solo stove(DTC)2023-03-08 16:00Financial Performance - Net sales for the year ended December 31, 2022, reached 403.7 million in 2021[348]. - Gross profit for 2022 was 258.9 million in 2021, reflecting a gross margin of 61.4%[348]. - The company reported a net loss of 56.5 million in 2021[348]. - Operating expenses increased to 190.0 million in 2021, primarily due to higher selling, general, and administrative expenses[348]. - Cash flows from operating activities generated 10.2 million in 2021[350]. - The company reported a net loss of 20.3 million for 2021[442]. - The total income (loss) before income taxes for 2022 was 58,520 thousand in 2021[489]. - The basic and diluted net income (loss) per share of Class A common stock for 2022 was 0.17 in 2021[515]. Assets and Liabilities - As of December 31, 2022, the company reported total assets of 837.7 million in 2021, reflecting a growth of approximately 2.3%[345]. - The company's inventory increased to 102.3 million in 2021, representing a rise of about 30.8%[345]. - Long-term debt decreased to 125.0 million in 2021, a reduction of approximately 13.3%[345]. - The company had total current liabilities of 46.6 million in 2021, marking an increase of approximately 43.7%[345]. - Accounts receivable increased to 21.5 million in 2021, reflecting a growth of about 21.9%[345]. - The cash and cash equivalents balance at the end of 2022 was 25.1 million at the end of 2021[351]. - The total fair value of long-term debt, net, was 128.148 million in 2021[504]. Equity and Capital - The company reported a retained earnings (accumulated deficit) of 10.7 million in 2021, indicating an improvement in financial health[345]. - The company has authorized 475 million shares of Class A common stock and 50 million shares of Class B common stock[506][507]. - Equity-based compensation expense for 2022 was 7.329 million in 2021[470]. - Unrecognized equity-based compensation as of December 31, 2022, totals 11,502 thousand, significantly higher than 26.9 million for deferred tax assets, a net increase of 26.5 million in 2021[495]. Acquisitions - The acquisition of Oru Kayak, Inc. was completed for a total cash consideration of 28.2 million to consolidated revenues in 2022[431][433]. - The acquisition of International Surf Ventures, LLC was finalized for total consideration of 17.8 million in 2022[434][437]. - Chubbies, Inc. was acquired for a total consideration of 29.1 million in Class B units, aimed at expanding market share in casual and active wear[438]. Manufacturing and Operations - The majority of the camp stoves and fire pits are currently made in China by one manufacturer, with additional manufacturing capacity between two separate manufacturers in China[379]. - The Company organizes its operations as a single reportable segment focused on outdoor consumer products[380]. - The Company primarily engages in direct-to-consumer transactions and business-to-business transactions, with performance obligations satisfied at the point of shipment[400][401]. Research and Development - Research and development expenses for the Successor years ended December 31, 2022, and December 31, 2021, were 0.3 million, respectively, indicating a significant increase of 266.67%[411]. Goodwill and Impairment - The company recorded a goodwill impairment charge of 382.7 million[451]. - Goodwill recognized from the acquisition of Oru Kayak was 29.6 million, also reflecting anticipated future revenue growth and synergies[435]. - The total identifiable net assets acquired from Chubbies amounted to 73.1 million, resulting in a total acquisition value of $130.1 million[440].