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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Adara Acquisition Corp | AMEX:ADRA | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 8.15 | 0 | 01:00:00 |
|
Delaware
|
| |
5199
|
| |
85-2373325
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification No.) |
|
|
Brad L. Shiffman
Kathleen A. Cunningham Blank Rome LLP 1271 Avenue of the America New York, New York 10020 Tel: (212) 885-5000 |
| |
Mitchell S. Nussbaum
Norwood P. Beveridge Loeb & Loeb LLP 345 Park Avenue New York, New York 10154 Tel: (212) 407-4000 |
|
|
Large accelerated filer
|
| | ☐ | | | Accelerated filer | | | ☐ | |
| Non-accelerated | | | ☒ | | |
Smaller reporting company
|
| | ☒ | |
| | | | | | |
Emerging growth company
|
| | ☐ | |
|
PRELIMINARY PROSPECTUS
|
| |
SUBJECT TO COMPLETION
|
| |
DATED MAY 1, 2023
|
|
| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price | | | | $ | | | | | $ | | | ||
Underwriting discounts and commissions(1) | | | | $ | | | | | $ | | | ||
Proceeds, before expenses, to us | | | | $ | | | | | $ | | | |
| | |
Page
|
| |||
| | | | 5 | | | |
| | | | 9 | | | |
| | | | 11 | | | |
| | | | 12 | | | |
| | | | 43 | | | |
| | | | 44 | | | |
| | | | 45 | | | |
| | | | 46 | | | |
| | | | 47 | | | |
| | | | 57 | | | |
| | | | 76 | | | |
| | | | 88 | | | |
| | | | 94 | | | |
| | | | 99 | | | |
| | | | 103 | | | |
| | | | 104 | | | |
| | | | 115 | | | |
| | | | 117 | | | |
| | | | 122 | | | |
| | | | 129 | | | |
| | | | 129 | | | |
| | | | 129 | | | |
| | | | 129 | | | |
| | | | F-1 | | |
($ in thousand)
|
| |
Six Month Ended
December 31, |
| |
Fiscal Year Ended
June 30, |
| ||||||||||||||||||||||||
| | |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| |
2020
|
| |||||||||||||||
Net revenues
|
| | | $ | 683,862 | | | | | $ | 831,646 | | | | | $ | 1,417,377 | | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Operating (loss) Income
|
| | | | (25,643) | | | | | | 40,586 | | | | | | 42,098 | | | | | | 47,907 | | | | | | 109,849 | | |
Net (loss) Income
|
| | | | (23,025) | | | | | | 29,526 | | | | | | 28,619 | | | | | | 34,178 | | | | | | 5,044 | | |
| | |
As of December 31, 2022
|
| ||||||||||||
| | |
Actual
|
| |
Proforma(1)
|
| |
As Adjusted(2)
|
| ||||||
Cash and cash equivalents
|
| | | $ | 1,374 | | | | | $ | 1,116 | | | | | |
Total current assets
|
| | | | 356,978 | | | | | | 353,859 | | | | | |
Total assets
|
| | | | 496,226 | | | | | | 493,107 | | | | | |
Total Stockholders’ equity
|
| | | | 92,495 | | | | | | 88,175 | | | | | |
($ in thousands)
|
| |
December 31,
2022 |
| |
June 30,
2022 |
| ||||||
Bank of America Revolving Credit Facility
|
| | | $ | 176.740 | | | | | $ | 136,176 | | |
Less: Deferred Finance Costs
|
| | | | (125) | | | | | | (208) | | |
Revolving Credit, Net
|
| | | $ | 176,615 | | | | | $ | 135,968 | | |
| | |
December 31, 2022
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted |
| |||||||||
Cash and cash equivalents
|
| | | $ | 1,374 | | | | | $ | 1,116 | | | | | $ | | | |
Indebtedness: | | | | | | | | | | | | | | | | | | | |
Revolving Credit Facility, net
|
| | | $ | 176,615 | | | | | | 176,615 | | | | | | | | |
Debt, non-current
|
| | | | 8,252 | | | | | | 8,252 | | | | | | | | |
Total Indebtedness
|
| | | | 184,867 | | | | | | 184,867 | | | | | | | | |
Stockholders’ Equity: | | | | | | | | | | | | | | | | | | | |
Common stock 1,000 shares authorized, 900 shares issued and
outstanding (actual), 0 shares issued and outstanding (pro-forma and pro forma adjusted) |
| | | | — | | | | | ||||||||||
Class A common stock, $0.0001 par value, 490,000,000 shares (pro
forma and pro forma adjusted) authorized; 49,167,170 (pro forma) and (as adjusted) issued and outstanding shares |
| | | | | | | | | | 6 | | | | | | | | |
Class E common stock, $0.0001 par value, 60,000,000 shares (pro forma and pro forma adjusted) authorized; 60,000,000 shares (pro forma and pro forma adjusted) issued and outstanding
|
| | | | | | | | | | | | | | | | | | |
Paid-in capital
|
| | | | 46,592 | | | | | | 88,235 | | | | | | | | |
Treasury stock 57 shares carried at cost
|
| | | | (2,674) | | | | | | — | | | | | | | | |
Accumulated other comprehensive loss
|
| | | | (66) | | | | | | (66) | | | | | | | | |
Retained earnings
|
| | | | 48,643 | | | | | | — | | | | | | | | |
Total Stockholders’ Equity
|
| | | | 92,495 | | | | | | 88,175 | | | | | | | | |
Total Capitalization
|
| | | $ | 277,362 | | | | | $ | 273,042 | | | | | $ | | |
|
Public offering price per share of Class A common stock
|
| | | | | | | | | $ | | | |
|
Pro forma net tangible book value per share as of December 31, 2022 before this
offering |
| | | | (0.50) | | | | | | | | |
|
Increase in pro forma as adjusted net tangible book value per share attributable to investors in this offering
|
| | | | | | | | | | | | |
|
Pro forma as adjusted net tangible book value per share after this offering
|
| | | | | | | | | | | | |
|
Dilution per share to new Class A common stock investors in this offering
|
| | | | | | | | | $ | | |
| | |
Shares
|
| |
%
|
| ||||||
Adara Class A common stockholders (Public Shareholders)
|
| | | | 167,170 | | | | | | 0.3 | | |
Adara Class A common stockholders (Sponsor)
|
| | | | 1,500,000 | | | | | | 3.1 | | |
Former Alliance stockholders(1)
|
| | | | 47,500,000 | | | | | | 96.6 | | |
Shares outstanding
|
| | | | 49,167,170 | | | | | | 100% | | |
| | |
Historical
|
| |
Transaction
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| ||||||||||||||||||
| | |
US GAAP
|
| |||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| ||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 18 | | | | | $ | 1,374 | | | | | $ | 1,720 | | | | | | 1c | | | | | $ | 1,116 | | |
| | | | | | | | | | | | | | | | | (1,996) | | | | | | 1f | | | | | | | | |
Accounts Receivables – Net
|
| | | | | | | | | | 170,851 | | | | | | | | | | | | | | | | | | 170,851 | | |
Inventory
|
| | | | | | | | | | 175,322 | | | | | | | | | | | | | | | | | | 175,322 | | |
Other Current Assets
|
| | | | 3 | | | | | | 9,431 | | | | | | (2,864) | | | | | | 1f | | | | | | 6,570 | | |
Related Party Receivable
|
| | | | | | | | | | 0 | | | | | | | | | | | | | | | | | | 0 | | |
Total Current Assets
|
| | | | 21 | | | | | | 356,978 | | | | | | (3,140) | | | | | | | | | | | | 353,859 | | |
Property & Equipment – Net
|
| | | | | | | | | | 10,732 | | | | | | | | | | | | | | | | | | 10,732 | | |
Operating Lease Right-Of-Use Assets
|
| | | | | | | | | | 6,612 | | | | | | | | | | | | | | | | | | 6,612 | | |
Intangible Assets
|
| | | | | | | | | | 25,768 | | | | | | | | | | | | | | | | | | 25,768 | | |
Goodwill
|
| | | | | | | | | | 87,151 | | | | | | | | | | | | | | | | | | 87,151 | | |
Marketable securities held in Trust Account
|
| | | | 117,809 | | | | | | — | | | | | | (116,089) | | | | | | 1b | | | | | | — | | |
| | | | | | | | | | | | | | | | | (1,720) | | | | | | 1c | | | | | | | | |
Other Assets
|
| | | | | | | | | | 305 | | | | | | | | | | | | | | | | | | 305 | | |
Deferred Tax Asset
|
| | | | | | | | | | 8,680 | | | | | | | | | | | | | | | | | | 8,680 | | |
Total Assets
|
| | | $ | 117,830 | | | | | $ | 496,226 | | | | | $ | (120,949) | | | | | | | | | | | $ | 493,107 | | |
| | |
Historical
|
| |
Transaction
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| ||||||||||||||||||
| | |
US GAAP
|
| |||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| ||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts Payable
|
| | | | | | | | | $ | 193,801 | | | | | | | | | | | | | | | | | $ | 193,801 | | |
Accrued Expenses
|
| | | | 1,643 | | | | | | 12,418 | | | | | | (1,500) | | | | | | 1f | | | | | | 12,561 | | |
Revolving Credit Facility
|
| | | | | | | | | | 176,615 | | | | | | | | | | | | | | | | | | 176,615 | | |
Promissory Note
|
| | | | 502 | | | | | | | | | | | | | | | | | | | | | | | | 502 | | |
Current Portion of Seller Note
|
| | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | |
Current Portion of Obligations Under Capital Lease
|
| | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | |
Current Portion of Operating Lease Obligations
|
| | | | | | | | | | 3,456 | | | | | | | | | | | | | | | | | | 3,456 | | |
Income Tax Payable
|
| | | | 264 | | | | | | 0 | | | | | | | | | | | | | | | | | | 264 | | |
Total Current Liabilities
|
| | | | 2,409 | | | | | | 386,290 | | | | | | (1,500) | | | | | | | | | | | | 387,199 | | |
Long-Term Liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred Tax Liability
|
| | | | | | | | | | 5,271 | | | | | | | | | | | | | | | | | | 5,271 | | |
Debt – Non-Current
|
| | | | | | | | | | 8,252 | | | | | | | | | | | | | | | | | | 8,252 | | |
Long-Term Portion of Operating Lease Obligations
|
| | | | | | | | | | 3,918 | | | | | | | | | | | | | | | | | | 3,918 | | |
Warrant Liabilities
|
| | | | 694 | | | | | | — | | | | | | (402) | | | | | | 1h | | | | | | 292 | | |
Total Long-Term Liabilities
|
| | | | 694 | | | | | | 17,441 | | | | | | (402) | | | | | | | | | | | | 17,733 | | |
Total Liabilities
|
| | | $ | 3,103 | | | | | $ | 403,731 | | | | | $ | (1,902) | | | | | | | | | | | $ | 404,932 | | |
| | |
Historical
|
| |
Transaction
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| ||||||||||||||||||
| | |
US GAAP
|
| |||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| ||||||||||||||||||||||||
Commitments and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A common stock subject to possible
redemption, $0.0001 par value; 11,500,000 shares at $10.16 per share redemption value |
| | | | 117,141 | | | | | | | | | | | | (116,089) | | | | | | 1b | | | | | | — | | |
| | | | | | | | | | | | | | | | | (1,052) | | | | | | 1b | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock 1,000 (actual) 900 shared issued and outstanding
|
| | | | | | |||||||||||||||||||||||||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding
|
| | | | — | | | | | | | | | | | | — | | | | | | 1d | | | | | | — | | |
Class A New
|
| | | | | | | | | | | | | | | | — | | | | | | 1d | | | | | | 6 | | |
| | | | | | | | | | | | | | | | | 1 | | | | | | 1b | | | | | | | | |
| | | | | | | | | | | | | | | | | 5 | | | | | | 1e | | | | | | | | |
Paid-In Capital
|
| | | | | | | | | | 46,592 | | | | | | (2,414) | | | | | | 1a | | | | | | 88,235 | | |
| | | | | | | | | | | | | | | | | 1,051 | | | | | | 1b | | | | | | | | |
| | | | | | | | | | | | | | | | | (5) | | | | | | 1e | | | | | | | | |
| | | | | | | | | | | | | | | | | (3,000) | | | | | | 1f | | | | | | | | |
| | | | | | | | | | | | | | | | | (2,674) | | | | | | 1e | | | | | | | | |
| | | | | | | | | | | | | | | | | (360) | | | | | | 1f | | | | | | — | | |
| | | | | | | | | | | | | | | | | 48,643 | | | | | | 1g | | | | | | | | |
| | | | | | | | | | | | | | | | | 402 | | | | | | 1h | | | | | | | | |
Treasury stock, 57 shares carried at cost
|
| | | | | | | | | | (2,674) | | | | | | 2,674 | | | | | | 1e | | | | | | — | | |
Retained Earnings
|
| | | | (2,414) | | | | | | 48,643 | | | | | | 2,414 | | | | | | 1a | | | | | | — | | |
| | | | | | | | | | | | | | | | | (48,643) | | | | | | 1g | | | | | | | | |
Comprehensive Income
|
| | | | | | | | | | (66) | | | | | | | | | | | | | | | | | | (66) | | |
Total Stockholders’ Equity
|
| | | | (2,414) | | | | | | 92,495 | | | | | | (1,906) | | | | | | | | | | | | 88,175 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 117,830 | | | | | $ | 496,226 | | | | | $ | (120,949) | | | | | | | | | | | $ | 493,107 | | |
| | |
Historical
|
| |
Transaction
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| ||||||||||||||||||
| | |
US GAAP
|
| |||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| ||||||||||||||||||||||||
Net Sales
|
| | | | | | | | | $ | 1,269,593 | | | | | | | | | | | | | | | | | $ | 1,269,593 | | |
Cost of Sales
|
| | | | | | | | | | 1,154,600 | | | | | | | | | | | | | | | | | | 1,154,600 | | |
Gross Margin
|
| | | | | | | | | | 114,993 | | | | | | — | | | | | | | | | | | | 114,993 | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fulfillment Services
|
| | | | | | | | | | 66,283 | | | | | | | | | | | | | | | | | | 66,283 | | |
Technology
|
| | | | | | | | | | 12,897 | | | | | | | | | | | | | | | | | | 12,897 | | |
Sales & Marketing
|
| | | | | | | | | | 30,579 | | | | | | | | | | | | | | | | | | 30,579 | | |
General & Administrative
|
| | | $ | 2,608 | | | | | $ | 14,801 | | | | | $ | (120) | | | | | | 2a | | | | | | 17,289 | | |
Depreciation & Amortization
|
| | | | — | | | | | | 7,052 | | | | | | | | | | | | | | | | | | 7,052 | | |
Transaction Costs
|
| | | | | | | | | | 1,038 | | | | | | 360 | | | | | | 2c | | | | | | 1,398 | | |
IC DISC
|
| | | | | | | | | | 6,477 | | | | | | | | | | | | | | | | | | 6,477 | | |
Gain on sale of PPE
|
| | | | — | | | | | | (3) | | | | | | | | | | | | | | | | | | (3) | | |
Total Operating Expenses
|
| | | | 2,608 | | | | | | 139,124 | | | | | | 240 | | | | | | | | | | | | 141,972 | | |
Operating Income (Loss)
|
| | | | (2,608) | | | | | | (24,131) | | | | | | (240) | | | | | | | | | | | | (26,979) | | |
| | |
Historical
|
| |
Transaction
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| ||||||||||||||||||
| | |
US GAAP
|
| |||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| ||||||||||||||||||||||||
Non Operating Income (Expenses): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest
|
| | | | | | | | | | (8,218) | | | | | | | | | | | | | | | | | | (8,218) | | |
Interest earned on marketable securities held in
Trust Account |
| | | | 1,649 | | | | | | | | | | | | (1,649) | | | | | | 2b | | | | | | — | | |
Change in fair value of warrants liabilities
|
| | | | 4,167 | | | | | | | | | | | | (2,417) | | | | | | 2e | | | | | | 1,750 | | |
Total Non-Operating Income (Expenses)
|
| | | | 5,816 | | | | | | (8,218) | | | | | | (4,066) | | | | | | | | | | | | (6,468) | | |
Income before Income Taxes
|
| | | | 3,208 | | | | | | (32,349) | | | | | | (4,306) | | | | | | | | | | | | (33,447) | | |
Provision for Income Taxes
|
| | | | (264) | | | | | | 8,417 | | | | | | 453 | | | | | | 2d | | | | | | 8,606 | | |
Net Loss
|
| | | $ | 2,944 | | | | | $ | (23,932) | | | | | $ | (3,853) | | | | | | | | | | | $ | (24,841) | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic shares outstanding
|
| | | | 14,375 | | | | | | 1 | | | | | | | | | | | | | | | | | | 49,167 | | |
Diluted shares outstanding
|
| | | | 14,375 | | | | | | 1 | | | | | | | | | | | | | | | | | | 49,167 | | |
Basic and Diluted earnings (Loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings (Loss) per share
|
| | | $ | 0.20 | | | | | $ | (26,591) | | | | | | | | | | | | | | | | | $ | (0.51) | | |
Diluted earnings (Loss) per share
|
| | | $ | 0.20 | | | | | $ | (26,591) | | | | | | | | | | | | | | | | | $ | (0.51) | | |
| | |
Tranche 1
|
| |
Tranche 2
|
| |
Tranche 3
|
| |||||||||
Common stock value
|
| | | $ | 10.18 | | | | | $ | 10.18 | | | | | $ | 10.18 | | |
Exercise price
|
| | | $ | 0.00 | | | | | $ | 0.00 | | | | | $ | 0.00 | | |
Contractual stock price threshold
|
| | | $ | 20.00 | | | | | $ | 30.00 | | | | | $ | 50.00 | | |
One-touch barrier
|
| | | $ | 22.13 | | | | | $ | 33.26 | | | | | $ | 55.39 | | |
Expiration date
|
| | | | 12/31/2027 | | | | | | 12/31/2029 | | | | | | 12/31/2032 | | |
Expected item
|
| | | | 5.00 | | | | | | 7.00 | | | | | | 10.00 | | |
Risk-free rate
|
| | | | 3.95% | | | | | | 3.92% | | | | | | 3.84% | | |
Dividend
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Volatility
|
| | | | 37.9% | | | | | | 37.9% | | | | | | 37.9% | | |
Value of an up-and-in barrier option
|
| | | $ | 6.02 | | | | | $ | 5.10 | | | | | $ | 4.52 | | |
Fair value per share
|
| | | $ | 6.02 | | | | | $ | 5.10 | | | | | $ | 4.52 | | |
| | |
For the year ended
December 31, 2022 |
| |||
Pro forma net loss attributable to common stockholders
|
| | | $ | (24,841,000) | | |
Pro forma weighted average shares calculation, basic and diluted: | | | | | | | |
Adara Class A common stockholders (Public Shareholders)
|
| | | | 167,170 | | |
Adara Class B common stockholders (Sponsor)
|
| | | | 1,500,000 | | |
Former Alliance stockholders
|
| | | | 47,500,000 | | |
Pro forma weighted average shares outstanding – basic and diluted(1)
|
| | | | 49,167,170 | | |
Net loss per share – basic and diluted(1)
|
| | | $ | (0.51) | | |
($ in thousands except shares)
|
| |
Three
Months Ended December 31, 2022 |
| |
Three
Months Ended December 31, 2021 |
| ||||||
Net Revenues
|
| | | $ | 445,162 | | | | | $ | 538,445 | | |
Cost of Revenues (excluding depreciation and amortization)
|
| | | | 424,265 | | | | | | 465,407 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense
|
| | | | 20,365 | | | | | | 19,947 | | |
Selling, General and Administrative Expense
|
| | | | 15,044 | | | | | | 15,831 | | |
Depreciation and Amortization
|
| | | | 1,529 | | | | | | 2,064 | | |
Transaction Costs
|
| | | | 367 | | | | | | 34 | | |
IC DISC Commissions
|
| | | | 1,444 | | | | | | 2,767 | | |
(Gain) Loss on Disposal of Fixed Assets
|
| | | | (3) | | | | | | — | | |
Total Operating Expenses
|
| | | | 38,746 | | | | | | 40,643 | | |
Operating (Loss) Income
|
| | | | (17,849) | | | | | | 32,395 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net
|
| | | | 3,544 | | | | | | 1,008 | | |
Total Other Expenses
|
| | | | 3,544 | | | | | | 1,008 | | |
(Loss)
Income Before Income Tax (Benefit) Expense
|
| | | | (21,393) | | | | | | 31,387 | | |
Income Tax (Benefit) Expense
|
| | | | (5,878) | | | | | | 7,533 | | |
Net (Loss) Income
|
| | | | (15,515) | | | | | | 23,854 | | |
Net (Loss) Income per Share – Basic and Diluted
|
| | | $ | (17.24) | | | | | $ | 26.50 | | |
Shares Used in Computing Net (Loss) Income per Share
|
| | | | 900 | | | | | | 900 | | |
($ in thousands)
|
| |
Three Months
Ended December 2022 |
| |
Three Months
Ended December 2021 |
| ||||||
Net Income (Loss)
|
| | | $ | (15,515) | | | | | $ | 23,854 | | |
Add back: | | | | | | | | | | | | | |
Interest Expense
|
| | | | 3,544 | | | | | | 1,008 | | |
Income Tax Expense (Benefit)
|
| | | | (5,878) | | | | | | 7,533 | | |
Depreciation and Amortization
|
| | | | 1,529 | | | | | | 2,064 | | |
EBITDA | | | | | (16,320) | | | | | | 34,459 | | |
Adjustments | | | | | | | | | | | | | |
IC-DISC
|
| | | | 1,444 | | | | | | 2,767 | | |
Mergers & Acquisition Fees
|
| | | | 367 | | | | | | 34 | | |
Gainloss on Disposal of PPE
|
| | | | (3) | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | (14,512) | | | | | $ | 37,260 | | |
|
Excessive International Transportation Costs (Units Sold)
|
| | | $ | 8,241 | | | |
|
|
|
Excessive International Transportation Costs (On Hand)
|
| | | | 7,100 | | | | ||
|
Markdown for Arcades Sold
|
| | | | 12,156 | | | | ||
|
Incremental Storage Fees Arcades
|
| | | | 3,078 | | | | ||
|
Consumer Products Inventory Reserve
|
| | | | 3,700 | | | | ||
| Total | | | | $ | 34,275 | | | |
| | |
Six Months
Ended December 31 2022 |
| |
Six Months
Ended December 31 2021 |
| ||||||
($ in thousands except shares) | | | | ||||||||||
Net Revenues
|
| | | $ | 683,862 | | | | | $ | 831,646 | | |
Cost of Revenues (excluding depreciation and amortization)
|
| | | | 637,495 | | | | | | 717,889 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense
|
| | | | 35,230 | | | | | | 33,207 | | |
Selling, General and Administrative Expense
|
| | | | 29,777 | | | | | | 29,610 | | |
Depreciation and Amortization
|
| | | | 3,166 | | | | | | 4,373 | | |
Transaction Costs
|
| | | | 1,007 | | | | | | (282) | | |
IC DISC Commissions
|
| | | | 2,833 | | | | | | 6,263 | | |
(Gain) Loss on Disposal of Fixed Assets
|
| | | | (3) | | | | | | — | | |
Total Operating Expenses
|
| | | | 72,010 | | | | | | 73,171 | | |
Operating (Loss) Income
|
| | | | (25,643) | | | | | | 40,586 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net
|
| | | | 5,898 | | | | | | 1,736 | | |
Total Other Expenses
|
| | | | 5,898 | | | | | | 1,736 | | |
(Loss) Income Before Income Tax (Benefit) Expense
|
| | | | (31,541) | | | | | | 38,850 | | |
Income Tax (Benefit) Expense
|
| | | | (8,516) | | | | | | 9,324 | | |
Net (Loss) Income
|
| | | | (23,025) | | | | | | 29,526 | | |
Net (Loss) Income per Share – Basic and Diluted
|
| | | $ | (25.58) | | | | | $ | 32.81 | | |
Shares Used in Computing Net (Loss) Income per Share
|
| | | | 900 | | | | | | 900 | | |
($ in thousands)
|
| |
Six Months
Ended December 2022 |
| |
Six Months
Ended December 2021 |
| ||||||
Net Income (Loss)
|
| | | $ | (23,025) | | | | | $ | 29,526 | | |
Add back: | | | | | | | | | | | | | |
Interest Expense
|
| | | | 5,898 | | | | | | 1,736 | | |
Income Tax Expense (Benefit)
|
| | | | (8,516) | | | | | | 9,324 | | |
Depreciation and Amortization
|
| | | | 3,166 | | | | | | 4,373 | | |
EBITDA | | | | | (22,477) | | | | | | 44,959 | | |
Adjustments | | | | | | | | | | | | | |
IC-DISC
|
| | | | 2,833 | | | | | | 6,263 | | |
Mergers & Acquisition Fees
|
| | | | 1,007 | | | | | | (282) | | |
Gainloss on Disposal of PPE
|
| | | | (3) | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | (18,640) | | | | | $ | 50,940 | | |
|
Excessive International Transportation Costs (Units Sold)
|
| | | $ | 8,241 | | | |
|
|
|
Excessive International Transportation Costs (On Hand)
|
| | | | 7,100 | | | | ||
|
Markdown for Arcades Sold
|
| | | | 12,156 | | | | ||
|
Incremental Storage Fees Arcades
|
| | | | 3,078 | | | | ||
|
Consumer Products Inventory Reserve
|
| | | | 3,700 | | | | ||
| Total | | | | $ | 34,275 | | | |
($ in thousands, except shares)
|
| |
Year Ended
June 30, 2022 |
| |
Year Ended
June 30, 2021 |
| ||||||
Net Revenues
|
| | | $ | 1,417,377 | | | | | $ | 1,323,567 | | |
Cost of Revenues (excluding depreciation and amortization)
|
| | | | 1,234,995 | | | | | | 1,140,885 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense
|
| | | | 64,260 | | | | | | 56,885 | | |
Selling, General and Administrative Expense
|
| | | | 58,110 | | | | | | 57,250 | | |
Depreciation and Amortization
|
| | | | 8,259 | | | | | | 11,651 | | |
Transaction Costs
|
| | | | (251) | | | | | | 3,509 | | |
IC DISC Commissions
|
| | | | 9,907 | | | | | | 5,394 | | |
Loss on Disposal of Property and Equipment
|
| | | | — | | | | | | 87 | | |
Total Operating Expenses
|
| | | | 140,285 | | | | | | 134,775 | | |
Operating Income
|
| | | | 42,098 | | | | | | 47,907 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net
|
| | | | 4,056 | | | | | | 2,938 | | |
Total Other Expenses
|
| | | | 4,056 | | | | | | 2,938 | | |
Income Before Provision for Income Tax Expense
|
| | | | 38,042 | | | | | | 44,969 | | |
Income Tax Expense
|
| | | | 9,423 | | | | | | 10,791 | | |
Net Income
|
| | | | 28,619 | | | | | | 34,178 | | |
Other Comprehensive Income | | | | | | | | | | | | | |
Foreign Currency Translation
|
| | | | 7 | | | | | | 15 | | |
Total Comprehensive Income
|
| | | $ | 28,626 | | | | | $ | 34,193 | | |
Net Income per Share – Basic and Diluted
|
| | | $ | 31.80 | | | | | $ | 37.98 | | |
Shares Used in Computing Net Income per Share
|
| | | | 900 | | | | | | 900 | | |
Distributions of Paid in Capital per Share
|
| | | $ | — | | | | | $ | 7.57 | | |
| | |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Provision for Income Taxes
|
| | | $ | 9,423 | | | | | $ | 10,791 | | |
Effective Tax Rate
|
| | | | 25% | | | | | | 24% | | |
Statutory Federal Income Tax Rate
|
| | | | 21% | | | | | | 21% | | |
($ in thousands, except shares)
|
| |
Year Ended
June 30, 2021 |
| |
Year Ended
June 30, 2020 |
| ||||||
Net Revenues
|
| | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Cost of Revenues (excluding depreciation and amortization)
|
| | | | 1,140,885 | | | | | | 656,485 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense
|
| | | | 56,885 | | | | | | 35,877 | | |
Selling, General and Administrative Expense
|
| | | | 57,250 | | | | | | 50,007 | | |
Depreciation and Amortization
|
| | | | 11,651 | | | | | | 15,784 | | |
Transaction Costs
|
| | | | 3,509 | | | | | | — | | |
IC DISC Commissions
|
| | | | 5,394 | | | | | | 8,182 | | |
Loss on Disposal of Property and Equipment
|
| | | | 87 | | | | | | — | | |
Total Operating Expenses
|
| | | | 134,775 | | | | | | 109,850 | | |
Operating Income
|
| | | | 47,907 | | | | | | 9,261 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net
|
| | | | 2,938 | | | | | | 3,524 | | |
Total Other Expenses
|
| | | | 2,938 | | | | | | 3,524 | | |
Income Before Provision for Income Tax Expense
|
| | | | 44,969 | | | | | | 5,737 | | |
Income Tax Expense
|
| | | | 10,791 | | | | | | 376 | | |
Net Income
|
| | | | 34,178 | | | | | | 5,361 | | |
Other Comprehensive Income | | | | ||||||||||
Foreign Currency Translation
|
| | | | 15 | | | | | | (318) | | |
Total Comprehensive Income
|
| | | $ | 34,193 | | | | | $ | 5,043 | | |
Net Income per Share – Basic and Diluted
|
| | | $ | 37.98 | | | | | $ | 5.96 | | |
Shares Used in Computing Net Income per Share
|
| | | | 900 | | | | | | 900 | | |
Distributions of Paid in Capital per Share
|
| | | $ | 7.57 | | | | | $ | — | | |
| | |
June 30, 2021
|
| |
June 30, 2020
|
| ||||||
Provision for Income Taxes
|
| | | $ | 10,791 | | | | | $ | 376 | | |
Effective Tax Rate
|
| | | | 24% | | | | | | 7% | | |
Statutory Federal Income Tax Rate
|
| | | | 21% | | | | | | 21% | | |
| | |
December 31
|
| |
June 30
|
| ||||||||||||||||||||||||
(in millions)
|
| |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| |
2020
|
| |||||||||||||||
Revolver Balance
|
| | | $ | 177 | | | | | $ | 118 | | | | | $ | 136 | | | | | $ | 54 | | | | | $ | 46 | | |
Availability
|
| | | | 48 | | | | | | 49 | | | | | | 48 | | | | | | 95 | | | | | | 40 | | |
| | |
Six Months Ended
December 31 |
| |
Year Ended June 30
|
| ||||||||||||||||||||||||
(in thousands)
|
| |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| |
2020
|
| |||||||||||||||
Net Income (Loss). . . . . . . . . . . . . . . . . . . . .
|
| | | $ | (23,025) | | | | | $ | 29,527 | | | | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,362 | | |
Net Cash (Used In) Provided By Operating Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | | (40,660) | | | | | | (65,605) | | | | | | (83,554) | | | | | | 74,716 | | | | | | 27,390 | | |
Investing Activities . . . . . . . . . . . . . . . . . . . . . .
|
| | | | 1 | | | | | | — | | | | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Financing Activities . . . . . . . . . . . . . . . . . . . . .
|
| | | | 40,564 | | | | | | 63,371 | | | | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
Name
|
| |
Age
|
| |
Position
|
|
Bruce Ogilvie | | |
65
|
| | Executive Chairman of the Board and AEC Director | |
Jeffrey Walker | | |
55
|
| | Chief Executive Officer and AEC Director | |
John Kutch | | |
57
|
| | Chief Financial Officer and AEC Director | |
Thomas Finke | | |
59
|
| | Independent Director | |
W. Tom Donaldson III | | |
46
|
| | Independent Director | |
Terilea J. Wielenga | | |
64
|
| | Independent Director | |
Chris Nagelson | | |
55
|
| | Independent Director | |
Name and Position
|
| |
Year
|
| |
Salary
|
| |
Bonus
|
| |
All Other
Compensation |
| |
Total
Compensation |
| |||||||||||||||
Bruce Ogilvie
Executive Chairman |
| | | | 2022 | | | | | $ | 800,000 | | | | | | — | | | | | $ | 15,831 | | | | | $ | 815,831 | | |
| | | 2021 | | | | | $ | 800,000 | | | | | | — | | | | | $ | 78,535 | | | | | $ | 878,535 | | | ||
Jeffrey Walker
Chief Executive Officer |
| | | | 2022 | | | | | $ | 800,000 | | | | | | — | | | | | $ | 37,002 | | | | | $ | 837,002 | | |
| | | 2021 | | | | | $ | 800,000 | | | | | | — | | | | | $ | 77,243 | | | | | $ | 877,243 | | | ||
John Kutch
Chief Financial Officer |
| | | | 2022 | | | | | $ | 275,000 | | | | | $ | 34,575 | | | | | $ | 10,415 | | | | | $ | 319,990 | | |
| | | 2021 | | | | | $ | 275,000 | | | | | $ | 68,750 | | | | | $ | 11,855 | | | | | $ | 355,605 | | | ||
Paul Eibeler
Former Board Chairman, COKeM |
| | | | 2022 | | | | | $ | 292,000 | | | | | $ | 21,900 | | | | | $ | 13,671 | | | | | $ | 327,571 | | |
| | | 2021 | | | | | $ | 292,000 | | | | | $ | 29,200 | | | | | $ | 14,572 | | | | | $ | 335.772 | | | ||
Ben Means
President, Distribution Solutions |
| | | | 2022 | | | | | $ | 335,000 | | | | | $ | 25,125 | | | | | $ | 13,670 | | | | | $ | 373,795 | | |
| | | 2021 | | | | | $ | 335,000 | | | | | $ | 50,250 | | | | | $ | 14,571 | | | | | $ | 399,820 | | |
Name
|
| |
Base Salary ($)
|
| |
Target Bonus
Percentage(%) |
| ||||||
Bruce Ogilvie
|
| | | | 800,000 | | | | | | 100 | | |
Jeffrey Walker
|
| | | | 800,000 | | | | | | 100 | | |
Name of Beneficial Owner(1)
|
| |
Number of Shares of
Class A Common Stock Beneficially Owned |
| |
Percentage of
Outstanding Class A Common Stock |
| ||||||
Directors and Executive Officers | | | | | | | | | |||||
Bruce Ogilvie(2)(3)
|
| | | | 15,195,975 | | | | | | 30.9% | | |
Jeffrey Walker(2)
|
| | | | 22,852,778 | | | | | | 46.5% | | |
Thomas Finke(4)
|
| | | | 875,051 | | | | | | 1.8% | | |
W. Tom Donaldson III(5)
|
| | | | 2,410,062 | | | | | | 4.7% | | |
Terilea J. Wielenga
|
| | | | — | | | | | | — | | |
Chris Nagelson
|
| | | | — | | | | | | — | | |
John Kutch
|
| | | | — | | | | | | — | | |
Directors and executive officers as a group (7 individuals)
|
| | | | 41,333,866 | | | | | | 80.0% | | |
Five Percent Holders | | | | | | | | | |||||
Ogilvie Legacy Trust dated September 14, 2021(6)
|
| | | | 8,554,025 | | | | | | 17.4% | | |
Underwriter
|
| |
Number of
Shares |
| |||
ThinkEquity LLC
|
| | | | | | |
Total
|
| | | | | |
| | |
Per Share
|
| |
Total Without
Over-allotment Option |
| |
Total With
Over-allotment Option |
| |||||||||
Public offering price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discounts and commissions (7.5%)
|
| | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to us
|
| | | $ | | | | | $ | | | | | $ | | | |||
Non-accountable expense allowance (1%)(1)
|
| | | $ | | | | | $ | | | | | $ | | |
| | |
Page
|
| |||
ALLIANCE FINANCIAL STATEMENTS | | | | | | | |
Consolidated Financial Statements of Alliance Entertainment Holding Corporation | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-8 | | |
| | | | | F-20 | | | |
| Consolidated Financial Statements | | | | | | | |
| | | | | F-22 | | | |
| | | | | F-23 | | | |
| | | | | F-24 | | | |
| | | | | F-25 | | | |
| | | | | F-26 | | | |
| ADARA FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-45 | | | |
| Consolidated Financial Statements: | | | | | | | |
| | | | | F-46 | | | |
| | | | | F-47 | | | |
| | | | | F-48 | | | |
| | | | | F-49 | | | |
| | | | | F-50 | | |
($ in thousands except share amount)
|
| |
Three Months
Ended December 31, 2022 |
| |
Three Months
Ended December 31, 2021 |
| |
Six Months
Ended December 31, 2022 |
| |
Six Months
Ended December 31, 2021 |
| ||||||||||||
Net Revenues
|
| | | $ | 445,162 | | | | | $ | 538,445 | | | | | $ | 683,862 | | | | | $ | 831,646 | | |
Cost of Revenues (excluding depreciation
and amortization) |
| | | | 424,265 | | | | | | 465,407 | | | | | | 637,495 | | | | | | 717,889 | | |
Operating Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution and Fulfillment Expense
|
| | | | 20,365 | | | | | | 19,947 | | | | | | 35,230 | | | | | | 33,207 | | |
Selling, General and Administrative Expense
|
| | | | 15,044 | | | | | | 15,831 | | | | | | 29,777 | | | | | | 29,610 | | |
Depreciation and Amortization
|
| | | | 1,529 | | | | | | 2,064 | | | | | | 3,166 | | | | | | 4,373 | | |
Transaction Costs
|
| | | | 367 | | | | | | 34 | | | | | | 1,007 | | | | | | (282) | | |
IC DISC Commissions
|
| | | | 1,444 | | | | | | 2,767 | | | | | | 2,833 | | | | | | 6,263 | | |
Loss on Disposal of Fixed Assets
|
| | | | (3) | | | | | | — | | | | | | (3) | | | | | | — | | |
Total Operating Expenses
|
| | | | 38,746 | | | | | | 40,643 | | | | | | 72,010 | | | | | | 73,171 | | |
Operating (Loss) Income
|
| | | | (17,849) | | | | | | 32,395 | | | | | | (25,643) | | | | | | 40,586 | | |
Other Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Expense, Net
|
| | | | 3,544 | | | | | | 1,008 | | | | | | 5,898 | | | | | | 1,736 | | |
Total Other Expenses
|
| | | | 3,544 | | | | | | 1,008 | | | | | | 5,898 | | | | | | 1,736 | | |
(Loss) Income Before Income Tax (Benefit) Expense
|
| | | | (21,393) | | | | | | 31,387 | | | | | | (31,541) | | | | | | 38,850 | | |
Income Tax (Benefit) Expense
|
| | | | (5,878) | | | | | | 7,533 | | | | | | (8,516) | | | | | | 9,324 | | |
Net (Loss) Income
|
| | | | (15,515) | | | | | | 23,854 | | | | | | (23,025) | | | | | | 29,526 | | |
Net (Loss) Income per Share – Basic and
Diluted |
| | | $ | (17.24) | | | | | $ | 26.50 | | | | | $ | (25.58) | | | | | $ | 32.81 | | |
Shares Used in Computing Net (Loss) Income per Share
|
| | | | 900 | | | | | | 900 | | | | | | 900 | | | | | | 900 | | |
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and Cash Equivalents
|
| | | $ | 1,374 | | | | | $ | 1,469 | | |
Trade Receivables, Net
|
| | | | 170,851 | | | | | | 98,699 | | |
Related Party Receivable
|
| | | | — | | | | | | 245 | | |
Inventory, Net
|
| | | | 175,322 | | | | | | 249,439 | | |
Other Current Assets
|
| | | | 9,431 | | | | | | 9,128 | | |
Total Current Assets
|
| | | | 356,978 | | | | | | 358,980 | | |
Property and Equipment, Net
|
| | | | 10,732 | | | | | | 3,284 | | |
Operating Lease Right-Of-Use Assets
|
| | | | 6,612 | | | | | | 8,360 | | |
Goodwill
|
| | | | 87,151 | | | | | | 79,903 | | |
Intangibles, Net
|
| | | | 25,768 | | | | | | 18,764 | | |
Other Long-Term Assets
|
| | | | 305 | | | | | | 3,748 | | |
Deferred Tax Asset, Net
|
| | | | 3,409 | | | | | | — | | |
Total Assets
|
| | | $ | 490,955 | | | | | $ | 473,039 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable
|
| | | $ | 193,801 | | | | | $ | 198,187 | | |
Accrued Expenses
|
| | | | 12,418 | | | | | | 11,573 | | |
Current Portion of Operating Lease Obligations
|
| | | | 3,456 | | | | | | 4,453 | | |
Revolving Credit Facility, Net
|
| | | | 176,615 | | | | | | 135,968 | | |
Debt, Current
|
| | | | 8,252 | | | | | | — | | |
Income Taxes Payable
|
| | | | — | | | | | | 418 | | |
Total Current Liabilities
|
| | | | 394,542 | | | | | | 350,599 | | |
Debt, Non- Current
|
| | | | — | | | | | | 3,377 | | |
Operating Lease Obligations, Non-Current
|
| | | | 3,918 | | | | | | 4,864 | | |
Deferred Tax Liability
|
| | | | — | | | | | | 5,271 | | |
Total Liabilities
|
| | | | 398,460 | | | | | | 364,111 | | |
Commitments and Contingencies (Note 12) | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common Stock: No Par Value, Authorized 1000 shares Issued 957
Shares, Outstanding 900 Shares as of December 31, 2022, and June 30, 2022 |
| | | | | | | | | | | | |
Paid In Capital
|
| | | | 46,592 | | | | | | 40,000 | | |
Treasury Stock, 57 Shares Carried at Cost
|
| | | | (2,674) | | | | | | (2,674) | | |
Accumulated Other Comprehensive Loss
|
| | | | (66) | | | | | | (66) | | |
Retained Earnings
|
| | | | 48,643 | | | | | | 71,668 | | |
Total Stockholders’ Equity
|
| | | | 92,495 | | | | | | 108,928 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 490,955 | | | | | $ | 473,039 | | |
($ in thousands)
|
| |
Common
Stock Shares Issued |
| |
Paid In
Capital |
| |
Cost of
Treasury Stock |
| |
Accumulated
Other Comprehensive Loss |
| |
Retained
Earnings |
| |
Total
|
| ||||||||||||||||||
Balances at June 30, 2022
|
| | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 71,668 | | | | | $ | 108,928 | | |
Capital Contribution
|
| | | | — | | | | | | 6,592 | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,592 | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (23,025) | | | | | | (23,025) | | |
Balances at December 31,
2022 |
| | | | 900 | | | | | $ | 46,592 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 48,643 | | | | | $ | 92,495 | | |
($ in thousands)
|
| |
Common
Stock Shares Issued |
| |
Paid In
Capital |
| |
Cost of
Treasury Stock |
| |
Accumulated
Other Comprehensive Loss |
| |
Retained
Earnings |
| |
Total
|
| ||||||||||||||||||
Balances at June 30, 2021
|
| | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 43,049 | | | | | $ | 80,302 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 29,526 | | | | | | 29,526 | | |
Balances at December 31,
2021 |
| | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 72,575 | | | | | $ | 109,828 | | |
($ in thousands)
|
| |
Common Stock
Shares Issued |
| |
Paid In
Capital |
| |
Cost of
Treasury Stock |
| |
Accumulated
Other Comprehensive Loss |
| |
Retained
Earnings |
| |
Total
|
| ||||||||||||||||||
Balances at September 30,
2022 |
| | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 64,158 | | | | | | 101,418 | | |
Capital Contribution
|
| | | | | | | | | $ | 6,592 | | | | | | | | | | | | | | | | | | | | | | |
|
6,592
|
| |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (15,515) | | | | | | (15,515) | | |
Balances at December 31,
2022 |
| | | | 900 | | | | | $ | 46,592 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 48,643 | | | | | $ | 92,495 | | |
($ in thousands)
|
| |
Common Stock
Shares Issued |
| |
Paid In
Capital |
| |
Cost of
Treasury Stock |
| |
Accumulated
Other Comprehensive Loss |
| |
Retained
Earnings |
| |
Total
|
| ||||||||||||||||||
Balances at September 30,
2021 |
| | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 48,721 | | | | | $ | 85,974 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 23,854 | | | | | | 23,854 | | |
Balances at December 31,
2021 |
| | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 72,575 | | | | | $ | 109,828 | | |
($ in thousands)
|
| |
Six Months Ended
December 31, 2022 |
| |
Six Months Ended
December 31, 2021 |
| | ||||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | | | ||
Net (Loss) Income
|
| | | $ | (23,025) | | | | | $ | 29,526 | | | | ||
Adjustments to Reconcile Net (Loss) Income to
|
| | | | | | | | | | | | | | ||
Net Cash Used In Operating Activities:
|
| | | | | | | | | | | | | | ||
Inventory write-down
|
| | | | 10,800 | | | | | | — | | | | ||
Depreciation of Property and Equipment
|
| | | | 1,138 | | | | | | 1,792 | | | | ||
Amortization of Intangible Assets
|
| | | | 2,028 | | | | | | 2,581 | | | | ||
Amortization of Deferred Financing Costs (Included
in Interest) |
| | | | 83 | | | | | | — | | | | ||
Bad Debt Expense
|
| | | | 330 | | | | | | (15) | | | | ||
Gain on Disposal of Fixed Assets
|
| | | | (3) | | | | | | — | | | | ||
Changes in Assets and Liabilities, Net of Acquisitions
|
| | | | | | | | | | | | | | ||
Trade Receivables
|
| | | | (69,193) | | | | | | (66,510) | | | | ||
Related Party Receivable
|
| | | | 245 | | | | | | 521 | | | | ||
Inventory
|
| | | | 68,547 | | | | | | (74,022) | | | | ||
Income Taxes PayableReceivable
|
| | | | (9,098) | | | | | | 311 | | | | ||
Operating Lease Right-Of-Use Assets
|
| | | | 1,748 | | | | | | 2,075 | | | | ||
Operating Lease Obligations
|
| | | | (1,943) | | | | | | (2,760) | | | | ||
Other Assets
|
| | | | (5,424) | | | | | | (3,895) | | | | ||
Accounts Payable
|
| | | | (28,981) | | | | | | 42,293 | | | | ||
Accrued Expenses
|
| | | | 12,088 | | | | | | 2,497 | | | | ||
Net Cash Used in Operating Activities
|
| | | | (40,660) | | | | | | 65,606 | | | | ||
Cash Flows from Investing Activities: | | | | | | | | | | | | | | | ||
Cash Received for Business Acquisitions, Net of Cash
Acquired |
| | | | 1 | | | | | | 1 | | | | ||
Net Cash Provided by Investing Activities
|
| | | | 1 | | | | | | 1 | | | | ||
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | ||
Payments on Seller Notes
|
| | | | — | | | | | | (3,750) | | | | ||
Payments on Revolving Credit Facility
|
| | | | (580,484) | | | | | | (727,325) | | | | ||
Borrowings on Revolving Credit Facility
|
| | | | 621,048 | | | | | | 791,446 | | | | ||
Capital Contribution
|
| | | | — | | | | | | 3,000 | | | | | |
Net Cash Provided by Financing Activities
|
| | | | 40,564 | | | | | | 63,371 | | | | ||
Net Decrease in Cash and Cash Equivalents
|
| | |
|
(95)
|
| | | |
|
(2,234)
|
| | | ||
Cash, Beginning of the Period
|
| | |
|
1,469
|
| | | |
|
4,028
|
| | | ||
Cash, End of the Period
|
| | | $ | 1,374 | | | | | $ | 1,794 | | | | ||
Supplemental disclosure for Cash Flow Information | | | | | | | | | | | | | | | ||
Cash Paid for Interest
|
| | | $ | 5,898 | | | | | $ | 1,736 | | | | ||
Cash Paid for Income Taxes
|
| | | $ | 586 | | | | | $ | 8,937 | | | | ||
Supplemental Disclosure for Non-Cash Investing and Financing Activities
|
| | | | | | | | | | | | | | ||
Fixed Asset Financed with Debt
|
| | | $ | 8,252 | | | | | $ | — | | | | ||
Capital Contribution (Note 13)
|
| | | $ | 6,592 | | | | | $ | — | | | |
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Trade Receivables
|
| | | $ | 175,861 | | | | | $ | 101,064 | | |
Less: | | | | | | | | | | | | | |
Allowances for Doubtful Accounts
|
| | | | (311) | | | | | | (557) | | |
Sales Returns Reserve, Net
|
| | | | (3,100) | | | | | | (1,898) | | |
Customer Rebate and Discount Reserve
|
| | | | (1,599) | | | | | | 90 | | |
Total Allowances
|
| | | | (5,010) | | | | | | (2,366) | | |
Trade Receivables, Net
|
| | | $ | 170,851 | | | | | $ | 98,699 | | |
($ in thousands)
|
| |
Six Months Ended
December 31, 2022 |
| |
Six Months Ended
December 31, 2021 |
| ||||||
Customer #1
|
| | | | 19.3% | | | | | | 24.2% | | |
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Customer #1
|
| | | | 14.2% | | | | | | 21.4% | | |
Customer #2
|
| | | | 13.6% | | | | | | * | | |
Customer #3
|
| | | | 10.2% | | | | | | 14.2% | | |
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Inventory
|
| | | $ | 186,895 | | | | | $ | 255,236 | | |
Less: Reserves
|
| | | | (11,573) | | | | | | (5,797) | | |
Inventory, Net
|
| | | $ | 175,322 | | | | | $ | 249,439 | | |
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Other Assets – Current | | | | | | | | | | | | | |
Prepaid Intellectual Property
|
| | | $ | 2,197 | | | | | $ | 2,443 | | |
Prepaid Insurance
|
| | | | 639 | | | | | | 431 | | |
Prepaid Acquisitions
|
| | | | 2,865 | | | | | | 2,243 | | |
Prepaid Freight
|
| | | | 325 | | | | | | 216 | | |
Prepaid Manufacturing Components
|
| | | | 28 | | | | | | 79 | | |
Prepaid Rent
|
| | | | 886 | | | | | | — | | |
Prepaid Maintenance
|
| | | | 825 | | | | | | 885 | | |
Prepaid Shipping Supplies
|
| | | | 1,666 | | | | | | 2,831 | | |
Total Other Assets – Current
|
| | | $ | 9,431 | | | | | $ | 9,128 | | |
Other Long-Term Assets | | | | | | | | | | | | | |
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Deposits
|
| | | $ | 305 | | | | | $ | 3,748 | | |
Total Other Long-Term Assets
|
| | | $ | 305 | | | | | $ | 3,748 | | |
|
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Property and Equipment | | | | | | | | | | | | | |
Leasehold Improvements
|
| | | $ | 1,680 | | | | | $ | 1,680 | | |
Machinery and Equipment
|
| | | | 25,430 | | | | | | 19,440 | | |
Furniture and Fixtures
|
| | | | 1,749 | | | | | | 3,530 | | |
Capitalized Software
|
| | | | 10,508 | | | | | | 11,451 | | |
Equipment Under Capital Leases
|
| | | | 12,488 | | | | | | 12,917 | | |
Computer Equipment
|
| | | | 1,626 | | | | | | 2,662 | | |
Construction in Progress
|
| | | | 489 | | | | | | 154 | | |
| | | | | 53,970 | | | | | | 51,834 | | |
Less: Accumulated Depreciation and Amortization
|
| | | | (43,238) | | | | | | (48,550) | | |
Total Property and Equipment, Net
|
| | | | 10,732 | | | | | $ | 3,284 | | |
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Goodwill:
|
| | | $ | 79,903 | | | | | $ | 79,903 | | |
Additions to Goodwill
|
| | | | 7,248 | | | | | | — | | |
Goodwill, Net
|
| | | $ | 87,151 | | | | | $ | 79,903 | | |
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Intangibles: | | | | | | | | | | | | | |
Customer Relationships
|
| | | $ | 78,000 | | | | | $ | 78,000 | | |
Trade Name – Alliance
|
| | | | 5,200 | | | | | | 5,200 | | |
Covenant Not to Compete
|
| | | | 10 | | | | | | 10 | | |
Mecca Customer Relationships
|
| | | | 8,023 | | | | | | 8,023 | | |
Customer List
|
| | | | 18,792 | | | | | | 9,760 | | |
Total
|
| | | $ | 110,025 | | | | | $ | 100,993 | | |
Accumulated Amortization
|
| | | | (84,257) | | | | | | (82,229) | | |
Intangibles, Net
|
| | | $ | 25,768 | | | | | $ | 18,764 | | |
($ in thousands)
|
| |
Intangible Assets
|
| |||
Year Ended June 30 | | | | | | | |
2023
|
| | | $ | 2,781 | | |
2024
|
| | | | 4,223 | | |
2025
|
| | | | 3,651 | | |
2026
|
| | | | 3,339 | | |
2027
|
| | | | 3,289 | | |
Thereafter
|
| | | | 8,485 | | |
Total Expected Amortization
|
| | | $ | 25,768 | | |
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Marketing Funds Accruals
|
| | | $ | 2,768 | | | | | $ | 2,738 | | |
Payroll and Payroll Tax Accruals
|
| | | | 2,802 | | | | | | 3,904 | | |
Accruals for Other Expenses
|
| | | | 6,848 | | | | | | 4,931 | | |
Total Accrued Expenses
|
| | | $ | 12,418 | | | | | $ | 11,573 | | |
($ in thousands)
|
| |
December 31, 2022
|
| |
June 30, 2022
|
| ||||||
Bank of America Revolving Credit Agreement
|
| | | $ | 176,740 | | | | | $ | 136,176 | | |
Less: Deferred Finance Costs
|
| | | | (125) | | | | | | (208) | | |
Revolving Credit, Net
|
| | | $ | 176,615 | | | | | $ | 135,968 | | |
| | |
Three Months
Ended December 31, 2022 |
| |
Three Months
Ended December 31, 2021 |
| |
Six Months
Ended December 31, 2022 |
| |
Six Months
Ended December 31, 2021 |
| ||||||||||||
Lease Cost | | | | | | | | | | | | | | | | | | | | | | | | | |
Finance Lease Cost: | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of Right of Use Assets
|
| | | | 51 | | | | | | 179 | | | | | | 102 | | | | | | 475 | | |
Interest on lease liabilities
|
| | | | 3 | | | | | | 8 | | | | | | 7 | | | | | | 18 | | |
Operating Lease Cost
|
| | | | 1,013 | | | | | | 1,132 | | | | | | 2,092 | | | | | | 2,263 | | |
Short – Term Lease Cost
|
| | | | 7 | | | | | | — | | | | | | 14 | | | | | | — | | |
Total Lease Cost
|
| | | | 1,074 | | | | | | 1,319 | | | | | | 2,215 | | | | | | 2,756 | | |
Other Information | | | | | | | | | | | | | | | | | | | | | | | | | |
(Gains) and losses on sale and leaseback transactions, net
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Cash paid for amounts included in the measurement of lease liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating cash flows from finance leases
|
| | | | 3 | | | | | | 8 | | | | | | 7 | | | | | | 20 | | |
Operating cash flows from Capitalized Operating leases
|
| | | | 1,105 | | | | | | 1,213 | | | | | | 2,264 | | | | | | 2,392 | | |
Financing cash flows from finance leases
|
| | | | 53 | | | | | | 289 | | | | | | 105 | | | | | | 778 | | |
Net ROU remeasurement
|
| | | | (9) | | | | | | (1,298) | | | | | | (9) | | | | | | (1,190) | | |
| | |
Three Months
Ended December 31, 2022 |
| |
Three Months
Ended December 31, 2021 |
| |
Six Months
Ended December 31, 2022 |
| |
Six Months
Ended December 31, 2021 |
| ||||||||||||
Weighted average remaining lease term – finance leases (in Years)
|
| | | | 1.59 | | | | | | 1.97 | | | | | | 1.59 | | | | | | 1.97 | | |
Weighted average remaining lease term – Capitalized Operating leases (in Years)
|
| | | | 1.94 | | | | | | 2.77 | | | | | | 1.94 | | | | | | 2.77 | | |
Weighted average discount rate – finance
leases |
| | | | 3.70 | | | | | | 3.67 | | | | | | 3.70 | | | | | | 3.67 | | |
Weighted average discount rate – Capitalized Operating leases
|
| | | | 4.13 | | | | | | 4.09 | | | | | | 4.13 | | | | | | 4.09 | | |
($ in thousands)
|
| |
Operating Leases
|
| |||
2023
|
| | | | 4,123 | | |
2024
|
| | | | 3,312 | | |
2025
|
| | | | 110 | | |
2026
|
| | | | 100 | | |
Total Lease Payments
|
| | | | 7,655 | | |
Less Imputed Interest
|
| | | | (271) | | |
Total
|
| | | $ | 7,374 | | |
($ in thousands)
|
| |
Three Months Ended
December 31, 2022 |
| |
Six Months Ended
December 31, 2022 |
| ||||||
Revenue
|
| | | $ | 6,784 | | | | | $ | 10,605 | | |
Net Income
|
| | | | 1,360 | | | | | | 1,086 | | |
| | |
Previously
Reported |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Total Assets
|
| | | $ | 516,943 | | | | | $ | — | | | | | $ | 516,943 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Revolving Credit Facility, net
|
| | | $ | — | | | | | $ | 183,524 | | | | | $ | 183,524 | | |
Total Current Liabilities
|
| | | $ | 219,476 | | | | | $ | 183,524 | | | | | $ | 403,000 | | |
Revolving Credit Facility, net
|
| | | $ | 183,524 | | | | | $ | (183,524) | | | | | $ | — | | |
Total Liabilities
|
| | | $ | 415,524 | | | | | $ | — | | | | | $ | 415,524 | | |
Total Stockholders’ Equity
|
| | | $ | 101,418 | | | | | $ | — | | | | | $ | 101,418 | | |
($ in thousands, except shares)
|
| |
Year Ended
June 30, 2022 |
| |
Year Ended
June 30, 2021 |
| |
Year Ended
June 30, 2020 |
| |||||||||
Net Revenues
|
| | | $ | 1,417,377 | | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Cost of Revenues (excluding depreciation and amortization)
|
| | | | 1,234,995 | | | | | | 1,140,885 | | | | | | 656,485 | | |
Operating Expenses | | | | | | | | | | | | | | | | | | | |
Distribution and Fulfillment Expense
|
| | | | 64,260 | | | | | | 56,885 | | | | | | 35,877 | | |
Selling, General and Administrative Expense
|
| | | | 58,110 | | | | | | 57,249 | | | | | | 50,007 | | |
Depreciation and Amortization
|
| | | | 8,259 | | | | | | 11,651 | | | | | | 15,784 | | |
Transaction Costs
|
| | | | (251) | | | | | | 3,509 | | | | | | — | | |
IC DISC Commissions
|
| | | | 9,907 | | | | | | 5,394 | | | | | | 8,182 | | |
Loss on Disposal of Property and Equipment
|
| | | | — | | | | | | 87 | | | | | | — | | |
Total Operating Expenses
|
| | | | 140,285 | | | | | | 134,775 | | | | | | 109,850 | | |
Operating Income
|
| | | | 42,098 | | | | | | 47,907 | | | | | | 9,261 | | |
Other Expenses | | | | | | | | | | | | | | | | | | | |
Interest Expense, Net
|
| | | | 4,056 | | | | | | 2,938 | | | | | | 3,524 | | |
Total Other Expenses
|
| | | | 4,056 | | | | | | 2,938 | | | | | | 3,524 | | |
Income Before Provision for Income Tax Expense
|
| | | | 38,042 | | | | | | 44,969 | | | | | | 5,737 | | |
Income Tax Expense
|
| | | | 9,423 | | | | | | 10,791 | | | | | | 376 | | |
Net Income
|
| | | | 28,619 | | | | | | 34,178 | | | | | | 5,361 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | |
Foreign Currency Translation
|
| | | | 7 | | | | | | 15 | | | | | | (318) | | |
Total Comprehensive Income
|
| | | $ | 28,626 | | | | | | 34,193 | | | | | | 5,043 | | |
Net Income per Share – Basic and Diluted
|
| | | $ | 31.80 | | | | | $ | 37.98 | | | | | $ | 5.96 | | |
Shares Used in Computing Net Income per Share
|
| | | | 900 | | | | | | 900 | | | | | | 900 | | |
Distributions of Paid In Capital per Share
|
| | | $ | — | | | | | $ | 7.57 | | | | | $ | — | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and Cash Equivalents
|
| | | $ | 1,469 | | | | | $ | 4,028 | | |
Trade Receivables, Net
|
| | | | 98,699 | | | | | | 111,332 | | |
Related Party Receivable
|
| | | | 245 | | | | | | 1,476 | | |
Inventory, Net
|
| | | | 249,439 | | | | | | 141,661 | | |
Other Current Assets
|
| | | | 9,128 | | | | | | 7,287 | | |
Total Current Assets
|
| | | | 358,980 | | | | | | 265,784 | | |
Property and Equipment, Net
|
| | | | 3,284 | | | | | | 6,330 | | |
Operating Lease Right-Of-Use Assets
|
| | | | 8,360 | | | | | | 12,658 | | |
Goodwill
|
| | | | 79,903 | | | | | | 79,903 | | |
Intangibles, Net
|
| | | | 18,764 | | | | | | 23,927 | | |
Other Long-Term Assets
|
| | | | 3,748 | | | | | | 361 | | |
Total Assets
|
| | | $ | 473,039 | | | | | $ | 388,963 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable
|
| | | $ | 198,187 | | | | | $ | 214,332 | | |
Accrued Expenses
|
| | | | 11,573 | | | | | | 13,555 | | |
Current Portion of Financing Lease Obligations
|
| | | | — | | | | | | 811 | | |
Current Portion of Operating Lease Obligations
|
| | | | 4,453 | | | | | | 4,622 | | |
Seller Note, Current
|
| | | | — | | | | | | 3,000 | | |
Income Taxes Payable
|
| | | | 418 | | | | | | 2,286 | | |
Revolving Credit Facility, Net
|
| | | | 135,968 | | | | | | — | | |
Total Current Liabilities
|
| | | | 350,599 | | | | | | 238,606 | | |
Revolving Credit Facility, Net
|
| | | | — | | | | | | 53,580 | | |
Debt, Non-Current
|
| | | | 3,377 | | | | | | | | |
Seller Note, Non-Current
|
| | | | — | | | | | | 750 | | |
Operating Lease Obligations
|
| | | | 4,864 | | | | | | 9,277 | | |
Deferred Tax Liability
|
| | | | 5,271 | | | | | | 6,448 | | |
Total Liabilities
|
| | | | 364,111 | | | | | | 308,661 | | |
Commitments and Contingencies (Note 11) | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common Stock: No Par Value, Authorized 1,000 shares
|
| | | | | | | | | | | | |
Issued 957 Shares, Outstanding 900 Shares as of June 30, 2022, and 2021
|
| | | | | | | | | | | | |
Paid In Capital
|
| | | | 40,000 | | | | | | 40,000 | | |
Treasury Stock, 57 Shares Carried at Cost
|
| | | | (2,674) | | | | | | (2,674) | | |
Accumulated Other Comprehensive Loss
|
| | | | (66) | | | | | | (73) | | |
Retained Earnings
|
| | | | 71,668 | | | | | | 43,049 | | |
Total Stockholders’ Equity
|
| | | | 108,928 | | | | | | 80,302 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 473,039 | | | | | $ | 388,963 | | |
($ in thousands)
|
| |
Year Ended
June 30, 2022 |
| |
Year Ended
June 30, 2021 |
| |
Year Ended
June 30, 2020 |
| |||||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | | | | | | | |
Net Income
|
| | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,361 | | |
Adjustments to Reconcile Net Income to
|
| | | | | | | | | | | | | | | | | | |
Cash provided by (Used In) Operating Activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation of Property and Equipment
|
| | | | 3,096 | | | | | | 5,623 | | | | | | 7,124 | | |
Amortization of Intangible Assets
|
| | | | 5,163 | | | | | | 5,772 | | | | | | 8,660 | | |
Amortization of Deferred Financing Costs (Included in Interest)
|
| | | | 165 | | | | | | 334 | | | | | | 358 | | |
Bad Debt Expense
|
| | | | 496 | | | | | | 225 | | | | | | 155 | | |
Deferred Income Taxes
|
| | | | (1,177) | | | | | | 1,543 | | | | | | 1,286 | | |
Loss on Disposal of Fixed Assets
|
| | | | — | | | | | | 87 | | | | | | — | | |
Changes in Assets and Liabilities, Net of Acquisitions
|
| | | | | | | | | | | | | | | | | | |
Trade Receivables
|
| | | | 12,138 | | | | | | 8,053 | | | | | | 13,684 | | |
Related Party Receivable
|
| | | | 1,231 | | | | | | 157 | | | | | | (1,633) | | |
Inventory
|
| | | | (107,778) | | | | | | (8,617) | | | | | | 35,821 | | |
Income Taxes PayableReceivable
|
| | | | (1,867) | | | | | | 4,453 | | | | | | (1,187) | | |
Operating Lease Right-Of-Use Assets
|
| | | | 4,299 | | | | | | (817) | | | | | | 3,137 | | |
Operating Lease Obligations
|
| | | | (4,583) | | | | | | 664 | | | | | | (3,284) | | |
Other Assets
|
| | | | (5,230) | | | | | | 1,980 | | | | | | 3,228 | | |
Accounts Payable
|
| | | | (16,146) | | | | | | 18,686 | | | | | | (38,761) | | |
Accrued Expenses
|
| | | | (1,980) | | | | | | 2,395 | | | | | | (6,560) | | |
Net Cash Provided by (Used in) Operating Activities
|
| | | | (83,554) | | | | | | 74,718 | | | | | | 27,391 | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | | | | | | |
Capital Expenditures
|
| | | | (50) | | | | | | (650) | | | | | | (2,702) | | |
Cash Paid for Business Acquisitions, Net of Cash
Acquired |
| | | | — | | | | | | (65,409) | | | | | | (2,561) | | |
Net Cash Used in Investing Activities
|
| | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | | | | |
Payments on Seller Notes
|
| | | | (3,750) | | | | | | (4,750) | | | | | | — | | |
Payments on Revolving Credit Facility
|
| | | | (1,346,442) | | | | | | (1,310,333) | | | | | | (724,783) | | |
Borrowings on Revolving Credit Facility
|
| | | | 1,428,664 | | | | | | 1,318,518 | | | | | | 698,670 | | |
Payments on Financing Leases
|
| | | | (811) | | | | | | (2,101) | | | | | | (2,478) | | |
Proceeds from Debt
|
| | | | 3,377 | | | | | | — | | | | | | 1,378 | | |
Capital Dividends
|
| | | | — | | | | | | (6,811) | | | | | | — | | |
Capital Contribution
|
| | | | — | | | | | | — | | | | | | 3,860 | | |
Deferred Financing Costs
|
| | | | — | | | | | | (500) | | | | | | — | | |
Net Cash Provided by (Used In) Financing Activities
|
| | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
Net Increase (Decrease) in Cash and Cash Equivalents
|
| | |
|
(2,566)
|
| | | |
|
2,682
|
| | | |
|
(1,225)
|
| |
Net Effect of Currency Translation on Cash and Cash Equivalents
|
| | |
|
7
|
| | | |
|
15
|
| | | |
|
(318)
|
| |
Cash, Beginning of the Period
|
| | |
|
4,028
|
| | | |
|
1,331
|
| | | |
|
2,874
|
| |
Cash, End of the Period
|
| | | $ | 1,469 | | | | | $ | 4,028 | | | | | $ | 1,331 | | |
Supplemental disclosure for Cash Flow Information | | | | | | | | | | | | | | | | | | | |
Cash Paid for Interest
|
| | | $ | 2,878 | | | | | $ | 2,079 | | | | | $ | 3,272 | | |
Cash Paid for Income Taxes
|
| | | $ | 9,345 | | | | | $ | 6,540 | | | | | $ | 362 | | |
Supplemental Disclosure for Non-Cash Investing Activities | | | | | | | | | | | | | | | | | | | |
Property and Equipment Acquired Under Capital Leases
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,378 | | |
Issuance of Seller’s Note Related to Acquisition
|
| | | $ | — | | | | | $ | 8,500 | | | | | $ | — | | |
PPP Loan Forgiveness
|
| | | $ | — | | | | | $ | 1,740 | | | | | $ | — | | |
($ in thousands)
|
| |
Common
Stock Shares Issued |
| |
Paid In
Capital |
| |
Cost of
Treasury Stock |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Retained
Earnings |
| |
Total
|
| ||||||||||||||||||
Balances at June 30, 2019
|
| | | | 900 | | | | | $ | 42,951 | | | | | $ | (2,675) | | | | | $ | 230 | | | | | $ | 3,510 | | | | | $ | 44,016 | | |
Other Comprehensive Income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Translation Adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | (318) | | | | | | — | | | | | | (318) | | |
Capital Contribution
|
| | | | — | | | | | | 3,860 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,860 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,361 | | | | | | 5,361 | | |
Balances at June 30, 2020
|
| | | | 900 | | | | | $ | 46,811 | | | | | $ | (2,675) | | | | | $ | (88) | | | | | $ | 8,871 | | | | | $ | 52,919 | | |
Other Comprehensive Income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Translation Adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | 15 | | | | | | — | | | | | | 15 | | |
Distributions of Paid In Capital
|
| | | | — | | | | | | (6,811) | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,811) | | |
Purchase of Treasury Stock
|
| | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 34,178 | | | | | | 34,178 | | |
Balances at June 30, 2021
|
| | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 43,049 | | | | | $ | 80,302 | | |
Currency Translation Adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | — | | | | | | 7 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,619 | | | | | | 28,619 | | |
Balances at June 30, 2022
|
| | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 71,668 | | | | | $ | 108,928 | | |
Asset Class
|
| |
Useful Life
|
|
Leasehold Improvements
|
| | 5 – 10 years | |
Machinery and Equipment
|
| | 3 – 7 years | |
Furniture and Fixtures
|
| | 5 – 7 years | |
Capitalized Software
|
| | 1 – 3 years | |
Equipment Under Capital Leases
|
| | 5 years | |
Computer Equipment
|
| | 2 – 5 years | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Trade receivables
|
| | | $ | 101,064 | | | | | $ | 115,618 | | |
Less: | | | | | | | | | | | | | |
Allowances for Doubtful Accounts
|
| | | | (558) | | | | | | (1,145) | | |
Sales returns reserve, net
|
| | | | (1,898) | | | | | | (2,975) | | |
Customer Rebate and Discount Reserve
|
| | | | 90 | | | | | | (166) | | |
Total Allowances
|
| | | | (2,366) | | | | | | (4,286) | | |
Trade Receivables, Net
|
| | | $ | 98,699 | | | | | $ | 111,332 | | |
| | |
Year Ended
|
| |||||||||||||||
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| |
June 30, 2020
|
| |||||||||
Customer #1
|
| | | | 23.6% | | | | | | 23.7% | | | | | | 19.6% | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Customer #1
|
| | | | 21.4% | | | | | | 12.2% | | |
Customer #2
|
| | | | 14.2% | | | | | | * | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Inventory
|
| | | $ | 255,236 | | | | | $ | 145,740 | | |
Less: Reserves
|
| | | | (5,797) | | | | | | (4,079) | | |
Inventory, Net
|
| | | $ | 249,439 | | | | | $ | 141,661 | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Other Assets – Current | | | | | | | | | | | | | |
Prepaid Intellectual Property
|
| | | $ | 2,443 | | | | | $ | 3,411 | | |
Prepaid Insurance
|
| | | | 431 | | | | | | 2,011 | | |
Prepaid Acquisitions
|
| | | | 2,243 | | | | | | — | | |
Prepaid Freight
|
| | | | 216 | | | | | | | | |
Prepaid Manufacturing Components
|
| | | | 79 | | | | | | 167 | | |
Prepaid Maintenance
|
| | | | 885 | | | | | | 165 | | |
Prepaid Shipping Supplies
|
| | | | 2,832 | | | | | | 1,533 | | |
Total Other Assets – Current
|
| | | $ | 9,129 | | | | | $ | 7,287 | | |
Other Assets – Long Term | | | | | | | | | | | | | |
Deposits
|
| | | $ | 3,748 | | | | | $ | 361 | | |
Total Other Assets – Long Term
|
| | | $ | 3,748 | | | | | $ | 361 | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Property and Equipment | | | | | | | | | | | | | |
Leasehold Improvements
|
| | | $ | 1,680 | | | | | $ | 1,597 | | |
Machinery and Equipment
|
| | | | 19,440 | | | | | | 19,236 | | |
Furniture and Fixtures
|
| | | | 3,530 | | | | | | 2,622 | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Capitalized Software
|
| | | | 11,451 | | | | | | 11,422 | | |
Equipment Under Capital Leases
|
| | | | 12,917 | | | | | | 12,917 | | |
Computer Equipment
|
| | | | 2,662 | | | | | | 2,665 | | |
Construction in Progress
|
| | | | 154 | | | | | | 104 | | |
| | | | | 51,834 | | | | | | 50,563 | | |
Less: Accumulated Depreciation and Amortization
|
| | | | (48,550) | | | | | | (44,233) | | |
Total Property and Equipment, Net
|
| | | $ | 3,284 | | | | | $ | 6,330 | | |
|
($ in thousands)
|
| |
Life
(in yrs.) |
| |
Amortization
Year Ended June 30, 2021 |
| |
June 30,
2021 |
| |
Amortization
Year Ended June 30, 2022 |
| |
June 30,
2022 |
| ||||||||||||
Identifiable Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer Relationships
|
| |
15
|
| | | $ | (4,331) | | | | | $ | 14,633 | | | | | $ | (3,690) | | | | | $ | 10,943 | | |
Trade Name – Alliance
|
| |
10
|
| | | | (382) | | | | | | 634 | | | | | | (254) | | | | | | 380 | | |
Covenant Not to Compete
|
| |
7
|
| | | | (1) | | | | | | 4 | | | | | | (1) | | | | | | 3 | | |
Mecca Customer Relationships
|
| |
15
|
| | | | (575) | | | | | | 3,932 | | | | | | (575) | | | | | | 3,357 | | |
Customer List
|
| |
10 – 15
|
| | | | (739) | | | | | | 4,724 | | | | | | (643) | | | | | | 4,081 | | |
Total Identifiable Intangible Assets:
|
| | | | | | $ | (6,028) | | | | | $ | 23,927 | | | | | $ | (5,163) | | | | | $ | 18,764 | | |
($ in thousands)
|
| |
Intangible
Assets |
| |||
Year Ended June 30 | | | | | | | |
2023
|
| | | $ | 4,056 | | |
2024
|
| | | | 3,470 | | |
2025
|
| | | | 2,898 | | |
2026
|
| | | | 2,586 | | |
2027
|
| | | | 2,536 | | |
Thereafter
|
| | | | 3,218 | | |
Total Expected Amortization
|
| | | $ | 18,764 | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Marketing Funds Accruals
|
| | | $ | 2,738 | | | | | $ | 1,294 | | |
Payroll and Payroll Tax Accruals
|
| | | | 3,904 | | | | | | 6,833 | | |
Accruals for Other Expenses
|
| | | | 4,931 | | | | | | 5,428 | | |
Total Accrued Expenses
|
| | | $ | 11,573 | | | | | $ | 13,555 | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Bank of America Revolving Credit Agreement
|
| | | $ | 136,176 | | | | | $ | 53,955 | | |
Less: Deferred Finance Costs
|
| | | | (208) | | | | | | (375) | | |
Revolving Credit, Net
|
| | | $ | 135,968 | | | | | $ | 53,580 | | |
| | |
Year Ended June 30
|
| |||||||||||||||
(In thousands)
|
| |
2022
|
| |
2021
|
| |
2020
|
| |||||||||
Income Tax Expense (Benefit): | | | | | | | | | | | | | | | | | | | |
Current:
|
| | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | 7,937 | | | | | $ | 7,201 | | | | | $ | (1,759) | | |
State
|
| | | | 2,663 | | | | | | 2,304 | | | | | | 849 | | |
Total Current
|
| | | $ | 10,599 | | | | | $ | 9,505 | | | | | $ | (910) | | |
Deferred:
|
| | | | | | | | | | | | | | | | | | |
Federal
|
| | | | (951) | | | | | | 1,070 | | | | | | 1,137 | | |
State
|
| | | | (226) | | | | | | 216 | | | | | | 149 | | |
Total Deferred
|
| | | | (1,177) | | | | | | 1,286 | | | | | | 1,286 | | |
Income Tax Expense
|
| | | $ | 9,423 | | | | | $ | 10,791 | | | | | $ | 376 | | |
| | |
Year Ended June 30
|
| | | | |||||||||||||||||||||||||||||||||
(In thousands)
|
| |
2022
|
| |
2021
|
| |
2020
|
| | | | |||||||||||||||||||||||||||
Federal Income Tax Provision at Statutory Rate
|
| | | $ | 7,484 | | | | | | 21% | | | | | $ | 9,444 | | | | | | 21% | | | | | $ | 1,205 | | | | | | 21% | | | | | |
State Taxes, Net of Federal Benefits
|
| | | | 2,437 | | | | | | 6% | | | | | | 2,520 | | | | | | 6% | | | | | | 997 | | | | | | 17% | | | | | |
Meals Entertainments
|
| | | | — | | | | | | 0% | | | | | | 6 | | | | | | 0% | | | | | | 18 | | | | | | 0% | | | | | |
Foreign Derived Intangible Income
|
| | | | (618) | | | | | | -2% | | | | | | (802) | | | | | | -2% | | | | | | (598) | | | | | | -10% | | | | | |
NOL Carryback Refund Before AMT
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | (1,216) | | | | | | -21% | | | | | |
Debt Forgiveness and Interest Income
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | |
Other
|
| | | | 120 | | | | | | -1% | | | | | | (377) | | | | | | -1% | | | | | | (30) | | | | | | -1% | | | | | |
Income Tax Expense
|
| | | $ | 9,423 | | | | | | 24% | | | | | $ | 10,791 | | | | | | 24% | | | | | $ | 376 | | | | | | 6% | | | | | |
| | |
Year Ended June 30
|
| |||||||||
(In thousands)
|
| |
2022
|
| |
2021
|
| ||||||
Deferred Tax Assets: | | | | ||||||||||
Other Deferred (ICDISC)
|
| | | $ | 583 | | | | | $ | 245 | | |
Net Operating Losses
|
| | | | 30 | | | | | | 30 | | |
Bad Debt
|
| | | | 39 | | | | | | 83 | | |
Total Deferred Tax Assets
|
| | | | 652 | | | | | | 358 | | |
Deferred Tax Liabilities: | | | | | | | | | | | | | |
Inventory
|
| | | | (324) | | | | | | (875) | | |
Accruals Not Currently Deductible
|
| | | | (792) | | | | | | (98) | | |
Prepaids
|
| | | | (1,004) | | | | | | (1,224) | | |
Property and Equipment
|
| | | | (1,399) | | | | | | (1,924) | | |
Goodwill/Intangibles
|
| | | | (2,404) | | | | | | (2,685) | | |
Total Deferred Tax Liabilities
|
| | | | (5,923) | | | | | | (6,806) | | |
Net Deferred Tax Liability
|
| | |
$
|
(5,271)
|
| | | |
$
|
(6,448)
|
| |
($ in thousands)
|
| |
2022
|
| |
2021
|
| |
2020
|
| |||||||||
Lease cost | | | | | | | | | | | | | | | | | | | |
Finance Lease Costs:
|
| | | | | | | | | | | | | | | | | | |
Amortization of Right-of-Use Assets
|
| | | $ | 675 | | | | | $ | 1,189 | | | | | $ | 1,095 | | |
Interest on Lease Liabilities
|
| | | | 27 | | | | | | 81 | | | | | | 125 | | |
Operating Lease Cost
|
| | | | 4,515 | | | | | | 4,789 | | | | | | 3,827 | | |
Short Term Lease Cost
|
| | | | 1,140 | | | | | | — | | | | | | — | | |
Variable Lease Cost
|
| | | | 1,633 | | | | | | 869 | | | | | | 680 | | |
Total Lease Cost
|
| | | $ | 7,990 | | | | | $ | 6,928 | | | | | $ | 5,727 | | |
Other Information | | | | | | | | | | | | | | | | | | | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | | | | | | | | | | | | | | | | | | | |
Operating Cash Flows from Financing Leases
|
| | | $ | 30 | | | | | $ | 86 | | | | | $ | 125 | | |
Operating Cash Flows from Operating Leases
|
| | | $ | 4,820 | | | | | $ | 4,944 | | | | | $ | 3,973 | | |
Financing Cash Flows from Finance Leases
|
| | | | 1,070 | | | | | | 1,931 | | | | | | 1,720 | | |
Right-of Use Assets Obtained in Exchange for New Finance Lease Liabilities
|
| | | | — | | | | | | — | | | | | | 1,561 | | |
Right-of Use Assets Obtained in Exchange for Capitalized Operating Lease Liabilities
|
| | | | — | | | | | | 3,640 | | | | | | 39 | | |
Net ROU Remeasurement
|
| | | | (651) | | | | | | 841 | | | | | | 169 | | |
| | |
Year Ended June 30,
|
| |||||||||||||||
| | |
2022
|
| |
2021
|
| |
2020
|
| |||||||||
Weighted-Average Remaining Lease Term – Operating Leases
|
| | | | 2.33 | | | | | | 1.63 | | | | | | 2.13 | | |
Weighted-Average Remaining Lease Term – Financing Leases
|
| | | | 2.06 | | | | | | 3.12 | | | | | | 4.09 | | |
Weighted-Average Discount Rate – Operating Leases
|
| | | | 4.10 | | | | | | 3.35 | | | | | | 3.26 | | |
Weighted-Average Discount Rate – Financing Leases
|
| | | | 3.70 | | | | | | 4.46 | | | | | | 4.45 | | |
($ in thousands)
|
| |
Operating
Leases |
| |||
2023
|
| | | | 4,403 | | |
2024
|
| | | | 4,019 | | |
2025
|
| | | | 1,402 | | |
2026
|
| | | | 99 | | |
Total Lease Payments
|
| | | | 9,923 | | |
Less Imputed Interest
|
| | | | (606) | | |
Total
|
| | | $ | 9,317 | | |
($ in thousands)
|
| |
Nine Months Ended
June 30, 2021 |
| |||
Revenue
|
| | | $ | 405,714 | | |
Net Income
|
| | | | 19,567 | | |
|
Cash at Close
|
| | | $ | 71,859 | | |
|
Note to Seller
|
| | | | 8,500 | | |
| | | | | $ | 80,359 | | |
($ in thousands)
|
| | | | | | |
Cash Acquired
|
| | | $ | 6,450 | | |
Trade Receivables
|
| | | | 48,729 | | |
Inventory
|
| | | | 70,267 | | |
Other Assets
|
| | | | 1,779 | | |
Accounts Payable
|
| | | | (48,770) | | |
Accrued Expenses
|
| | | | (734) | | |
Property and Equipment
|
| | | | 2,638 | | |
Total Purchase Price
|
| | | $ | 80,359 | | |
| | |
Year Ended
|
| |||||||||
($ in thousands)
|
| |
June 30, 2021
|
| |
June 30, 2020
|
| ||||||
Revenue
|
| | | $ | 1,414,039 | | | | | $ | 1,195,005 | | |
Net Income
|
| | | | 42,542 | | | | | | 3,402 | | |
| | | | | F-45 | | | |
| Financial Statements: | | | | | | | |
| | | | | F-46 | | | |
| | | | | F-47 | | | |
| | | | | F-48 | | | |
| | | | | F-49 | | | |
| | | |
| | |
December 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 17,956 | | | | | $ | 724,410 | | |
Prepaid expenses
|
| | | | 2,500 | | | | | | 199,166 | | |
Total Current Assets
|
| | |
|
20,456
|
| | | |
|
923,576
|
| |
Marketable securities held in Trust Account
|
| | | | 117,809,450 | | | | | | 116,160,281 | | |
TOTAL ASSETS
|
| | | $ | 117,829,906 | | | | | $ | 117,083,857 | | |
LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE
REDEMPTION, AND STOCKHOLDERS’ DEFICIT |
| | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 1,642,990 | | | | | $ | 440,245 | | |
Income taxes payable
|
| | | | 264,485 | | | | | | — | | |
Advance from related party
|
| | | | 30,582 | | | | | | | | |
Promissory note
|
| | | | 471,599 | | | | | | — | | |
Total Current Liabilities
|
| | | | 2,409,656 | | | | |
|
440,245
|
| |
Warrant Liabilities
|
| | | | 693,900 | | | | | | 4,860,800 | | |
TOTAL LIABILITIES
|
| | | | 3,103,556 | | | | | | 5,301,045 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption, $0.0001 par value;
11,500,000 shares at $10.19 and $10.10 redemption value at December 31, 2022 and 2021, respectively |
| | | | 117,140,715 | | | | | | 116,150,000 | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0 shares issued or outstanding as of December 31, 2022 and 2021
|
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2022 and 2021 (excluding 11,500,000 shares)
|
| | | | | | | | | | | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding at December 31, 2022 and
2021 |
| | | | 288 | | | | | | 288 | | |
Additional paid-in capital
|
| | | | — | | | | | | — | | |
Accumulated deficit
|
| | | | (2,414,653) | | | | | | (4,367,476) | | |
Total Stockholders’ Deficit
|
| | | | (2,414,365) | | | | | | (4,367,188) | | |
TOTAL LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ DEFICIT
|
| | | $ | 117,829,906 | | | | | $ | 117,083,857 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Operating and formation costs
|
| | | $ | 2,608,046 | | | | | $ | 976,831 | | |
Loss from operations
|
| | | | (2,608,046) | | | | | | (976,831) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 1,649,169 | | | | | | 10,281 | | |
Transaction costs incurred in connection with IPO
|
| | | | — | | | | | | (86,544) | | |
Change in fair value of warrants liabilities
|
| | | | 4,166,900 | | | | | | 4,297,300 | | |
Other income (expenses), net
|
| | | | 5,816,069 | | | | | | 4,221,037 | | |
Income before provision for income taxes
|
| | | | 3,208,023 | | | | | | 3,244,206 | | |
Provision for income taxes
|
| | | | (264,485) | | | | | | — | | |
Net income
|
| | | $ | 2,943,538 | | | | | $ | 3,244,206 | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 11,500,000 | | | | | | 10,208,219 | | |
Basic income per share, Class A common stock
|
| | | $ | 0.20 | | | | | $ | 0.25 | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 2,875,000 | | | | | | 2,831,849 | | |
Basic net income per share, Class B common stock
|
| | | $ | 0.20 | | | | | $ | 0.25 | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 2,875,000 | | | | | | 2,875,000 | | |
Diluted net income per share, Class B common stock
|
| | | $ | 0.20 | | | | | $ | 0.25 | | |
| | |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity (Deficit) |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – January 1, 2021
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (5,476) | | | | | $ | 19,524 | | |
Accretion for Class A common stock to redemption amount
|
| | | | — | | | | | | — | | | | | | (313,212) | | | | | | (7,606,206) | | | | | | (7,919,418) | | |
Cash paid in excess of fair value of private warrants
|
| | | | — | | | | | | — | | | | | | 288,400 | | | | | | — | | | | | | 288,400 | | |
Issuance of Representative Warrants
|
| | | | — | | | | | | — | | | | | | 100 | | | | | | — | | | | | | 100 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 3,244,206 | | | | | | 3,244,206 | | |
Balance – December 31, 2021
|
| | | | 2,875,000 | | | | | | 288 | | | | |
|
—
|
| | | | | (4,367,476) | | | | | | (4,367,188) | | |
Accretion for Class A common stock to redemption amount
|
| | | | — | | | | | | — | | | | | | — | | | | | | (990,715) | | | | | | (990,715) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2,943,538 | | | | | | 2,943,538 | | |
Balance – December 31, 2022
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (2,414,653) | | | | | $ | (2,414,365) | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 2,943,538 | | | | | $ | 3,244,206 | | |
Adjustments to reconcile net income to net cash used in operating
activities: |
| | | | | | | | | | | | |
Change in fair value of warrant liabilities
|
| | | | (4,166,900) | | | | | | (4,297,300) | | |
Transaction costs incurred in connection with IPO
|
| | | | — | | | | | | 86,544 | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (1,649,169) | | | | | | (10,281) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | 196,666 | | | | | | 200,834 | | |
Income taxes payable
|
| | | | 264,485 | | | | | | — | | |
Accrued expenses
|
| | | | 1,202,745 | | | | | | 435,363 | | |
Net cash used in operating activities
|
| | | | (1,208,635) | | | | | | (340,634) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account
|
| | | | — | | | | | | (116,150,000) | | |
Net cash used in investing activities
|
| | | | — | | | | |
|
(116,150,000)
|
| |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | — | | | | | | 114,000,000 | | |
Proceeds from sale of Private Placements Warrants
|
| | | | — | | | | | | 4,120,000 | | |
Proceeds from sale of Unit Purchase Option
|
| | | | — | | | | | | 100 | | |
Proceeds from Advances from related party
|
| | | | 30,582 | | | | | | | | |
Proceeds from promissory note
|
| | | | 471,599 | | | | | | — | | |
Repayment of promissory note – related party
|
| | | | — | | | | | | (600,000) | | |
Payment of offering costs
|
| | | | — | | | | | | (407,352) | | |
Net cash provided by financing activities
|
| | | | 502,181 | | | | | | 117,112,748 | | |
Net Change in Cash
|
| | | | (706,454) | | | | | | 622,114 | | |
Cash – Beginning of year
|
| | | | 724,410 | | | | | | 102,296 | | |
Cash – End of year
|
| | | $ | 17,956 | | | | | $ | 724,410 | | |
|
Gross proceeds
|
| | | $ | 115,000,000 | | |
| Less: | | | | | | | |
|
Proceeds allocated to Public Warrants
|
| | | | (5,290,000) | | |
|
Class A common stock issuance at cost
|
| | | | (1,479,418) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 7,919,418 | | |
|
Class A common stock subject to possible redemption, December 31, 2021
|
| | | | 116,150,000 | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 990,715 | | |
|
Class A common stock subject to possible redemption, December 31, 2022
|
| | | $ | 117,140,715 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||||||||
| | |
2022
|
| |
2021
|
| ||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||
Basic net income per common share | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income, as adjusted
|
| | | $ | 2,354,830 | | | | | $ | 588,708 | | | | | $ | 2,539,677 | | | | | $ | 704,529 | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic weighted average shares outstanding
|
| | | | 11,500,000 | | | | | | 2,875,000 | | | | | | 10,208,219 | | | | | | 2,831,849 | | |
Basic net income per common share
|
| | | $ | 0.20 | | | | | $ | 0.20 | | | | | $ | 0.25 | | | | | $ | 0.25 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||||||||
| | |
2022
|
| |
2021
|
| ||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||
Diluted net income per common share | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income, as adjusted
|
| | | $ | 2,354,830 | | | | | $ | 588,708 | | | | | $ | 2,539,677 | | | | | $ | 704,529 | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic weighted average shares outstanding
|
| | | | 11,500,000 | | | | | | 2,875,000 | | | | | | 10,208,219 | | | | | | 2,875,000 | | |
Basic net income per common share
|
| | | $ | 0.20 | | | | | $ | 0.20 | | | | | $ | 0.25 | | | | | $ | 0.25 | | |
| | |
Years Ended December
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Deferred tax assets | | | | | | | | | | | | | |
Net operating loss carryforward
|
| | | $ | — | | | | | $ | 39,841 | | |
Start-up/organization expenses
|
| | | | 686,083 | | | | | | 181,309 | | |
Total deferred tax assets
|
| | | | 686,083 | | | | | | 221,150 | | |
Valuation allowance
|
| | | | (686,083) | | | | | | (221,150) | | |
Deferred tax assets, net of allowance
|
| | | $ | — | | | | | $ | — | | |
| | |
Years Ended December
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Federal | | | | | | | | | | | | | |
Current
|
| | | $ | 264,485 | | | | | $ | — | | |
Deferred
|
| | | | (464,933) | | | | | | (221,150) | | |
State | | | | | | | | | | | | | |
Current
|
| | | | — | | | | | | — | | |
Deferred
|
| | | | — | | | | | | — | | |
Change in valuation allowance
|
| | | | 464,933 | | | | | | 221,150 | | |
Income tax provision
|
| | | $ | 264,485 | | | | | $ | — | | |
| | |
Years Ended December
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Statutory federal income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal tax benefit
|
| | | | 0.0% | | | | | | 0.0% | | |
Deferred tax liability change in rate
|
| | | | 0.0% | | | | | | 0.0% | | |
Change in fair value of warrant liabilities
|
| | | | (27.3)% | | | | | | (27.8)% | | |
Change in valuation allowance
|
| | | | 14.5% | | | | | | 6.8% | | |
Income tax provision
|
| | | | 8.2% | | | | | | —% | | |
Description
|
| |
Level
|
| |
December 31,
2022 |
| |
December 31,
2021 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable Securities held in Trust Account – U.S. Treasury Securities Money Market Fund
|
| | | | 1 | | | | |
$
|
117,809,450
|
| | | |
$
|
116,160,281
|
| |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Warrant Liabilities – Public Warrants
|
| | | | 1 | | | | | $ | 402,500 | | | | | $ | 2,817,500 | | |
Warrant Liabilities – Private Placement Warrants
|
| | | | 2 | | | | | | 284,900 | | | | | | 1,994,300 | | |
Warrant Liabilities – Representative Warrants
|
| | | | 3 | | | | | | 6,500 | | | | | | 49,000 | | |
| | |
February 11, 2021
(Initial Measurement) |
| |
December 31,
2021 |
| |
December 31,
2022 |
| |||||||||||||||||||||
Input
|
| |
Public
Warrants |
| |
Private
Warrants |
| |
Representative
Warrants |
| |
Representative
Warrants |
| |
Representative
Warrants |
| |||||||||||||||
Market price of public stock
|
| | | $ | 9.54 | | | | | $ | 9.54 | | | | | $ | 9.54 | | | | | $ | 9.79 | | | | | $ | 10.18 | | |
Term (in years)
|
| | | | 5.00 | | | | | | 5.00 | | | | | | 5.00 | | | | | | 5.00 | | | | | | 5.00 | | |
Volatility
|
| | | | 17.1% | | | | | | 17.1% | | | | | | 17.1% | | | | | | 10.9% | | | | | | 1.8% | | |
Risk-free rate
|
| | | | 0.52% | | | | | | 0.52% | | | | | | 0.36% | | | | | | 1.18% | | | | | | 4.25% | | |
Dividend yield
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Exercise price
|
| | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Effective expiration date
|
| | | | 6/26/26 | | | | | | 6/26/26 | | | | | | 5/11/25 | | | | | | 6/23/26 | | | | | | 8/09/25 | | |
One-touch hurdle
|
| | | $ | 18.15 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
Private
Placement |
| |
Public
|
| |
Representative
|
| |
Warrant
Liabilities |
| ||||||||||||
Fair value as of January 1, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial measurement on February 11, 2021
|
| | | | 3,785,100 | | | | | | 5,290,000 | | | | | | 36,500 | | | | | | 9,111,600 | | |
Change in valuation inputs or other assumptions
|
| | | | (1,587,300) | | | | | | (1,437,500) | | | | | | 12,500 | | | | | | (3,012,300) | | |
Transfer to Level 1
|
| | | | — | | | | | | (3,852,500) | | | | | | — | | | | | | (3,852,500) | | |
Transfer to Level 2
|
| | | | (2,197,800) | | | | | | — | | | | | | — | | | | | | (2,197,800) | | |
Fair value as of December 31, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | 49,000 | | | | | $ | 49,000 | | |
| | |
Representative
|
| |
Warrant
Liabilities |
| ||||||
Fair value as of January 1, 2022
|
| | | $ | 49,000 | | | | | $ | 49,000 | | |
Change in fair value
|
| | | | (42,500) | | | | | | (42,500) | | |
Fair value as of December 31, 2022
|
| | | $ | 6,500 | | | | | $ | 6,500 | | |
Name of Selling Securityholder(1)
|
| |
Shares of Class A
Common Stock Beneficially Owned Before the Offering(2) |
| |
Warrants
Beneficially Owned Before the Offering |
| |
Shares of Class A
Common Stock Being Offered(2) |
| |
Warrants
Being Offered |
| |
Shares of Class A
Common Stock Beneficially Owned After Sale of All Shares Offered Hereby |
| |
Warrants
Beneficially Owned After Sale of All Private Warrants Offered Hereby |
| ||||||||||||||||||
Jeffrey Walker(3)
|
| | | | 22,852,778 | | | | | | — | | | | | | 22,852,778 | | | | | | — | | | | | | — | | | | | | — | | |
Bruce Ogilvie, Jr. Trust dated
January 20, 1994(4) |
| | | | 15,195,975 | | | | | | — | | | | | | 15,195,975 | | | | | | — | | | | | | — | | | | | | — | | |
Ogilvie Legacy Trust dated September 14th, 2021(5)
|
| | | | 8,554,025 | | | | | | — | | | | | | 8,554,025 | | | | | | — | | | | | | — | | | | | | — | | |
W. Tom Donaldson III(6)
|
| | | | 25,000 | | | | | | — | | | | | | 25,000 | | | | | | — | | | | | | — | | | | | | — | | |
B&D Series 2020, LLC(7)
|
| | | | 2,421,062 | | | | | | 1,873,335 | | | | | | 2,421,062 | | | | | | 1,873,335 | | | | | | — | | | | | | — | | |
Thomas M. Finke(8)
|
| | | | 551,197 | | | | | | 387,333 | | | | | | 551,197 | | | | | | 387,333 | | | | | | — | | | | | | — | | |
Thomas M. Finke Family Trust(9)
|
| | | | 323,864 | | | | | | 250,000 | | | | | | 323,864 | | | | | | 250,000 | | | | | | — | | | | | | — | | |
JS&P Capital LLC
|
| | | | 90,000 | | | | | | — | | | | | | 90,000 | | | | | | — | | | | | | — | | | | | | — | | |
Sumichrast 2017 Family Trust
|
| | | | 137,333 | | | | | | 137,333 | | | | | | 137,333 | | | | | | 137,333 | | | | | | — | | | | | | — | | |
Paul G. Porter
|
| | | | 227,333 | | | | | | 137,333 | | | | | | 227,333 | | | | | | 137,333 | | | | | | — | | | | | | — | | |
Bakari Sellers
|
| | | | 129,545 | | | | | | 100,000 | | | | | | 129,545 | | | | | | 100,000 | | | | | | — | | | | | | — | | |
Peter Ghiloni
|
| | | | 177,333 | | | | | | 137,333 | | | | | | 177,333 | | | | | | 137,333 | | | | | | — | | | | | | — | | |
Scott Coffman
|
| | | | 177,333 | | | | | | 137,333 | | | | | | 177,333 | | | | | | 137,333 | | | | | | — | | | | | | — | | |
Sim Farar
|
| | | | 129,545 | | | | | | 100,000 | | | | | | 129,545 | | | | | | 100,000 | | | | | | — | | | | | | — | | |
Frank Quintero
|
| | | | 154,545 | | | | | | 100,000 | | | | | | 154,545 | | | | | | 100,000 | | | | | | — | | | | | | — | | |
Dylan Glenn
|
| | | | 58,544 | | | | | | 25,000 | | | | | | 58,544 | | | | | | 25,000 | | | | | | — | | | | | | — | | |
Beatriz Acevedo-Greiff
|
| | | | 58,544 | | | | | | 25,000 | | | | | | 58,544 | | | | | | 25,000 | | | | | | — | | | | | | — | | |
The SPAC and New Issue ETF
|
| | | | 544,012 | | | | | | 425,000 | | | | | | 544,012 | | | | | | 425,000 | | | | | | — | | | | | | — | | |
Ronan Kennedy
|
| | | | 47,788 | | | | | | 37,333 | | | | | | 47,788 | | | | | | 37,333 | | | | | | — | | | | | | — | | |
Paul Cooney
|
| | | | 160,003 | | | | | | 125,000 | | | | | | 160,003 | | | | | | 125,000 | | | | | | — | | | | | | — | | |
Scott Rothbaum
|
| | | | 32,001 | | | | | | 25,000 | | | | | | 32,001 | | | | | | 25,000 | | | | | | — | | | | | | — | | |
Mike Solomon
|
| | | | 77,230 | | | | | | 60,334 | | | | | | 77,230 | | | | | | 60,334 | | | | | | — | | | | | | — | | |
William F. Raines III
|
| | | | 22,187 | | | | | | 17,333 | | | | | | 22,187 | | | | | | 17,333 | | | | | | — | | | | | | — | | |
LTB, LLC
|
| | | | 25,601 | | | | | | 20,000 | | | | | | 25,601 | | | | | | 20,000 | | | | | | — | | | | | | — | | |
Nelson Baquet
|
| | | | 300 | | | | | | 150 | | | | | | 300 | | | | | | 150 | | | | | | — | | | | | | — | | |
Chirag Choudhary
|
| | | | 3,900 | | | | | | 3,400 | | | | | | 3,900 | | | | | | 3,400 | | | | | | — | | | | | | — | | |
Ramnarain Jaigobind
|
| | | | 34,600 | | | | | | 15,850 | | | | | | 34,600 | | | | | | 15,850 | | | | | | — | | | | | | — | | |
Eric Lord
|
| | | | 13,500 | | | | | | 6,750 | | | | | | 13,500 | | | | | | 6,750 | | | | | | — | | | | | | — | | |
Priyanka Mahajan
|
| | | | 10,400 | | | | | | 5,200 | | | | | | 10,400 | | | | | | 5,200 | | | | | | — | | | | | | — | | |
Kevin Mangan
|
| | | | 11,700 | | | | | | 5,850 | | | | | | 11,700 | | | | | | 5,850 | | | | | | — | | | | | | — | | |
Maria Robles
|
| | | | 150 | | | | | | 75 | | | | | | 150 | | | | | | 75 | | | | | | — | | | | | | — | | |
Jeffrey Singer
|
| | | | 300 | | | | | | 150 | | | | | | 300 | | | | | | 150 | | | | | | — | | | | | | — | | |
Craig Skop
|
| | | | 5,150 | | | | | | 2,575 | | | | | | 5,150 | | | | | | 2,575 | | | | | | — | | | | | | — | | |
Premchand Beharry
|
| | | | 2,700 | | | | | | 1,350 | | | | | | 2,700 | | | | | | 1,350 | | | | | | — | | | | | | — | | |
William Bongiorno
|
| | | | 2,400 | | | | | | 1,200 | | | | | | 2,400 | | | | | | 1,200 | | | | | | — | | | | | | — | | |
Name of Selling Securityholder(1)
|
| |
Shares of Class A
Common Stock Beneficially Owned Before the Offering(2) |
| |
Warrants
Beneficially Owned Before the Offering |
| |
Shares of Class A
Common Stock Being Offered(2) |
| |
Warrants
Being Offered |
| |
Shares of Class A
Common Stock Beneficially Owned After Sale of All Shares Offered Hereby |
| |
Warrants
Beneficially Owned After Sale of All Private Warrants Offered Hereby |
| ||||||||||||||||||
Bruce Inglis and Nancy Inglis
|
| | | | 2,200 | | | | | | 1,100 | | | | | | 2,200 | | | | | | 1,100 | | | | | | — | | | | | | — | | |
Robert Sagarino
|
| | | | 1,600 | | | | | | 800 | | | | | | 1,600 | | | | | | 800 | | | | | | — | | | | | | — | | |
William Baquet
|
| | | | 8,490 | | | | | | 4,195 | | | | | | 8,490 | | | | | | 4,195 | | | | | | — | | | | | | — | | |
Richard Adams
|
| | | | 600 | | | | | | 300 | | | | | | 600 | | | | | | 300 | | | | | | — | | | | | | — | | |
Charles Giordano
|
| | | | 1,110 | | | | | | 555 | | | | | | 1,110 | | | | | | 555 | | | | | | — | | | | | | — | | |
Kolinda Tomasic
|
| | | | 200 | | | | | | 100 | | | | | | 200 | | | | | | 100 | | | | | | — | | | | | | — | | |
Phyllis Henderson
|
| | | | 600 | | | | | | 300 | | | | | | 600 | | | | | | 300 | | | | | | — | | | | | | — | | |
Angela Kang
|
| | | | 100 | | | | | | 100 | | | | | | 100 | | | | | | 100 | | | | | | — | | | | | | — | | |
Expense
|
| |
Estimated
Amount |
| |||
Securities and Exchange Commission registration fee
|
| | | $ | [ ] | | |
Accounting fees and expenses
|
| | | $ | [ ] | | |
Legal fees and expenses
|
| | | $ | [ ] | | |
Financial printing and miscellaneous expenses
|
| | | $ | [ ] | | |
Total
|
| | | $ | [ ] | | |
| | | | | |
Incorporated by Reference
|
| |||||||||
Exhibit
Number |
| |
Description of Document
|
| |
Schedule/
Form |
| |
File Number
|
| |
Exhibits
|
| |
Filing Date
|
|
1.1**** | | | Underwriting Agreement. | | | | | | | | | | | | | |
2.1* | | | | |
Form 8-K
|
| | 001-40014 | | | 2.1 | | | June 23, 2022 | | |
3.1 | | | | |
Form 8-K
|
| | 001-40014 | | | 3.4 | | |
February 13, 2023
|
| |
3.2 | | | | |
Form 8-K
|
| | 001-40014 | | | 3.5 | | |
February 13, 2023
|
| |
4.1 | | | | |
Form S-4
|
| | 333-266098 | | | 4.5 | | |
October 18, 2022
|
| |
4.2 | | | | |
Form S-4
|
| | 333-266098 | | | 4.6 | | |
October 18, 2021
|
| |
4.3 | | | | |
Form 8-K
|
| | 001-40014 | | | 4.1 | | |
February 11, 2021
|
| |
4.4**** | | | Form of Representative’s Warrant Agreement. | | | | | | | | | | | | | |
5.1**** | | | Opinion of Blank Rome LLP regarding the validity of the securities. | | | | | | | | | | | | | |
10.1 | | | | |
Form 8-K
|
| | 001-40014 | | | 2.1 | | | June 23, 2022 | | |
10.2† | | | | |
Form S-4
|
| | 333-266098 | | | 10.10 | | |
October 18, 2022
|
| |
10.3 | | | | |
Form S-4
|
| | 333-266098 | | | 10.11 | | |
October 18, 2022
|
| |
10.4 | | | Loan and Security Agreement, dated as of February 21, 2017, by and among Alliance Entertainment Holding Corporation, Project Panther Acquisition Corporation, AEC Direct, LLC, Alliance Entertainment, LLC and Directtou, LLC, as Borrowers, Bank of America, N.A., as Agent and Bank of America, N.A. as Sole Lead Arranger and Sole Bookrunner. | | |
Form S-4
|
| | 333-266098 | | | 10.12 | | |
October 18, 2022
|
|
| | | | | |
Incorporated by Reference
|
| |||||||||
Exhibit
Number |
| |
Description of Document
|
| |
Schedule/
Form |
| |
File Number
|
| |
Exhibits
|
| |
Filing Date
|
|
10.10 | | | | |
Form S-4
|
| | 333-266098 | | | 10.18 | | |
October 18, 2022
|
| |
10.11 | | | | |
Form S-4
|
| | 333-266098 | | | 10.19 | | |
October 18, 2022
|
| |
10.12 | | | | |
Form S-4
|
| | 333-266098 | | | 10.20 | | |
October 18, 2022
|
| |
10.13 | | | | |
Form S-4
|
| | 333-266098 | | | 10.21 | | |
October 18, 2022
|
| |
10.14 | | | | |
Form S-4
|
| | 333-266098 | | | 10.22 | | |
October 18, 2022
|
| |
10.15 | | | | |
Form S-4
|
| | 333-266098 | | | 10.23 | | |
October 18, 2022
|
| |
10.16 | | | | |
Form S-4
|
| | 333-266098 | | | 10.24 | | |
October 18, 2022
|
| |
10.17 | | | | |
Form S-4
|
| | 333-266098 | | | 10.25 | | |
October 18, 2022
|
| |
10.18 | | | | |
Form S-4
|
| | 333-266098 | | | 10.26 | | |
October 18, 2022
|
| |
10.19† | | | | |
Form S-4
|
| | 333-266098 | | | 10.27 | | |
October 18, 2022
|
| |
10.20† | | | | |
Form S-4
|
| | 333-266098 | | | 10.28 | | |
October 18, 2022
|
|
| | | | | |
Incorporated by Reference
|
| |||||||||
Exhibit
Number |
| |
Description of Document
|
| |
Schedule/
Form |
| |
File Number
|
| |
Exhibits
|
| |
Filing Date
|
|
10.21* | | | | |
Form 8-K
|
| | 001-40014 | | | 10.29 | | |
February 13, 2023
|
| |
10.22 | | | Amendment Number Twelve to Loan and Security Agreement and Waiver, dated as of April 21, 2023, by and among AENT Corporation, Project Panther Acquisition Corporation, AEC Direct, LLC, Alliance Entertainment, LLC, Directtou, LLC, Mecca Electronics Industries, Inc., Mill Creek Entertainment, LLC, and COKeM International, Ltd., as Borrowers, and Bank of America, N.A., as Agent. | | |
Form 8-K
|
| | 001-40014 | | | 10.1 | | | April 27, 2023 | |
14 | | | | |
Form 8-K
|
| | 001-40014 | | | 14 | | |
February 13, 2023
|
| |
23.1*** | | | | | | | | | | | | | | | | |
23.2*** | | | | | | | | | | | | | | | | |
23.3**** | | | Consent of Blank Rome LLP (included in Exhibit 5.1). | | | | | | | | | | | | | |
101.INS** | | | XBRL Instance Document. | | | | | | | | | | | | | |
101.CAL** | | | XBRL Taxonomy Extension Calculation Linkbase Documents. | | | | | | | | | | | | | |
101.SCH** | | | XBRL Taxonomy Extension Schema Document. | | | | | | | | | | | | | |
101.DEF** | | | XBRL Taxonomy Extension Definition Linkbase Document. | | | | | | | | | | | | | |
101.LAB** | | | XBRL Taxonomy Extension Label Linkbase Document. | | | | | | | | | | | | | |
101.PRE** | | | XBRL Taxonomy Extension Presentation Linkbase Document. | | | | | | | | | | | | | |
107.1+** | | | | |
Form S-1
|
| | 333-271219 | | | 107.1 | | | April 12, 2023 | |
|
Name
|
| |
Title
|
| |
Date
|
| |||
|
/s/ Bruce Ogilvie
Bruce Ogilvie
|
| | Executive Chairman | | |
May 1, 2023
|
| |||
|
/s/ Jeffrey Walker
Jeffrey Walker
|
| | Chief Executive Officer and Director (Principal Executive Officer) | | |
May 1, 2023
|
| |||
|
/s/ John Kutch
John Kutch
|
| | Chief Financial Officer and Director (Principal Financial Officer and Principal Accounting Officer) | | |
May 1, 2023
|
| |||
|
*
W. Tom Donaldson III
|
| | Director | | |
May 1, 2023
|
| |||
|
*
Thomas Finke
|
| | Director | | |
May 1, 2023
|
| |||
|
*
Chris Nagelson
|
| | Director | | |
May 1, 2023
|
| |||
|
*
Terilea J. Wielenga
|
| | Director | | |
May 1, 2023
|
| |||
|
* By:
|
| |
/s/ John Kutch
John Kutch,
attorney-in-fact |
| | | | |
May 1, 2023
|
|
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