuing operations was $0.5 million and $0.7 million for the years ended December 31, 2023 and 2022, respectively. We are also party to an Australian contribution plan that requires contributions based on a percentage of annual compensation. Contributions to these plans totaled $1.0 million for the years ended December 31, 2023 and 2022. The profit-sharing plan covers all employees who have completed 12 months of service or at least 1,000 hours. Our discretionary contribution to the profit-sharing plan is distributed to each eligible employee’s account in an amount equal to the ratio of each eligible employee’s compensation, subject to Internal Revenue Service limitations, to the total compensation paid to all such employees. We did not make any contributions to the plan during the years ended December 31, 2023 and 2022. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In December 2023, we entered into a short-term loan agreement with an affiliate of our China JV partner to support the affiliate’s operating activities related to the China JV. The unsecured loan of $1.2 million accrued interest at a rate of 7.82% per annum and matured as of February 28, 2024. As of December 31, 2023, the loan was recorded in prepaid and other current assets in our consolidated balance sheets. In January 2024, the loan was repaid in full. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments | Segments We have three reportable segments: Direct-to-Consumer, Licensing and Digital Subscriptions and Content. The Direct-to-Consumer segment derives revenue from sales of consumer products sold through third-party retailers, online direct-to-customer or brick-and-mortar through our lingerie business, Honey Birdette, with 62 stores in three countries as of December 31, 2023. The TLA and Yandy direct-to-consumer businesses met the criteria for discontinued operations classification as of December 31, 2023 (see Note 3, Assets and Liabilities Held for Sale and Discontinued Operations). Therefore, they were excluded from the table below and classified as discontinued operations in our consolidated statements of operations for all periods presented. The Licensing segment derives revenue from trademark licenses for third-party consumer products and location-based entertainment businesses. The Digital Subscriptions and Content segment derives revenue from the subscription of Playboy programming that is distributed through various channels, including websites and domestic and international television, from sales of tokenized digital art and collectibles, and sales of creator content offerings to consumers through the Playboy Club on playboy.com . Our Chief Executive Officer is our Chief Operating Decision Maker (“CODM”). Segment information is presented in the same manner that our CODM reviews the operating results in assessing performance and allocating resources. Total asset information is not included in the tables below as it is not provided to and reviewed by our CODM. The “All Other” line items in the tables below are miscellaneous in nature and do not relate to the previously identified reportable segments disclosed herein. These segments do not meet the quantitative threshold for determining reportable segments. The “Corporate” line item in the tables below includes certain operating expenses that are not allocated to the reporting segments presented to our CODM. These expenses include legal, human resources, accounting/finance, information technology and facilities. The accounting policies of the reportable segments are the same as those described in Note 1, Basis of Presentation and Summary of Significant Accounting Policies. The following table sets forth financial information by reportable segment (in thousands): Year Ended December 31, 2023 2022 Net revenues: Direct-to-consumer $ 77,984 $ 105,177 Licensing 44,292 60,861 Digital subscriptions and content 20,670 18,709 All other 4 789 Total $ 142,950 $ 185,536 Operating (loss) income: Direct-to-consumer $ (98,886) $ (177,388) Licensing (46,898) (73,979) Digital subscriptions and content (2,440) (13,016) Corporate (42,132) (32,428) All other (13) 711 Total $ (190,369) $ (296,100) Depreciation and amortization: Direct-to-Consumer $ (3,669) $ (6,744) Digital Subscriptions and Content (2,740) (3,844) Corporate (790) (2,133) Total $ (7,199) $ (12,721) Goodwill: Direct-to-consumer $ 21,799 $ 90,117 Licensing — — Digital subscriptions and content 33,100 33,100 Total $ 54,899 $ 123,217 Geographic Information Revenue by geography is based on where the customer is located. Long-lived assets, net includes property and equipment, net and operating lease right-of-use assets. The following tables set forth revenue and long-lived assets, net by geographic area (in thousands): Year Ended December 31, Net revenues: 2023 2022 United States $ 61,810 $ 76,969 Australia 32,037 41,743 China 28,949 42,514 UK 10,537 11,641 Other 9,617 12,669 Total $ 142,950 $ 185,536 December 31, Long-lived assets: 2023 2022 United States $ 31,490 $ 33,673 Australia 6,882 5,747 Other 426 2,466 Total $ 38,798 $ 41,886 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On March 27, 2024, we entered into Amendment No. 2 to the A&R Credit Agreement (the “A&R Second Amendment”), which provided for, among other things: (a) the amendment of the Total Net Leverage Ratio covenant to (i) suspend testing of such covenant until the quarter ending June 30, 2026, (ii) adjust the Total Net Leverage Ratio financial covenant levels once the covenant testing is resumed, and (iii) add a mechanism for the Total Net Leverage Ratio to be eliminated permanently upon the satisfaction of certain prepayment-related conditions (the date upon which such prepayment-related conditions are satisfied, the “Financial Covenant Sunset Date”); (b) the addition of a covenant to maintain a $7.5 million minimum balance of unrestricted cash and cash equivalents (on a consolidated basis), subject to periodic testing and certification, as well as the ability to cure a below-minimum balance, and which covenant will be in effect (i) from March 27, 2024 until March 31, 2026 and (ii) from and after the Financial Covenant Sunset Date; and (c) that assignments of commitments or loans under the A&R Credit Agreement from existing lenders to certain eligible assignees under the A&R Credit Agreement (i.e. a commercial bank, insurance company, investment or mutual fund or other entity that is an “accredited investor” (as defined in Regulation D under the Securities Act) and which extends credit or buys loans in the ordinary course of business) shall not require consent from us while the minimum cash balance financial covenant is in effect. The other terms of the A&R Credit Agreement prior to the A&R Second Amendment will remain substantially unchanged. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II -Valuation and Qualifying Account (in thousands) Balance at Beginning of Year Costs Charged to Expenses Deductions and Write-offs Balance at End of Year Year Ended December 31, 2022 Reserve for inventory $ 1,203 $ 3,095 $ (706) $ 3,592 Year Ended December 31, 2023 Reserve for inventory $ 3,592 $ 6,935 $ (5,049) $ 5,478 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net loss | $ (180,418) | $ (277,704) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). As discussed in Note 3, Assets and Liabilities Held for Sale and Discontinued Operations, the Yandy Enterprises LLC (“Yandy”) and TLA Acquisition Corp. (“TLA”, owner of the Lovers business) disposal groups, previously included in the Direct-to-Consumer segment, were classified as discontinued operations in the consolidated statements of operations for all periods presented. Assets and liabilities of these businesses were classified as assets and liabilities held for sale in the consolidated balance sheets as of December 31, 2022. The sale of Yandy was completed on April 4, 2023 (the “Yandy Sale”). The sale of TLA was completed on November 3, 2023. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our accounts and all majority-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The Company follows a monthly reporting calendar, with its fiscal year ending on December 31. Prior to the third quarter of 2022, Honey Birdette (Aust) Pty Limited (“Honey Birdette”), which the Company acquired in August 2021, had different fiscal quarter and year ends than the Company. Honey Birdette followed a fiscal calendar widely used by the retail industry which resulted in a fiscal year consisting of a 52- or 53-week period ending on the Sunday closest to December 31. Honey Birdette’s fiscal year previously consisted of four 13-week quarters, with an extra week added to each fiscal year every five or six years. Honey Birdette’s second fiscal quarter in 2022 consisted of 14 weeks. The difference in prior fiscal periods for Honey Birdette and the Company is considered to be immaterial and no related adjustments have been made in the preparation of these consolidated financial statements. |
Reclassifications | Reclassifications Certain prior period amounts in the consolidated statements of operations and consolidated balance sheets have been reclassified to conform with the current period presentation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the fina ncial statements and the reported amounts of revenues and expenses during the reporting period. We regularly assess these estimates, including but not limited to, valuation of our trademarks and trade names; valuation of our contingent consideration liabilities; valuation of our only authorized and issued preferred stock (our “Series A Preferred Stock”) ; pay-per-view and video-on-demand buys, and monthly subscriptions to our television and digital content; the adequacy of reserves associated with accounts receivable and inventory; unredeemed gift cards and store credits; licensing commission accruals; and stock-based compensation expense. We base these estimates on historical experience and on various other market-specific and relevant assumptions that we believe to be reasonable under the circumstances. Actual results could differ from these estimates and such differences could be material to the financial position and results of operations. |
Concentration of Business and Credit Risk | Concentrations of Business and Credit Risk |
Cash Equivalents | Cash Equivalents Cash equivalents are temporary cash investments with an original maturity of three months or less at the date of purchase and are stated at cost, which approximates fair value. |
Restricted Cash | Restricted Cash |
Accounts Receivable, Net | Accounts Receivable, Net |
Inventories | Inventories Inventories consist primarily of finished goods and are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, and net realizable value. Inventory reserves are recorded for excess and slow-moving inventory. Our analysis includes a review of inventory quantities on hand at period-end in relation to year-to-date sales, existing orders from customers and projections for sales in the foreseeable future. The net realizable value is determined based on historical sales experience on a style-by-style basis. The valuation of inventory could be impacted by changes in public and consumer preferences, demand for product, changes in the buying patterns of both retailers and consumers and inventory management of customers. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost, less accumulated depreciation, except for assets acquired in connection with our business combinations, which are reflected at fair value at the date of combination. Costs incurred for computer software developed or obtained for internal use are capitalized for application development activities and are immediately expensed for preliminary project activities or post-implementation activities. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets. The useful life for furniture and equipment ranges from three two |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Indefinite-lived intangible assets that are not amortized but subject to annual impairment testing consist of Playboy-branded trademarks. We perform annual impairment testing on our Playboy-branded trademarks in the fourth quarter of each fiscal year or when events occur or circumstances change that would, more likely than not, reduce their fair value below the carrying value. We evaluate the indefinite-lived Playboy-branded trademarks for impairment using discounted cash flow and the relief from royalty methods. This valuation approach requires that we make a number of assumptions to estimate fair value, including projections of future revenues, market royalty rates, tax rates, discount rates and other relevant variables. The projections we use in the model are updated each time a quantitative impairment test is performed and will change over time based on the historical performance and changing business conditions. If the carrying value of the trademark exceeds its estimated fair value, an impairment charge is recognized for the excess amount. We perform annual impairment testing on goodwill in the fourth quarter of each fiscal year or when events occur or circumstances change that would, more likely than not, reduce the fair value of a reporting unit below its carrying value. We may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine it is more likely than not that the fair value of the reporting unit is greater than its carrying amount, an impairment test is unnecessary. If an impairment test is necessary, we will estimate the fair value of a related reporting unit. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is determined to be impaired, and we will proceed with recording an impairment charge equal to the excess of the carrying value over the related fair value. If we determine it is more likely than not that goodwill is not impaired, a quantitative test is not necessary. In the third quarter of 2022, as a result of macroeconomic factors, we experienced declines in revenue and profitability, causing us to test the recoverability of its goodwill and other intangible assets as of September 1, 2022. The quantitative test performed indicated that the fair value of our indefinite-lived Playboy-branded trademarks was less than their carrying value. We recognized $116.0 million of impairment charges on our indefinite-lived assets at the impairment date in the third quarter of 2022. A quantitative impairment test performed on goodwill utilized the income approach, under which fair value was determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The quantitative test performed indicated that the carrying value of certain of our reporting units exceeded their fair value. As a result, we recognized $117.4 million of impairment charges on our goodwill at the impairment date in the third quarter of 2022, excluding $16.4 million of impairment charges related to discontinued operations. In the second quarter of 2023, we experienced further declines in revenue and profitability, causing us to test the recoverability of our indefinite-lived assets, including goodwill, as of June 30, 2023. As a result, w e recognized $65.5 million of impairment charges on our indefinite-lived Playboy-branded trademarks at the impairment date in the second quarter of 2023. In addition, impairment charges on our goodwill at the impairment date were $66.7 million in the second quarter of 2023. There were no impairment charges to goodwill recognized in the third or fourth quarter of 2023. In the fourth quarter of 2023, we experienced declines in revenue related to the termination of licensing agreements with certain Chinese licensees due to material, uncured breaches resulting in collectability issues, causing us to test the recoverability of our indefinite-lived assets, including goodwill, as of October 31, 2023. As a result, we recognized $5.8 million of impairment charges on our indefinite-lived Playboy-branded trademarks at the impairment date in the fourth quarter of 2023 . Definite-lived intangible assets include distribution agreements and trade names, which we recognized in connection with our business combinations. Because these assets were recognized as identifiable intangible assets in connection with our previous business combinat ions, we do not incur costs to renew or extend their terms. All of our definite-lived intangible assets are amortized using the straight-line method over their useful lives. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The carrying amounts of long-lived assets, including property and equipment, stores, acquired intangible assets and right-of-use operating lease assets are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate over their remaining lives. If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount of such assets is reduced to their fair value. |
Assets and Liabilities Held for Sale and Discontinued Operations | Assets and Liabilities Held for Sale and Discontinued Operations We classify assets and liabilities as held for sale, collectively referred to as the disposal group, when management commits to a formal plan to actively market the assets for sale at a price reasonable in relation to fair value, it is unlikely that significant changes will be made to the plan, the assets are available for immediate sale in their present condition, an active program to locate a buyer and other actions required to complete the sale have been initiated, and the sale of the assets is expected to be completed within one year. A disposal group that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The fair value of a disposal group less any costs to sell is assessed each reporting period it remains classified as held for sale and any subsequent changes are reported as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. We account for discontinued operations when assets and liabilities of a disposal group are classified as held for sale, or have been sold, and only if the disposal represents a strategic shift that has or will have a meaningful effect on our operations and financial results. We aggregate the results of operations for discontinued operations into a single line item in the consolidated statements of operations for all periods presented. General corporate overhead is not allocated to discontinued operations. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. |
Leases | Leases We determine if an arrangement is a lease at inception. We determine the classification of the lease, whether operating or financing, at the lease commencement date, which is the date the leased assets are made available for use. We use the non-cancelable lease term when recognizing the right-of-use (“ROU”) assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. We account for lease components and non-lease components as a single lease component. Modifications are assessed to determine whether incremental differences result in new contract terms and accounted for as a new lease or whether the additional right of use should be included in the original lease and continue to be accounted for with the remaining ROU asset. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Lease payments consist of the fixed payments under the arrangement, less any lease incentives. Variable costs, such as common area maintenance costs and additional payments for percentage rent, are not included in the measurement of the ROU assets and lease liabilities, but are expensed as incurred. As the implicit rate of the leases is not determinable, we use an incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments in determining the present value of the lease payments. Lease expenses are recognized on a straight-line basis over the lease term. We do not recognize ROU assets on lease arrangements with a term of 12 months or less. |
Treasury Stock | Treasury Stock Treasury stock is stated at cost. |
Revenue Recognition | Revenue Recognition We recognize revenue when we transfer promised goods or services in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. This is determined by following a five-step process which includes (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price and (5) recognizing revenue when or as we satisfy a performance obligation. We apply judgment to determine the nature of the promises within a revenue contract and whether those promises represent distinct performance obligations. In determining the transaction price, we do not include amounts subject to uncertainties unless it is probable that there will be no significant reversal of cumulative revenue when the uncertainty is resolved. We evaluate the nature of the license as to whether it provides a right to access or right to use the intellectual property (“IP”), which then determines whether the revenue is recognized over time or at a point in time. Sales or usage-based royalties received in exchange for licenses of IP are recognized at the later of when (1) the subsequent sale or usage occurs or (2) the performance obligation to which some or all of the sales or usage-based royalty has been allocated is satisfied. Direct-To-Consumer Products We generate revenue from the sale of intimates and other apparel and accessories, primarily through our direct-to-consumer channels (e-commerce sites and brick-and-mortar retail stores). We recognize e-commerce revenue upon delivery of the purchased goods to the buyer as our performance obligation, consisting of the sale of goods, is satisfied at this point in time when control is transferred. We recognize retail store revenue at a point in time when a store satisfies a performance obligation and transfers control of the product to the customer. Our revenue is recognized net of incentives and estimated returns. We periodically offer promotional incentives to customers, including basket promotional code discounts and other credits, that are treated as a reduction of revenue. A portion of consumer product sales is generated through third-party sellers, who list the product on their websites. These sales are either fulfilled by us or through the third-party seller’s fulfillment services. We recognize the fees retained by the third-party sellers as expenses in cost of sales for inventory provided through drop-shipment arrangements. We charge shipping fees to customers. Since control transfers to the customer after the shipping and handling activities, we account for these activities as fulfillment activities. All outbound shipping and handling costs are accounted for as fulfillment costs in cost of sales at the time revenue is recognized. Licensing We license trademarks under multi-year arrangements with consumer products, online gaming and location-based entertainment businesses. Typically, the initial contract term ranges between one Digital Subscriptions and Content Digital subscription revenue is derived from subscription sales of playboyplus.com and playboy.tv primarily, which are online content platforms. Digital subscriptions represent a stand-ready obligation to provide continuous access to the platform, which is satisfied ratably over the term of the subscription. We receive fixed consideration shortly before the start of the subscription periods from these contracts, which are primarily sold in monthly, annual, or lifetime subscriptions. Revenues from lifetime subscriptions are recognized ratably over a five-year period, representing the estimated period during which the customer accesses the platforms. Revenues from digital subscriptions are recognized ratably over the subscription period. Revenues generated from the sales of creator offerings to consumers via our creator platform on playboy.com are recognized at the point in time when the sale is processed. Revenues generated from subscriptions to our creator platform are recognized ratably over the subscription period. We record revenue from sales of our tokenized digital art and collectibles at the point in time when the control is transferred on a gross basis. We are primarily responsible for fulfillment of the promise, have inventory risk, and have the latitude in establishing pricing and selecting suppliers, among other factors. We determined that we are the principal in these transactions as we have custody and control of our digital assets prior to the sale to the customer, and discretion and latitude in establishing the price. We also license our programming content to certain cable television operators and direct-to-home satellite television operators who pay royalties based on monthly subscriber counts and pay-per-view and video-on-demand buys for the right to distribute our programming under the terms of affiliation agreements. The distinct performance obligations under such affiliation agreements include (i) a continuous transmission service to deliver live linear feeds and (ii) licenses to our functional IP that are provided over the contract term that provide the operators the right to use our content library as it exists at a point in time. For both performance obligations, our IP is the predominant or sole item to which the royalties relate. Royalties are generally collected monthly and revenue is recognized as earned. The amount of royalties due to us is reported by operators based on actual subscriber and transaction levels. Such information is generally not received until after the close of the reporting period. In these cases, we follow the variable consideration framework and constraint guidance to estimate the number of subscribers and transactions to recognize royalty amounts based on historical experience. Historical adjustments to recorded estimates have not been material. We offer sales incentives through various programs, consisting primarily of co-op marketing. We record advertising with customers as a reduction to revenue unless we receive a distinct benefit in exchange for credits claimed by the customer and can reasonably estimate the fair value of the distinct benefit received, in which case we record it as a marketing expense. Contract Assets and Contract Liabilities The timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when we have an unconditional right to consideration which will become due solely due to the passage of time. We record a contract asset when revenue is recognized prior to invoicing or payment is contingent upon transfer of control of an unsatisfied performance obligation. We record a contract liability (deferred revenue) when revenue is recognized subsequent to cash collection. For long-term non-cancelable contracts whereby we have begun satisfying the performance obligation, we will record contract assets for the unbilled consideration which is contingent upon our future performance. Contract assets and contract liabilities are netted on a contract-by-contract basis. Gift Card Liabilities three Cost of Sales Cost of sales primarily consist of merchandise costs, warehousing and fulfillment costs, agency fees, website expenses, digital platform expenses, marketplace traffic acquisition costs, credit card processing fees, personnel and affiliate costs, including stock-based compensation, costs associated with branding events, customer shipping and handling expenses, fulfillment activity costs and freight-in expenses. |
Selling and Administrative | Selling and Administrative Expenses Selling and administrative expenses primarily consist of corporate office and retail store occupancy costs, personnel costs, including stock-based compensation, and contractor fees for accounting/finance, legal, human resources, information technology and other administrative functions, general marketing and promotional activities and insurance. |
Contingent Consideration Fair Value Remeasurement Gain | Contingent Consideration Fair Value Remeasurement Gain Contingent consideration fair value remeasurement gain consists of non-cash changes in the fair value of contingent consideration recorded in conjunction with our acquisitions of GlowUp Digital Inc. (“GlowUp”) and Honey Birdette. |
Advertising Costs | Advertising Costs |
Stock-Based Compensation | Stock-Based Compensation We measure compensation expense for all stock-based payment awards, including stock options, restricted stock units and performance stock units granted to employees, directors, and nonemployees, based on the estimated fair value of the awards on the date of grant. Compensation expense is recognized ratably in earnings, generally over the period during which the recipient is required to provide service. We adjust compensation expense based on actual forfeitures, as necessary. In the event of a modification to a previously granted award, the incremental cost of the modification is added to the unamortized cost as of the modification date and amortized over the remaining portion of the requisite service period of the modified award. Our stock options vest ratably over the contractual vesting period, which is generally three |
Income Taxes | Income Taxes We record income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and attributable to operating loss and tax credit carryforwards. The carrying amounts of deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically based on the more-likely-than-not realization threshold. This assessment considers, among other matters, the nature, frequency, and severity of current and cumulative losses, the duration of statutory carryforward periods, and tax planning alternatives. We use a two-step approach in recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals and litigation processes, if any. The second step is to measure the largest amount of tax benefit as the largest amount that is more likely than not to be realized upon settlement. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Significant management judgment is required in determining provision for income taxes, deferred tax assets and liabilities, tax contingencies, unrecognized tax benefits, and any required valuation allowance, including taking into consideration the probability of the tax contingencies being incurred. Management assesses this probability based upon information provided by its tax advisers, its legal advisers and similar tax cases. If at a later time the assessment of the probability of these tax contingencies changes, accrual for such tax uncertainties may increase or decrease. The Company has a valuation allowance due to management’s overall assessment of risks and uncertainties related to its future ability in the U.S. to realize and, hence, utilize certain deferred tax assets, primarily consisting of net operating losses (“NOLs”), carry forward temporary differences and future tax deductions. The effective tax rate for annual and interim reporting periods could be impacted if uncertain tax positions that are not recognized are settled at an amount which differs from the Company’s estimate. Finally, if the Company is impacted by a change in the valuation allowance resulting from a change in judgment regarding the realizability of deferred tax assets, such effect will be recognized in the interim period in which the change occurs. |
Comprehensive Loss | Comprehensive Loss |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing the net loss attributable to PLBY Group, Inc. stockholders by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period. For periods in which we report net losses, diluted net loss per share is the same as basic net loss per share because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. |
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Issued but Not Yet Adopted | Recently Adopted Accounting Pronouncements In December 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-06 Reference Rate Reform (“Topic 848”) “Deferral of the Sunset Date of Topic 848”, which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. Topic 848 provides optional expedients and exceptions for applying GAAP to contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The standard was effective upon issuance, and we may apply the optional expedients and elections in Topic 848 prospectively through December 31, 2024. Upon amendment and restatement of our senior secured credit agreement on May 10, 2023, LIBOR was replaced with the Secured Overnight Financing Rate (“SOFR”) published by the Federal Reserve Bank of New York. See Note 10, Debt. The provisions of this pronouncement did not have a material impact on our consolidated financial statements. Accounting Pronouncements Issued but Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU’s amendments are effective for all public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of this pronouncement on our disclosures. In December 2023, the FASB issued ASU 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets, which addresses the accounting and disclosure requirements for certain crypto assets. This ASU requires entities to subsequently measure certain crypto assets at fair value, with changes in fair value recorded in net income in each reporting period. In addition, entities are required to provide additional disclosures about the holdings of certain crypto assets. The ASU’s amendments are effective for all entities holding assets that meet certain scope criteria for fiscal years beginning after December 15, 2024, including interim periods within those years. Early adoption is permitted for both interim and annual periods. If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. We do not expect this pronouncement to have a material impact on our financial statements, and are currently evaluating its impact on our disclosures and consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Under this ASU, public entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). This ASU’s amendments are effective for all entities that are subject to Topic 740, Income Taxes, for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of this pronouncement on our disclosures. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | The following table represents receivables from the Company’s customers exceeding 10% of our total as of December 31, 2023 and 2022: Customer December 31, December 31, Customer A * 31 % _________________ *Indicates the receivables for the customer did not exceed 10% of the Company’s total as of December 31, 2023. The following table represents revenue from the Company’s customers exceeding 10% of the total for the years ended December 31, 2023 and 2022: Year Ended December 31, Customer 2023 2022 Customer A (1) 16 % 12 % _________________ (1) The agreement with this licensee was terminated in the fourth quarter of 2023. See Note 4, Revenue Recognition. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the fair value of our financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Liabilities Contingent consideration liability $ — $ — $ (399) $ (399) December 31, 2022 Level 1 Level 2 Level 3 Total Liabilities Contingent consideration liability $ — $ — $ (835) $ (835) Mandatorily redeemable preferred stock — — (39,099) (39,099) Total liabilities $ — $ — $ (39,934) $ (39,934) |
Fair Value Measurement Inputs and Valuation Techniques | The following table provides information regarding significant unobservable inputs used in the valuation of our Series A Preferred Stock measured and recorded at fair value upon its exchange for debt in connection with the amendment and restatement of our senior secured credit agreement in May 2023 (amounts in thousands): Total Fair Value Valuation Technique Unobservable Inputs Rate $ 32,594 Binomial lattice model Preferred credit spread (annual) 18 % Yield volatility 50 % Dividend settlement Paid-in-kind (PIK) The following table provides information regarding significant unobservable inputs used in the valuation of our intangible assets measured and recorded at fair value at the impairment date (dollar amounts in thousands): Fair Value Valuation Technique Unobservable Inputs Range October 31, 2023 Indefinite-lived trademarks $ 145,087 Multi-period excess earnings method Revenue growth rate (39.2)% - 52.4% Discount rate 17.0% Relief from royalty Revenue growth rate (9.9)% - 233.0% Royalty rate 7.0% Discount rate 17.0% - 30.0% June 30, 2023 Indefinite-lived trademarks 150,650 Multi-period excess earnings method Revenue growth rate (0.6)% - 52.6% Discount rate 16.0% Relief from royalty Revenue growth rate (34.5)% - 200.0% Royalty rate 7.0% Discount rate 16.0% - 28.0% Trade names 12,550 Relief from royalty Revenue growth rate 3.0% - 10.0% Royalty rate 3.0% Discount rate 17.0% Goodwill 21,176 Discounted cash flow Revenue growth rate 3.0% - 10.0% Discount rate 14.0% September 1, 2022 Indefinite-lived trademarks 216,185 Multi-period excess earnings method Revenue growth rate 2.5% - 12.3% Discount rate 18.0% Relief from royalty Revenue growth rate (5.0)% - 10.0% Royalty rate 2.0% - 7.0% Discount rate 18.0% Trade names 20,032 Relief from royalty Revenue growth rate 2.5% - 10.0% Royalty rate 0.3% - 4.0% Discount rate 19.0% - 35.0% Goodwill 90,498 Discounted cash flow Revenue growth rate 3.0% - 10.0% Discount rate 16.0% |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a roll-forward of the fair value of the liabilities categorized as Level 3 for the year ended December 31, 2023 (in thousands): Contingent Consideration Mandatorily Redeemable Preferred Stock Liability Total Balance at December 31, 2022 $ 835 $ 39,099 $ 39,934 Change in fair value and other (436) (6,505) (6,941) Mandatorily redeemable preferred stock — (32,594) (32,594) Balance at December 31, 2023 $ 399 $ — $ 399 |
Assets and Liabilities Held f_2
Assets and Liabilities Held for Sale and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the components of income (loss) from discontinued operations, net of tax in the accompanying consolidated statements of operations (in thousands): Year Ended December 31, 2023 2022 Net revenues $ 39,564 $ 81,397 Costs and expenses: Cost of sales (17,931) (46,697) Selling and administrative expenses (21,097) (39,620) Impairments — (24,665) Total operating expense (39,028) (110,982) Operating income (loss) 536 (29,585) Nonoperating income: Other income 77 217 Total nonoperating income 77 217 Income (loss) from discontinued operations 613 (29,368) Gain on dispositions, net before income taxes 7,489 — Income (loss) from discontinued operations before income taxes 8,102 (29,368) (Expense) benefit from income taxes (2,072) 2,355 Income (loss) from discontinued operations, net of tax $ 6,030 $ (27,013) The major classes of assets and liabilities classified as held for sale in the accompanying consolidated balance sheets were as follows (in thousands): December 31, 2023 2022 Assets Receivables, net of allowance for credit losses $ — $ 4,206 Inventories, net — 12,477 Prepaid expenses and other current assets — 1,309 Property and equipment, net — 3,571 Operating right-of-use assets — 13,183 Artwork held for sale 11,692 — Deferred tax assets — 2,121 Other intangible assets, net — 471 Other noncurrent assets — 463 Total assets held for sale $ 11,692 $ 37,801 Liabilities Accounts payable $ — $ 6,541 Deferred revenues — 282 Operating lease liabilities — 13,682 Other current liabilities and accrued expenses — 6,621 Total liabilities held for sale $ — $ 27,126 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Products and Services | The following table disaggregates revenue by type (in thousands), excluding revenues from discontinued operations: Year Ended December 31, 2023 Licensing Direct-to- Digital Other Total Trademark licensing $ 44,292 $ — $ — $ — $ 44,292 Digital subscriptions and products — — 12,923 4 12,927 TV and cable programming — — 7,747 — 7,747 Consumer products — 77,984 — — 77,984 Total revenues $ 44,292 $ 77,984 $ 20,670 $ 4 $ 142,950 Year Ended December 31, 2022 Licensing Direct-to- Digital Other Total Trademark licensing $ 60,861 $ — $ — $ — $ 60,861 Magazine, digital subscriptions and products — — 9,333 789 10,122 TV and cable programming — — 9,376 — 9,376 Consumer products — 105,177 — — 105,177 Total revenues $ 60,861 $ 105,177 $ 18,709 $ 789 $ 185,536 The following table disaggregates revenue by point-in-time versus over time (in thousands), excluding revenues from discontinued operations: Year Ended December 31, 2023 2022 Point in time $ 82,395 $ 105,863 Over time 60,555 79,673 Total revenues $ 142,950 $ 185,536 |
Contract Assets and Liabilities | The following table summarizes our contract assets and certain contract liabilities (in thousands). This table excludes $4.2 million and $0.8 million of accounts receivable included in assets held for sale in the consolidated balance sheets as of December 31, 2022 and 2021, respectively, and $0.3 million and $1.1 million of contract liabilities included in assets held for sale in the consolidated balance sheets as of December 31, 2022 and 2021, respectively. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 2021 Accounts receivable $ 7,496 $ 14,214 $ 13,297 Contract Balances: Contract assets, current portion $ 1,547 $ 2,559 $ 77 Contract assets, net of current portion 8,716 13,680 17,315 Contract liabilities, current portion (9,205) (10,480) (9,930) Contract liabilities, net of current portion (4,641) (21,406) (42,532) Contract liabilities, net $ (3,583) $ (15,647) $ (35,070) The following table provides a roll-forward of our netted contract assets and contract liabilities from continuing operations (in thousands): Contract Liabilities, Net Balance at December, 31, 2021 $ (35,070) Revenues recognized that were included in gross contract liabilities at December, 31, 2021 54,840 Contract assets reclassified to accounts receivable in 2022 (28,947) Cash received in advance since prior year and remains in net contract liabilities at December, 31, 2022 (5,946) Contract modifications and terminations in 2022 (524) Balance at December, 31, 2022 $ (15,647) Revenues recognized that were included in gross contract liabilities at December, 31, 2022 (1) 41,919 Contract assets reclassified to accounts receivable in 2023 (30,295) Cash received in advance since prior year and remains in net contract liabilities at December, 31, 2023 (5,170) Contract impairments, modifications and terminations in 2023 5,610 Balance at December, 31, 2023 $ (3,583) _________________ (1) Includes $5.1 million of revenue recognized from prepaid royalty guarantees in connection with a licensing contract terminated in the fourth quarter of 2023. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | The following table sets forth inventories, net, which are stated at the lower of cost (first-in, first-out) and net realizable value (in thousands).The table excludes $12.5 million of inventory, net, which is included in assets held for sale in the consolidated balance sheet as of December 31, 2022. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Editorial and other pre-publication costs $ 242 $ 690 Merchandise finished goods 12,758 19,922 Total $ 13,000 $ 20,612 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets are set forth in the table below (in thousands). The table excludes $1.3 million of assets included in assets held for sale in the consolidated balance sheet as of December 31, 2022. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Prepaid taxes $ — $ 2,380 Prepaid insurance 858 1,074 Contract assets, current portion 1,547 2,559 Prepaid software 1,488 3,714 Prepaid inventory not yet received 703 3,397 Promissory note receivable 1,632 — Prepaid platform fees — 951 Other 1,574 2,201 Total $ 7,802 $ 16,276 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net is set forth in the table below (in thousands). The table excludes $3.6 million of property and equipment, net, included in assets held for sale in the consolidated balance sheet as of December 31, 2022. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Leasehold improvements $ 10,682 $ 9,096 Construction in progress 692 782 Equipment 3,747 3,704 Internally developed software 10,812 7,096 Furniture and fixtures 1,932 1,953 Total property and equipment, gross 27,865 22,631 Less: accumulated depreciation (14,351) (8,827) Total $ 13,514 $ 13,804 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The table below summarizes our intangible assets, net (in thousands). The table excludes $0.5 million of other intangible assets, net included in assets held for sale in the consolidated balance sheets as of December 31, 2022. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Digital assets, net $ 5 $ 327 Total amortizable intangible assets, net 12,809 19,796 Total indefinite-lived intangible assets 145,087 216,014 Total $ 157,901 $ 236,137 Our amortizable intangible assets consisted of the following (in thousands): Weighted- Gross Carrying Accumulated Accumulated Impairments (1) Net Carrying December 31, 2023 Trade names 12 $ 71,524 $ (8,427) $ (50,825) $ 12,272 Distribution agreements 15 3,720 (3,183) — 537 Total $ 75,244 $ (11,610) $ (50,825) $ 12,809 _________________ (1) Includes the impairment charges on trade names of $5.1 million during the year ended December 31, 2023. The offset relates to foreign currency translation. The table below excludes TLA’s trade names and Yandy’s trade names and customer list as these were included in assets held for sale in the consolidated balance sheets as of December 31, 2022. Weighted- Gross Carrying Accumulated Accumulated Impairments (1) Net Carrying December 31, 2022 Trade names 12 $ 71,458 $ (6,881) $ (45,566) $ 19,011 Distribution agreements 15 3,720 (2,935) — 785 Developed technology 3 2,300 (2,300) — — Total $ 77,478 $ (12,116) $ (45,566) $ 19,796 _________________ (1) Includes the impairment charges on trade names of $44.9 million during the year ended December 31, 2022. The offset relates to foreign currency translation. |
Schedule of Indefinite-Lived Intangible Assets | The table below summarizes our intangible assets, net (in thousands). The table excludes $0.5 million of other intangible assets, net included in assets held for sale in the consolidated balance sheets as of December 31, 2022. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Digital assets, net $ 5 $ 327 Total amortizable intangible assets, net 12,809 19,796 Total indefinite-lived intangible assets 145,087 216,014 Total $ 157,901 $ 236,137 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2023, expected amortization expense relating to definite-lived intangible assets for the next five years and thereafter is as follows (in thousands): 2024 $ 1,445 2025 1,445 2026 1,238 2027 1,197 2028 1,197 Thereafter 6,287 Total $ 12,809 |
Schedule of Goodwill | Changes in the carrying value of goodwill for the years ended December 31, 2023 and 2022 were as follows (in thousands): Gross Goodwill Impairments Net Goodwill Balance at December 31, 2021 $ 254,214 $ — $ 254,214 Foreign currency translation adjustment in relation to Honey Birdette (13,557) — (13,557) Impairments (1) — (117,440) (117,440) Balance at December 31, 2022 $ 240,657 $ (117,440) $ 123,217 Foreign currency translation adjustment in relation to Honey Birdette (1,658) — (1,658) Impairments (1) — (66,660) (66,660) Balance at December 31, 2023 $ 238,999 $ (184,100) $ 54,899 _________________ (1) As of the impairment dates. Impairment charges on goodwill recorded in the consolidated statements of operations for the years ended December 31, 2023 and 2022 were $67.5 million and $115.2 million, respectively. The offset relates to foreign currency translation. Changes in the recorded carrying value of goodwill for the year ended December 31, 2023 by reportable segment were as follows (in thousands): Direct-to-Consumer Licensing Digital Subscriptions and Content Balance at December 31, 2022 $ 90,117 $ — $ 33,100 Foreign currency translation and other adjustments (1,658) — — Impairments (1) (66,660) — — Balance at December 31, 2023 $ 21,799 $ — $ 33,100 _________________ (1) As of the impairment date. Goodwill impairment charges recorded in the consolidated statements of operations during the year ended December 31, 2023 were $67.5 million. The difference from the amount shown in the table is due to foreign currency translation. |
Other Current Liabilities and_2
Other Current Liabilities and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Liabilities and Accrued Expenses | Other current liabilities and accrued expenses are set forth in the table below (in thousands). The table excludes $6.6 million of other current liabilities and accrued expenses included in assets held for sale in the consolidated balance sheet as of December 31, 2022, respectively. See Note 3, Assets and Liabilities Held for Sale and Discontinued Operations. December 31, 2023 2022 Accrued interest $ 3,040 $ 2,096 Accrued salaries, wages and employee benefits 4,157 3,850 Outstanding gift cards and store credits 1,618 1,571 Inventory in transit 564 6,510 Taxes 8,479 4,542 Accrued creator fees 2,113 460 Other 7,095 6,537 Total $ 27,066 $ 25,566 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | The following table sets forth debt (in thousands): December 31, 2023 2022 Term loan, due 2027 $ 209,772 $ 201,613 Plus: capitalized payment-in-kind interest 1,848 — Total debt 211,620 201,613 Less: unamortized debt issuance costs (582) (1,822) Less: unamortized debt discount (20,619) (6,616) Total debt, net of unamortized debt issuance costs and debt discount 190,419 193,175 Less: current portion of long-term debt (304) (2,050) Total debt, net of current portion $ 190,115 $ 191,125 |
Schedule of Maturities of the Principal Amount of Debt | The following table sets forth maturities of the principal amount of our term loans as of December 31, 2023 (in thousands): 2024 $ 304 2025 304 2026 304 2027 210,708 Total $ 211,620 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance consisted of the following as of the dates shown: December 31, 2023 2022 Shares available for grant under equity incentive plans 739,178 492,786 Options issued and outstanding under equity incentive plans 2,291,328 2,599,264 Unvested restricted stock units 3,214,910 2,058,534 Vested restricted stock units not yet settled 14,994 11,761 Unvested performance-based restricted stock units 707,655 1,089,045 Shares to be issued pursuant to a license, services and collaboration agreement — 48,574 Maximum number of shares issuable to GlowUp sellers pursuant to acquisition indemnity holdback 249,116 249,116 Total common stock reserved for future issuance 7,217,181 6,549,080 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock option activity | Stock option activity under our Plans in 2023 was as follows: Number of Weighted- Weighted- Aggregate intrinsic value (in thousands) Balance – December 31, 2021 3,211,071 $ 7.77 7.9 $ 60,978 Granted — — — — Exercised (495,052) 3.89 — 4,028 Forfeited and cancelled (116,755) 9.83 — — Balance – December 31, 2022 2,599,264 8.41 7.2 — Granted (1) 914,574 0.66 — — Exercised — — — — Forfeited and cancelled (1) (1,222,510) 13.71 — — Balance – December 31, 2023 2,291,328 $ 2.49 6.4 $ 311 Exercisable – December 31, 2023 1,376,754 $ 3.71 4.2 $ — Vested and expected to vest as of December 31, 2023 2,291,328 $ 2.49 6.4 $ 311 _________________ (1) Includes option awards previously granted to two employees, with respect to which 1,002,534 shares were cancelled and 914,574 shares were granted in the fourth quarter of 2023. |
Schedule of restricted stock unit activity | A summary of restricted stock unit activity under our Plans in 2023 was as follows: Number of Weighted- Unvested and outstanding balance at December 31, 2021 585,075 $ 28.15 Granted 2,050,254 10.55 Vested (343,891) 21.42 Forfeited (232,904) 19.00 Unvested and outstanding balance at December 31, 2022 2,058,534 12.79 Granted 2,554,632 0.66 Vested (1,086,825) 12.53 Forfeited (311,431) 16.17 Unvested and outstanding balance at December 31, 2023 3,214,910 $ 2.91 |
Schedule of performance stock unit activity | A summary of PSU activity under our 2021 Plan in 2023 was as follows: Number of Weighted- Unvested and outstanding balance at December 31, 2021 544,036 $ 20.49 Granted 571,419 5.68 Vested — — Forfeited (26,410) 20.49 Unvested and outstanding balance at December 31, 2022 1,089,045 12.72 Granted 72,000 0.64 Vested — — Forfeited (453,390) 13.80 Unvested and outstanding balance at December 31, 2023 (1) 707,655 $ 10.80 _________________ (1) Includes 635,655 PSU awards previously granted to five employees, which were modified in the fourth quarter of 2023. |
Schedule of assumptions used to determine fair value of options granted | For options granted during the applicable period, we estimated the fair value of each option on the date of grant using the Black-Scholes option pricing model and applying the weighted-average assumptions in the following table: Year Ended December 31, 2023 (1) 2022 Fair value of common stock $0.66 $4.63 - $28.08 Expected term, in years 6 5.49 - 5.86 Expected volatility 72 % 45% - 47% Risk-free interest rate 4.64 % 0.57% - 1.27% Expected dividend yield 0% 0% _________________ (1) Assumptions relate to options canceled and granted in the fourth quarter of 2023. |
Schedule of allocated share-based compensation expense | Stock-based compensation expense under our Plans was as follows (in thousands): Year Ended December 31, 2023 2022 Cost of sales (1) $ 629 $ 2,663 Selling and administrative expenses 8,968 17,877 Total $ 9,597 $ 20,540 _________________ (1) Cost of sales for the year ended December 31, 2023 includes a net reversal of $1.0 million of stock-based compensation expense associated with equity awards granted to an independent contractor for services pursuant to the terms of a license services and collaboration agreement. Cost of sales for the year ended December 31, 2022 includes $2.1 million of stock-based compensation expense associated with equity for an independent contractor for services pursuant to the terms of a license, services and collaboration agreement. (2) Selling and administrative expenses for the year ended December 31, 2023 includes $2.3 million of accelerated amortization of stock-based compensation expense for certain equity awards, offset by a $2.4 million reduction in stock-based compensation expense due to forfeitures of certain equity grants during the year ended December 31, 2023. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | Net lease cost recognized in our consolidated statements of operations as of December 31, 2023 and 2022 is summarized in the table below (in thousands). The table excludes TLA’s total net lease cost of $3.7 million and $6.2 million for the years ended December 31, 2023 and 2022, respectively, which is included in discontinued operations in the consolidated statements of operations. Year Ended December 31, 2023 2022 Operating lease cost $ 7,989 $ 7,143 Variable lease cost 1,369 816 Short-term lease cost 2,086 1,932 Sublease income (669) (259) Net lease cost $ 10,775 $ 9,632 |
Lessee, Operating Lease, Liability, Maturity | Maturities of our operating lease liabilities as of December 31, 2023 were as follows (in thousands): Years ending December 31: Amounts 2024 $ 9,027 2025 7,905 2026 7,280 2027 4,973 2028 2,640 Thereafter 6,726 Total undiscounted lease payments 38,551 Less: imputed interest (6,975) Total operating lease liabilities $ 31,576 Operating lease liabilities, current portion $ 6,955 Operating lease liabilities, noncurrent portion $ 24,621 |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | Maturities of our operating lease liabilities as of December 31, 2023 were as follows (in thousands): Years ending December 31: Amounts 2024 $ 9,027 2025 7,905 2026 7,280 2027 4,973 2028 2,640 Thereafter 6,726 Total undiscounted lease payments 38,551 Less: imputed interest (6,975) Total operating lease liabilities $ 31,576 Operating lease liabilities, current portion $ 6,955 Operating lease liabilities, noncurrent portion $ 24,621 |
Severance Costs (Tables)
Severance Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Severance costs in our consolidated statements of operations were as follows (in thousands): Year Ended December 31, 2023 2022 Direct-to-Consumer $ 1,194 $ 10 Licensing 53 43 Digital Subscriptions and Content 1,019 646 Corporate 1,257 1,476 Total $ 3,523 $ 2,175 The following is a reconciliation of the beginning and ending severance costs balances recorded in accrued salaries, wages, and employee benefits in our consolidated balance sheets (in thousands): Employee Separation Costs Balance at December 31, 2022 $ 1,192 Costs incurred and charged to expense 3,660 Costs paid or otherwise settled (3,668) Balance at December 31, 2023 $ 1,184 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The following table sets forth the domestic and foreign components of loss before income taxes (in thousands): Year Ended December 31, 2023 2022 US $ (113,039) $ (139,796) Foreign (87,179) (166,599) Total $ (200,218) $ (306,395) |
Schedule of Components of Income Tax Expense (Benefit) | The following table sets forth income tax benefit (in thousands): Year Ended December 31, 2023 2022 Current expense from income taxes: Federal $ — $ (296) State (244) (539) Foreign (4,044) (5,375) Total current expense from income taxes (4,288) (6,210) Deferred benefit (expense) from income taxes: Federal 13,886 42,121 State 1,737 3,754 Foreign 2,435 16,039 Total deferred benefit (expense) from income taxes 18,058 61,914 Total $ 13,770 $ 55,704 |
Schedule of Effective Income Tax Rate Reconciliation | The following table sets forth a reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate: Year Ended December 31, 2023 2022 Federal income tax rate 21.0 % 21.0 % State income tax, net of federal benefit 1.6 1.1 Foreign withholding taxes, net of credits (1) (1.6) (1.4) Change in the statutory rate (0.3) 0.1 Change in valuation allowance (6.6) 1.1 Equity compensation (2) (1.3) (0.3) Foreign rate differential 0.7 1.5 Adjustment to deferred taxes 0.3 0.3 Impairments (7.1) (7.9) Contingent consideration 0.1 1.9 Foreign income inclusion (0.4) — Other 0.5 0.8 Effective rate 6.9 % 18.2 % _________________ (1) Forei gn withholding taxes, net of credits relate to foreign tax withholding on royalties received from various foreign jurisdictions. (2) |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth the significant components of deferred tax assets and liabilities (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 81,201 $ 69,470 Deferred revenue 1,834 1,763 Stock compensation 1,839 2,791 Investment in partnership 2,729 5,570 Property and equipment 147 — Lease liabilities 7,451 6,541 Other deductible temporary differences 10,782 5,867 Total deferred tax assets 105,983 92,002 Less valuation allowance (72,141) (58,926) Deferred tax assets, net $ 33,842 $ 33,076 Deferred tax liabilities: Property and equipment $ — $ (30) Intangible assets (36,730) (54,601) Right of use assets (6,416) (5,575) Other deductible temporary differences — (284) Total deferred tax liabilities (43,146) (60,490) Deferred tax liabilities, net $ (9,304) $ (27,414) |
Summary of Income Tax Contingencies | A summary of changes to the amount of unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2023 2022 Balance at the beginning of the year $ 751 $ 751 Increase (decrease) for positions taken in the prior year — — Increase (decrease) for positions taken in the current year 456 — Decrease related to settlements with taxing authorities — — Decrease from lapse in statute of limitations (611) — Balance at the end of the year $ 596 $ 751 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the reconciliation of weighted-average shares used in computing net loss per share, basic and diluted: Year Ended December 31, 2023 2022 Numerator: Net loss from continuing operations $ (186,448) $ (250,691) Income (loss) from discontinued operations, net of tax 6,030 (27,013) Net loss attributable to PLBY Group, Inc. $ (180,418) $ (277,704) Denominator: Weighted average common shares outstanding - basic 71,319,437 47,420,376 Dilutive potential common stock outstanding: — — Stock options and RSUs — — Weighted average common shares outstanding - diluted 71,319,437 47,420,376 Basic loss per share from continuing operations $ (2.60) $ (5.28) Basic income (loss) per share from discontinued operations 0.07 (0.58) Basic net loss per share $ (2.53) $ (5.86) Diluted loss per share from continuing operations $ (2.60) $ (5.28) Diluted income (loss) per share from discontinued operations 0.07 (0.58) Diluted net loss per share $ (2.53) $ (5.86) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect: Year Ended December 31, 2023 2022 Stock options to purchase common stock 2,291,328 2,599,264 Unvested restricted stock units 3,214,910 2,058,534 Unvested performance-based restricted stock units 707,655 1,089,045 Total 6,213,893 5,746,843 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table sets forth financial information by reportable segment (in thousands): Year Ended December 31, 2023 2022 Net revenues: Direct-to-consumer $ 77,984 $ 105,177 Licensing 44,292 60,861 Digital subscriptions and content 20,670 18,709 All other 4 789 Total $ 142,950 $ 185,536 Operating (loss) income: Direct-to-consumer $ (98,886) $ (177,388) Licensing (46,898) (73,979) Digital subscriptions and content (2,440) (13,016) Corporate (42,132) (32,428) All other (13) 711 Total $ (190,369) $ (296,100) Depreciation and amortization: Direct-to-Consumer $ (3,669) $ (6,744) Digital Subscriptions and Content (2,740) (3,844) Corporate (790) (2,133) Total $ (7,199) $ (12,721) Goodwill: Direct-to-consumer $ 21,799 $ 90,117 Licensing — — Digital subscriptions and content 33,100 33,100 Total $ 54,899 $ 123,217 |
Schedule of Geographic Information | The following tables set forth revenue and long-lived assets, net by geographic area (in thousands): Year Ended December 31, Net revenues: 2023 2022 United States $ 61,810 $ 76,969 Australia 32,037 41,743 China 28,949 42,514 UK 10,537 11,641 Other 9,617 12,669 Total $ 142,950 $ 185,536 December 31, Long-lived assets: 2023 2022 United States $ 31,490 $ 33,673 Australia 6,882 5,747 Other 426 2,466 Total $ 38,798 $ 41,886 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Segment Information (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 3 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Concentration Risk (Details) - Customer Concentration Risk - Customer A | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Receivables | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 31% | |
Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16% | 12% |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Liquidity Assessment and Management's Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Increase (decrease) in revenue | $ (42,600) | |
Operating income (loss) | (190,369) | $ (296,100) |
Net cash used in operating activities from continuing operations | (42,788) | (64,042) |
Cash and cash equivalents | $ 28,120 | $ 31,815 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Property and Equipment (Details) | Dec. 31, 2023 |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Software and Software Development Costs | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 2 years |
Software and Software Development Costs | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Aircraft | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Intangible Assets and Goodwill (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of indefinite-lived intangible assets | $ 65,500,000 | $ 116,000,000 | $ 0 | |||
Impairments | 66,700,000 | 117,400,000 | $ 0 | $ 66,660,000 | $ 117,440,000 | |
Trade names | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of definite-lived intangible assets | 5,100,000 | 45,800,000 | $ 5,100,000 | $ 44,900,000 | ||
Trade Names and Other Intangible Assets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of definite-lived intangible assets | 46,800,000 | |||||
Honey Birdette | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of right-of-use assets and leasehold improvements | $ 2,300,000 | |||||
Trademarks | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of indefinite-lived intangible assets | $ 5,800,000 | $ 65,500,000 | 116,000,000 | |||
Discontinued Operations, Disposed of by Sale | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairments | 16,400,000 | |||||
Discontinued Operations, Disposed of by Sale | Trade Names and Other Intangible Assets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of definite-lived intangible assets | $ 8,300,000 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred revenues, current portion | $ 9,205 | $ 10,480 | $ 9,930 |
Lifetime Subscriptions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, remaining performance obligation, period | 5 years | ||
Gift Card | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred revenues, current portion | $ 1,600 | 1,600 | $ 1,200 |
Revenue recognized | $ 100 | $ 100 | |
Minimum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Gift card expiration period | 3 years | ||
Minimum | Licensing Agreements | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Initial contract term | 1 year | ||
Maximum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Gift card expiration period | 5 years | ||
Maximum | Licensing Agreements | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Initial contract term | 10 years |
Basis of Presentation and Su_10
Basis of Presentation and Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Advertising expenses | $ 6 | $ 14.4 |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Advertising costs related to discontinued operations | $ 2.9 | $ 10.3 |
Basis of Presentation and Su_11
Basis of Presentation and Summary of Significant Accounting Policies - Stock-Based Compensation (Details) | 12 Months Ended | |
Oct. 09, 2023 | Dec. 31, 2023 | |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | 2 years |
Minimum | Employee stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Maximum | Employee stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mandatorily redeemable preferred stock | $ 0 | $ (39,099) |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | (399) | (835) |
Mandatorily redeemable preferred stock | (39,099) | |
Total liabilities | (39,934) | |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | 0 | 0 |
Mandatorily redeemable preferred stock | 0 | |
Total liabilities | 0 | |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | 0 | 0 |
Mandatorily redeemable preferred stock | 0 | |
Total liabilities | 0 | |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | $ (399) | (835) |
Mandatorily redeemable preferred stock | (39,099) | |
Total liabilities | $ (39,934) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Fair value remeasurement of contingent liabilities | $ (436,000) | $ (29,173,000) | ||||
Digital asset impairments | 0 | 4,900,000 | ||||
Digital assets | $ 5,000 | $ 5,000 | 5,000 | 327,000 | ||
Impairment of indefinite-lived intangible assets | $ 65,500,000 | $ 116,000,000 | $ 0 | |||
Goodwill and intangible asset impairment | 137,300,000 | 279,200,000 | ||||
Trademarks | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Impairment of indefinite-lived intangible assets | $ 5,800,000 | $ 65,500,000 | $ 116,000,000 | |||
Series A Preferred Stock | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Fair value remeasurement of contingent liabilities | 6,500,000 | 9,400,000 | ||||
Level 3 | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Fair value remeasurement of contingent liabilities | $ 400,000 | $ 29,200,000 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs Used in Valuation of Series A Preferred Stock (Details) - Level 3 - Binomial Lattice Model - Series A Preferred Stock $ in Thousands | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mandatorily redeemable preferred stock | $ 32,594 |
Preferred credit spread (annual) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mandatorily redeemable preferred stock, measurement input | 0.18 |
Yield volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Mandatorily redeemable preferred stock, measurement input | 0.50 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Value Of Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Change in fair value and other | $ 6,505 | $ 9,401 |
Level 3 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 39,934 | |
Change in fair value and other | (6,941) | |
Mandatorily redeemable preferred stock | (32,594) | |
Balance at end of period | 399 | 39,934 |
Level 3 | Contingent Consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 835 | |
Change in fair value and other | (436) | |
Balance at end of period | 399 | 835 |
Level 3 | Mandatorily Redeemable Preferred Stock Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 39,099 | |
Change in fair value and other | (6,505) | |
Mandatorily redeemable preferred stock | (32,594) | |
Balance at end of period | $ 0 | $ 39,099 |
Fair Value Measurements - Sig_2
Fair Value Measurements - Significant Unobservable Inputs (Details) - Level 3 $ in Thousands | Oct. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 01, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill, Fair Value | $ 21,176 | $ 90,498 | |
Trade names | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Definite-lived intangible assets, Fair Value | 12,550 | 20,032 | |
Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Fair Value | $ 145,087 | $ 150,650 | $ 216,185 |
Multi-period excess earnings method | Discount rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | 0.170 | 0.160 | 0.180 |
Relief from royalty | Discount rate | Trade names | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Definite-lived intangible assets, Measurement input | 0.170 | ||
Relief from royalty | Discount rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | 0.180 | ||
Relief from royalty | Royalty rate | Trade names | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Definite-lived intangible assets, Measurement input | 0.030 | ||
Relief from royalty | Royalty rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | 0.070 | 0.070 | |
Discounted cash flow | Discount rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill, Measurement input | 0.140 | 0.160 | |
Minimum | Multi-period excess earnings method | Revenue growth rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | (0.392) | (0.006) | 0.025 |
Minimum | Relief from royalty | Revenue growth rate | Trade names | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Definite-lived intangible assets, Measurement input | 0.030 | 0.025 | |
Minimum | Relief from royalty | Revenue growth rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | (0.099) | (0.345) | (0.050) |
Minimum | Relief from royalty | Discount rate | Trade names | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Definite-lived intangible assets, Measurement input | 0.190 | ||
Minimum | Relief from royalty | Discount rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | 0.170 | 0.160 | |
Minimum | Relief from royalty | Royalty rate | Trade names | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Definite-lived intangible assets, Measurement input | 0.003 | ||
Minimum | Relief from royalty | Royalty rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | 0.020 | ||
Minimum | Discounted cash flow | Revenue growth rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill, Measurement input | 0.030 | 0.030 | |
Maximum | Multi-period excess earnings method | Revenue growth rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | 0.524 | 0.526 | 0.123 |
Maximum | Relief from royalty | Revenue growth rate | Trade names | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Definite-lived intangible assets, Measurement input | 0.100 | 0.100 | |
Maximum | Relief from royalty | Revenue growth rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | 2.330 | 2 | 0.100 |
Maximum | Relief from royalty | Discount rate | Trade names | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Definite-lived intangible assets, Measurement input | 0.350 | ||
Maximum | Relief from royalty | Discount rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | 0.300 | 0.280 | |
Maximum | Relief from royalty | Royalty rate | Trade names | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Definite-lived intangible assets, Measurement input | 0.040 | ||
Maximum | Relief from royalty | Royalty rate | Trademarks | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Indefinite-lived intangible assets, Measurement input | 0.070 | ||
Maximum | Discounted cash flow | Revenue growth rate | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill, Measurement input | 0.100 | 0.100 |
Assets and Liabilities Held f_3
Assets and Liabilities Held for Sale and Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 03, 2023 | Apr. 04, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on dispositions, net before income taxes | $ 7,489 | $ 0 | ||
Yandy | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on dispositions, net before income taxes | $ (300) | |||
Yandy | Secured Promissory Note | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Term loan, amount borrowed | $ 2,000 | |||
Stated interest rate (as a percent) | 8% | |||
Debt instrument, term (in years) | 3 years | |||
TLA | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on dispositions, net before income taxes | $ 7,700 | |||
Escrow deposit | 2,100 | |||
Discontinued Operations, Disposed of by Sale | Yandy | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of interest in subsidiary | $ 1,000 | |||
Discontinued Operations, Disposed of by Sale | TLA | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration | 13,500 | |||
Working capital adjustment | $ 800 |
Assets and Liabilities Held f_4
Assets and Liabilities Held for Sale and Discontinued Operations - Income (Loss) from Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Nonoperating income: | ||
Income (loss) from discontinued operations | $ 613 | $ (29,368) |
Gain on dispositions, net before income taxes | 7,489 | 0 |
Income (loss) from discontinued operations, net of tax | 6,030 | (27,013) |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenues | 39,564 | 81,397 |
Costs and expenses: | ||
Cost of sales | (17,931) | (46,697) |
Selling and administrative expenses | (21,097) | (39,620) |
Impairments | 0 | (24,665) |
Total operating expense | (39,028) | (110,982) |
Operating income (loss) | 536 | (29,585) |
Nonoperating income: | ||
Other income | 77 | 217 |
Total nonoperating income | 77 | 217 |
Income (loss) from discontinued operations before income taxes | 8,102 | (29,368) |
(Expense) benefit from income taxes | (2,072) | 2,355 |
Income (loss) from discontinued operations, net of tax | $ 6,030 | $ (27,013) |
Assets and Liabilities Held f_5
Assets and Liabilities Held for Sale and Discontinued Operations - Assets and Liabilities Classified as Held for Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | |||
Receivables, net of allowance for credit losses | $ 0 | $ 4,206 | $ 800 |
Inventories, net | 0 | 12,477 | |
Prepaid expenses and other current assets | 0 | 1,309 | |
Property and equipment, net | 0 | 3,571 | |
Operating right-of-use assets | 0 | 13,183 | |
Artwork held for sale | 11,692 | 0 | |
Deferred tax assets | 0 | 2,121 | |
Other intangible assets, net | 0 | 471 | |
Other noncurrent assets | 0 | 463 | |
Total assets held for sale | 11,692 | 37,801 | |
Liabilities | |||
Accounts payable | 0 | 6,541 | |
Deferred revenues | 0 | 282 | $ 1,100 |
Operating lease liabilities | 0 | 13,682 | |
Other current liabilities and accrued expenses | 0 | 6,621 | |
Total liabilities held for sale | $ 0 | $ 27,126 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from External Customer [Line Items] | |||
Receivables, net of allowance for credit losses | $ 0 | $ 4,206 | $ 800 |
Deferred revenues | $ 0 | $ 282 | $ 1,100 |
Revenue Recognition - Contrac_2
Revenue Recognition - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable | $ 7,496 | $ 14,214 | $ 13,297 |
Contract Balances: | |||
Contract assets, current portion | 1,547 | 2,559 | 77 |
Contract assets, net of current portion | 8,716 | 13,680 | 17,315 |
Contract liabilities, current portion | (9,205) | (10,480) | (9,930) |
Contract liabilities, net of current portion | (4,641) | (21,406) | (42,532) |
Contract liabilities, net | $ (3,583) | $ (15,647) | $ (35,070) |
Revenue Recognition - Roll-Forw
Revenue Recognition - Roll-Forward of Netted Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Contract Liabilities, Net | |||
Balance at beginning of period | $ (15,647) | $ (35,070) | |
Revenue recognized | 41,919 | 54,840 | |
Contract assets reclassified to accounts receivable | (30,295) | (28,947) | |
Cash received in advance since prior year and remains in net contract liabilities | (5,170) | (5,946) | |
Contract impairments, modifications and terminations | 5,610 | (524) | |
Balance at end of period | $ (3,583) | $ (3,583) | $ (15,647) |
Trademark licensing | |||
Contract Liabilities, Net | |||
Revenue recognized | $ 5,100 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Oct. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Net revenues | $ 142,950 | $ 185,536 | |||
Revenue recognized | 41,919 | 54,840 | |||
Revenue, remaining performance obligation, amount | $ 38,800 | $ 38,800 | 38,800 | ||
Trademark licensing | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Net revenues | 44,292 | 60,861 | |||
Revenue, remaining performance obligation, amount | 30,000 | 30,000 | 30,000 | ||
Trademark licensing | Chinese Licensees | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Net revenues | 27,100 | ||||
Revenue, remaining performance obligation, amount | 8,900 | 8,900 | 8,900 | ||
Revenue, remaining performance obligation, amount terminated | $ 152,200 | ||||
Digital subscriptions and products | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Net revenues | 12,927 | $ 10,122 | |||
Revenue, remaining performance obligation, amount | 5,200 | 5,200 | 5,200 | ||
Other Obligations | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, amount | 3,600 | 3,600 | 3,600 | ||
Trademark licensing | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Impairments | $ 8,700 | ||||
Revenue recognized | $ 5,100 | ||||
Decrease in revenue due to impairment | $ 18,500 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Trademark licensing | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period | 7 years | 7 years | 7 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Trademark licensing | Performance Obligation Recognition Period One | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period | 5 years | 5 years | 5 years | ||
Revenue, remaining performance obligation, percentage | 90% | 90% | 90% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Digital subscriptions and products | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period | 5 years | 5 years | 5 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Digital subscriptions and products | Performance Obligation Recognition Period One | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, remaining performance obligation, period | 1 year | 1 year | 1 year | ||
Revenue, remaining performance obligation, percentage | 43% | 43% | 43% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from External Customer [Line Items] | ||
Total revenues | $ 142,950 | $ 185,536 |
Point in time | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 82,395 | 105,863 |
Over time | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 60,555 | 79,673 |
Trademark licensing | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 44,292 | 60,861 |
Digital subscriptions and products | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 12,927 | 10,122 |
TV and cable programming | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 7,747 | 9,376 |
Consumer products | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 77,984 | 105,177 |
Other | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 4 | 789 |
Other | Trademark licensing | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | 0 |
Other | Digital subscriptions and products | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 4 | 789 |
Other | TV and cable programming | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | 0 |
Other | Consumer products | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | 0 |
Licensing | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 44,292 | 60,861 |
Licensing | Operating Segments | Trademark licensing | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 44,292 | 60,861 |
Licensing | Operating Segments | Digital subscriptions and products | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | 0 |
Licensing | Operating Segments | TV and cable programming | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | 0 |
Licensing | Operating Segments | Consumer products | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | 0 |
Direct-to-Consumer | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 77,984 | 105,177 |
Direct-to-Consumer | Operating Segments | Trademark licensing | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | 0 |
Direct-to-Consumer | Operating Segments | Digital subscriptions and products | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | 0 |
Direct-to-Consumer | Operating Segments | TV and cable programming | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | 0 |
Direct-to-Consumer | Operating Segments | Consumer products | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 77,984 | 105,177 |
Digital Subscriptions and Content | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 20,670 | 18,709 |
Digital Subscriptions and Content | Operating Segments | Trademark licensing | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | 0 |
Digital Subscriptions and Content | Operating Segments | Digital subscriptions and products | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 12,923 | 9,333 |
Digital Subscriptions and Content | Operating Segments | TV and cable programming | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 7,747 | 9,376 |
Digital Subscriptions and Content | Operating Segments | Consumer products | ||
Revenue from External Customer [Line Items] | ||
Total revenues | $ 0 | $ 0 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Editorial and other pre-publication costs | $ 242 | $ 690 |
Merchandise finished goods | 12,758 | 19,922 |
Total | 13,000 | 20,612 |
Inventory reserves | 5,500 | 3,600 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Inventory [Line Items] | ||
Inventories, net | $ 0 | 12,477 |
Inventory reserves | $ 1,400 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Prepaid taxes | $ 0 | $ 2,380 |
Prepaid insurance | 858 | 1,074 |
Contract assets, current portion | 1,547 | 2,559 |
Prepaid software | 1,488 | 3,714 |
Prepaid inventory not yet received | 703 | 3,397 |
Promissory note receivable | 1,632 | 0 |
Prepaid platform fees | 0 | 951 |
Other | 1,574 | 2,201 |
Total | 7,802 | 16,276 |
Costs incurred and charged to expense | 5,100 | |
Amortization of prepaid software | 1,500 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Prepaid expenses and other current assets | 0 | $ 1,309 |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Costs incurred and charged to expense | $ 400 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 27,865 | $ 22,631 |
Less: accumulated depreciation | (14,351) | (8,827) |
Total | 13,514 | 13,804 |
Depreciation and amortization | 5,400 | 5,600 |
Depreciation, discontinued operations | 0 | 0 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 10,682 | 9,096 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 692 | 782 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 3,747 | 3,704 |
Internally developed software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 10,812 | 7,096 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,932 | 1,953 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 0 | $ 3,571 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Total indefinite-lived intangible assets | $ 145,087,000 | $ 145,087,000 | $ 145,087,000 | $ 216,014,000 | ||
Impairments | $ 66,700,000 | $ 117,400,000 | 0 | $ 66,660,000 | 117,440,000 | |
Impairment of indefinite-lived intangible assets | 65,500,000 | 116,000,000 | 0 | |||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairments | |||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairments | |||||
Digital asset impairments | $ 0 | 4,900,000 | ||||
Amortization | 1,800,000 | 7,200,000 | ||||
Discontinued Operations, Disposed of by Sale | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairments | 16,400,000 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Other intangible assets, net | 0 | 0 | 0 | 471,000 | ||
Trade names | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of definite-lived intangible assets | 5,100,000 | 45,800,000 | 5,100,000 | 44,900,000 | ||
Trade Names and Other Intangible Assets | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of definite-lived intangible assets | 46,800,000 | |||||
Trade Names and Other Intangible Assets | Discontinued Operations, Disposed of by Sale | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of definite-lived intangible assets | 8,300,000 | |||||
Trademarks | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Total indefinite-lived intangible assets | 145,100,000 | $ 145,100,000 | $ 145,100,000 | $ 216,000,000 | ||
Impairment of indefinite-lived intangible assets | $ 5,800,000 | $ 65,500,000 | $ 116,000,000 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Summary of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Digital assets | $ 5 | $ 327 |
Total amortizable intangible assets, net | 12,809 | 19,796 |
Total indefinite-lived intangible assets | 145,087 | 216,014 |
Total | $ 157,901 | $ 236,137 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Summary Of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $ 75,244 | $ 77,478 | ||
Accumulated Amortization | (11,610) | (12,116) | ||
Accumulated Impairments | (50,825) | (45,566) | ||
Net Carrying Amount | $ 12,809 | $ 19,796 | ||
Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average life of intangible assets (years) | 12 years | 12 years | ||
Gross Carrying Amount | $ 71,524 | $ 71,458 | ||
Accumulated Amortization | (8,427) | (6,881) | ||
Accumulated Impairments | (50,825) | (45,566) | ||
Net Carrying Amount | 12,272 | 19,011 | ||
Impairment of definite-lived intangible assets | $ 5,100 | $ 45,800 | $ 5,100 | $ 44,900 |
Distribution agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average life of intangible assets (years) | 15 years | 15 years | ||
Gross Carrying Amount | $ 3,720 | $ 3,720 | ||
Accumulated Amortization | (3,183) | (2,935) | ||
Accumulated Impairments | 0 | 0 | ||
Net Carrying Amount | $ 537 | $ 785 | ||
Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average life of intangible assets (years) | 3 years | |||
Gross Carrying Amount | $ 2,300 | |||
Accumulated Amortization | (2,300) | |||
Accumulated Impairments | 0 | |||
Net Carrying Amount | $ 0 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Estimated Future Amortization Of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 1,445 | |
2025 | 1,445 | |
2026 | 1,238 | |
2027 | 1,197 | |
2028 | 1,197 | |
Thereafter | 6,287 | |
Net Carrying Amount | $ 12,809 | $ 19,796 |
Intangible Assets and Goodwil_6
Intangible Assets and Goodwill - Goodwill (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | |||||
Gross Goodwill, Beginning Balance | $ 240,657,000 | $ 254,214,000 | |||
Impairment, Beginning Balance | (117,440,000) | 0 | |||
Net Goodwill, Beginning Balance | 123,217,000 | 254,214,000 | |||
Impairments | $ (66,700,000) | $ (117,400,000) | $ 0 | (66,660,000) | (117,440,000) |
Gross Goodwill, Ending Balance | 238,999,000 | 238,999,000 | 240,657,000 | ||
Impairment, Ending Balance | (184,100,000) | (184,100,000) | (117,440,000) | ||
Net Goodwill, Ending Balance | 54,899,000 | 54,899,000 | 123,217,000 | ||
Impairments after foreign currency translation | 67,500,000 | 115,200,000 | |||
Direct-to-Consumer | |||||
Goodwill [Roll Forward] | |||||
Net Goodwill, Beginning Balance | 90,117,000 | ||||
Foreign currency translation adjustment in relation to Honey Birdette | (1,658,000) | ||||
Impairments | (66,660,000) | ||||
Net Goodwill, Ending Balance | 21,799,000 | 21,799,000 | 90,117,000 | ||
Licensing | |||||
Goodwill [Roll Forward] | |||||
Net Goodwill, Beginning Balance | 0 | ||||
Foreign currency translation adjustment in relation to Honey Birdette | 0 | ||||
Impairments | 0 | ||||
Net Goodwill, Ending Balance | 0 | 0 | 0 | ||
Digital Subscriptions and Content | |||||
Goodwill [Roll Forward] | |||||
Net Goodwill, Beginning Balance | 33,100,000 | ||||
Foreign currency translation adjustment in relation to Honey Birdette | 0 | ||||
Impairments | 0 | ||||
Net Goodwill, Ending Balance | $ 33,100,000 | 33,100,000 | 33,100,000 | ||
Honey Birdette | |||||
Goodwill [Roll Forward] | |||||
Foreign currency translation adjustment in relation to Honey Birdette | $ (1,658,000) | $ (13,557,000) |
Other Current Liabilities and_3
Other Current Liabilities and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accrued interest | $ 3,040 | $ 2,096 |
Accrued salaries, wages and employee benefits | 4,157 | 3,850 |
Outstanding gift cards and store credits | 1,618 | 1,571 |
Inventory in transit | 564 | 6,510 |
Taxes | 8,479 | 4,542 |
Accrued creator fees | 2,113 | 460 |
Other | 7,095 | 6,537 |
Total | 27,066 | 25,566 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Other current liabilities and accrued expenses | $ 0 | $ 6,621 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 211,620 | $ 201,613 |
Less: unamortized debt issuance costs | (582) | (1,822) |
Less: unamortized debt discount | (20,619) | (6,616) |
Total debt, net of unamortized debt issuance costs and debt discount | 190,419 | 193,175 |
Less: current portion of long-term debt | (304) | (2,050) |
Total debt, net of current portion | 190,115 | 191,125 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 211,620 | |
Term Loan | Term loan, due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 209,772 | 201,613 |
Plus: capitalized payment-in-kind interest | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,848 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Nov. 02, 2023 | May 10, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Aug. 31, 2022 USD ($) designee businessDay | May 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Apr. 04, 2023 | Feb. 17, 2023 USD ($) | Dec. 06, 2022 USD ($) | Aug. 08, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Debt discount capitalized | $ 6,616 | $ 20,619 | $ 6,616 | ||||||||||
Gain (loss) on extinguishment of debt | 6,133 | (1,266) | |||||||||||
Minimum consideration paid in cash, percent | 30% | ||||||||||||
Long-term debt, gross | 201,613 | 211,620 | 201,613 | ||||||||||
Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt, gross | 211,620 | ||||||||||||
Term loan, due 2027 | Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, amount borrowed | $ 160,000 | ||||||||||||
Debt instrument, term (in years) | 6 years | ||||||||||||
Long-term debt, gross | $ 201,613 | $ 209,772 | $ 201,613 | ||||||||||
Stated interest rate (as a percent) | 11.01% | 11.01% | |||||||||||
Effective interest rate (as a percent) | 12.30% | 12.30% | |||||||||||
Term loan, due 2027 | Term Loan | Amendment No. 1 To New Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, amount borrowed | $ 230,000 | ||||||||||||
Term loan, due 2027 | Term Loan | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 5.75% | ||||||||||||
Interest rate floor (as a percent) | 0.50% | 4.76% | 4.76% | ||||||||||
Term loan, due 2027 | Term Loan | Secured Overnight Financing Rate (SOFR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 1% | ||||||||||||
Term Loan Due 2023 | Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of long-term debt | $ 154,700 | ||||||||||||
Term loan, due 2027, incremental term loan | Term Loan | Amendment No. 1 To New Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, amount borrowed | $ 70,000 | ||||||||||||
New Credit Agreement | Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percent increase per 0.5x increase above prior financial covenant levels | 0.0025 | ||||||||||||
Total leverage ratio | 4 | 4 | 4 | ||||||||||
Number of designees observing on board of directors | designee | 2 | ||||||||||||
Minimum reduction in outstanding principal balance required | $ 10,000 | ||||||||||||
Incremental interest rate | 0.50% | ||||||||||||
Prepayment amount | $ 25,000 | $ 25,000 | |||||||||||
Debt issuance costs expensed | $ 200 | ||||||||||||
Debt discount capitalized | 2,500 | ||||||||||||
Required quarterly amortization payments | 500 | ||||||||||||
New Credit Agreement | Term Loan | Debt Covenant One | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Minimum consolidated cash balance required | $ 40,000 | ||||||||||||
Cure period | 45 days | ||||||||||||
Total net leverage ratio | 7 | ||||||||||||
New Credit Agreement | Term Loan | Debt Covenant Two | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Minimum consolidated cash balance required | $ 25,000 | ||||||||||||
Cure period | 15 days | ||||||||||||
Number of consecutive business days | businessDay | 5 | ||||||||||||
Total net leverage ratio | 4.50 | ||||||||||||
Cash netting amount | $ 12,500 | ||||||||||||
New Credit Agreement | Term Loan | Debt Covenant Three | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total net leverage ratio | 3 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 3 To New Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | 25,000 | $ 25,000 | |||||||||||
Mandatory prepayment | $ 25,000 | ||||||||||||
Voluntary prepayment | $ 5,000 | ||||||||||||
Percent of gross proceeds | 80% | ||||||||||||
Gain (loss) on extinguishment of debt | $ (1,100) | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 3 To New Credit Agreement | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Voluntary prepayment | $ 5,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 3 To New Credit Agreement | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | 50,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 3 To New Credit Agreement | Debt Covenant One | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | 50,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 3 To New Credit Agreement | Debt Covenant Two | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | 65,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 3 To New Credit Agreement | Debt Covenant Three | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | 75,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 3 To New Credit Agreement | Debt Covenant Four | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | $ 115,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 4 to New Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | $ 5,000 | ||||||||||||
Percent of gross proceeds | 80% | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 4 to New Credit Agreement | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | $ 50,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 4 to New Credit Agreement | Debt Covenant One | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | 70,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 4 to New Credit Agreement | Debt Covenant One | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | 40,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 4 to New Credit Agreement | Debt Covenant Two | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | 25,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 4 to New Credit Agreement | Debt Covenant Three | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | 40,000 | ||||||||||||
New Credit Agreement | Term Loan | Amendment No. 4 to New Credit Agreement | Debt Covenant Four | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Prepayment amount | $ 5,000 | ||||||||||||
New Credit Agreement | Term Loan | LIBOR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 5.75% | ||||||||||||
New Credit Agreement | Term Loan | LIBOR | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 6.25% | ||||||||||||
New Credit Agreement | Term Loan | Base Rate | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 4.75% | ||||||||||||
New Credit Agreement | Term Loan | Base Rate | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 5.25% | ||||||||||||
A&R Term Loans | Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, amount borrowed | $ 53,600 | ||||||||||||
Gain (loss) on extinguishment of debt | $ 8,000 | ||||||||||||
Percent of term loans | 90% | ||||||||||||
Preferred stock exchanged (in shares) | shares | 50,000 | ||||||||||||
Term loan, additional funding | $ 11,800 | ||||||||||||
Long-term debt, gross | $ 210,000 | ||||||||||||
Net leverage ratio reduction per quarter | 0.25 | ||||||||||||
Existing debt discount | $ 2,600 | ||||||||||||
Refinancing fees expensed | 300 | ||||||||||||
Debt issuance costs capitalized | $ 400 | ||||||||||||
A&R Term Loans | Term Loan | Debt Covenant One | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total net leverage ratio | 7.25 | ||||||||||||
A&R Term Loans | Term Loan | Debt Covenant Two | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total net leverage ratio | 5.25 | ||||||||||||
A&R Term Loans, Tranche A | Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate adjustment | 0.10% | ||||||||||||
Long-term debt, gross | $ 20,600 | ||||||||||||
Quarterly amortization payments | $ 76 | ||||||||||||
Stated interest rate (as a percent) | 11.41% | ||||||||||||
Effective interest rate (as a percent) | 12.03% | ||||||||||||
A&R Term Loans, Tranche A | Term Loan | Secured Overnight Financing Rate (SOFR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 6.25% | ||||||||||||
Interest rate floor (as a percent) | 0.50% | ||||||||||||
A&R Term Loans, Tranche B | Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate adjustment | 0.10% | ||||||||||||
Long-term debt, gross | $ 189,400 | ||||||||||||
Stated interest rate (as a percent) | 9.41% | ||||||||||||
Effective interest rate (as a percent) | 13.30% | ||||||||||||
Debt discount capitalized | $ 21,300 | ||||||||||||
A&R Term Loans, Tranche B | Term Loan | Secured Overnight Financing Rate (SOFR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 4.25% | ||||||||||||
Interest rate floor (as a percent) | 0.50% | ||||||||||||
Aircraft Term Loan Due 2026 | Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term loan, amount borrowed | $ 9,000 | ||||||||||||
Debt instrument, term (in years) | 5 years | ||||||||||||
Gain (loss) on extinguishment of debt | $ (200) |
Debt - Term Loan Maturities (De
Debt - Term Loan Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total | $ 211,620 | $ 201,613 |
Term Loan | ||
Debt Instrument [Line Items] | ||
2024 | 304 | |
2025 | 304 | |
2026 | 304 | |
2027 | 210,708 | |
Total | 211,620 | |
Term Loan | Term loan, due 2027 | ||
Debt Instrument [Line Items] | ||
Total | $ 209,772 | $ 201,613 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Details) $ in Millions | Apr. 13, 2015 USD ($) |
Noncontrolling Interest [Line Items] | |
Proceeds from sale of interests in subsidiary | $ 1 |
After Dark LLC | |
Noncontrolling Interest [Line Items] | |
Percentage of noncontrolling interest | 25% |
Stockholders_ Equity - Common S
Stockholders’ Equity - Common Stock and Treasury Stock (Details) | 12 Months Ended | ||
Dec. 31, 2023 vote $ / shares shares | Dec. 31, 2022 shares | May 31, 2022 USD ($) | |
Class of Stock [Line Items] | |||
Treasury stock (in shares) | 2,249,929 | 700,000 | |
Value of shares available for repurchase | $ | $ 50,000,000 | ||
Shares repurchased (in shares) | 1,549,929 | ||
Common stock | |||
Class of Stock [Line Items] | |||
Number of votes for each share | vote | 1 | ||
Dividends declared (in dollars per share) | $ / shares | $ 0 |
Stockholders_ Equity - Schedule
Stockholders’ Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 7,217,181 | 6,549,080 |
Shares available for grant under equity incentive plans | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 739,178 | 492,786 |
Options issued and outstanding under equity incentive plans | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 2,291,328 | 2,599,264 |
Unvested restricted stock units | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 3,214,910 | 2,058,534 |
Vested restricted stock units not yet settled | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 14,994 | 11,761 |
Unvested performance-based restricted stock units | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 707,655 | 1,089,045 |
Shares to be issued pursuant to a license, services and collaboration agreement | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 0 | 48,574 |
Maximum number of shares issuable to GlowUp sellers pursuant to acquisition indemnity holdback | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 249,116 | 249,116 |
Mandatorily Redeemable Prefer_2
Mandatorily Redeemable Preferred Stock (Details) - USD ($) | 12 Months Ended | ||||
Aug. 08, 2022 | May 16, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | May 10, 2023 | |
Class of Stock [Line Items] | |||||
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||
Preferred stock issued (in shares) | 0 | 50,000 | |||
Net proceeds from issuance of preferred stock | $ 0 | $ 48,250,000 | |||
Mandatorily redeemable preferred stock, at fair value | 0 | 39,099,000 | |||
Preferred stock, liquidation value | $ 1,000 | ||||
Preferred stock, dividend percentage | 8% | ||||
Preferred stock, dividend percentage, quarterly increase | 1% | ||||
Preferred stock, aggregate arrearages of accumulated dividends | $ 2,100,000 | ||||
Preferred stock, per-share amounts of accumulated dividends (in dollars per share) | $ 84.40 | ||||
Redemption Price, Tranche One | |||||
Class of Stock [Line Items] | |||||
Preferred stock, redemption price percentage | 120% | ||||
Redemption Price, Tranche Two | |||||
Class of Stock [Line Items] | |||||
Preferred stock, redemption price percentage | 125% | ||||
Redemption Price, Tranche Three | |||||
Class of Stock [Line Items] | |||||
Preferred stock, redemption price percentage | 130% | ||||
Redemption Price, Tranche Four | |||||
Class of Stock [Line Items] | |||||
Preferred stock, redemption price percentage | 145% | ||||
Redemption Price, Tranche Five | |||||
Class of Stock [Line Items] | |||||
Preferred stock, redemption price percentage | 160% | ||||
Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock authorized (in shares) | 50,000 | ||||
Preferred stock issued (in shares) | 25,000 | ||||
Price per share (in dollars per share) | $ 1,000 | ||||
Net proceeds from issuance of preferred stock | $ 25,000,000 | $ 25,000,000 | |||
Payments of stock issuance costs | $ 500,000 | 1,500,000 | |||
Stock issuance costs netted against proceeds | $ 1,000,000 | ||||
Shares sold in offering (in shares) | 25,000 | ||||
Offering price per share (in dollars per share) | $ 1,000 | ||||
Fair value change as remeasurement of fair value of preferred stock | $ 2,600,000 | $ 6,500,000 | $ 9,400,000 | ||
Mandatorily redeemable preferred stock, at fair value | 39,100,000 | $ 32,600,000 | |||
Cumulative preferred dividends | $ 2,100,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narratives (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 07, 2023 | Oct. 09, 2023 employee | Dec. 31, 2023 USD ($) employee $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Jan. 01, 2022 | Jun. 30, 2018 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Proceeds from exercise of stock options | $ 0 | $ 1,924 | |||||
Tax benefit realized from option exercises | $ 600 | ||||||
Common stock reserved for future issuance (in shares) | shares | 7,217,181 | 7,217,181 | 6,549,080 | ||||
Fair value of common stock (in dollars per share) | $ / shares | $ 0.66 | $ 0.66 | |||||
Expected volatility | 72% | ||||||
Expected term (in years) | 6 years | ||||||
Risk-free interest rate | 4.64% | ||||||
Expected dividend yield | 0% | 0% | |||||
Share-based compensation expense | $ 9,597 | $ 20,540 | |||||
Vested restricted stock units not yet settled | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock reserved for future issuance (in shares) | shares | 14,994 | 14,994 | 11,761 | ||||
Internally developed software | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 1,700 | $ 2,000 | |||||
Employee stock option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of employees with awards cancelled | employee | 2 | ||||||
Fair value of options vested | $ 1,600 | $ 4,400 | |||||
Granted (in shares) | shares | 914,574 | 914,574 | 0 | ||||
Weighted average grant date fair value, options granted (in dollars per share) | $ / shares | $ 1.05 | ||||||
Exercised (in shares) | shares | 0 | 495,052 | |||||
Unrecognized compensation expense | $ 800 | $ 800 | |||||
Unrecognized compensation expense, period for recognition, years | 1 year 6 months | ||||||
Restricted stock units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Fair value of options vested | $ 1,800 | $ 3,600 | |||||
Tax benefit realized from stock units vested | $ 100 | $ 400 | |||||
Vested (in shares) | shares | 1,086,825 | 343,891 | |||||
Unrecognized compensation expense | $ 7,600 | $ 7,600 | |||||
Unrecognized compensation expense, period for recognition, years | 1 year 6 months | ||||||
Performance stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 1 year | ||||||
Tax benefit realized from stock units vested | $ (1,000) | ||||||
Number of employees with modified awards | employee | 5 | 5 | |||||
Vesting period | 2 years | 2 years | |||||
Fair value of common stock (in dollars per share) | $ / shares | $ 9.83 | $ 9.83 | |||||
Expected volatility | 55% | ||||||
Expected term (in years) | 7 years | ||||||
Risk-free interest rate | 2.90% | ||||||
Expected dividend yield | 0% | ||||||
Service period (in years) | 3 years 9 months 18 days | ||||||
Vested (in shares) | shares | 0 | 0 | |||||
2018 Equity incentive plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance (in shares) | shares | 6,287,687 | ||||||
2021 Equity And Incentive Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance (in shares) | shares | 7,835,715 | 7,835,715 | |||||
Expiration period | 10 years | ||||||
Increase in shares authorized as percent of outstanding shares of common stock | 4% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - Employee stock option $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 USD ($) employee $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Number of options | ||||
Beginning balance (in shares) | shares | 2,599,264 | 3,211,071 | ||
Granted (in shares) | shares | 914,574 | 914,574 | 0 | |
Exercised (in shares) | shares | 0 | (495,052) | ||
Forfeited (in shares) | shares | (1,002,534) | (1,222,510) | (116,755) | |
Ending balance (in shares) | shares | 2,291,328 | 2,291,328 | 2,599,264 | 3,211,071 |
Exercisable (in shares) | shares | 1,376,754 | 1,376,754 | ||
Vested and expected to vest, number of options (in shares) | shares | 2,291,328 | 2,291,328 | ||
Weighted-average exercise price | ||||
Beginning balance (in dollars per share) | $ / shares | $ 8.41 | $ 7.77 | ||
Granted (in dollars per share) | $ / shares | 0.66 | 0 | ||
Exercised (in dollars per share) | $ / shares | 0 | 3.89 | ||
Forfeited (in dollars per share) | $ / shares | 13.71 | 9.83 | ||
Ending balance (in dollars per share) | $ / shares | $ 2.49 | 2.49 | $ 8.41 | $ 7.77 |
Exercisable (in dollars per share) | $ / shares | 3.71 | 3.71 | ||
Vested and expected to vest, weighted-average exercise price (in dollars per share) | $ / shares | $ 2.49 | $ 2.49 | ||
Weighted-average remaining contractual term (years) | ||||
Weighted average remaining contractual term (in years) | 6 years 4 months 24 days | 7 years 2 months 12 days | 7 years 10 months 24 days | |
Weighted average remaining contractual term, exercisable (in years) | 4 years 2 months 12 days | |||
Vested and expected to vest, weighted-average remaining contractual term (in years) | 6 years 4 months 24 days | |||
Aggregate intrinsic value | ||||
Beginning aggregate intrinsic value | $ | $ 0 | $ 60,978 | ||
Exercises in period, intrinsic value | $ | 0 | 4,028 | ||
Ending aggregate intrinsic value | $ | $ 311 | 311 | $ 0 | $ 60,978 |
Exercisable aggregate intrinsic value | $ | 0 | 0 | ||
Vested and expected to vest, aggregate intrinsic value | $ | $ 311 | $ 311 | ||
Number of employees with awards cancelled | employee | 2 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Unit Activity (Details) | 3 Months Ended | 12 Months Ended | ||
Oct. 09, 2023 employee | Dec. 31, 2023 employee $ / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Unvested restricted stock units | ||||
Number of Awards | ||||
Beginning balance (in shares) | 2,058,534 | 585,075 | ||
Granted (in shares) | 2,554,632 | 2,050,254 | ||
Vested (in shares) | (1,086,825) | (343,891) | ||
Forfeited (in shares) | (311,431) | (232,904) | ||
Ending balance (in shares) | 3,214,910 | 3,214,910 | 2,058,534 | |
Weighted- Average Grant Date Fair Value per Share | ||||
Beginning balance (in dollars per share) | $ / shares | $ 12.79 | $ 28.15 | ||
Granted (in dollars per share) | $ / shares | 0.66 | 10.55 | ||
Vested (in dollars per share) | $ / shares | 12.53 | 21.42 | ||
Forfeited (in dollars per share) | $ / shares | 16.17 | 19 | ||
Ending balance (in dollars per share) | $ / shares | $ 2.91 | $ 2.91 | $ 12.79 | |
Performance stock units | ||||
Number of Awards | ||||
Beginning balance (in shares) | 1,089,045 | 544,036 | ||
Granted (in shares) | 72,000 | 571,419 | ||
Vested (in shares) | 0 | 0 | ||
Forfeited (in shares) | (453,390) | (26,410) | ||
Ending balance (in shares) | 707,655 | 707,655 | 1,089,045 | |
Weighted- Average Grant Date Fair Value per Share | ||||
Beginning balance (in dollars per share) | $ / shares | $ 12.72 | $ 20.49 | ||
Granted (in dollars per share) | $ / shares | 0.64 | 5.68 | ||
Vested (in dollars per share) | $ / shares | 0 | 0 | ||
Forfeited (in dollars per share) | $ / shares | 13.80 | 20.49 | ||
Ending balance (in dollars per share) | $ / shares | $ 10.80 | $ 10.80 | $ 12.72 | |
Modified (in shares) | 635,655 | |||
Number of employees with modified awards | employee | 5 | 5 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Assumptions Used to Determine Fair Value of Options Granted (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of common stock (in dollars per share) | $ 0.66 | |
Expected term (in years) | 6 years | |
Expected volatility | 72% | |
Risk-free interest rate | 4.64% | |
Expected dividend yield | 0% | 0% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of common stock (in dollars per share) | $ 4.63 | |
Expected term (in years) | 5 years 5 months 26 days | |
Expected volatility | 45% | |
Risk-free interest rate | 0.57% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of common stock (in dollars per share) | $ 28.08 | |
Expected term (in years) | 5 years 10 months 9 days | |
Expected volatility | 47% | |
Risk-free interest rate | 1.27% |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | $ 9,597 | $ 20,540 |
Accelerated amortization of stock-based compensation expense | 2,300 | |
Reduction in stock-based compensation expense due to forfeitures | 2,400 | |
Cost of sales | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | 629 | 2,663 |
Cost of sales | Independent Contractor | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | (1,000) | 2,100 |
Selling and administrative expenses | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | $ 8,968 | $ 17,877 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Jun. 06, 2023 claim | Dec. 17, 2021 USD ($) | Feb. 25, 2021 claim | Dec. 31, 2023 USD ($) option store office | Dec. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease cost | $ 7,989 | $ 7,143 | |||
Number of options to renew | option | 1 | ||||
Weighted average remaining term of operating lease | 5 years 2 months 12 days | 5 years 9 months 18 days | |||
Weighted average discount rate | 7% | 5.80% | |||
Operating cash flows from operating leases | $ 8,800 | $ 9,100 | |||
Right-of-use assets in exchange for lease liabilities - continuing operations | 4,540 | 6,209 | |||
Right-of-use assets in exchange for lease liabilities - discontinued operations | 1,018 | 5,750 | |||
Lease cost | 10,775 | 9,632 | |||
AVS Case | |||||
Lessee, Lease, Description [Line Items] | |||||
Claims dismissed | claim | 6 | ||||
Claims filed | claim | 10 | ||||
TNR Vs. The Company | Pending Litigation | |||||
Lessee, Lease, Description [Line Items] | |||||
Damages sought | $ 100,000 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Lessee, Lease, Description [Line Items] | |||||
Right-of-use assets in exchange for lease liabilities - discontinued operations | $ 1,000 | 5,800 | |||
Honey Birdette | |||||
Lessee, Lease, Description [Line Items] | |||||
Number of stores | store | 62 | ||||
Number of offices | office | 2 | ||||
TLA | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease cost | $ 3,700 | 6,200 | |||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease renewal term | 4 years | ||||
Minimum | Honey Birdette | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 2 years | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease renewal term | 5 years | ||||
Maximum | Honey Birdette | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 10 years | ||||
Weighted Average | Honey Birdette | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 5 years | ||||
Los Angeles | Letter of Credit | |||||
Lessee, Lease, Description [Line Items] | |||||
Cash collateralized letters of credit | $ 1,400 | $ 1,700 |
Commitment and Contingencies _2
Commitment and Contingencies - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 7,989 | $ 7,143 |
Variable lease cost | 1,369 | 816 |
Short-term lease cost | 2,086 | 1,932 |
Sublease income | (669) | (259) |
Net lease cost | $ 10,775 | $ 9,632 |
Commitment and Contingencies _3
Commitment and Contingencies - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 9,027 | |
2025 | 7,905 | |
2026 | 7,280 | |
2027 | 4,973 | |
2028 | 2,640 | |
Thereafter | 6,726 | |
Total undiscounted lease payments | 38,551 | |
Less: imputed interest | (6,975) | |
Total operating lease liabilities | 31,576 | |
Operating lease liabilities, current portion | 6,955 | $ 6,278 |
Operating lease liabilities, noncurrent portion | $ 24,621 | $ 26,695 |
Severance Costs (Details)
Severance Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | $ 3,523 | $ 2,175 |
Restructuring Reserve [Roll Forward] | ||
Costs incurred and charged to expense | 5,100 | |
Employee Separation Costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2022 | 1,192 | |
Costs incurred and charged to expense | 3,660 | |
Costs paid or otherwise settled | (3,668) | |
Balance at December 31, 2023 | 1,184 | 1,192 |
Operating Segments | Direct-to-Consumer | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | 1,194 | 10 |
Operating Segments | Licensing | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | 53 | 43 |
Operating Segments | Digital Subscriptions and Content | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | 1,019 | 646 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance costs | $ 1,257 | $ 1,476 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Income/(Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before income taxes | $ (200,218) | $ (306,395) |
US | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before income taxes | (113,039) | (139,796) |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before income taxes | $ (87,179) | $ (166,599) |
Income Taxes - Schedule of Expe
Income Taxes - Schedule of Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current expense from income taxes: | ||
Federal | $ 0 | $ (296) |
State | (244) | (539) |
Foreign | (4,044) | (5,375) |
Total current expense from income taxes | (4,288) | (6,210) |
Deferred benefit (expense) from income taxes: | ||
Federal | 13,886 | 42,121 |
State | 1,737 | 3,754 |
Foreign | 2,435 | 16,039 |
Total deferred benefit (expense) from income taxes | 18,058 | 61,914 |
Total | $ 13,770 | $ 55,704 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21% | 21% |
State income tax, net of federal benefit | 1.60% | 1.10% |
Foreign withholding taxes, net of credits | (1.60%) | (1.40%) |
Change in the statutory rate | (0.30%) | 0.10% |
Change in valuation allowance | (6.60%) | 1.10% |
Equity compensation | (1.30%) | (0.30%) |
Foreign rate differential | 0.70% | 1.50% |
Adjustment to deferred taxes | 0.30% | 0.30% |
Impairments | (7.10%) | (7.90%) |
Contingent consideration | 0.10% | 1.90% |
Foreign income inclusion | (0.40%) | 0% |
Other | 0.50% | 0.80% |
Effective rate | 6.90% | 18.20% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Less valuation allowance | $ 72,141,000 | $ 58,926,000 |
Decrease in valuation allowance | 13,200,000 | $ (4,700,000) |
Unrecognized tax benefits recorded | 200,000 | |
Unrecognized tax benefits to be recognized over the next 12 months | 0 | |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss | 328,000,000 | |
Net operating loss carryforwards that can be carried forward indefinitely | 145,700,000 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss | 137,800,000 | |
Net operating loss carryforwards that can be carried forward indefinitely | 8,000,000 | |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards that can be carried forward indefinitely | $ 11,400,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 81,201 | $ 69,470 |
Deferred revenue | 1,834 | 1,763 |
Stock compensation | 1,839 | 2,791 |
Investment in partnership | 2,729 | 5,570 |
Property and equipment | 147 | 0 |
Lease liabilities | 7,451 | 6,541 |
Other deductible temporary differences | 10,782 | 5,867 |
Total deferred tax assets | 105,983 | 92,002 |
Less valuation allowance | (72,141) | (58,926) |
Deferred tax assets, net | 33,842 | 33,076 |
Deferred tax liabilities: | ||
Property and equipment | 0 | (30) |
Intangible assets | (36,730) | (54,601) |
Right of use assets | (6,416) | (5,575) |
Other deductible temporary differences | 0 | (284) |
Total deferred tax liabilities | (43,146) | (60,490) |
Deferred tax liabilities, net | $ (9,304) | $ (27,414) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at the beginning of the year | $ 751 | $ 751 |
Increase (decrease) for positions taken in the prior year | 0 | 0 |
Increase (decrease) for positions taken in the current year | 456 | 0 |
Decrease related to settlements with taxing authorities | 0 | 0 |
Decrease from lapse in statute of limitations | (611) | 0 |
Balance at the end of the year | $ 596 | $ 751 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Weighted Average Number of Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Numerator: | ||
Net loss from continuing operations | $ (186,448) | $ (250,691) |
Income (loss) from discontinued operations, net of tax | 6,030 | (27,013) |
Net loss attributable to PLBY Group, Inc. | $ (180,418) | $ (277,704) |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 71,319,437 | 47,420,376 |
Dilutive potential common stock outstanding: | ||
Stock options and RSUs (in shares) | 0 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 71,319,437 | 47,420,376 |
Basic loss per share from continuing operations (in dollars per share) | $ (2.60) | $ (5.28) |
Basic income (loss) per share from discontinued operations (in dollars per share) | 0.07 | (0.58) |
Basic net loss per share (in dollars per share) | (2.53) | (5.86) |
Diluted loss per share from continuing operations (in dollars per share) | (2.60) | (5.28) |
Diluted income (loss) per share from discontinued operations (in dollars per share) | 0.07 | (0.58) |
Diluted net loss per share (in dollars per share) | $ (2.53) | $ (5.86) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 6,213,893 | 5,746,843 |
Stock options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 2,291,328 | 2,599,264 |
Unvested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 3,214,910 | 2,058,534 |
Unvested performance-based restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 707,655 | 1,089,045 |
Accrued Salaries, Wages, and _2
Accrued Salaries, Wages, and Employee Benefits (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) plan hour | Dec. 31, 2022 USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | ||
Number of defined contribution plans | plan | 2 | |
Australia | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer contribution amount | $ 1,000,000 | $ 1,000,000 |
401(k) Plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer contribution amount | 500,000 | 700,000 |
Profit-Sharing Plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer contribution amount | $ 0 | $ 0 |
Minimum period of continuous service | 12 months | |
Minimum period of continuous service, hours | hour | 1,000 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - Affiliated Entity - Loans Payable | Dec. 31, 2023 USD ($) |
Related Party Transaction [Line Items] | |
Term loan, amount borrowed | $ 1,200,000 |
Stated interest rate (as a percent) | 7.82% |
Segments - Financial Informatio
Segments - Financial Information by Reportable Segment (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment store country | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Net revenues | $ 142,950 | $ 185,536 | |
Operating income (loss) | (190,369) | (296,100) | |
Depreciation and amortization | (7,199) | (12,721) | |
Goodwill | 54,899 | 123,217 | $ 254,214 |
Direct-to-Consumer | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 21,799 | 90,117 | |
Licensing | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 0 | 0 | |
Digital Subscriptions and Content | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 33,100 | 33,100 | |
Operating Segments | Direct-to-Consumer | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 77,984 | 105,177 | |
Operating income (loss) | (98,886) | (177,388) | |
Depreciation and amortization | (3,669) | (6,744) | |
Goodwill | 21,799 | 90,117 | |
Operating Segments | Licensing | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 44,292 | 60,861 | |
Operating income (loss) | (46,898) | (73,979) | |
Goodwill | 0 | 0 | |
Operating Segments | Digital Subscriptions and Content | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 20,670 | 18,709 | |
Operating income (loss) | (2,440) | (13,016) | |
Depreciation and amortization | (2,740) | (3,844) | |
Goodwill | 33,100 | 33,100 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (42,132) | (32,428) | |
Depreciation and amortization | (790) | (2,133) | |
Other | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 4 | 789 | |
Operating income (loss) | $ (13) | $ 711 | |
Honey Birdette | |||
Segment Reporting Information [Line Items] | |||
Number of stores | store | 62 | ||
Number of countries | country | 3 |
Segments - Geographic Informati
Segments - Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | $ 142,950 | $ 185,536 |
Long-lived assets | 38,798 | 41,886 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 61,810 | 76,969 |
Long-lived assets | 31,490 | 33,673 |
Australia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 32,037 | 41,743 |
Long-lived assets | 6,882 | 5,747 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 28,949 | 42,514 |
UK | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 10,537 | 11,641 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 9,617 | 12,669 |
Long-lived assets | $ 426 | $ 2,466 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Mar. 27, 2024 USD ($) |
Subsequent Event | A&R Term Loans | Term Loan | |
Subsequent Event [Line Items] | |
Minimum consolidated cash balance required | $ 7.5 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Reserve for inventory - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at Beginning of Year | $ 3,592 | $ 1,203 |
Costs Charged to Expenses | 6,935 | 3,095 |
Deductions and Write-offs | (5,049) | (706) |
Balance at End of Year | $ 5,478 | $ 3,592 |