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| | | | F-1 | | |
| | |
For the Three
Months Ended March 31, 2021 |
| |
For the Three
Months Ended March 31, 2020 |
| |
For the Year
Ended December 31, 2020 |
| |
For the Period
from April 11, 2019 (Inception) Through December 31, 2019 |
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 41,740,801 | | | | | $ | (8,823,514) | | | | | $ | (72,459,185) | | | | | $ | (14,682,592) | | |
Less: Income attributable to common stock subject to possible redemption
|
| | | | — | | | | | | (1,325,482) | | | | | | (1,230,480) | | | | | | (4,868,674) | | |
Nonredeemable net income (loss)
|
| | | $ | 41,740,801 | | | | | $ | (10,148,996) | | | | | $ | (73,689,665) | | | | | $ | (19,551,226) | | |
Weighted average shares outstanding, basic and diluted)
|
| | | | 32,537,498 | | | | | | 25,224,075 | | | | | | 27,526,131 | | | | | | 21,438,529 | | |
Basic and diluted net income (loss) per common share
|
| | | $ | 1.28 | | | | | $ | (0.41) | | | | | $ | (2.68) | | | | | $ | (0.91) | | |
| | |
March 31, 2021
|
| |
December 31, 2020
|
| |
December 31, 2019
|
| |||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||
Balance Sheet Data (end of period): | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 2,382,560 | | | | | $ | 3,873,865 | | | | | $ | 2,238,275 | | |
Prepaid income taxes
|
| | | | — | | | | | | — | | | | | | 27,140 | | |
Prepaid expenses
|
| | | | 111,174 | | | | | | 94,299 | | | | | | 275,525 | | |
Marketable securities held in Trust Account
|
| | | | 697,018,229 | | | | | | 696,957,196 | | | | | | 695,295,418 | | |
Total assets
|
| | | | 699,511,963 | | | | | | 700,925,360 | | | | | | 697,836,358 | | |
Total liabilities
|
| | | | 110,392,112 | | | | | | 153,546,310 | | | | | | 77,998,123 | | |
Common stock subject to possible redemption
|
| | | | 584,119,845 | | | | | | 542,379,040 | | | | | | 614,838,229 | | |
Total stockholders’ equity
|
| | | | 5,000,006 | | | | | | 5,000,010 | | | | | | 5,000,006 | | |
| | |
Three
months ended April 30, 2021 |
| |
Three
months ended April 30, 2020 |
| | |
Aug. 28,
2020 through Jan. 31, 2021 |
| |
Feb. 1, 2020
through Aug. 27, 2020 |
| |
Fiscal Year
Ended January 31, 2020 |
| |
Fiscal Year
Ended January 31, 2019 |
| |
Fiscal Year
Ended January 31, 2018 |
| |||||||||||||||||||||
($ in thousands)
|
| |
Successor
|
| |
Predecessor
|
| | |
Successor
|
| |
Predecessor
|
| |
Predecessor
|
| |
Predecessor
|
| |
Predecessor
|
| |||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues(1)
|
| | | | 91,701 | | | | | | 118,329 | | | | | | $ | 108,768 | | | | | $ | 273,851 | | | | | $ | 514,021 | | | | | $ | 534,141 | | | | | $ | 547,309 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues:
|
| | | | 24,521 | | | | | | 24,214 | | | | | | | 40,898 | | | | | | 52,160 | | | | | | 96,044 | | | | | | 98,636 | | | | | | 106,274 | | |
Content and software development
|
| | | | 16,607 | | | | | | 16,943 | | | | | | | 30,028 | | | | | | 38,986 | | | | | | 67,951 | | | | | | 57,332 | | | | | | 60,500 | | |
Selling and marketing
|
| | | | 28,502 | | | | | | 32,737 | | | | | | | 55,285 | | | | | | 75,028 | | | | | | 140,785 | | | | | | 150,179 | | | | | | 143,898 | | |
General and administrative
|
| | | | 12,362 | | | | | | 15,688 | | | | | | | 21,636 | | | | | | 37,455 | | | | | | 57,356 | | | | | | 51,421 | | | | | | 45,344 | | |
| | |
Three
months ended April 30, 2021 |
| |
Three
months ended April 30, 2020 |
| | |
Aug. 28,
2020 through Jan. 31, 2021 |
| |
Feb. 1, 2020
through Aug. 27, 2020 |
| |
Fiscal Year
Ended January 31, 2020 |
| |
Fiscal Year
Ended January 31, 2019 |
| |
Fiscal Year
Ended January 31, 2018 |
| |||||||||||||||||||||
($ in thousands)
|
| |
Successor
|
| |
Predecessor
|
| | |
Successor
|
| |
Predecessor
|
| |
Predecessor
|
| |
Predecessor
|
| |
Predecessor
|
| |||||||||||||||||||||
Recapitalization and transaction-
related costs |
| | | | 1,932 | | | | | | 16,376 | | | | | | | 15,928 | | | | | | 32,099 | | | | | | 16,244 | | | | | | — | | | | | | — | | |
Amortization of intangible assets
|
| | | | 34,943 | | | | | | 17,370 | | | | | | | 39,824 | | | | | | 34,378 | | | | | | 96,359 | | | | | | 151,752 | | | | | | 194,739 | | |
Impairment of goodwill and intangible assets
|
| | | | — | | | | | | 332,376 | | | | | | | — | | | | | | 332.376 | | | | | | 440,598 | | | | | | 16,094 | | | | | | — | | |
Restructuring
|
| | | | 537 | | | | | | 370 | | | | | | | 4,341 | | | | | | 1,179 | | | | | | 1,900 | | | | | | 2,073 | | | | | | 2,524 | | |
Total Operating Expenses
|
| | | | 119,404 | | | | | | 456,074 | | | | | | | 207,940 | | | | | | 603,661 | | | | | | 917,237 | | | | | | 527,487 | | | | | | 553,279 | | |
Operating (loss) income
|
| | | | (27,703) | | | | | | (337,745) | | | | | | | (99,172) | | | | | | (329,810) | | | | | | (403,216) | | | | | | 6,654 | | | | | | (5,970) | | |
Interest expense, net
|
| | | | (11,449) | | | | | | 910 | | | | | | | (19,936) | | | | | | (168,236) | | | | | | (429,657) | | | | | | (395,842) | | | | | | (346,186) | | |
Reorganization items, net
|
| | | | — | | | | | | — | | | | | | | — | | | | | | 3,329,245 | | | | | | — | | | | | | — | | | | | | — | | |
Other income (expense)
|
| | | | (342) | | | | | | 929 | | | | | | | 39,452 | | | | | | 1,268 | | | | | | (5,120) | | | | | | (5,624) | | | | | | 8,812 | | |
Loss before provision (benefit) for
income taxes |
| | | | (39,494) | | | | | | (442,794) | | | | | | | (115,656) | | | | | | 2,832,467 | | | | | | (837,993) | | | | | | (394,812) | | | | | | (343,344) | | |
Provision for income taxes
|
| | | | (2,089) | | | | | | (8,891) | | | | | | | (21,934) | | | | | | 68,455 | | | | | | 11,212 | | | | | | 5,027 | | | | | | 1,373 | | |
Net (loss) income
|
| | | | (37,405) | | | | | | (433,903) | | | | | | $ | (93,722) | | | | | $ | (2,764,012) | | | | | $ | (849,205) | | | | | $ | (399,839) | | | | | $ | (344,717) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||
| | |
As of January 31, 2021
|
| | |
As of January 31, 2020
|
| ||||||
Cash and cash equivalents
|
| | | $ | 71,479 | | | | | | $ | 18,799 | | |
Accounts receivable, net
|
| | | | 179,784 | | | | | | | 193,024 | | |
Total current assets(1)
|
| | | | 284,553 | | | | | | | 263.250 | | |
Accounts payable and accrued liabilities(1)(2)
|
| | | | 66,925 | | | | | | | 68,790 | | |
Term loans and related-party debt and accrued interest
|
| | | | 515,436 | | | | | | | 68,790 | | |
Total shareholder’s equity (deficit)
|
| | | | 579,969 | | | | | | | (2,761,744) | | |
| | |
Fiscal Year Ended
|
| |||||||||
(in thousands)
|
| |
October 2, 2020
|
| |
September 27, 2019
|
| ||||||
Statement of Operations And Comprehensive Loss Data: | | | | | | | | | | | | | |
Revenue
|
| | | $ | 208,535 | | | | | $ | 260,165 | | |
Cost of revenue
|
| | | | 116,203 | | | | | | 139,459 | | |
Gross margin
|
| | | | 92,332 | | | | | | 120,706 | | |
Total operating expenses
|
| | | | 164,636 | | | | | | 121,988 | | |
Loss from operations
|
| | | | (72,304) | | | | | | (1,282) | | |
Interest expense
|
| | | | (27,455) | | | | | | (25,489) | | |
Other (expense) income, net
|
| | | | (1,328) | | | | | | 500 | | |
Loss before income taxes
|
| | | | (101,087) | | | | | | (26,271) | | |
Income tax expense
|
| | | | (271) | | | | | | (28) | | |
Net Loss
|
| | | $ | (101,358) | | | | | $ | (26,299) | | |
| | |
Six Months Ended
|
| |||||||||
(in thousands)
|
| |
April 2, 2021
|
| |
March 27, 2020
|
| ||||||
Statement of Operations And Comprehensive Loss Data: | | | | | | | | | | | | | |
Revenue
|
| | | $ | 94,354 | | | | | $ | 122,047 | | |
Cost of revenue
|
| | | | 46,812 | | | | | | 68,155 | | |
Gross margin
|
| | | | 47,542 | | | | | | 53,892 | | |
Total operating expenses
|
| | | | 50,236 | | | | | | 115,605 | | |
Loss from operations
|
| | | | (2,694) | | | | | | (61,713) | | |
Interest expense
|
| | | | (19,379) | | | | | | (13,127) | | |
Other income (expense), net
|
| | | | 436 | | | | | | (2,066) | | |
Loss before income taxes
|
| | | | (21,637) | | | | | | (76,906) | | |
Income tax expense
|
| | | | (1,316) | | | | | | (738) | | |
Net Loss
|
| | | $ | (22,953) | | | | | $ | (77,644) | | |
| | |
As of
|
| |||||||||||||||
(in thousands)
|
| |
April 2, 2021
|
| |
October 2, 2020
|
| |
September 27, 2019
|
| |||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 17,296 | | | | | $ | 19,836 | | | | | $ | 9,621 | | |
Total assets
|
| | | | 235,528 | | | | | | 240,958 | | | | | | 314,244 | | |
Total liabilities
|
| | | | 384,629 | | | | | | 364,551 | | | | | | 344,439 | | |
Total stockholder’s deficit
|
| | | | (149,101) | | | | | | (123,593) | | | | | | (30,195) | | |
| | |
Six Months Ended
|
| |||||||||
(in thousands)
|
| |
April 2, 2021
|
| |
March 27, 2020
|
| ||||||
Statement of Cash Flow Data: | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities
|
| | | $ | 451 | | | | | $ | (10,532) | | |
Net cash used in investing activities
|
| | | | (2,106) | | | | | | (1,220) | | |
Net cash provided by financing activities
|
| | | | (1,248) | | | | | | 15,841 | | |
| | | | | | | | | | | | | | |
Including Global
Knowledge |
| |||||||||
Total Capitalization (in 000s)
|
| |
Shares
|
| |
%
|
| |
Shares
|
| |
%
|
| ||||||||||||
Skillsoft Shareholders
|
| | | | 28,500 | | | | | | 22% | | | | | | 28,500 | | | | | | 21% | | |
Churchill Public Shares
|
| | | | 34,309 | | | | | | 26% | | | | | | 34,309 | | | | | | 26% | | |
Churchill Sponsor II LLC
|
| | | | 17,250 | | | | | | 13% | | | | | | 17,250 | | | | | | 13% | | |
PIPE Investors
|
| | | | 51,000 | | | | | | 39% | | | | | | 51,000 | | | | | | 38% | | |
Lodbrok PIPE Investments
|
| | | | — | | | | | | — | | | | | | 2,000 | | | | | | 2% | | |
Total Churchill Class A shares*
|
| | | | 131,059 | | | | | | 100% | | | | | | 133,059 | | | | | | 100% | | |
| | |
As of
March 31, 2021 |
| |
As of
April 30, 2021 |
| |
Pro Forma
Adjustments (Note 4) |
| |
Skillsoft
Purchase Accounting Adjustments (Note 5) |
| |
As of
March 31, 2021 |
| |||||||||||||||||||||||||||
|
Churchill
Capital Corp II |
| |
Skillsoft
|
| |
Pro Forma
Condensed Combined |
| |||||||||||||||||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 2,383 | | | | | $ | 105,004 | | | | | $ | 697,018 | | | | | | 4A | | | | | $ | (505,000) | | | | | | 5A | | | | | $ | 400,111 | | |
| | | | | | | | | | | | | | | | | (21,371) | | | | |
|
4B
|
| | | | | (11,300) | | | | |
|
5I
|
| | | | | | | |
| | | | | | | | | | | | | | | | | 500,000 | | | | |
|
4C
|
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (16,244) | | | | |
|
4D
|
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (350,379) | | | | |
|
4F
|
| | | | | | | | | | | | | | | | | | | |
Restricted cash
|
| | | | — | | | | | | 2,656 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 2,656 | | |
Accounts receivable (net)
|
| | | | — | | | | | | 92,792 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 92,792 | | |
Prepaid expenses and other current assets
|
| | | | 111 | | | | | | 31,825 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 31,936 | | |
Total Current Assets
|
| | | | 2,494 | | | | | | 232,277 | | | | | | 809,024 | | | | | | | | | | | | (516,300) | | | | | | | | | | | | 527,495 | | |
Property and equipment, net
|
| | | | — | | | | | | 11,798 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 11,798 | | |
Intangible assets, net
|
| | | | — | | | | | | 694,930 | | | | | | — | | | | | | | | | | | | 177,071 | | | | |
|
5D
|
| | | | | 872,001 | | |
Goodwill
|
| | | | — | | | | | | 494,942 | | | | | | — | | | | | | | | | | | | 61,902 | | | | |
|
5H
|
| | | | | 557,844 | | |
Right of use assets
|
| | | | — | | | | | | 14,654 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 14,654 | | |
Other assets
|
| | | | — | | | | | | 9,505 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 9,505 | | |
Deferred tax assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Marketable securities held in Trust Account
|
| | | | 697,018 | | | | | | — | | | | | | (697,018) | | | | |
|
4A
|
| | | | | — | | | | | | | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 699,512 | | | | | $ | 1,458,106 | | | | | $ | 112,006 | | | | | | | | | | | $ | (276,327) | | | | | | | | | | | $ | 1,993,297 | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accrued expenses
|
| | |
$
|
746
|
| | | |
$
|
18,285
|
| | | |
$
|
2,001
|
| | | |
|
4D
|
| | | |
$
|
1,200
|
| | | |
|
5I
|
| | | |
$
|
22,232
|
| |
Accounts payable
|
| | | | — | | | | | | 9,898 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 9,898 | | |
Accrued compensation
|
| | | | — | | | | | | 22,941 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 22,941 | | |
Deferred revenues
|
| | | | — | | | | | | 234,069 | | | | | | — | | | | | | | | | | | | (108,860) | | | | |
|
5F
|
| | | | | 125,209 | | |
Current maturities of long-term debt and other short-term debt
|
| | | | 3,132 | | | | | | 6,500 | | | | | | (3,132) | | | | |
|
4H
|
| | | | | — | | | | | | | | | | | | 6,500 | | |
Lease liability – short-term
|
| | | | — | | | | | | 4,690 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 4,690 | | |
Credit facility
|
| | | | — | | | | | | 14,190 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 14,190 | | |
Income taxes payable
|
| | | | 99 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 99 | | |
Total Current Liabilities
|
| | | | 3,977 | | | | | | 310,573 | | | | | | (1,131) | | | | | | | | | | | | (107,660) | | | | | | | | | | | | 205,759 | | |
Deferred tax liabilities
|
| | | | — | | | | | | 77,662 | | | | | | — | | | | | | | | | | | | 59,794 | | | | |
|
5G
|
| | | | | 137,456 | | |
Lease liability – long-term
|
| | | | — | | | | | | 12,370 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 12,370 | | |
Derivative liabilities
|
| | | | 85,044 | | | | | | — | | | | | | 2,535 | | | | |
|
4H
|
| | | | | — | | | | | | | | | | | | 91,213 | | |
| | | | | | | | | | | | | | | | | 3,634 | | | | |
|
4I
|
| | | | | | | | | | | | | | | | | | | |
Deferred revenue -non-current
|
| | | | — | | | | | | 1,848 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,848 | | |
Other long-term liabilities
|
| | | | — | | | | | | 5,390 | | | | | | — | | | | | | | | | | | | (20,000) | | | | |
|
5C
|
| | | | | 25,390 | | |
Long term debt
|
| | | | — | | | | | | 507,927 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 507,927 | | |
Deferred underwriting fee payable
|
| | | | 21,371 | | | | | | — | | | | | | (21,371) | | | | |
|
4B
|
| | | | | — | | | | | | | | | | | | — | | |
Total Liabilities
|
| | | | 110,392 | | | | | | 915,770 | | | | | | (16,333) | | | | | | | | | | | | (27,866) | | | | | | | | | | | | 981,963 | | |
Commitments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Common stock subject to possible redemption
|
| | | | 584,120 | | | | | | — | | | | | | (584,120) | | | | |
|
4E
|
| | | | | — | | | | | | | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Common stock, $0.0001 par value
|
| | | | 1 | | | | | | — | | | | | | 5 | | | | |
|
4C
|
| | | | | 3 | | | | |
|
5B
|
| | | | | 12 | | |
| | | | | | | | | | | | | | | | | 6 | | | | |
|
4E
|
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (3) | | | | |
|
4F
|
| | | | | | | | | | | | | | | | | | | |
Class B Common stock, $0.0001 par value
|
| | | | 2 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 2 | | |
Successor Class A and Class B shares
|
| | | | — | | | | | | 40 | | | | | | — | | | | | | | | | | | | (40) | | | | |
|
5E
|
| | | | | — | | |
Accum. other comprehensive (loss) income
|
| | | | — | | | | | | (910) | | | | | | — | | | | | | | | | | | | 910 | | | | |
|
5E
|
| | | | | — | | |
Additional paid-in capital
|
| | | | 50,398 | | | | | | 674,333 | | | | | | 499,995 | | | | |
|
4C
|
| | | | | (674,333) | | | | |
|
5E
|
| | | | | 1,087,039 | | |
| | | | | | | | | | | | | | | | | 584,114 | | | | |
|
4E
|
| | | | | 306,372 | | | | |
|
5B
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (3,464) | | | | |
|
4I
|
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (350,376) | | | | |
|
4F
|
| | | | | | | | | | | | | | | | | | | |
Accumulated deficit
|
| | | | (45,401) | | | | | | (131,127) | | | | | | (18,245) | | | | |
|
4D
|
| | | | | 131,127 | | | | |
|
5E
|
| | | | | (75,719) | | |
| | | | | | | | | | | | | | | | | 597 | | | | |
|
4H
|
| | | | | (12,500) | | | | |
|
5I
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (170) | | | | |
|
4I
|
| | | | | | | | | | | | | | | | | | | |
Total Stockholders’ Equity (Deficit)
|
| | | | 5,000 | | | | | | 542,336 | | | | | | 712,459 | | | | | | | | | | | | (248,461) | | | | | | | | | | | | 1,011,334 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
| | | $ | 699,512 | | | | | $ | 1,458,106 | | | | | $ | 112,006 | | | | | | | | | | | $ | (276,327) | | | | | | | | | | | $ | 1,993,297 | | |
| | |
As of March 31, 2021
|
| |
As of April 2, 2021
|
| |
Pro Forma
Adjustments (Note 4) |
| |
Accounting Policies,
Reclassifications, and Eliminations (Note 6) |
| |
Global Knowledge
Purchase Accounting Adjustments (Note 7) |
| |
As of March 31, 2021,
including Global Knowledge |
| ||||||||||||||||||||||||||||||||||||
| | |
Pro Forma
Condensed Combined |
| |
Global Knowledge
|
| |
Pro Forma
Condensed Combined |
| |||||||||||||||||||||||||||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | |
$
|
400,111
|
| | | |
$
|
17,296
|
| | | |
$
|
19,600
|
| | | |
|
4G
|
| | | |
$
|
(250)
|
| | | |
|
6B
|
| | | |
$
|
(170,050)
|
| | | |
|
7A
|
| | | |
$
|
259,783
|
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (6,924) | | | | |
|
7J
|
| | | | | | | |
Restricted cash
|
| | | | 2,656 | | | | | | — | | | | | | — | | | | | | | | | | | | 250 | | | | |
|
6B
|
| | | | | — | | | | | | | | | | | | 2,906 | | |
Accounts receivable (net)
|
| | | | 92,792 | | | | | | 26,889 | | | | | | — | | | | | | | | | | | | (70) | | | | |
|
6C
|
| | | | | — | | | | | | | | | | | | 119,611 | | |
Prepaid expenses and other current
assets |
| | | | 31,936 | | | | | | 13,779 | | | | | | — | | | | | | | | | | | | (755) | | | | |
|
6A
|
| | | | | — | | | | | | | | | | | | 44,960 | | |
Total Current Assets
|
| | | | 527,495 | | | | | | 57,964 | | | | | | 19,600 | | | | | | | | | | | | (825) | | | | | | | | | | | | (176,974) | | | | | | | | | | | | 427,260 | | |
Property and equipment, net
|
| | | | 11,798 | | | | | | 6,133 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 17,931 | | |
Intangible assets, net
|
| | | | 872,001 | | | | | | 42,607 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 141,483 | | | | |
|
7E
|
| | | | | 1,056,091 | | |
Goodwill
|
| | | | 557,844 | | | | | | 123,848 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (30,017) | | | | |
|
7I
|
| | | | | 651,675 | | |
Right of use assets
|
| | | | 14,654 | | | | | | — | | | | | | — | | | | | | | | | | | | 7,948 | | | | |
|
6A
|
| | | | | 756 | | | | |
|
7G
|
| | | | | 23,358 | | |
Other assets
|
| | | | 9,505 | | | | | | 3,993 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 13,498 | | |
Deferred tax assets
|
| | | | — | | | | | | 983 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 983 | | |
Marketable securities held in Trust
Account |
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 1,993,297 | | | | | $ | 235,528 | | | | | $ | 19,600 | | | | | | | | | | | $ | 7,123 | | | | | | | | | | | $ | (64,752) | | | | | | | | | | | $ | 2,190,796 | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 22,232 | | | | | $ | 57,340 | | | | |
$
|
—
|
| | | | | | | | | |
$
|
(11,537)
|
| | | | | 6B | | | | |
$
|
(28,988)
|
| | | | | 7C | | | | |
$
|
39,824
|
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 777 | | | | |
|
7J
|
| | | | | | | |
Accounts payable
|
| | | | 9,898 | | | | | | 35,687 | | | | | | — | | | | | | | | | | | | (70) | | | | |
|
6C
|
| | | | | — | | | | | | | | | | | | 45,515 | | |
Accrued compensation
|
| | | | 22,941 | | | | | | — | | | | | | — | | | | | | | | | | | | 10,820 | | | | |
|
6B
|
| | | | | — | | | | | | | | | | | | 33,761 | | |
Deferred revenues
|
| | | | 125,209 | | | | | | 27,551 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (7,516) | | | | |
|
7H
|
| | | | | 145,244 | | |
Current maturities of long-term debt and other short-term
debt |
| | | | 6,500 | | | | | | 213,568 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (213,568) | | | | |
|
7C
|
| | | | | 6,500 | | |
Lease liability – short-term
|
| | | | 4,690 | | | | | | — | | | | | | — | | | | | | | | | | | | 4,735 | | | | |
|
6A
|
| | | | | — | | | | | | | | | | | | 9,425 | | |
Credit facility
|
| | | | 14,190 | | | | | | 36,024 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (36,024) | | | | |
|
7C
|
| | | | | 14,190 | | |
Income taxes payable
|
| | | | 99 | | | | | | — | | | | | | — | | | | | | | | | | | | 717 | | | | |
|
6B
|
| | | | | — | | | | | | | | | | | | 816 | | |
Total Current Liabilities
|
| | | | 205,759 | | | | | | 370,170 | | | | | | — | | | | | | | | | | | | 4,665 | | | | | | | | | | | | (285,319) | | | | | | | | | | | | 295,275 | | |
Deferred tax liabilities
|
| | | | 137,456 | | | | | | 355 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 12,965 | | | | |
|
7K
|
| | | | | 150,776 | | |
Lease liability – long-term
|
| | | | 12,370 | | | | | | — | | | | | | — | | | | | | | | | | | | 4,824 | | | | |
|
6A
|
| | | | | 321 | | | | |
|
7G
|
| | | | | 17,515 | | |
Derivative liabilities
|
| | | | 91,213 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 7,350 | | | | |
|
7D
|
| | | | | 98,563 | | |
Deferred revenue -non-current
|
| | | | 1,848 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,848 | | |
Other long-term liabilities
|
| | | | 25,390 | | | | | | 2,635 | | | | | | — | | | | | | | | | | | | (2,366) | | | | |
|
6A
|
| | | | | — | | | | | | | | | | | | 25,659 | | |
Long term debt
|
| | | | 507,927 | | | | | | 11,469 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (11,469) | | | | |
|
7C
|
| | | | | 577,927 | | |
| | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | 70,000 | | | | |
|
7B
|
| | | | | | | |
Deferred underwriting fee
payable |
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Total Liabilities
|
| | | | 981,963 | | | | | | 384,629 | | | | | | — | | | | | | | | | | | | 7,123 | | | | | | | | | | | | (206,152) | | | | | | | | | | | | 1,167,563 | | |
Commitments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Common stock subject to
possible redemption |
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Common stock, $0.0001 par value
|
| | | | 12 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 12 | | |
Class B Common stock, $0.0001 par value
|
| | | | 2 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 2 | | |
Successor Class A and Class B shares
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Accum. other comprehensive (loss)
income |
| | | | — | | | | | | (2,262) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 2,262 | | | | |
|
7F
|
| | | | | — | | |
Additional paid-in capital
|
| | | | 1,087,039 | | | | | | 242,375 | | | | | | 19,600 | | | | |
|
4G
|
| | | | | — | | | | | | | | | | | | (242,375) | | | | |
|
7F
|
| | | | | 1,106,639 | | |
Accumulated deficit
|
| | | | (75,719) | | | | | | (389,214) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 389,214 | | | | |
|
7F
|
| | | | | (83,420) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (7,701) | | | | |
|
7J
|
| | | | | | | |
Total Stockholders’ Equity
|
| | | | 1,011,334 | | | | | | (149,101) | | | | | | 19,600 | | | | | | | | | | | | — | | | | | | | | | | | | 141,400 | | | | | | | | | | | | 1,023,233 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY |
| | | $ | 1,993,297 | | | | | $ | 235,528 | | | | | $ | 19,600 | | | | | | | | | | | $ | 7,123 | | | | | | | | | | | $ | (64,752) | | | | | | | | | | | $ | 2,190,796 | | |
| | |
For the year ended
December 31, 2020 |
| |
For the year ended
January 31, 2021 |
| |
Pro Forma
Adjustments (Note 4) |
| | | | | | | |
Skillsoft
Purchase Accounting Adjustments (Note 5) |
| | | | | | | |
For the year ended
December 31, 2020 |
| |||||||||||||||
| | |
Churchill Capital
Corp II (as restated) |
| |
Pro Forma
Skillsoft As Adjusted (Note 2) |
| |
Pro Forma
Condensed Combined |
| |||||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues
|
| | | $ | — | | | | | $ | 350,117 | | | | | $ | — | | | | | | | | | | | $ | — | | | | | | | | | | | $ | 350,117 | | |
Operating expenses
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | — | | | | | | 93,058 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 93,058 | | |
Content and software development
|
| | | | — | | | | | | 69,014 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 69,014 | | |
Selling and marketing
|
| | | | — | | | | | | 123,783 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 123,783 | | |
General and administrative
|
| | | | (2,000) | | | | | | 59,091 | | | | | | 18,245 | | | | |
|
4BB
|
| | | | | 12,500 | | | | |
|
5DD
|
| | | | | 87,836 | | |
Amortization of intangible assets
|
| | | | — | | | | | | 98,977 | | | | | | — | | | | | | | | | | | | 36,186 | | | | |
|
5AA
|
| | | | | 135,163 | | |
Impairment of intangible assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Impairment of goodwill
|
| | | | — | | | | | | 332,376 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 332,376 | | |
Recapitalization and transaction-related costs
|
| | | | — | | | | | | 48,027 | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | 48,027 | | |
Restructuring
|
| | | | — | | | | | | 5,520 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 5,520 | | |
Operating and formation costs
|
| | | | 2,907 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 2,907 | | |
Total operating expenses
|
| | | | 907 | | | | | | 829,846 | | | | | | 18,245 | | | | | | | | | | | | 48,686 | | | | | | | | | | | | 897,684 | | |
Operating income (loss):
|
| | | $ | (907) | | | | | $ | (479,729) | | | | | $ | (18,245) | | | | | | | | | | | $ | (48,686) | | | | | | | | | | | $ | (547,567) | | |
Other income (expense), net
|
| | | | 2,518 | | | | | | 4,725 | | | | | | (2,518) | | | | |
|
4AA
|
| | | | | — | | | | | | | | | | | | 4,725 | | |
(Loss) gain on derivative liabilities
|
| | | | (73,583) | | | | | | — | | | | | | (170) | | | | |
|
4CC
|
| | | | | — | | | | | | | | | | | | (73,156) | | |
| | | | | | | | | | | | | | | | | 597 | | | | |
|
4DD
|
| | | | | | | | | | | | | | | | | | | |
Reorganization items, net
|
| | | | — | | | | | | 3,329,245 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 3,329,245 | | |
Loss on derivative instruments
|
| | | | — | | | | | | (5) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (5) | | |
Interest income
|
| | | | — | | | | | | 129 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 129 | | |
Interest expense
|
| | | | — | | | | | | (46,016) | | | | | | — | | | | | | | | | | | | (1,517) | | | | |
|
5BB
|
| | | | | (47,533) | | |
(Loss) income before provision (benefit) for income
taxes |
| | | | (71,972) | | | | | | 2,808,349 | | | | | | (20,336) | | | | | | | | | | | | (50,203) | | | | | | | | | | | | 2,665,838 | | |
Provision (benefit) for income taxes
|
| | | | 487 | | | | | | 65,744 | | | | | | (4,271) | | | | |
|
4EE
|
| | | | | (10,543) | | | | |
|
5CC
|
| | | | | 51,417 | | |
Net (loss) income
|
| | | $ | (72,459) | | | | | $ | 2,742,605 | | | | | $ | (16,065) | | | | | | | | | | | $ | (39,660) | | | | | | | | | | | $ | 2,614,421 | | |
Earnings per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average Class A shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 131,059,021 | | |
Earnings per share (basic and diluted) attributable to Class A common stockholders
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
|
19.95
|
| |
| | |
For the year ended
December 31, 2020 |
| |
For the twelve
months ended January 1, 2021 |
| |
Accounting Policies,
Reclassifications, and Eliminations (Note 6) |
| | | | | | | |
Global Knowledge
Purchase Accounting Adjustments (Note 7) |
| | | | | | | |
For the year ended
December 31, 2020, including Global Knowledge |
| |||||||||||||||
| | |
Pro Forma
Condensed Combined |
| |
Pro Forma
Condensed Combined |
| |
Pro Forma
Condensed Combined |
| |||||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues
|
| | | $ | 350,117 | | | | | $ | 189,649 | | | | | $ | (697) | | | | |
|
6BB
|
| | | | $ | (7,516) | | | | |
|
7AA
|
| | | | $ | 531,553 | | |
Operating expenses
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 93,058 | | | | | | 104,465 | | | | | | (697) | | | | |
|
6BB
|
| | | | | — | | | | | | | | | | | | 196,826 | | |
Content and software development
|
| | | | 69,014 | | | | | | 2,484 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 71,498 | | |
Selling and marketing
|
| | | | 123,783 | | | | | | 41,511 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 165,294 | | |
General and administrative
|
| | | | 87,836 | | | | | | 34,201 | | | | | | — | | | | | | | | | | | | 117 | | | | |
|
7BB
|
| | | | | 129,855 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,701 | | | | |
|
7FF
|
| | | | | | | |
Amortization of intangible assets
|
| | | | 135,163 | | | | | | 7,279 | | | | | | — | | | | | | | | | | | | 15,133 | | | | |
|
7CC
|
| | | | | 157,575 | | |
Impairment of intangible assets
|
| | | | — | | | | | | 7,879 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 7,879 | | |
Impairment of goodwill
|
| | | | 332,376 | | | | | | 59,553 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 391,929 | | |
Recapitalization and transaction-related costs
|
| | | | 48,027 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 48,027 | | |
Restructuring
|
| | | | 5,520 | | | | | | 7,275 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 12,795 | | |
Operating and formation costs
|
| | | | 2,907 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 2,907 | | |
Total operating expenses
|
| | | | 897,684 | | | | | | 264,647 | | | | | | (697) | | | | | | | | | | | | 22,951 | | | | | | | | | | | | 1,184,585 | | |
Operating income (loss):
|
| | | $ | (547,567) | | | | | $ | (74,998) | | | | | $ | — | | | | | | | | | | | $ | (30,467) | | | | | | | | | | | $ | (653,032) | | |
Other income (expense), net
|
| | | | 4,725) | | | | | | (1,997) | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 2,728 | | |
(Loss) gain on derivative
liabilities |
| | | | (73,156) | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (73,156) | | |
Reorganization items, net
|
| | | | 3,329,245 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 3,329,245 | | |
Loss on derivative instruments
|
| | | | (5) | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | (5) | | |
Interest income
|
| | | | 129 | | | | | | — | | | | | | 2,966 | | | | |
|
6AA
|
| | | | | — | | | | | | | | | | | | 3,095 | | |
Interest expense
|
| | | | (47,533) | | | | | | (31,750) | | | | | | (2,966) | | | | |
|
6AA
|
| | | | | 28,766 | | | | |
|
7DD
|
| | | | | (53,483) | | |
(Loss) income before provision
(benefit) for income taxes |
| | | | 2,665,838 | | | | | | (108,745) | | | | | | — | | | | | | | | | | | | (1,701) | | | | | | | | | | | | 2,555,392 | | |
Provision (benefit) for income
taxes |
| | | | 51,417 | | | | | | 1,016 | | | | | | — | | | | | | | | | | | | (2,073) | | | | |
|
7EE
|
| | | | | 50,360 | | |
Net (loss) income
|
| | | $ | 2,614,421 | | | | | $ | (109,761) | | | | | $ | — | | | | | | | | | | | $ | 372 | | | | | | | | | | | $ | 2,505,032 | | |
Earnings per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average Class A shares outstanding
|
| | | | 131,059,021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 133,059,021 | | |
Earnings per share (basic and
diluted) attributable to Class A common stockholders |
| | | $ | 19.95 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 18.83 | | |
| | |
For the Three
Months ended March 31, 2021 |
| |
For the Three
Months ended April 30, 2021 |
| |
Pro Forma
Adjustments (Note 4) |
| | | | | | | |
Skillsoft
Purchase Accounting Adjustments (Note 5) |
| | | | | | | |
For the Three
Months ended March 31, 2021 |
| |||||||||||||||
| | |
Churchill Capital
Corp II |
| |
Skillsoft
|
| |
Pro Forma
Condensed Combined |
| |||||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues
|
| | | $ | — | | | | | $ | 91,701 | | | | | $ | — | | | | | | | | | | | $ | 19,269 | | | | | | 5EE | | | | | $ | 110,970 | | |
Operating expenses
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | — | | | | | | 24,521 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 24,521 | | |
Content and software development
|
| | | | — | | | | | | 16,607 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 16,607 | | |
Selling and marketing
|
| | | | — | | | | | | 28,502 | | | | | | — | | | | | | | | | | | | 1,565 | | | | |
|
5EE
|
| | | | | 30,067 | | |
General and administrative
|
| | | | — | | | | | | 12,362 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 12,362 | | |
Amortization of intangible assets
|
| | | | — | | | | | | 34,943 | | | | | | — | | | | | | | | | | | | 4,068 | | | | |
|
5AA
|
| | | | | 39,011 | | |
Recapitalization and transaction-related costs
|
| | | | — | | | | | | 1,932 | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | 1,932 | | |
Restructuring
|
| | | | — | | | | | | 537 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 537 | | |
Operating and formation costs
|
| | | | 1,585 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,585 | | |
Total operating expenses
|
| | | | 1,585 | | | | | | 119,404 | | | | | | — | | | | | | | | | | | | 5,633 | | | | | | | | | | | | 126,622 | | |
Operating income (loss):
|
| | | $ | (1,585) | | | | | $ | (27,703) | | | | | $ | — | | | | | | | | | | | $ | 13,636 | | | | | | | | | | | $ | (15,652) | | |
Other income (expense), net
|
| | | | 61 | | | | | | (352) | | | | | | (61) | | | | |
|
4AA
|
| | | | | — | | | | | | | | | | | | (352) | | |
Gain on derivative liabilities
|
| | | | 43,267 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 43,267 | | |
Interest income
|
| | | | — | | | | | | 10 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 10 | | |
Interest expense
|
| | | | — | | | | | | (11,449) | | | | | | — | | | | | | | | | | | | (379) | | | | |
|
5BB
|
| | | | | (11,828) | | |
Income (loss) before provision (benefit) for
income taxes |
| | | | 41,743 | | | | | | (39,494) | | | | | | (61) | | | | | | | | | | | | 13,257 | | | | | | | | | | | | 15,445 | | |
Provision (benefit) for income taxes
|
| | | | 2 | | | | | | (2,089) | | | | | | (13) | | | | |
|
4EE
|
| | | | | 2,784 | | | | |
|
5CC
|
| | | | | 684 | | |
Net income (loss)
|
| | | $ | 41,741 | | | | | $ | (37,405) | | | | | $ | (48) | | | | | | | | | | | $ | 10,473 | | | | | | | | | | | $ | 14,761 | | |
Earnings per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average Class A shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 131,059,021 | | |
Earnings per share (basic and diluted) attributable to Class A common stockholders
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$
|
0.11
|
| |
| | |
For the Three
Months ended March 31, 2021 |
| |
For the Three
Months ended April 2, 2021 |
| |
Accounting
Policies, Reclassifications, and Eliminations (Note 6) |
| | | | | | | |
Global
Knowledge Purchase Accounting Adjustments (Note 7) |
| | | | | | | |
For the Three Months
ended March 31, 2021, including Global Knowledge |
| |||||||||||||||
| | |
Pro Forma
Condensed Combined |
| |
Global
Knowledge |
| |
Pro Forma
Condensed Combined |
| |||||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues
|
| | | $ | 110,970 | | | | | $ | 45,018 | | | | | $ | (102) | | | | |
|
6BB
|
| | | | $ | — | | | | | | | | | | | $ | 155,886 | | |
Operating expenses
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 24,521 | | | | | | 21,852 | | | | | | (102) | | | | |
|
6BB
|
| | | | | — | | | | | | | | | | | | 46,271 | | |
Content and software development
|
| | | | 16,607 | | | | | | 309 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 16,916 | | |
Selling and
marketing |
| | | | 30,067 | | | | | | 11,883 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 41,950 | | |
General and administrative
|
| | | | 12,362 | | | | | | 8,779 | | | | | | — | | | | | | | | | | | | 29 | | | | |
|
7BB
|
| | | | | 21,170 | | |
Amortization of intangible assets
|
| | | | 39,011 | | | | | | 1,665 | | | | | | — | | | | | | | | | | | | 4,819 | | | | |
|
7CC
|
| | | | | 45,495 | | |
Recapitalization and transaction-related costs
|
| | | | 1,932 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,932 | | |
Restructuring
|
| | | | 537 | | | | | | 3,786 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 4,323 | | |
Operating and formation costs
|
| | | | 1,585 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,585 | | |
Total operating expenses
|
| | | | 126,622 | | | | | | 48,274 | | | | | | (102) | | | | | | | | | | | | 4,848 | | | | | | | | | | | | 179,642 | | |
Operating income (loss):
|
| | | $ | (15,652) | | | | | $ | (3,256) | | | | | $ | — | | | | | | | | | | | $ | (4,848) | | | | | | | | | | | $ | (23,756) | | |
Other income (expense), net
|
| | | | (352)a | | | | | | 1,390 | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 1,038 | | |
Gain on derivative liabilities
|
| | | | 43,267 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 43,267 | | |
Interest income
|
| | | | 10 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 10 | | |
Interest expense
|
| | | | (11,828) | | | | | | (8,669 | | | | | | — | | | | | | | | | | | | 7,183 | | | | |
|
7DD
|
| | | | | (13,314) | | |
Income (loss) before provision (benefit) for income
taxes |
| | | | 15,445 | | | | | | (10,535 | | | | | | — | | | | | | | | | | | | 2,335 | | | | | | | | | | | | 7,245 | | |
Provision (benefit) for income taxes
|
| | | | 684 | | | | | | 516 | | | | | | — | | | | | | | | | | | | (436) | | | | |
|
7EE
|
| | | | | 764 | | |
Net income (loss)
|
| | | $ | 14,761 | | | | | $ | (11,051) | | | | | $ | — | | | | | | | | | | | $ | 2,771 | | | | | | | | | | | $ | 6,481 | | |
Earnings per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average Class A shares outstanding
|
| | | | 131,059,021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 133,059,021 | | |
Earnings per share (basic and diluted) attributable
to Class A common stockholders |
| | | $ | 0.11 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.05 | | |
| | |
Predecessor
|
| |
Successor
|
| |
Pro Forma
Adjustments |
| |
Pro Forma
Combined Skillsoft As Adjusted |
| ||||||||||||||||||
(amounts in thousands)
|
| |
February 1, 2020
through August 27, 2020 |
| |
For the period
August 28, 2020 through January 31, 2021 |
| ||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues
|
| | | $ | 273,851 | | | | | $ | 108,768 | | | | | $ | (32,502) | | | | |
|
2AA
|
| | | | $ | 350,117 | | |
Operating expenses
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 52,160 | | | | | | 40,898 | | | | | | — | | | | | | | | | | | | 93,058 | | |
Content and software development
|
| | | | 38,986 | | | | | | 30,028 | | | | | | — | | | | | | | | | | | | 69,014 | | |
Selling and marketing
|
| | | | 75,028 | | | | | | 55,285 | | | | | | (6,530) | | | | |
|
2AA
|
| | | | | 123,783 | | |
General and administrative
|
| | | | 37,455 | | | | | | 21,636 | | | | | | — | | | | | | | | | | | | 59,091 | | |
Amortization of intangible assets
|
| | | | 34,378 | | | | | | 39,824 | | | | | | 24,775 | | | | |
|
2BB
|
| | | | | 98,977 | | |
Impairment of goodwill
|
| | | | 332,376 | | | | | | — | | | | | | — | | | | | | | | | | | | 332,376 | | |
Recapitalization and transaction-related
costs |
| | | | 32,099 | | | | | | 15,928 | | | | | | — | | | | | | | | | | | | 48,027 | | |
Restructuring
|
| | | | 1,179 | | | | | | 4,341 | | | | | | — | | | | | | | | | | | | 5,520 | | |
Total operating expenses
|
| | | | 603,661 | | | | | | 207,940 | | | | | | 18,245 | | | | | | | | | | | | 829,846 | | |
Operating loss:
|
| | | $ | (329,810) | | | | | $ | (99,172) | | | | | $ | (50,747) | | | | | | | | | | | $ | (479,729) | | |
Other expense, net
|
| | | | 1,273 | | | | | | 3,452 | | | | | | — | | | | | | | | | | | | 4,725 | | |
Reorganization items, net
|
| | | | 3,329,245 | | | | | | — | | | | | | — | | | | | | | | | | | | 3,329,245 | | |
Loss on derivative instruments
|
| | | | (5) | | | | | | — | | | | | | — | | | | | | | | | | | | (5) | | |
Interest income
|
| | | | 105 | | | | | | 24 | | | | | | — | | | | | | | | | | | | 129 | | |
Interest expense, net
|
| | | | (168,341) | | | | | | (19,960) | | | | | | 142,285 | | | | |
|
2CC
|
| | | | | (46,016) | | |
Income (loss) before provision for income
taxes |
| | | | 2,832,467 | | | | | | (115,656) | | | | | | 91,538 | | | | | | | | | | | | 2,808,349 | | |
Provision for income taxes
|
| | | | 68,455 | | | | | | (21,934) | | | | | | 19,223 | | | | |
|
2DD
|
| | | | | 65,744 | | |
Net income (loss)
|
| | | $ | 2,764,012 | | | | | $ | (93,722) | | | | | $ | 72,315 | | | | | | | | | | | $ | 2,742,605 | | |
Pro forma adjustment to amortization:
|
| |
For the period from
February 1, 2020 through August 27, 2020 |
| |||
| | |
(in thousands)
|
| |||
Remove predecessor Skillsoft amortization on intangible assets valued
at fresh start |
| | | $ | (34,378) | | |
Add amortization on intangible assets valued at fresh start for predecessor period
|
| | | | 59,153 | | |
Pro forma adjustment
|
| | | $ | 24,775 | | |
Pro forma adjustment to interest and other debt costs, net:
|
| |
For the period from
February 1, 2020 through August 27, 2020 |
| |||
| | |
(in thousands)
|
| |||
Remove predecessor interest and other debt costs, net
|
| | | $ | (168,341) | | |
Add interest and other debt costs, net for Senior Secured Term Loans
|
| | | | 26,056 | | |
Pro forma adjustment
|
| | | $ | (142,285 | | |
Skillsoft Estimated Consideration (in thousands)
|
| | | | | | |
| | |
(in thousands)
|
| |||
Cash consideration(1)
|
| | | $ | 505,000 | | |
Share consideration(2)
|
| | | | 306,375 | | |
Debt consideration(3)
|
| | | | 20,000 | | |
Total estimated consideration
|
| | | $ | 831,375 | | |
Skillsoft Estimated Goodwill (in thousands)
|
| | | | | | |
Cash and cash equivalents, and restricted cash
|
| | | $ | 107,660 | | |
Accounts receivable (net)
|
| | | | 92,792 | | |
Prepaid expenses and other current assets
|
| | | | 31,825 | | |
Property and equipment, net
|
| | | | 11,798 | | |
Intangible assets, net
|
| | | | 872,001 | | |
Right of use assets
|
| | | | 14,654 | | |
Other assets
|
| | | | 9,505 | | |
Total Assets
|
| | | $ | 1,140,235 | | |
Accounts payable
|
| | | | (9,898) | | |
Lease liability – short-term
|
| | | | (4,690) | | |
Accrued compensation
|
| | | | (22,941) | | |
Term loans – short-term
|
| | | | (6,500) | | |
Accrued expenses
|
| | | | (18,285) | | |
Deferred revenue
|
| | | | (127,057) | | |
Long term debt
|
| | | | (507,927) | | |
Lease liability – long-term
|
| | | | (12,370) | | |
Credit facility
|
| | | | (14,190) | | |
Deferred tax liabilities
|
| | | | (137,456) | | |
Other long-term liabilities
|
| | | | (5,390) | | |
Total Liabilities
|
| | | $ | (866,704) | | |
Net assets acquired (a)
|
| | | | 273,531 | | |
Estimated purchase consideration (b)
|
| | | | 831,375 | | |
Estimated goodwill (b) – (a)
|
| | |
$
|
557,844
|
| |
| | |
Preliminary
Estimated Asset Fair Value |
| |
Weighted
Average Useful Life (Years) |
| |||
| | |
(in thousands, except
for useful life) |
| | | | |||
Merger | | | | | | | | | | |
Developed software/ courseware
|
| | | $ | 298,462 | | | |
3 – 5 years
|
|
Customer contracts/ relationships
|
| | | | 318,886 | | | |
12.4 years
|
|
Trademarks and trade names
|
| | | | 7,188 | | | |
9.4 years
|
|
Backlog
|
| | | | 102,911 | | | |
4.4 years
|
|
Skillsoft trademark
|
| | | | 104,394 | | | |
Indefinite
|
|
Publishing rights
|
| | | | 40,160 | | | |
5 years
|
|
Total
|
| | | $ | 872,001 | | | | | |
Less: net intangible assets reported on Skillsoft’s historical financial statements as of April 30, 2021
|
| | | | 694,930 | | | | | |
Pro forma adjustment:
|
| | | $ | 177,071 | | | | | |
Financial statement line item reclassifications
|
| |
As of March 31, 2021
|
| |||
| | |
(in thousands)
|
| |||
Cash and cash equivalents
|
| | | $ | (250) | | |
Restricted cash
|
| | | | 250 | | |
Accrued expenses
|
| | | | (10,820) | | |
Accrued compensation
|
| | | | 10,820 | | |
Accrued expenses
|
| | | | (717) | | |
Income taxes payable
|
| | | | 717 | | |
Financial statement line item reclassifications
|
| |
For the year ended
December 31, 2020 |
| |||
| | |
(in thousands)
|
| |||
Interest income
|
| | | $ | 2,966 | | |
Interest expense
|
| | | | (2,966) | | |
Global Knowledge Estimated Consideration (in thousands)
|
| | | | | | |
Cash consideration(1)
|
| | | $ | 170,050 | | |
Warrant consideration(2)
|
| | | | 7,350 | | |
Global Knowledge Term Loans(3)
|
| | | | 70,000 | | |
Total estimated consideration
|
| | | | 247,400 | | |
| Global Knowledge Estimated Goodwill | | | | | | | |
|
Cash and cash equivalents
|
| | | $ | 17,296 | | |
|
Accounts receivable (net)
|
| | | | 26,889 | | |
|
Prepaid expenses and other current assets
|
| | | | 13,779 | | |
|
Property and equipment, net
|
| | | | 6,133 | | |
|
Intangible assets, net
|
| | | | 184,090 | | |
|
Deferred tax assets
|
| | | | 983 | | |
|
Other assets
|
| | | | 3,993 | | |
|
Favorable leasehold interests
|
| | | | 756 | | |
|
Total assets acquired
|
| | | $ | 253,919 | | |
|
Accounts payable
|
| | | | (35,687) | | |
|
Accrued expenses
|
| | | | (28,352) | | |
|
Deferred revenues
|
| | | | (20,035) | | |
|
Unfavorable leasehold interests
|
| | | | (321) | | |
|
Deferred tax liabilities
|
| | | | (13,320) | | |
|
Other long-term liabilities
|
| | | | (2,635) | | |
|
Total liabilities acquired
|
| | | $ | (100,350) | | |
|
Net assets acquired (a)
|
| | | $ | 153,569 | | |
|
Estimated purchase consideration (b)
|
| | | | 247,400 | | |
|
Estimated goodwill (b) – (a)
|
| | | $ | 93,831 | | |
| | |
Preliminary
Estimated Asset Fair Value |
| |
Weighted
Average Useful Life (Years) |
| |||
| | |
(in thousands, except
for useful life) |
| | | | |||
Global Knowledge Merger | | | | | | | | | | |
Trade name
|
| | | $ | 20,940 | | | |
Indefinite
|
|
Customer and vendor relationships
|
| | | | 163,150 | | | |
6.5 years
|
|
Total
|
| | | $ | 184,090 | | | | | |
Less: net intangible assets reported on Global Knowledge’s historical financial statements as of April 2, 2021
|
| | | | 42,607 | | | | | |
Pro forma adjustment:
|
| | | $ | 141,483 | | | | | |
| | | | | | | | | | | | | | |
Including Global Knowledge
|
| |||||||||
(Amounts in thousands, except share and per share data)
|
| |
For the
year ended December 31, 2020 |
| |
For the Three
Months ended March 31, 2021 |
| |
For the
year ended December 31, 2020 |
| |
For the Three
Months ended March 31, 2021 |
| ||||||||||||
Pro forma net income
|
| | | $ | 2,614,421 | | | | | $ | 14,761 | | | | | $ | 2,505,032 | | | | | $ | 6,481 | | |
Weighted average Class A shares outstanding
|
| | | | 131,059,021 | | | | | | 131,059,021 | | | | | | 133,059,021 | | | | | | 133,059,021 | | |
Earnings per share (basic and diluted) attributable to Class A common
stockholders |
| | | $ | 19.95 | | | | | $ | 0.11 | | | | | $ | 18.83 | | | | | $ | 0.05 | | |
| | |
Three Months Ended April 30,
|
| |||||||||
(In thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Non-GAAP Financial Measures — Adjusted Revenue | | | | | | | | | | | | | |
Subscription revenue
|
| | | $ | 82,639 | | | | | $ | 106,349 | | |
Non-subscription revenue
|
| | | | 9,062 | | | | | | 11,980 | | |
Total revenue
|
| | | | 91,701 | | | | | | 118,329 | | |
Plus: Impact of fresh-start and purchase accounting
|
| | | | 19,874 | | | | | | — | | |
Total adjusted revenue
|
| | | | 111,575 | | | | | | 118,329 | | |
Consolidated | | | | | | | | | | | | | |
Adjusted subscription revenue
|
| | | | 100,583 | | | | | | 106,349 | | |
Adjusted non-subscription revenue
|
| | | | 10,992 | | | | | | 11,980 | | |
Total Consolidated adjusted revenue
|
| | | | 111,575 | | | | | | 118,329 | | |
Content Business | | | | | | | | | | | | | |
Adjusted subscription revenue
|
| | | | 77,621 | | | | | | 80,418 | | |
Adjusted non-subscription revenue
|
| | | | 4,163 | | | | | | 3,900 | | |
Total Content Business adjusted revenue
|
| | | | 81,784 | | | | | | 84,318 | | |
SumTotal Business | | | | | | | | | | | | | |
Adjusted subscription revenue
|
| | | | 22,962 | | | | | | 25,931 | | |
Adjusted non-subscription revenue
|
| | | | 6,829 | | | | | | 8,080 | | |
Total SumTotal Business adjusted revenue
|
| | | | 29,791 | | | | | | 34,011 | | |
| | |
Three Months Ended April 30,
|
| |||||||||
(In thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Non-GAAP Financial Measures — EBITDA, Adjusted EBITDA | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | (37,405) | | | | | $ | (433,903) | | |
Interest expense, net
|
| | | | 11,439 | | | | | | 105,959 | | |
Provision for income taxes
|
| | | | (2,089) | | | | | | (8,891) | | |
Depreciation and amortization
|
| | | | 37,362 | | | | | | 20,001 | | |
Impairment of goodwill and intangible assets
|
| | | | — | | | | | | 332,376 | | |
EBITDA
|
| | | | 9,307 | | | | | | 15,542 | | |
Plus: Non-recurring retention and consulting costs
|
| | | | 707 | | | | | | 4,917 | | |
Plus: Recapitalization and transaction-related costs
|
| | | | 1,932 | | | | | | 16,376 | | |
Plus: Restructuring and contract terminations
|
| | | | 537 | | | | | | 370 | | |
Plus: Integration and migration related
|
| | | | 779 | | | | | | 558 | | |
Plus: Foreign currency and other non-cash expense
|
| | | | 171 | | | | | | (854) | | |
Plus: Impact of fresh-start and purchase accounting
|
| | | | 18,021 | | | | |
|
—
|
| |
Plus: Stock-based compensation
|
| | | | — | | | | | | — | | |
Plus: Other add backs
|
| | | | 422 | | | | | | 19 | | |
Adjusted EBITDA
|
| | | $ | 31,876 | | | | | $ | 36,928 | | |
(In thousands)
|
| | | | | | | | | | | | |
Non-GAAP Financial Measures — Free Cash Flow | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities
|
| | | | 39,676 | | | | | | 24,764 | | |
Less: Capital expenditures
|
| | | | (1,880) | | | | | | (3,744) | | |
Adjusted EBITDA
|
| | | $ | 37,796 | | | | | $ | 21,020 | | |
| | |
Three Months Ended April 30,
|
| |||||||||
(In thousands)
|
| |
2021
|
| |
2020
|
| ||||||
Content Business Order Intake | | | | | | | | | | | | | |
Percipio Order Intake
|
| | | $ | 17,111 | | | | | $ | 10,117 | | |
Dual Deployment Order Intake
|
| | | | 9,869 | | | | | | 12,675 | | |
Skillport Order Intake
|
| | | | 9,318 | | | | | | 13,912 | | |
Total Subscription Order Intake
|
| | | | 36,298 | | | | | | 36,704 | | |
Services & One-Time Order Intake
|
| | | | 2,572 | | | | | | 1,805 | | |
Total Content Business Order Intake
|
| | | | 38,869 | | | | | | 38,510 | | |
SumTotal Business Order Intake | | | | | | | | | | | | | |
Subscription Order Intake
|
| | | $ | 20,773 | | | | | $ | 26,851 | | |
Services & One-Time Order Intake
|
| | | | 4,651 | | | | | | 5,301 | | |
Total SumTotal Business Order Intake
|
| | | | 25,424 | | | | | | 32,152 | | |
| | |
April 30,
2021 |
| |
January 31,
2020 |
| ||||||
Key Performance Metrics | | | | ||||||||||
Annualized Recurring Revenue (“ARR”) | | | | ||||||||||
Percipio ARR
|
| | | $ | 81,018 | | | | | $ | 75,802 | | |
Dual Deployment ARR
|
| | | | 166,096 | | | | | | 161,327 | | |
Skillport ARR
|
| | | | 72,209 | | | | | | 80,245 | | |
Total Content Business ARR.
|
| | | | 319,323 | | | | | | 317,274 | | |
SumTotal Business ARR
|
| | | | 97,153 | | | | | | 99,148 | | |
| | |
April 30
|
| |||||||||||||||
| | |
LTM
|
| |
2021
|
| |
2020
|
| |||||||||
Dollar Retention Rate (“DRR”) | | | | | | | | | | | | | | | | | | | |
Percipio DRR
|
| | | | 100% | | | | | | 94% | | | | | | 100% | | |
Dual Deployment DRR
|
| | | | 104% | | | | | | 104% | | | | | | 97% | | |
Skillport DRR
|
| | | | 70% | | | | | | 76% | | | | | | 77% | | |
Total Content Business DRR
|
| | | | 93% | | | | | | 91% | | | | | | 88% | | |
SumTotal Business DRR
|
| | | | 91% | | | | | | 95% | | | | | | 96% | | |
| | |
Successor
|
| |
Predecessor
|
| ||||||
| | |
Three Months Ended
April 30, 2021 |
| |
Three Months Ended
April 30, 2020 |
| ||||||
Revenues: | | | | | | | | | | | | | |
Total revenues
|
| | | | 100.0% | | | | | | 100.0% | | |
Operating expenses: | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 26.7% | | | | | | 20.5% | | |
Content and software development
|
| | | | 18.1% | | | | | | 14.3% | | |
Selling and marketing
|
| | | | 31.1% | | | | | | 27.7% | | |
General and administrative
|
| | | | 13.5% | | | | | | 13.3% | | |
Recapitalization and transaction-related costs
|
| | | | 2.1% | | | | | | 13.8% | | |
Amortization of intangible assets
|
| | | | 38.1% | | | | | | 14.7% | | |
Impairment of goodwill and intangible assets
|
| | | | 0.0% | | | | | | 280.9% | | |
Restructuring
|
| | | | 0.6% | | | | | | 0.3% | | |
Total operating expenses
|
| | | | 130.2% | | | | | | 385.4% | | |
Operating loss
|
| | | | -30.2% | | | | | | -285.4% | | |
Interest and other expense, net
|
| | | | -12.9% | | | | | | -88.8% | | |
Loss before benefit from income taxes
|
| | | | -43.1% | | | | | | -374.2% | | |
Benefit from income taxes
|
| | | | -2.3% | | | | | | -7.5% | | |
Net loss
|
| | | | -40.8% | | | | | | -366.7% | | |
| | |
Successor
|
| |
Predecessor
|
| ||||||
| | |
Three Months Ended
April 30, 2021 |
| |
Three Months Ended
April 30, 2020 |
| ||||||
Revenues: | | | | | | | | | | | | | |
United States
|
| | | | 76.5% | | | | | | 79.0% | | |
Other Americas
|
| | | | 4.9% | | | | | | 4.2% | | |
Europe, Middle East and Africa
|
| | | | 13.2% | | | | | | 11.7% | | |
Asia-Pacific
|
| | | | 5.4% | | | | | | 5.1% | | |
Total revenues
|
| | | | 100.0% | | | | | | 100.0% | | |
| | |
Successor
|
| |
Predecessor
|
| ||||||
(In thousands)
|
| |
Three Months Ended
April 30, 2021 |
| |
Three Months Ended
April 30, 2020 |
| ||||||
Subscription revenues: | | | | | | | | | | | | | |
Content
|
| | | $ | 63,644 | | | | | $ | 80,418 | | |
SumTotal
|
| | | | 18,995 | | | | | | 25,931 | | |
Total subscription revenues
|
| | | | 82,639 | | | | | | 106,349 | | |
Non-subscription revenues: | | | | | | | | | | | | | |
Content
|
| | | | 3,413 | | | | | | 3,900 | | |
SumTotal
|
| | | | 5,649 | | | | | | 8,080 | | |
Total non-subscription revenues
|
| | | | 9,062 | | | | | | 11,980 | | |
Total revenues
|
| | | $ | 91,701 | | | | | $ | 118,329 | | |
| | |
Successor
|
| |
Predecessor
|
| | | | | | | | | | | | | ||||||
(In thousands, except percentages)
|
| |
Three Months
Ended April 30, 2021 |
| |
Three Months
Ended April 30, 2020 |
| |
Dollar
Increase/ (Decrease) |
| |
Percent
Change |
| ||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | |
SaaS and subscription services
|
| | | $ | 78,574 | | | | | $ | 101,089 | | | | | $ | (22,515) | | | | | | (22.3)% | | |
Software maintenance
|
| | | | 4,064 | | | | | | 5,260 | | | | | | (1,196) | | | | | | (22.7)% | | |
Professional services
|
| | | | 8,191 | | | | | | 10,946 | | | | | | (2,755) | | | | | | (25.2)% | | |
Perpetual and term-based software licenses
|
| | | | 872 | | | | | | 1,031 | | | | | | (159) | | | | | | (15.4)% | | |
Hardware and other
|
| | | | — | | | | | | 3 | | | | | | (3) | | | | | | (100.0)% | | |
Total revenues
|
| | | $ | 91,701 | | | | | $ | 118,329 | | | | | $ | (26,628) | | | | | | (22.5)% | | |
| | |
Successor
|
| |
Predecessor
|
| | | | | | | | | | | | | ||||||
(In thousands, except percentages)
|
| |
Three Months
Ended April 30, 2021 |
| |
Three Months
Ended April 30, 2020 |
| |
Dollar
Increase/ (Decrease) |
| |
Percent
Change |
| ||||||||||||
Cost of revenues
|
| | | $ | 24,521 | | | | | $ | 24,214 | | | | | $ | 307 | | | | | | 1.3% | | |
Content and software development
|
| | | | 16,607 | | | | | | 16,943 | | | | | | (336) | | | | | | (2.0)% | | |
Selling and marketing
|
| | | | 28,502 | | | | | | 32,737 | | | | | | (4,235) | | | | | | (12.9)% | | |
General and administrative
|
| | | | 12,362 | | | | | | 15,688 | | | | | | (3,326) | | | | | | (21.2)% | | |
Recapitalization and transaction-related costs
|
| | | | 1,932 | | | | | | 16,376 | | | | | | (14,444) | | | | | | (88.2)% | | |
Amortization of intangible assets
|
| | | | 34,943 | | | | | | 17,370 | | | | | | 17,573 | | | | | | 101.2% | | |
Impairment of goodwill and intangible assets
|
| | | | — | | | | | | 332,376 | | | | | | (332,376) | | | | | | (100.0)% | | |
Restructuring
|
| | | | 537 | | | | | | 370 | | | | | | 167 | | | | | | 45.1 | | |
Total operating expenses
|
| | | | 119,404 | | | | | | 456,074 | | | | | | (336,670) | | | | | | (73.8)% | | |
| | |
Successor
|
| |
Predecessor
|
| | | | | | | | | | | | | ||||||
(In thousands, except percentages)
|
| |
Three Months
Ended April 30, 2021 |
| |
Three Months
Ended April 30, 2020 |
| |
Dollar
Increase/ (Decrease) |
| |
Percent
Change |
| ||||||||||||
Compensation and benefits
|
| | | $ | 13,188 | | | | | $ | 13,542 | | | | | $ | (354) | | | | | | (2.6)% | | |
Royalties
|
| | | | 4,850 | | | | | | 4,267 | | | | | | 583 | | | | | | 13.7% | | |
Hosting and software maintenance
|
| | | | 3,029 | | | | | | 2,862 | | | | | | 168 | | | | | | 5.9% | | |
Facilities and utilities
|
| | | | 2,347 | | | | | | 1,941 | | | | | | 406 | | | | | | 20.9% | | |
Consulting and outside services
|
| | | | 1,024 | | | | | | 1,479 | | | | | | (406 | | | | | | (30.8)% | | |
Other
|
| | | | 83 | | | | | | 123 | | | | | | (40 | | | | | | (32.5)% | | |
Total cost of revenues
|
| | | $ | 24,521 | | | | | $ | 24,214 | | | | | $ | 307 | | | | | | 1.3% | | |
| | |
Successor
|
| |
Predecessor
|
| | | | | | | | | | | | | ||||||
(In thousands, except percentages)
|
| |
Three Months
Ended April 30, 2021 |
| |
Three Months
Ended April 30, 2020 |
| |
Dollar
Increase/ (Decrease) |
| |
Percent
Change |
| ||||||||||||
Compensation and benefits
|
| | | $ | 10,808 | | | | | $ | 11,243 | | | | | $ | (435) | | | | | | (3.9)% | | |
Consulting and outside services
|
| | | | 3,673 | | | | | | 3,651 | | | | | | 22 | | | | | | 0.6% | | |
Facilities and utilities
|
| | | | 1,308 | | | | | | 1,501 | | | | | | (193) | | | | | | (12.9)% | | |
Software Maintenance
|
| | | | 722 | | | | | | 479 | | | | | | 243 | | | | | | 50.7% | | |
Other
|
| | | | 96 | | | | | | 68 | | | | | | 28 | | | | | | 40.7% | | |
Total content and software development expenses
|
| | | $ | 16,607 | | | | | $ | 16,943 | | | | | $ | (336) | | | | | | (2.0)% | | |
| | |
Successor
|
| |
Predecessor
|
| | | | | | | | | | | | | ||||||
(In thousands, except percentages)
|
| |
Three Months
Ended April 30, 2021 |
| |
Three Months
Ended April 30, 2020 |
| |
Dollar
Increase/ (Decrease) |
| |
Percent
Change |
| ||||||||||||
Compensation and benefits
|
| | | $ | 21,212 | | | | | $ | 23,333 | | | | | $ | (2,121) | | | | | | (9.1)% | | |
Advertising and promotions
|
| | | | 3,485 | | | | | | 3,401 | | | | | | 84 | | | | | | 2.5% | | |
Facilities and utilities
|
| | | | 1,704 | | | | | | 2,534 | | | | | | (830) | | | | | | (32.8)% | | |
Consulting and outside services
|
| | | | 1,139 | | | | | | 1,673 | | | | | | (534) | | | | | | (31.9)% | | |
Software Maintenance
|
| | | | 893 | | | | | | 775 | | | | | | 117 | | | | | | 15.1% | | |
Travel expenses
|
| | | | 19 | | | | | | 981 | | | | | | (962) | | | | | | (98.1)% | | |
Other
|
| | | | 51 | | | | | | 41 | | | | | | 10 | | | | | | 24.8% | | |
Total S&M expenses
|
| | | $ | 28,502 | | | | | $ | 32,737 | | | | | $ | (4,235) | | | | | | (12.9)% | | |
| | |
Successor
|
| |
Predecessor
|
| | | | | | | | | | | | | ||||||
(In thousands, except percentages)
|
| |
Three Months
Ended April 30, 2021 |
| |
Three Months
Ended April 30, 2020 |
| |
Dollar
Increase/ (Decrease) |
| |
Percent
Change |
| ||||||||||||
Compensation and benefits
|
| | | $ | 7,690 | | | | | $ | 12,013 | | | | | $ | (4,323) | | | | | | (36.0)% | | |
Consulting and outside services
|
| | | | 2,861 | | | | | | 1,726 | | | | | | 1,851 | | | | | | 107.3% | | |
Facilities and utilities
|
| | | | 748 | | | | | | 812 | | | | | | (64) | | | | | | (7.8)% | | |
Franchise, sales, and property tax
|
| | | | 520 | | | | | | 375 | | | | | | 145 | | | | | | (38.7)% | | |
Insurance
|
| | | | 371 | | | | | | 319 | | | | | | 52 | | | | | | 16.2% | | |
Other
|
| | | | 172 | | | | | | 443 | | | | | | (271) | | | | | | 61.2% | | |
Total G&A expenses
|
| | | $ | 12,362 | | | | | $ | 15,688 | | | | | $ | (2,610) | | | | | | (16.6)% | | |
| | |
Successor
|
| |
Predecessor
|
| | | | | | | | | | | | | ||||||
(In thousands, except percentages)
|
| |
Three Months
Ended April 30, 2021 |
| |
Three Months
Ended April 30, 2020 |
| |
Dollar
Increase/ (Decrease) |
| |
Percent
Change |
| ||||||||||||
Other (expense) income, net
|
| | | $ | (352) | | | | | $ | 910 | | | | | $ | (1,262) | | | | | | (138.7)% | | |
Interest income
|
| | | | 10 | | | | | | 19 | | | | | | (9) | | | | | | (47.4)% | | |
Interest expense, net
|
| | | | (11,449) | | | | | | (105,978) | | | | | | 94,529 | | | | | | (89.2)% | | |
Interest and other expense, net
|
| | | $ | (11,791) | | | | | $ | (105,978) | | | | | $ | 93,258 | | | | | | (88.8)% | | |
| | |
Successor
|
| |
Predecessor
|
| | | | | | | | | | | | | ||||||
(In thousands, except percentages)
|
| |
Three Months
Ended April 30, 2021 |
| |
Three Months
Ended April 30, 2020 |
| |
Dollar
Increase/ (Decrease) |
| |
Percent
Change |
| ||||||||||||
Benefit from income taxes
|
| | | $ | (2,089) | | | | | $ | (8,891) | | | | | $ | 6,802 | | | | | | (76.5)% | | |
Effective income tax rate
|
| | | | 5.3% | | | | | | 2.0% | | | | | | | | | | | | | | |
| | |
Successor
|
| |
Predecessor
|
| |
Non-GAAP
Combined |
| |
Predecessor
|
| |
Predecessor
|
| |||||||||||||||
(In thousands)
|
| |
Period from
August 28, 2020 through January 31, 2021 |
| |
Period from
February 1, 2020 through August 27, 2020 |
| |
Year Ended
January 31, 2021 |
| |
Year Ended
January 31, 2020 |
| |
Year Ended
January 31, 2019 |
| |||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues
|
| | | $ | 108,768 | | | | | $ | 273,851 | | | | | $ | 382,619 | | | | | $ | 514,021 | | | | | $ | 534,141 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 40,898 | | | | | | 52,160 | | | | | | 93,058 | | | | | | 96,044 | | | | | | 98,636 | | |
Content and software development
|
| | | | 30,028 | | | | | | 38,986 | | | | | | 69,014 | | | | | | 67,951 | | | | | | 57,332 | | |
Selling and marketing
|
| | | | 55,285 | | | | | | 75,028 | | | | | | 130,313 | | | | | | 140,785 | | | | | | 150,179 | | |
General and administrative
|
| | | | 21,636 | | | | | | 37,455 | | | | | | 59,091 | | | | | | 57,356 | | | | | | 51,421 | | |
Recapitalization and Transaction-related costs
|
| | | | 15,928 | | | | | | 32,099 | | | | | | 48,027 | | | | | | 16,244 | | | | | | — | | |
Amortization of intangible assets
|
| | | | 39,824 | | | | | | 34,378 | | | | | | 74,202 | | | | | | 96,359 | | | | | | 151,752 | | |
Impairment of goodwill and intangible assets
|
| | | | — | | | | | | 332,376 | | | | | | 332,376 | | | | | | 440,598 | | | | | | 16,094 | | |
Restructuring
|
| | | | 4,341 | | | | | | 1,179 | | | | | | 5,520 | | | | | | 1,900 | | | | | | 2,073 | | |
Total operating expenses
|
| | | | 207,940 | | | | | | 603,661 | | | | | | 811,601 | | | | | | 917,237 | | | | | | 527,487 | | |
Operating (loss) income
|
| | | | (99,172) | | | | | | (329,810) | | | | | | (428,982) | | | | | | (403,216) | | | | | | 6,654 | | |
Interest and other expense, net
|
| | | | (16,484) | | | | | | (166,968) | | | | | | (183,452) | | | | | | (434,777) | | | | | | (401,466) | | |
Reorganization items, net
|
| | | | — | | | | | | 3,329,245 | | | | | | 3,329,245 | | | | | | — | | | | | | — | | |
(Loss) income before (benefit) provision for income taxes
|
| | | | (115,656) | | | | | | 2,832,467 | | | | | | 2,716,811 | | | | | | (837,993) | | | | | | (394,812) | | |
(Benefit) provision for income taxes
|
| | | | (21,934) | | | | | | 68,455 | | | | | | 46,521 | | | | | | 11,212 | | | | | | 5,027 | | |
Net (loss) income
|
| | | $ | (93,722) | | | | | $ | 2,764,012 | | | | | $ | 2,670,290 | | | | | $ | (849,205) | | | | | $ | (399,839) | | |
| | |
Successor
|
| |
Predecessor
|
| |
Non-GAAP
Combined |
| |
Predecessor
|
| |
Predecessor
|
| |||||||||||||||
(In thousands)
|
| |
Period from
August 28, 2020 through January 31, 2021 |
| |
Period from
February 1, 2020 through August 27, 2020 |
| |
Year Ended
January 31, 2021 |
| |
Year Ended
January 31, 2020 |
| |
Year Ended
January 31, 2019 |
| |||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues
|
| | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 37.6% | | | | | | 19.0% | | | | | | 24.3% | | | | | | 18.7% | | | | | | 18.5% | | |
Content and software development
|
| | | | 27.6% | | | | | | 14.2% | | | | | | 18.0% | | | | | | 13.2% | | | | | | 10.7% | | |
Selling and marketing
|
| | | | 50.8% | | | | | | 27.4% | | | | | | 34.1% | | | | | | 27.4% | | | | | | 28.1% | | |
General and administrative
|
| | | | 19.9% | | | | | | 13.7% | | | | | | 15.4% | | | | | | 11.2% | | | | | | 9.6% | | |
Recapitalization and transaction costs
|
| | | | 14.6% | | | | | | 11.7% | | | | | | 12.6% | | | | | | 3.2% | | | | | | 0.0% | | |
Amortization of intangible assets
|
| | | | 36.6% | | | | | | 12.6% | | | | | | 19.4% | | | | | | 18.7% | | | | | | 28.4% | | |
Impairment of goodwill and intangible assets
|
| | | | 0.0% | | | | | | 121.4% | | | | | | 86.9% | | | | | | 85.7% | | | | | | 3.0% | | |
Restructuring
|
| | | | 4.0% | | | | | | 0.4% | | | | | | 1.4% | | | | | | 0.4% | | | | | | 0.4% | | |
Total operating expenses
|
| | | | 191.2% | | | | | | 220.4% | | | | | | 212.1% | | | | | | 178.4% | | | | | | 98.8% | | |
Operating (loss) income
|
| | | | -91.2% | | | | | | -120.4% | | | | | | -112.1% | | | | | | -78.4% | | | | | | 1.2% | | |
Interest and other expense, net
|
| | | | -15.2% | | | | | | -61.0% | | | | | | -47.9% | | | | | | -84.6% | | | | | | -75.2% | | |
Reorganization items, net
|
| | | | 0.0% | | | | | | 1215.7% | | | | | | 870.1% | | | | | | 0.0% | | | | | | 0.0% | | |
(Loss) income before (benefit) provision for income
taxes |
| | | | -106.3% | | | | | | 1034.3% | | | | | | 710.1% | | | | | | -163.0% | | | | | | -73.9% | | |
(Benefit) provision for income taxes
|
| | | | -20.2% | | | | | | 25.0% | | | | | | 12.2% | | | | | | 2.2% | | | | | | 0.9% | | |
Net (loss) income
|
| | | | -86.2% | | | | | | 1009.3% | | | | | | 697.9% | | | | | | -165.2% | | | | | | -74.9% | | |
| | |
Year ended January 31,
|
| |||||||||||||||
| | |
(Non-GAAP
Combined) 2021 |
| |
2020
|
| |
2019
|
| |||||||||
Revenues: | | | | | | | | | | | | | | | | | | | |
United States
|
| | | | 78.9% | | | | | | 78.8% | | | | | | 79.0% | | |
Other Americas
|
| | | | 3.6% | | | | | | 4.3% | | | | | | 4.3% | | |
Europe, Middle East, and Africa
|
| | | | 12.2% | | | | | | 11.9% | | | | | | 12.4% | | |
Asia-Pacific
|
| | | | 5.3% | | | | | | 5.0% | | | | | | 4.4% | | |
Total revenues
|
| | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | |
| | |
Year ended January 31,
|
| |||||||||||||||
| | |
(Non-GAAP
Combined) 2021 |
| |
2020
|
| |
2019
|
| |||||||||
Subscription revenues: | | | | | | | | | | | | | | | | | | | |
Content
|
| | | $ | 257,432 | | | | | $ | 351,124 | | | | | $ | 367,940 | | |
SumTotal
|
| | | | 87,388 | | | | | | 112,649 | | | | | | 124,461 | | |
Total subscription revenues
|
| | | | 344,820 | | | | | | 463,773 | | | | | | 492,401 | | |
Non-subscription revenues: | | | | | | | | | | | | | | | | | | | |
Content
|
| | | | 11,231 | | | | | | 11,379 | | | | | | 10,376 | | |
SumTotal
|
| | | | 26,568 | | | | | | 38,869 | | | | | | 31,364 | | |
Total non-subscription revenues
|
| | | | 37,799 | | | | | | 50,248 | | | | | | 41,740 | | |
Total revenues
|
| | | $ | 382,619 | | | | | $ | 514,021 | | | | | $ | 534,141 | | |
| | |
Year Ended January 31,
|
| | | | | | | | | | | | | |||||||||
(In thousands, except percentages)
|
| |
(Non-GAAP
Combined) 2021 |
| |
2020
|
| |
Dollar
Increase / (Decrease) |
| |
Percent
Change |
| ||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | |
SaaS and subscription services
|
| | | $ | 327,971 | | | | | $ | 439,791 | | | | | $ | (111,820) | | | | | | (25.4)% | | |
Software maintenance
|
| | | | 16,849 | | | | | | 23,982 | | | | | | (7,133) | | | | | | (29.7)% | | |
Professional services
|
| | | | 34,045 | | | | | | 45,661 | | | | | | (11,616) | | | | | | (25.4)% | | |
Perpetual and term-based software licenses
|
| | | | 3,727 | | | | | | 1,885 | | | | | | 1,841 | | | | | | 97.7% | | |
Hardware and other
|
| | | | 27 | | | | | | 2,702 | | | | | | (2,674) | | | | | | (99.0)% | | |
Total net revenues
|
| | | $ | 382,619 | | | | | $ | 514,021 | | | | | $ | (131,402) | | | | | | (25.6)% | | |
| | |
Year Ended January 31,
|
| | | | | | | | | | | | | |||||||||
(In thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
Dollar
Increase / (Decrease) |
| |
Percent
Change |
| ||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | |
SaaS and subscription services
|
| | | $ | 439,791 | | | | | $ | 462,240 | | | | | $ | (22,449) | | | | | | (4.9)% | | |
Software maintenance
|
| | | | 23,982 | | | | | | 30,161 | | | | | | (6,179) | | | | | | (20.5)% | | |
Professional services
|
| | | | 45,661 | | | | | | 38,043 | | | | | | 7,618 | | | | | | 20.0% | | |
Perpetual and term-based software licenses
|
| | | | 1,885 | | | | | | 3,340 | | | | | | (1,455) | | | | | | (43.6)% | | |
Hardware and other
|
| | | | 2,702 | | | | | | 357 | | | | | | 2,345 | | | | | | 656.9% | | |
Total net revenues
|
| | | $ | 514,021 | | | | | $ | 534,141 | | | | | $ | (20,120) | | | | | | (3.8)% | | |
| | |
Year Ended January 31,
|
| | | | | | | | | | | | | |||||||||
(In thousands, except percentages)
|
| |
(Non-GAAP
Combined) 2021 |
| |
2020
|
| |
Dollar
Increase/ (Decrease) |
| |
Percent
Change |
| ||||||||||||
Cost of revenues
|
| | | $ | 93,058 | | | | | $ | 96,044 | | | | | $ | (2,986) | | | | | | (3.1)% | | |
Content and software development
|
| | | | 69,014 | | | | | | 67,951 | | | | | | 1,063 | | | | | | 1.6% | | |
Selling and marketing
|
| | | | 130,313 | | | | | | 140,785 | | | | | | (10,472) | | | | | | (7.4)% | | |
General and administrative
|
| | | | 59,091 | | | | | | 57,356 | | | | | | 1,735 | | | | | | 3.0% | | |
Recapitalization and transaction costs
|
| | | | 48,027 | | | | | | 16,244 | | | | | | 31,783 | | | | | | 195.7% | | |
Amortization of intangible assets
|
| | | | 74,202 | | | | | | 96,359 | | | | | | (22,157) | | | | | | (23.0)% | | |
Impairment of goodwill and intangible assets
|
| | | | 332,376 | | | | | | 440,598 | | | | | | (108,222) | | | | | | (24.6)% | | |
Restructuring
|
| | | | 5,520 | | | | | | 1,900 | | | | | | 3,620 | | | | | | 190.5% | | |
Total operating expenses
|
| | | $ | 811,601 | | | | | $ | 917,237 | | | | | $ | (105,636) | | | | | | (11.5)% | | |
| | |
Year Ended January 31,
|
| | | | | | | | | | | | | |||||||||
(In thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
Dollar
Increase/ (Decrease) |
| |
Percent
Change |
| ||||||||||||
Cost of revenues
|
| | | $ | 96,044 | | | | | $ | 98,636 | | | | | $ | (2,592) | | | | | | (2.6)% | | |
Content and software development
|
| | | | 67,951 | | | | | | 57,332 | | | | | | 10,619 | | | | | | 18.5% | | |
Selling and marketing
|
| | | | 140,785 | | | | | | 150,179 | | | | | | (9,394) | | | | | | (6.3)% | | |
General and administrative
|
| | | | 57,356 | | | | | | 51,421 | | | | | | 5,935 | | | | | | 11.5% | | |
Recapitalization and transaction costs
|
| | | | 16,244 | | | | | | — | | | | | | 16,244 | | | | | | 100.0% | | |
Amortization of intangible assets
|
| | | | 96,359 | | | | | | 151,752 | | | | | | (55,393) | | | | | | (36.5)% | | |
Impairment of goodwill and intangible assets
|
| | | | 440,598 | | | | | | 16,094 | | | | | | 424,504 | | | | | | 2637.7% | | |
Restructuring
|
| | | | 1,900 | | | | | | 2,073 | | | | | | (173) | | | | | | (8.3)% | | |
Total operating expenses
|
| | | $ | 917,237 | | | | | $ | 527,487 | | | | | $ | 389,750 | | | | | | 73.9% | | |
| | |
2021 Increase/(Decrease)
From 2020 |
| |
2020 Increase/(Decrease)
From 2019 |
| ||||||||||||||||||
(in thousands, except percentages)
|
| |
$
|
| |
%
|
| |
$
|
| |
%
|
| ||||||||||||
Consulting and outside services
|
| | | $ | (4,746) | | | | | | (60.1)% | | | | | $ | 1,954 | | | | | | 32.9% | | |
Hosting and software maintenance
|
| | | | 2,059 | | | | | | 20.2% | | | | | | 518 | | | | | | 5.3% | | |
Royalties
|
| | | | (863) | | | | | | (4.9)% | | | | | | (1,466) | | | | | | (7.6)% | | |
Facilities and utilities
|
| | | | 588 | | | | | | 37.2% | | | | | | (251) | | | | | | (13.7)% | | |
Compensation and benefits
|
| | | | 326 | | | | | | 0.6% | | | | | | (208) | | | | | | (0.4)% | | |
Depreciation
|
| | | | (389) | | | | | | (7.1)% | | | | | | (3,098) | | | | | | (36.3)% | | |
Other
|
| | | | 39 | | | | | | 13.3% | | | | | | (41) | | | | | | (12.4)% | | |
Total cost of revenues decrease
|
| | | $ | (2,986) | | | | | | (3.1)% | | | | | $ | (2,592) | | | | | | (2.6)% | | |
| | |
2021 Increase/(Decrease)
From 2020 |
| |
2020 Increase/(Decrease)
From 2019 |
| ||||||||||||||||||
(in thousands, except percentages)
|
| |
$
|
| |
%
|
| |
$
|
| |
%
|
| ||||||||||||
Compensation and benefits
|
| | | $ | 2,560 | | | | | | 6.3% | | | | | $ | 5,302 | | | | | | 15.0% | | |
Consulting and outside services
|
| | | | (1,994) | | | | | | (10.4)% | | | | | | 4,521 | | | | | | 30.8% | | |
Facilities and utilities
|
| | | | 155 | | | | | | 2.7% | | | | | | 771 | | | | | | 15.7% | | |
Other
|
| | | | 342 | | | | | | 14.9% | | | | | | 25 | | | | | | 1.1% | | |
Total content and software development expenses increase
|
| | | $ | 1,063 | | | | | | 1.6% | | | | | $ | 10,619 | | | | | | 18.5% | | |
| | |
2021 Increase/(Decrease)
From 2020 |
| |
2020 Increase/(Decrease)
From 2019 |
| ||||||||||||||||||
(in thousands, except percentages)
|
| |
$
|
| |
%
|
| |
$
|
| |
%
|
| ||||||||||||
Compensation and benefits
|
| | | $ | (5,793) | | | | | | (5.8)% | | | | | $ | (9,700) | | | | | | (8.8)% | | |
Travel-related
|
| | | | (8,844) | | | | | | (82.6)% | | | | | | (549) | | | | | | (4.9)% | | |
Advertising and promotions
|
| | | | 2,684 | | | | | | 21.8% | | | | | | 2,060 | | | | | | 20.1% | | |
Consulting and outside services
|
| | | | 3,055 | | | | | | 99.1% | | | | | | (508) | | | | | | (14.1)% | | |
Facilities and utilities
|
| | | | (1,392) | | | | | | (12.8)% | | | | | | (682) | | | | | | (5.9)% | | |
Software Maintenance
|
| | | | (63) | | | | | | (1.9)% | | | | | | 133 | | | | | | 4.3% | | |
Other
|
| | | | (119) | | | | | | (40.9)% | | | | | | (148) | | | | | | (33.7)% | | |
Total S&M expenses decrease
|
| | | $ | (10,472) | | | | | | (7.4)% | | | | | $ | (9,394) | | | | | | (6.3)% | | |
| | |
2021 Increase/(Decrease)
From 2020 |
| |
2020 Increase/(Decrease)
From 2019 |
| ||||||||||||||||||
(in thousands, except percentages)
|
| |
$
|
| |
%
|
| |
$
|
| |
%
|
| ||||||||||||
Compensation and benefits
|
| | | $ | 8,425 | | | | | | 27.9% | | | | | $ | (549) | | | | | | (1.8)% | | |
Related party loan impairment
|
| | | | (5,394) | | | | | | (100.0)% | | | | | | 5,394 | | | | | | 100.0% | | |
Consulting and outside services
|
| | | | (923) | | | | | | (6.4)% | | | | | | (217) | | | | | | (1.5)% | | |
Franchise, sales, and property tax
|
| | | | 651 | | | | | | 40.7% | | | | | | 326 | | | | | | 25.6% | | |
Other
|
| | | | (1,024) | | | | | | (17.8)% | | | | | | 981 | | | | | | 20.5% | | |
Total G&A expenses increase
|
| | | $ | 1,735 | | | | | | 3.0% | | | | | $ | 5,935 | | | | | | 11.5% | | |
| | |
2021 Increase/(Decrease)
From 2020 |
| | | | | | | | | | | | | |||||||||
(in thousands, except percentages)
|
| |
(Non-GAAP
Combined) 2021 |
| |
2020
|
| |
Dollar
(Increase)/ Decrease |
| |
Percent
Change |
| ||||||||||||
Other income (expense), net
|
| | | $ | 4,725 | | | | | $ | (1,058) | | | | | $ | 5,783 | | | | | | (546.6)% | | |
Loss on derivative instruments
|
| | | | (5) | | | | | | (4,062) | | | | | | 4,057 | | | | | | (99.9)% | | |
Interest income
|
| | | | 129 | | | | | | 306 | | | | | | (177) | | | | | | (57.8)% | | |
Interest expense, net
|
| | | | (188,301) | | | | | | (429,963) | | | | | | 241,662 | | | | | | (56.2)% | | |
Interest and other expense, net
|
| | | $ | (183,452) | | | | | $ | (434,777) | | | | | $ | 251,325 | | | | | | (57.8)% | | |
| | |
Year Ended January 31,
|
| | | | | | | | | | | | | |||||||||
(in thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
Dollar
(Increase)/ Decrease |
| |
Percent
Change |
| ||||||||||||
Other income (expense), net
|
| | | $ | (1,058) | | | | | $ | (3,340) | | | | | $ | 2,282 | | | | | | (68.3)% | | |
Loss on derivative instruments
|
| | | | (4,062) | | | | | | (2,284) | | | | | | (1,778) | | | | | | 77.8% | | |
Interest income
|
| | | | 306 | | | | | | 687 | | | | | | (381) | | | | | | (55.5)% | | |
Interest expense, net
|
| | | | (429,963) | | | | | | (396,529) | | | | | | (33,434) | | | | | | 8.4% | | |
Interest and other expense, net
|
| | | $ | (434,777) | | | | | $ | (401,466) | | | | | $ | (33,311) | | | | | | 8.3% | | |
| | |
Year Ended January 31,
|
| | | | | | | | | | | | | |||||||||
(in thousands, except percentages)
|
| |
(Non-GAAP
Combined) 2021 |
| |
2020
|
| |
Dollar
(Increase)/ Decrease |
| |
Percent
Change |
| ||||||||||||
Provision for income taxes
|
| | | $ | 46,521 | | | | | $ | 11,212 | | | | | $ | 35,309 | | | | | | 314.9% | | |
Effective income tax rate
|
| | | | 1.7% | | | | | | (1.3)% | | | | | | 3.1% | | | | | | (228)% | | |
| | |
Year Ended January 31,
|
| | | | | | | | | | | | | |||||||||
(in thousands, except percentages)
|
| |
2020
|
| |
2019
|
| |
Dollar
(Increase)/ Decrease |
| |
Percent
Change |
| ||||||||||||
Provision for income taxes
|
| | | $ | 11,212 | | | | | $ | 5,027 | | | | | $ | 6,185 | | | | | | 123% | | |
Effective income tax rate
|
| | | | (1.3)% | | | | | | (1.3)% | | | | | | 0.0% | | | | | | 0.0% | | |
| | |
Successor
|
| |
Predecessor
|
| |
Successor
|
| |
Predecessor
|
| |
Predecessor
|
| |||||||||||||||
(In thousands)
|
| |
Three
Months Ended April 30, 2021 |
| |
Three
Months Ended April 30, 2020 |
| |
Aug 28,
2020 through Jan 31, 2021 |
| |
Feb 1,
2020 through Aug 27, 2020 |
| |
Year
Ended January 31, 2020 |
| |||||||||||||||
Net cash provided by operating
activities |
| | | $ | 39,676 | | | | | $ | 24,764 | | | | | $ | 8,180 | | | | | $ | 3,917 | | | | | $ | (37,413) | | |
Net cash used in investing activities
|
| | | | (1,880) | | | | | | (3,744) | | | | | | (4,452) | | | | | | (6,924) | | | | | | (17,400) | | |
Net cash (used in) provided by financing
activities |
| | | | (4,439) | | | | | | 6,275 | | | | | | (32,463) | | | | | | 73,657 | | | | | | 57,801 | | |
Effect of foreign currency exchange
rates on cash and cash equivalents |
| | | | (140) | | | | | | (1,602 | | | | | | 863 | | | | | | (2,139) | | | | | | 348 | | |
Net increase in cash and cash
equivalents |
| | | $ | 33,217 | | | | | $ | 25,693 | | | | | $ | (27,872) | | | | | $ | 68,511 | | | | | $ | 3,336 | | |
| | |
Payments due by Fiscal Year
|
| |||||||||||||||||||||||||||
(In thousands)
|
| |
Total
|
| |
2022(1)
|
| |
2022-2024
|
| |
2024-2026
|
| |
Thereafter
|
| |||||||||||||||
First Out Term Loan
|
| | | $ | 109,725 | | | | | $ | 825 | | | | | $ | 4,400 | | | | | $ | 104,500 | | | | | $ | — | | |
Second Out Term Loan
|
| | | | 408,975 | | | | | | 3,075 | | | | | | 16,400 | | | | | | 389,500 | | | | | | — | | |
Operating leases
|
| | | | 21,636 | | | | | | 3,898 | | | | | | 7,564 | | | | | | 3,929 | | | | | $ | 6,245 | | |
Finance lease
|
| | | | 1,209 | | | | | | 1,209 | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 541,545 | | | | | $ | 9,007 | | | | | $ | 28,364 | | | | | $ | 497,929 | | | | | $ | 6,245 | | |
(In thousands)
|
| |
For the Three Months
Ended April 2, 2021 |
| |
For the Three Months
Ended April 30, 2021 |
| ||||||
Net Loss
|
| | | $ | (11,051) | | | | | $ | (12,493) | | |
EBITDA Computation | | | | | | | | | | | | | |
Interest expense, net
|
| | | | 8,670 | | | | | | 10,070 | | |
Provision for income taxes
|
| | | | 425 | | | | | | 840 | | |
Depreciation and amortization
|
| | | | 2,740 | | | | | | 5,022 | | |
EBITDA
|
| | | | 784 | | | | | | 3,439 | | |
Adjusted EBITDA Computation | | | | | | | | | | | | | |
Plus: Non-recurring retention and consulting costs
|
| | | | 31 | | | | | | 1,515 | | |
Plus: Recapitalization and transaction-related costs
|
| | | | 1,901 | | | | | | 1,393 | | |
Plus: Restructuring and contract terminations
|
| | | | 809 | | | | | | 1,103 | | |
Plus: Integration and migration related
|
| | | | 343 | | | | | | — | | |
Plus: Foreign currency and other non-cash expense
|
| | | | (66) | | | | | | (255) | | |
Plus: Other add backs
|
| | | | — | | | | | | (1,168) | | |
Adjusted EBITDA
|
| | | | 3,802 | | | | | | 6,028 | | |
|
Name
|
| |
Age
|
| |
Title
|
|
| Patrick Kolek | | |
50
|
| | Chairperson of the Board | |
| Jeffrey R. Tarr | | |
58
|
| | Chief Executive Officer and Director | |
| Lawrence C. Illg | | |
50
|
| | Director | |
| Helena B. Foulkes | | |
56
|
| | Director | |
| Ronald W. Hovsepian | | |
60
|
| | Director | |
| Michael Klein | | |
57
|
| | Director | |
| Karen G. Mills | | |
67
|
| | Director | |
| Peter Schmitt | | |
54
|
| | Director | |
| Lawrence H. Summers | | |
66
|
| | Director | |
| Apratim Purakayastha | | |
53
|
| | Chief Technology Officer | |
| Michelle Boockoff-Bajdek | | |
51
|
| | Chief Marketing Officer | |
| Sarah Hilty | | |
50
|
| | Chief Legal Officer | |
| Ryan Murray | | |
43
|
| | Chief Accounting Officer and interim Chief Financial Officer | |
| Mark Onisk | | |
48
|
| | Chief Content Officer | |
| Eric Stine | | |
48
|
| | Chief Revenue Officer | |
| Richard Walker | | |
57
|
| | Chief Corporate Strategy and Development Officer | |
Name and Principal Position
|
| |
Year(1)
|
| |
Salary
($) |
| |
Bonus
($)(2) |
| |
All Other Compensation
($)(3) |
| |
Total
($) |
| |||||||||||||||
Mr. Hovsepian | | | | | 2021 | | | | | | 1,000,000 | | | | | | 2,500,000(6) | | | | | | 4,000 | | | | | | 3,504,000 | | |
Executive Chairman(4)
|
| | | | 2020 | | | | | | 963,333 | | | | | | 500,000(5) | | | | | | 4,833 | | | | | | 1,467,166 | | |
Mr. Frederick | | | | | 2021 | | | | | | 650,000 | | | | | | 1,300,000(6) | | | | | | 98,796(7) | | | | | | 2,048,796 | | |
Chief Administrative Officer & CEO, SumTotal
|
| | | | 2020 | | | | | | 620,833 | | | | | | 400,000(5) | | | | | | 82,187(7) | | | | | | 1,103,020 | | |
Mr. Purakayastha | | | | | 2021 | | | | | | 450,000 | | | | | | 645,000(8)(9) | | | | | | 4,000 | | | | | | 1,099,000 | | |
Chief Technology Officer
|
| | | | 2020 | | | | | | 445,000 | | | | | | — | | | | | | 4,000 | | | | | | 449,000 | | |
Name and Address of Beneficial Owner(1)
|
| |
Number of Shares
|
| |
Percent Owned
|
| ||||||
Five Percent Holders: | | | | | | | | | | | | | |
MIH Learning B.V.(2)
|
| | | | 66,666,667 | | | | | | 44.5% | | |
Churchill Sponsor II LLC(3)
|
| | | | 33,550,000 | | | | | | 22.5% | | |
Lodbrok Capital LLP(4)
|
| | | | 8,540,344 | | | | | | 6.4% | | |
Named Executive Officers and Directors: | | | | | | | | | | | | | |
Jeffrey Tarr(5)
|
| | | | 1,000,000 | | | | | | * | | |
Ryan Murray
|
| | | | — | | | | | | — | | |
Aparatim Purakayastha
|
| | | | — | | | | | | — | | |
Helena B. Foulkes
|
| | | | — | | | | | | — | | |
Ronald W. Hovsepian
|
| | | | — | | | | | | — | | |
Lawrence C. Illg(6)
|
| | | | 63,333 | | | | | | * | | |
Michael Klein(3)
|
| | | | 33,550,000 | | | | | | 22.5% | | |
Patrick Kolek
|
| | | | 20,000 | | | | | | * | | |
Karen G. Mills
|
| | | | — | | | | | | — | | |
Peter Schmitt
|
| | | | — | | | | | | — | | |
Lawrence H. Summers
|
| | | | — | | | | | | — | | |
All executive officers and directors as a group (16 individuals)
|
| | | | 34,633,333 | | | | | | 23.0% | | |
| | |
Securities Beneficially Owned
Prior to this Offering |
| |
Securities to be Sold in this
Offering(1) |
| |
Securities Beneficially
Owned After this Offering |
| |||||||||||||||||||||||||||||||||||||||
Name of Selling Securityholder
|
| |
Shares of
Class A common stock(2) |
| |
Warrants(3)
|
| |
Shares of
Class A common stock(2) |
| |
Warrants(3)
|
| |
Shares of
Class A common stock(2) |
| |
%
|
| |
Warrants(3)
|
| |
%
|
| ||||||||||||||||||||||||
MIH Learning B.V.(4)
|
| | | | 66,666,667 | | | | | | 16,666,667 | | | | | | 66,666,667 | | | | | | 16,666,667 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Churchill Sponsor II LLC(5)
|
| | | | 33,550,000 | | | | | | 16,300,000 | | | | | | 33,550,000 | | | | | | 16,300,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
SuRo Capital Corp.(6)
|
| | | | 1,000,000 | | | | | | — | | | | | | 1,000,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Lodbrok Capital LLP(8)
|
| | | | 8,540,344 | | | | | | — | | | | | | 2,000,000 | | | | | | — | | | | | | 6,540,344 | | | | | | 4.9% | | | | | | — | | | | | | — | | |
Jeffrey Tarr(9)
|
| | | | 1,000,000 | | | | | | 1,000,000 | | | | | | 1,000,000 | | | | | | 1,000,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | |
| | | | | F-32 | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | |
| | | | | F-54 | | | |
| | | | | F-56 | | | |
| | | | | F-57 | | | |
| | | | | F-58 | | | |
| | | | | F-59 | | | |
| | | | | F-60 | | | |
| | | | | F-62 | | |
| | | | | F-113 | | | |
| | | | | F-114 | | | |
| | | | | F-115 | | | |
| | | | | F-116 | | | |
| | | | | F-117 | | | |
| | | | | F-119 | | |
| | | | | F-133 | | | |
| | | | | F-135 | | | |
| | | | | F-136 | | | |
| | | | | F-137 | | | |
| | | | | F-138 | | | |
| | | | | F-139 | | |
| | | | | F-161 | | | |
| | | | | F-162 | | | |
| | | | | F-163 | | | |
| | | | | F-164 | | | |
| | | | | F-165 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 3,873,865 | | | | | $ | 2,238,275 | | |
Prepaid Income Taxes
|
| | | | — | | | | | | 27,140 | | |
Prepaid expenses
|
| | | | 94,299 | | | | | | 275,525 | | |
Total Current Assets
|
| | | | 3,968,164 | | | | | | 2,540,940 | | |
Cash and marketable securities held in Trust Account
|
| | | | 696,957,196 | | | | | | 695,295,418 | | |
TOTAL ASSETS
|
| | | $ | 700,925,360 | | | | | $ | 697,836,358 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 635,483 | | | | | $ | 257,466 | | |
Income tax payable
|
| | | | 95,302 | | | | | | — | | |
Convertible promissory note – related party
|
| | | | 3,104,359 | | | | | | — | | |
Total Current Liabilities
|
| | | | 3,835,144 | | | | | | 257,466 | | |
Deferred income tax payable
|
| | | | 976 | | | | | | 9,657 | | |
Deferred underwriting fee payable
|
| | | | 21,371,000 | | | | | | 21,371,000 | | |
Derivative liabilities
|
| | | | 128,339,190 | | | | | | 56,360,000 | | |
Total Liabilities
|
| | | | 153,546,310 | | | | | | 77,998,123 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A Common stock subject to possible redemption, 53,712,502 and 61,025,925 shares at redemption value as of December 31, 2020 and 2019, respectively
|
| | | | 542,379,040 | | | | | | 614,838,229 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued
and outstanding |
| | | | — | | | | | | — | | |
Class A Common stock, $0.0001 par value; 200,000,000 shares authorized;
15,287,498 and 7,974,075 shares issued and outstanding (excluding 53,712,502 and 61,025,925 shares subject to possible redemption) as of December 31, 2020 and 2019, respectively |
| | | | 1,529 | | | | | | 797 | | |
Class B Common stock, $0.0001 par value; 20,000,000 shares authorized; 17,250,000 shares issued and outstanding as of December 31, 2020 and 2019
|
| | | | 1,725 | | | | | | 1,725 | | |
Additional paid-in capital
|
| | | | 92,138,533 | | | | | | 19,680,076 | | |
Accumulated deficit
|
| | | | (87,141,777) | | | | | | (14,682,592) | | |
Total Stockholders’ Equity
|
| | | | 5,000,010 | | | | | | 5,000,006 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 700,925,360 | | | | | $ | 697,836,358 | | |
| | |
Year Ended
December 31, |
| |
For the Period from
April 11, 2019 (Inception) Through December 31, |
| ||||||
| | |
2020
|
| |
2019
|
| ||||||
Formation and operating costs
|
| | | $ | 2,906,903 | | | | | $ | 744,859 | | |
Reimbursement of transaction expenses
|
| | | | (2,000,000) | | | | | | — | | |
Loss from operations
|
| | | | (906,903) | | | | | | (744,859) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 2,516,752 | | | | | | 6,639,430 | | |
Transaction costs attributable to the Initial Public Offering
|
| | | | — | | | | | | (1,125,634) | | |
Loss on derivative liabilities
|
| | | | (73,583,549) | | | | | | (18,450,000) | | |
Unrealized gain on marketable securities held in Trust Account
|
| | | | 1,276 | | | | | | 45,988 | | |
Other expense, net
|
| | | | (71,065,521) | | | | | | (12,690,216) | | |
Loss before income taxes
|
| | | | (71,972,424) | | | | | | (13,435,075) | | |
Provision for income taxes
|
| | | | (486,761) | | | | | | (1,247,517) | | |
Net Loss
|
| | | $ | (72,459,185) | | | | | $ | (14,682,592) | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 58,723,869 | | | | | | 61,961,631 | | |
Basic and diluted net income per share, Class A common stock subject
to possible redemption |
| | | $ | 0.03 | | | | | $ | 0.08 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 27,526,131 | | | | | | 21,438,529 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | $ | (2.68) | | | | | $ | (0.91) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Capital
|
| |
Earnings
|
| |
Equity
|
| |||||||||||||||||||||
Balance – April 11, 2019 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B common stock to Sponsor
|
| | | | — | | | | | | — | | | | | | 17,250,000 | | | | | | 1,725 | | | | | | 23,275 | | | | | | — | | | | | | 25,000 | | |
Sale of 69,000,000 Units, net of underwriting discount and offering expenses
|
| | | | 69,000,000 | | | | | | 6,900 | | | | | | — | | | | | | — | | | | | | 634,488,927 | | | | | | — | | | | | | 634,495,827 | | |
Class A common stock subject to possible redemption
|
| | | | (61,025,925) | | | | | | (6,103) | | | | | | — | | | | | | — | | | | | | (614,832,126) | | | | | | — | | | | | | (614,838,229) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (14,682,592) | | | | | | (14,682,592) | | |
Balance – December 31, 2019
|
| | | | 7,974,075 | | | | | | 797 | | | | | | 17,250,000 | | | | | | 1,725 | | | | | | 19,680,076 | | | | | | (14,682,592) | | | | | | 5,000,006 | | |
Change in value of Class A common
stock subject to possible redemption |
| | | | 7,313,423 | | | | | | 732 | | | | | | — | | | | | | — | | | | | | 72,458,457 | | | | | | — | | | | | | 72,459,189 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (72,459,185) | | | | | | (72,459,185) | | |
Balance – December 31, 2020
|
| | | | 15,287,498 | | | | | $ | 1,529 | | | | | | 17,250,000 | | | | | $ | 1,725 | | | | | $ | 92,138,533 | | | | | $ | (87,141,777) | | | | | $ | 5,000,010 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (72,459,185) | | | | | $ | (14,682,592) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (2,516,752) | | | | | | (6,639,430) | | |
Transaction costs attributable to Initial Public Offering
|
| | | | — | | | | | | 1,125,634 | | |
Loss on derivative liabilities
|
| | | | 73,583,549 | | | | | | 18,250,000 | | |
Unrealized gain on marketable securities held in Trust Account
|
| | | | (1,276) | | | | | | (45,988) | | |
Deferred income tax (benefit) provision
|
| | | | (8,681) | | | | | | 9,657 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | 181,226 | | | | | | (275,525) | | |
Prepaid income taxes
|
| | | | 27,140 | | | | | | (27,140) | | |
Accounts payable and accrued expenses
|
| | | | 378,017 | | | | | | 257,466 | | |
Income tax payable
|
| | | | 95,302 | | | | | | — | | |
Net cash used in operating activities
|
| | | | (720,660) | | | | | | (2,027,918) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account
|
| | | | — | | | | | | (690,000,000) | | |
Cash withdrawn from Trust Account for working capital
|
| | | | 250,000 | | | | | | 125,000 | | |
Cash withdrawn from Trust Account to pay franchise and income taxes
|
| | | | 606,250 | | | | | | 1,265,000 | | |
Net cash provided by (used in) investing activities
|
| | | | 856,250 | | | | | | (688,610,000) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B common stock to Sponsor
|
| | | | | | | | | | 25,000 | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | — | | | | | | 677,788,000 | | |
Proceeds from sale of Private Placement Warrants
|
| | | | — | | | | | | 15,800,000 | | |
Proceeds from promissory notes – related party
|
| | | | 1,500,000 | | | | | | 200,000 | | |
Repayment of promissory notes – related party
|
| | | | — | | | | | | (200,000) | | |
Payment of offering costs
|
| | | | — | | | | | | (736,807) | | |
Net cash provided by financing activities
|
| | | | 1,500,000 | | | | | | 692,876,193 | | |
Net Change in Cash
|
| | | | 1,635,590 | | | | | | 2,238,275 | | |
Cash – Beginning
|
| | | | 2,238,275 | | | | | | — | | |
Cash – Ending | | | | $ | 3,873,865 | | | | | $ | 2,238,275 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 373,000 | | | | | $ | 1,265,000 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of Class A common stock subject to redemption
|
| | | $ | — | | | | | $ | 628,390,190 | | |
Change in value of Class A common stock subject to possible redemption
|
| | | $ | (72,459,189) | | | | | $ | (13,551,961) | | |
Deferred underwriting fee payable
|
| | | $ | — | | | | | $ | 21,371,000 | | |
| | |
As
Previously Reported |
| |
Adjustments
|
| |
As
Restated |
| |||||||||
Balance sheet as of July 1, 2019 (audited) | | | | | | | | | | | | | | | | | | | |
Total Liabilities
|
| | | $ | 21,509,982 | | | | | $ | 38,110,000 | | | | | $ | 59,619,982 | | |
Class A Common Stock Subject to Possible Redemption
|
| | | | 666,500,190 | | | | | | (38,110,000) | | | | | | 628,390,190 | | |
Class A Common Stock
|
| | | | 235 | | | | | | 381 | | | | | | 616 | | |
Additional Paid-in Capital
|
| | | | 5,003,043 | | | | | | 1,125,253 | | | | | | 6,128,296 | | |
Accumulated Deficit
|
| | | | (5,000) | | | | | | (1,125,634) | | | | | | (1,130,634) | | |
| | |
As
Previously Reported |
| |
Adjustments
|
| |
As
Restated |
| |||||||||
Total Stockholders’ Equity
|
| | | | 5,000,003 | | | | | | — | | | | | | 5,000,003 | | |
Number of Class A common stock subject to redemption
|
| | | | 66,650,019 | | | | | | (3,811,000) | | | | | | 62,839,019 | | |
Balance sheet as of September 30, 2019 (unaudited) | | | | | | | | | | | | | | | | | | | |
Total Liabilities
|
| | | $ | 21,438,614 | | | | | $ | 55,988,000 | | | | | $ | 77,426,614 | | |
Class A Common Stock Subject to Possible Redemption
|
| | | | 669,011,539 | | | | | | (55,988,000) | | | | | | 613,023,539 | | |
Class A Common Stock
|
| | | | 233 | | | | | | 558 | | | | | | 791 | | |
Additional Paid-in Capital
|
| | | | 2,491,696 | | | | | | 19,003,076 | | | | | | 21,494,772 | | |
Retained Earnings (Accumulated Deficit)
|
| | | | 2,506,354 | | | | | | (19,003,634) | | | | | | (16,497,280) | | |
Total Stockholders’ Equity
|
| | | | 5,000,008 | | | | | | — | | | | | | 5,000,008 | | |
Number of Class A common stock subject to redemption
|
| | | | 66,673,530 | | | | | | (5,579,751) | | | | | | 61,093,779 | | |
Balance sheet as of December 31, 2019 (audited) | | | | | | | | | | | | | | | | | | | |
Total Liabilities
|
| | | $ | 21,638,123 | | | | | $ | 56,360,000 | | | | | $ | 77,998,123 | | |
Class A Common Stock Subject to Possible Redemption
|
| | | | 671,198,229 | | | | | | (56,360,000) | | | | | | 614,838,229 | | |
Class A Common Stock
|
| | | | 238 | | | | | | 559 | | | | | | 797 | | |
Additional Paid-in Capital
|
| | | | 305,001 | | | | | | 19,375,075 | | | | | | 19,680,076 | | |
Retained Earnings (Accumulated Deficit)
|
| | | | 4,693,042 | | | | | | (19,375,634) | | | | | | (14,682,592) | | |
Total Stockholders’ Equity
|
| | | | 5,000,006 | | | | | | — | | | | | | 5,000,006 | | |
Number of Class A common stock subject to redemption
|
| | | | 66,619,951 | | | | | | (5,594,026) | | | | | | 61,025,925 | | |
Balance sheet as of March 31, 2020 (unaudited) | | | | | | | | | | | | | | | | | | | |
Total Liabilities
|
| | | $ | 21,805,994 | | | | | $ | 66,706,000 | | | | | $ | 88,511,994 | | |
Class A Common Stock Subject to Possible Redemption
|
| | | | 672,720,712 | | | | | | (66,706,000) | | | | | | 606,014,712 | | |
Class A Common Stock
|
| | | | 240 | | | | | | 660 | | | | | | 900 | | |
Additional Paid-in Capital
|
| | | | — | | | | | | 28,503,490 | | | | | | 28,503,490 | | |
Retained Earnings (Accumulated Deficit)
|
| | | | 4,998,044 | | | | | | (28,504,150) | | | | | | (23,506,106) | | |
Total Stockholders’ Equity
|
| | | | 5,000,009 | | | | | | — | | | | | | 5,000,009 | | |
Number of Class A common stock subject to redemption
|
| | | | 66,602,417 | | | | | | (6,604,198) | | | | | | 59,998,219 | | |
Balance sheet as of June 30, 2020 (unaudited) | | | | | | | | | | | | | | | | | | | |
Total Liabilities
|
| | | $ | 21,739,976 | | | | | $ | 111,342,000 | | | | | $ | 133,081,976 | | |
Class A Common Stock Subject to Possible Redemption
|
| | | | 672,594,363 | | | | | | (111,342,000) | | | | | | 561,252,363 | | |
Class A Common Stock
|
| | | | 242 | | | | | | 1,102 | | | | | | 1,344 | | |
Additional Paid-in Capital
|
| | | | 126,347 | | | | | | 73,139,048 | | | | | | 73,265,395 | | |
Retained Earnings (Accumulated Deficit)
|
| | | | 4,871,691 | | | | | | (73,140,150) | | | | | | (68,268,459) | | |
Total Stockholders’ Equity
|
| | | | 5,000,005 | | | | | | — | | | | | | 5,000,005 | | |
Number of Class A common stock subject to redemption
|
| | | | 66,584,915 | | | | | | (11,022,539) | | | | | | 55,562,376 | | |
Balance sheet as of September 30, 2020 (unaudited) | | | | | | | | | | | | | | | | | | | |
Total Liabilities
|
| | | $ | 21,689,446 | | | | | $ | 83,004,000 | | | | | $ | 104,693,446 | | |
| | |
As
Previously Reported |
| |
Adjustments
|
| |
As
Restated |
| |||||||||
Class A Common Stock Subject to Possible Redemption
|
| | | | 672,501,414 | | | | | | (83,004,000) | | | | | | 589,497,414 | | |
Class A Common Stock
|
| | | | 244 | | | | | | 821 | | | | | | 1,065 | | |
Additional Paid-in Capital
|
| | | | 219,294 | | | | | | 44,801,329 | | | | | | 45,020,623 | | |
Retained Earnings (Accumulated Deficit)
|
| | | | 4,778,742 | | | | | | (44,802,150) | | | | | | (40,023,408) | | |
Total Stockholders’ Equity
|
| | | | 5,000,005 | | | | | | — | | | | | | 5,000,005 | | |
Number of Class A common stock subject to redemption
|
| | | | 66,563,478 | | | | | | (8,215,648) | | | | | | 58,347,830 | | |
Balance sheet as of December 31, 2020 (audited) | | | | | | | | | | | | | | | | | | | |
Total Liabilities
|
| | | $ | 23,602,761 | | | | | $ | 129,943,549 | | | | | $ | 153,546,310 | | |
Class A Common Stock Subject to Possible Redemption
|
| | | | 672,322,591 | | | | | | (129,943,551) | | | | | | 542,379,040 | | |
Class A Common Stock
|
| | | | 242 | | | | | | 1,287 | | | | | | 1,529 | | |
Additional Paid-in Capital
|
| | | | 398,119 | | | | | | 91,740,414 | | | | | | 92,138,533 | | |
Retained Earnings (Accumulated Deficit)
|
| | | | 4,599,922 | | | | | | (91,741,699) | | | | | | (87,141,777) | | |
Total Stockholders’ Equity
|
| | | | 5,000,008 | | | | | | 2 | | | | | | 5,000,010 | | |
Number of Class A common stock subject to redemption
|
| | | | 66,580,981 | | | | | | (12,868,479) | | | | | | 53,712,502 | | |
Statement of Operations for the three months ended September 30, 2019 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 2,507,354 | | | | | $ | (19,003,634) | | | | | $ | (16,496,280) | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 66,650,019 | | | | | | (3,811,000) | | | | | | 62,839,019 | | |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | | | 0.04 | | | | | | — | | | | | | 0.04 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 19,549,981 | | | | | | 3,769,576 | | | | | | 23,319,557 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | | 0.00 | | | | | | (0.81) | | | | | | (0.81) | | |
Statement of Operations for the period from April 11, 2019 (inception) to September 30, 2019 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 2,506,354 | | | | | $ | (19,003,634) | | | | | $ | (16,497,280) | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 66,650,019 | | | | | | (3,811,000) | | | | | | 62,839,019 | | |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | | | 0.04 | | | | | | — | | | | | | 0.04 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 17,433,711 | | | | | | 2,016,285 | | | | | | 19,449,996 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | | 0.00 | | | | | | (0.98) | | | | | | (0.98) | | |
Statement of Operations for the period from April 11, 2019 (inception) to December 31, 2019 (audited)
|
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 4,693,042 | | | | | $ | (19,375,634) | | | | | $ | (14,682,592) | | |
| | |
As
Previously Reported |
| |
Adjustments
|
| |
As
Restated |
| |||||||||
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 66,661,839 | | | | | | (4,700,208) | | | | | | 61,961,631 | | |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | | | 0.07 | | | | | | 0.01 | | | | | | 0.08 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 18,180,430 | | | | | | 3,258,099 | | | | | | 21,438,529 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | | (0.01) | | | | | | (0.90) | | | | | | (0.91) | | |
Statement of Operations for the three months ended March 31, 2020 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,522,486 | | | | | $ | (10,346,000) | | | | | $ | (8,823,514) | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 66,619,951 | | | | | | (5,594,026) | | | | | | 61,025,925 | | |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | | | 0.02 | | | | | | — | | | | | | 0.02 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 19,630,049 | | | | | | 5,594,026 | | | | | | 25,224,075 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | | 0.00 | | | | | | (0.41) | | | | | | (0.41) | | |
Statement of Operations for the three months ended June 30, 2020 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (126,353) | | | | | $ | (44,636,000) | | | | | $ | (44,762,353) | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 66,585,251 | | | | | | (6,587,032) | | | | | | 59,998,219 | | |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | | | 0.00 | | | | | | — | | | | | | 0.00 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 19,664,749 | | | | | | 6,587,032 | | | | | | 26,251,781 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | | (0.01) | | | | | | (1.70) | | | | | | (1.71) | | |
Statement of Operations for the six months ended June 30, 2020 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,396,133 | | | | | $ | (54,982,000) | | | | | $ | (53,585,867) | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 66,602,601 | | | | | | (6,090,529) | | | | | | 60,512,072 | | |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | | | 0.02 | | | | | | 0.01 | | | | | | 0.03 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 19,647,399 | | | | | | 6,090,529 | | | | | | 25,737,928 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | | (0.01) | | | | | | (2.13) | | | | | | (2.14) | | |
| | |
As
Previously Reported |
| |
Adjustments
|
| |
As
Restated |
| |||||||||
Statement of Operations for the three months ended September 30, 2020 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | (92,949) | | | | | $ | 28,338,000 | | | | | $ | 28,245,051 | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 66,563,636 | | | | | | (11,001,260) | | | | | | 55,562,376 | | |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | | | 0.00 | | | | | | — | | | | | | 0.00 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 19,686,364 | | | | | | 11,001,260 | | | | | | 30,687,624 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | | 0.00 | | | | | | 0.92 | | | | | | 0.92 | | |
Statement of Operations for the nine months ended September 30, 2020 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,303,184 | | | | | $ | (26,644,000) | | | | | $ | (25,340,816) | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 66,589,518 | | | | | | (7,739,388) | | | | | | 58,850,130 | | |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | | | 0.02 | | | | | | 0.01 | | | | | | 0.03 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 19,660,482 | | | | | | 7,739,388 | | | | | | 27,399,870 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | | (0.02) | | | | | | (0.96) | | | | | | (0.98) | | |
Statement of Operations for the year ended December 31, 2020 (audited)
|
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,124,364 | | | | | $ | (73,583,549) | | | | | $ | (72,459,185) | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 66,592,589 | | | | | | (7,868,720) | | | | | | 58,723,869 | | |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | | | 0.02 | | | | | | 0.01 | | | | | | 0.03 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 19,657,411 | | | | | | 7,868,720 | | | | | | 27,526,131 | | |
Basic and diluted net loss per share, Non-redeemable common stock
|
| | | | (0.02) | | | | | | (2.67) | | | | | | (2.68) | | |
Statement of Cash Flows for the period from April 11, 2019 (inception) to September 30, 2019 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 2,506,354 | | | | | $ | (19,003,634) | | | | | $ | (16,497,280) | | |
Transaction costs attributable to the Initial Public Offering
|
| | | | — | | | | | | (1,125,634) | | | | | | (1,125,634) | | |
Loss on Derivative Liabilities
|
| | | | — | | | | | | (17,878,000) | | | | | | (17,878,000) | | |
Initial classification of Class A common stock
subject to redemption |
| | | | 666,500,190 | | | | | | (38,110,000) | | | | | | 628,390,190 | | |
| | |
As
Previously Reported |
| |
Adjustments
|
| |
As
Restated |
| |||||||||
Change in value of Class A common stock subject
to possible redemption |
| | | | 2,511,349 | | | | | | (17,878,000) | | | | | | (15,366,651) | | |
Statement of Cash Flows for the period from April 11, 2019 (inception) to December 31, 2019 (audited)
|
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 4,693,042 | | | | | $ | (19,375,634) | | | | | $ | (14,682,592) | | |
Transaction costs attributable to the Initial Public Offering
|
| | | | — | | | | | | (1,125,634) | | | | | | (1,125,634) | | |
Loss on Derivative Liabilities
|
| | | | — | | | | | | (18,250,000) | | | | | | (18,250,000) | | |
Initial classification of Class A common stock
subject to redemption |
| | | | 666,500,190 | | | | | | (38,110,000) | | | | | | 628,390,190 | | |
Change in value of Class A common stock subject to
possible redemption |
| | | | 4,698,039 | | | | | | (18,250,000) | | | | | | (13,551,961) | | |
Statement of Cash Flows for the three months ended
March 31, 2020 (unaudited) |
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,522,486 | | | | | $ | (10,346,000) | | | | | $ | (8,823,514) | | |
Loss on Derivative Liabilities
|
| | | | — | | | | | | (10,346,000) | | | | | | (10,346,000) | | |
Change in value of Class A common stock subject to
possible redemption |
| | | | 1,522,483 | | | | | | (10,346,000) | | | | | | (8,823,517) | | |
Statement of Cash Flows for the six months ended
June 30, 2020 (unaudited) |
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,396,133 | | | | | $ | (54,982,000) | | | | | $ | (53,585,867) | | |
Loss on Derivative Liabilities
|
| | | | — | | | | | | (54,982,000) | | | | | | (54,982,000) | | |
Change in value of Class A common stock subject to
possible redemption |
| | | | 1,396,134 | | | | | | (54,982,000) | | | | | | (53,585,866) | | |
Statement of Cash Flows for the nine months ended
September 30, 2020 (unaudited) |
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,303,184 | | | | | $ | (26,644,000) | | | | | $ | (25,340,816) | | |
Loss on Derivative Liabilities
|
| | | | — | | | | | | (26,644,000) | | | | | | (26,644,000) | | |
Change in value of Class A common stock subject to
possible redemption |
| | | | 1,303,185 | | | | | | (26,644,000) | | | | | | (25,340,815) | | |
Statement of Cash Flows for the year ended
December 31, 2020 (audited) |
| | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 1,124,364 | | | | | $ | (73,583,549) | | | | | $ | (72,459,185) | | |
Loss on Derivative Liabilities
|
| | | | — | | | | | | (73,583,549) | | | | | | (73,583,549) | | |
Change in value of Class A common stock subject to
possible redemption |
| | | | 1,124,362 | | | | | | (73,583,551) | | | | | | (72,459,189) | | |
| | |
Year Ended
December 31, 2020 |
| |
For the Period
from April 11, 2019 (Inception) Through December 31, 2019 |
| ||||||
Class A Common Stock Subject to Possible Redemption | | | | | | | | | | | | | |
Numerator: Earnings allocable to Class A common stock subject to possible
redemption |
| | | | | | | | | | | | |
Interest income
|
| | | $ | 1,959,040 | | | | | $ | 6,410,370 | | |
Unrealized gain on investments held in Trust Account
|
| | | | 993 | | | | | | 44,401 | | |
Less: Company’s portion available to be withdrawn to pay taxes
|
| | | | (534,953) | | | | | | (1,344,722) | | |
Less: Company’s portion available to be withdrawn for working capital purposes
|
| | | | (194,600) | | | | | | (241,375) | | |
Net income allocable to Class A common stock subject to possible redemption
|
| | |
$
|
1,230,480
|
| | | |
$
|
4,868,674
|
| |
Denominator: Weighted average Class A common stock subject to possible redemption
|
| | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | |
|
58,723,869
|
| | | |
|
61,961,631
|
| |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | |
$
|
0.02
|
| | | |
$
|
0.08
|
| |
Non-Redeemable Common Stock | | | | | | | | | | | | | |
Numerator: Net loss minus net earnings | | | | | | | | | | | | | |
Net loss
|
| | | $ | (72,459,185) | | | | | $ | (14,682,592) | | |
Less: Income attributable to Class A common stock subject to possible redemption
|
| | | | (1,230,480) | | | | | | (4,868,674) | | |
Non-redeemable net loss
|
| | |
$
|
(73,689,665)
|
| | | |
$
|
(19,551,226)
|
| |
Denominator: Weighted Average Non-redeemable common stock | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Non-redeemable Common stock
|
| | |
|
27,526,131
|
| | | |
|
21,438,529
|
| |
Basic and diluted net loss per common share, Non-redeemable common stock
|
| | | $ | (2.68) | | | | | $ | (0.91) | | |
|
Fair value as of January 1, 2020
|
| | | $ | — | | |
|
Initial measurement on November 2, 2020
|
| | | | 1,493,877 | | |
|
Change in valuation inputs and other assumptions
|
| | | | 110,482 | | |
|
Fair value as of December 31, 2020
|
| | | $ | 1,604,359 | | |
|
Fair value as of January 1, 2020
|
| | | $ | — | | |
|
Initial measurement on October 12, 2020
|
| | | | 71,969,454 | | |
|
Change in valuation inputs and other assumptions
|
| | | | (21,488,264) | | |
|
Fair value as of December 31, 2020
|
| | | $ | 50,481,190 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Deferred tax asset (liability) | | | | | | | | | | | | | |
Startup and organizational expenses
|
| | | $ | 148,348 | | | | | $ | — | | |
Unrealized gain on marketable securities
|
| | | | (976) | | | | | | (9,657) | | |
Total deferred tax asset (liability)
|
| | | | 147,372 | | | | | | (9,657) | | |
Valuation Allowance
|
| | | | (148,348) | | | | | | — | | |
Deferred tax asset (liability), net of allowance
|
| | | $ | (976) | | | | | $ | (9,657) | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Federal | | | | | | | | | | | | | |
Current expense
|
| | | $ | 495,442 | | | | | $ | 1,237,860 | | |
Deferred (benefit) expense
|
| | | | (157,029) | | | | | | 9,657 | | |
State and Local | | | | | | | | | | | | | |
Current
|
| | | | — | | | | | | — | | |
Deferred
|
| | | | — | | | | | | — | | |
Change in valuation allowance
|
| | | | 148,348 | | | | | | — | | |
Income tax provision
|
| | | $ | 486,761 | | | | | $ | 1,247,517 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Statutory federal income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal tax benefit
|
| | | | 0.0% | | | | | | 0.0% | | |
Transaction costs attributable to Initial Public Offering
|
| | | | 0.0% | | | | | | (1.8)% | | |
Loss on conversion option liability
|
| | | | (0.5)% | | | | | | 0.0% | | |
Loss on warrant liability
|
| | | | (6.3)% | | | | | | (28.5)% | | |
Loss on Prosus agreement
|
| | | | (14.7)% | | | | | | 0.0% | | |
Valuation allowance
|
| | | | (0.2)% | | | | | | 0.0% | | |
Income tax provision
|
| | | | (0.7)% | | | | | | (9.3)% | | |
Description
|
| |
Level
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Cash and marketable securities held in Trust Account
|
| | | | 1 | | | | | $ | 696,957,196 | | | | | $ | 695,295,418 | | |
Liabilities: Warrant Liabilities – Public Warrants
|
| | | | 1 | | | | | | 45,310,000 | | | | | | 32,660,000 | | |
Warrant Liabilities – Private Placement Warrants
|
| | | | 3 | | | | | | 32,548,000 | | | | | | 23,700,000 | | |
Prosus subscription agreement liability
|
| | | | 3 | | | | | | 50,481,190 | | | | | | — | | |
Conversion option liability
|
| | | | 3 | | | | | | 1,604,359 | | | | | | — | | |
| | |
Private Placement
|
| |
Public
|
| |
Warrant Liabilities
|
| |||||||||
Fair value as of April 11, 2019 (inception)
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial measurement on July 1, 2019
|
| | | | 15,800,000 | | | | | | 22,310,000 | | | | | | 38,110,000 | | |
Change in valuation inputs or other assumptions
|
| | | | 7,900,000 | | | | | | 10,350,000 | | | | | | 18,250,000 | | |
Fair value as of December 31, 2019
|
| | | | 23,700,000 | | | | | | 32,660,000 | | | | | | 56,360,000 | | |
Change in valuation inputs and other assumptions
|
| | | | 8,848,000 | | | | | | 12,650,000 | | | | | | 21,498,000 | | |
Fair value as of December 31, 2020
|
| | | $ | 32,548,000 | | | | | $ | 45,310,000 | | | | | $ | 77,858,000 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | |||||
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 2,382,560 | | | | | $ | 3,873,865 | | |
Prepaid expenses
|
| | | | 111,174 | | | | | | 94,299 | | |
Total Current Assets
|
| | | | 2,493,734 | | | | | | 3,968,164 | | |
Marketable securities held in Trust Account
|
| | | | 697,018,229 | | | | | | 696,957,196 | | |
TOTAL ASSETS
|
| | | $ | 699,511,963 | | | | | $ | 700,925,360 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 745,986 | | | | | $ | 635,483 | | |
Income taxes payable
|
| | | | 98,700 | | | | | | 95,302 | | |
Convertible promissory note – related party
|
| | | | 3,132,013 | | | | | | 3,104,359 | | |
Total Current Liabilities
|
| | | | 3,976,699 | | | | | | 3,835,144 | | |
Deferred income tax payable
|
| | | | — | | | | | | 976 | | |
Deferred underwriting fee payable
|
| | | | 21,371,000 | | | | | | 21,371,000 | | |
Derivative liabilities
|
| | | | 85,044,413 | | | | | | 128,339,190 | | |
Total Liabilities
|
| | | | 110,392,112 | | | | | | 153,546,310 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption, 57,909,708 and 53,712,502 shares at redemption value at as of March 31, 2021 and December 31, 2020, respectively
|
| | | | 584,119,845 | | | | | | 542,379,040 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued
or outstanding |
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 11,090,292 and 15,287,498 shares issued and outstanding (excluding 57,909,708 and 53,712,502 shares subject to possible redemption) at March 31, 2021 and December 31, 2020, respectively
|
| | | | 1,109 | | | | | | 1,529 | | |
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 17,250,000 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively
|
| | | | 1,725 | | | | | | 1,725 | | |
Additional paid-in capital
|
| | | | 50,398,148 | | | | | | 92,138,533 | | |
Accumulated deficit
|
| | | | (45,400,976) | | | | | | (87,141,777) | | |
Total Stockholders’ Equity
|
| | | | 5,000,006 | | | | | | 5,000,010 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 699,511,963 | | | | | $ | 700,925,360 | | |
| | |
Three Months Ended
March 31, 2021 |
| |
Three Months Ended
March 31, 2020 |
| ||||||
Operating and formation costs
|
| | | $ | 1,584,933 | | | | | $ | 301,863 | | |
Loss from operations
|
| | | | (1,584,933) | | | | | | (301,863) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 59,701 | | | | | | 2,250,075 | | |
Gain (loss) on derivative liabilities
|
| | | | 43,267,123 | | | | | | (10,346,000) | | |
Unrealized gain (loss) on marketable securities held in Trust Account
|
| | | | 1,332 | | | | | | (20,917) | | |
Other income, net
|
| | | | 43,328,156 | | | | | | (8,116,842) | | |
Income (loss) before income taxes
|
| | | | 41,743,223 | | | | | | (8,418,705) | | |
Provision for income taxes
|
| | | | (2,422) | | | | | | (404,809) | | |
Net income (loss)
|
| | | $ | 41,740,801 | | | | | $ | (8,823,514) | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to redemption
|
| | | | 53,712,502 | | | | | | 61,025,925 | | |
Basic and diluted net income per share, Class A common stock subject
to redemption |
| | | $ | 0.00 | | | | | $ | 0.02 | | |
Basic and diluted weighted average shares outstanding, Non-redeemable common stock
|
| | | | 32,537,498 | | | | | | 25,224,075 | | |
Basic and diluted net income (loss) per share, Non-redeemable common
stock |
| | | $ | 1.28 | | | | | $ | (0.41) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2021
|
| | | | 15,287,498 | | | | | $ | 1,529 | | | | | | 17,250,000 | | | | | $ | 1,725 | | | | | $ | 92,138,533 | | | | | $ | (87,141,777) | | | | | $ | 5,000,010 | | |
Change in value of common stock
subject to redemption |
| | | | (4,197,206) | | | | | | (420) | | | | | | — | | | | | | — | | | | | | (41,740,385) | | | | | | — | | | | | | (41,740,805) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 41,740,801 | | | | | | 41,740,801 | | |
Balance – March 31, 2021
|
| | | | 11,090,292 | | | | | $ | 1,109 | | | | | | 17,250,000 | | | | | $ | 1,725 | | | | | $ | 50,398,148 | | | | | $ | (45,400,976) | | | | | $ | 5,000,006 | | |
| | |
Class A Common Stock
|
| |
Class B Common Stock
|
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2020
|
| | | | 7,974,075 | | | | | $ | 797 | | | | | | 17,250,000 | | | | | $ | 1,725 | | | | | $ | 19,680,076 | | | | | $ | (14,682,592) | | | | | $ | 5,000,006 | | |
Change in value of common stock subject to redemption
|
| | | | 1,027,706 | | | | | | 103 | | | | | | — | | | | | | — | | | | | | 8,823,414 | | | | | | — | | | | | | 8.823.517 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,823,514) | | | | | | (8,823,514) | | |
Balance – March 31, 2020
|
| | | | 9,001,781 | | | | | $ | 900 | | | | | | 17,250,000 | | | | | $ | 1,725 | | | | | $ | 28,503,490 | | | | | $ | (23,506,106) | | | | | $ | 5,000,009 | | |
| | |
Three Months Ended
March 31, 2021 |
| |
Three Months Ended
March 31, 2020 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 41,740,801 | | | | | $ | (8,823,514) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (59,701) | | | | | | (2,250,075) | | |
(Gain) loss on derivative liabilities
|
| | | | (43,267,123) | | | | | | 10,346,000 | | |
Unrealized gain on marketable securities held in Trust Account
|
| | | | (1,332) | | | | | | 20,917 | | |
Deferred income tax benefit
|
| | | | (976) | | | | | | (14,050) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses and other current assets
|
| | | | (16,875) | | | | | | (12,950) | | |
Prepaid income taxes
|
| | | | — | | | | | | 27,140 | | |
Accounts payable and accrued expenses
|
| | | | 110,503 | | | | | | (54,191) | | |
Income taxes payable
|
| | | | 3,398 | | | | | | 231,719 | | |
Net cash used in operating activities
|
| | | | (1,491,305) | | | | | | (529,004) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Cash withdrawn from Trust Account to pay for franchise and income taxes
|
| | | | — | | | | | | 305,250 | | |
Net cash provided by investing activities
|
| | | | — | | | | |
|
305,250
|
| |
Net Change in Cash
|
| | | | (1,491,305) | | | | | | (223,754) | | |
Cash – Beginning of period
|
| | | | 3,873,865 | | | | | | 2,238,275 | | |
Cash – End of period
|
| | | $ | 2,382,560 | | | | | $ | 2,014,521 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 373,000 | | | | | $ | 160,000 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Change in value of Class A common stock subject to possible redemption
|
| | | $ | (30,718,384) | | | | | $ | (8,823,517) | | |
| | |
Three Months
Ended March 31, 2021 |
| |
Three Months
Ended March 31, 2020 |
| ||||||
Class A common stock subject to possible redemption | | | | | | | | | | | | | |
Numerator: Earnings allocable to Class A common stock subject to possible redemption
|
| | | | | | | | | | | | |
Interest income
|
| | | $ | 50,107 | | | | | $ | 1,956,529 | | |
Unrealized gain (loss) on investments held in Trust Account
|
| | | | 1,118 | | | | | | (18,188) | | |
Less: Company’s portion available to be withdrawn to pay taxes
|
| | | | (43,998) | | | | | | (395,474) | | |
Less: Company’s portion available to be withdrawn for working capital purposes
|
| | | | (7,227) | | | | | | (217,385) | | |
Net income allocable to Class A common stock subject to possible redemption
|
| | |
$
|
—
|
| | | |
$
|
1,325,482
|
| |
Denominator: Weighted Average Class A common stock subject to possible redemption
|
| | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | |
|
53,712,502
|
| | | |
|
61,025,925
|
| |
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | |
$
|
0.00
|
| | | |
$
|
0.02
|
| |
Non-Redeemable Common Stock | | | | | | | | | | | | | |
Numerator: Net Income (Loss) minus Net Earnings | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 41,740,801 | | | | | $ | (8,823,514) | | |
Less: Income allocable to Class A common stock subject to possible redemption
|
| | | | — | | | | | | (1,325,482) | | |
Non-Redeemable Net Income (Loss)
|
| | |
$
|
41,740,801
|
| | | |
$
|
(10,148,996)
|
| |
Denominator: Weighted Average Non-redeemable Common stock | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Non-redeemable Common stock
|
| | |
|
32,537,498
|
| | | |
|
25,224,075
|
| |
Basic and diluted net income (loss) per share, Non-redeemable Common stock
|
| | | $ | 1.28 | | | | | $ | (0.40) | | |
|
Fair value as of January 1, 2021
|
| | | $ | 1,604,359 | | |
|
Change in valuation inputs and other assumptions
|
| | | | 27,624 | | |
|
Fair value as of March 31, 2021
|
| | | $ | 1,632,013 | | |
|
Fair value as of January 1, 2021
|
| | | $ | 50,481,190 | | |
|
Change in valuation inputs and other assumptions
|
| | | | (25,948,777) | | |
|
Fair value as of March 31, 2021
|
| | | $ | 24,532,413 | | |
Description
|
| |
Level
|
| |
March 31,
2021 |
| |
December 31,
2020 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account
|
| | | | 1 | | | | | $ | 697,018,229 | | | | | $ | 696,957,196 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Warrant liability – Public Warrants
|
| | | | 1 | | | | | | 33,810,000 | | | | | | 45,310,000 | | |
Warrant liability – Private Placement Warrants
|
| | | | 3 | | | | | | 26,702,000 | | | | | | 32,548,000 | | |
Prosus Agreement liability
|
| | | | 3 | | | | | | 24,532,413 | | | | | | 50,481,190 | | |
Conversion option liability
|
| | | | 3 | | | | | | 1,632,013 | | | | | | 1,604,359 | | |
| | |
At
issuance |
| |
As of
March 31, 2021 |
| ||||||
Exercise price
|
| | | $ | 11.50 | | | | | $ | 11.50 | | |
Stock price
|
| | | $ | 9.68 | | | | | $ | 10.00 | | |
Volatility
|
| | | | 16.5% | | | | | | 25% | | |
Probability of completing a Business Combination
|
| | | | 80.0% | | | | | | 90% | | |
Term
|
| | | | 5.33 | | | | | | 5.08 | | |
Risk-free rate
|
| | | | 1.86% | | | | | | 0.94% | | |
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | |
| | |
At
inception |
| |
As of
March 31, 2021 |
| ||||||
Exercise price
|
| | | $ | 400.0M | | | | | $ | 500.0M | | |
Underlying value
|
| | | $ | 436.8M | | | | | $ | 524.5M | | |
Volatility
|
| | | | 40.0% | | | | | | N/A | | |
Term
|
| | | | 0.55 | | | | | | 0.08 | | |
Risk-free rate
|
| | | | 0.12% | | | | | | 0.08% | | |
Dividend yield
|
| | | | 0.00% | | | | | | N/A | | |
| | |
At
issuance |
| |
As of
March 31, 2021 |
| ||||||
Exercise price
|
| | | $ | 1.00 | | | | | $ | 1.00 | | |
Underlying warrant value
|
| | | $ | 1.92* | | | | | $ | 2.09* | | |
Volatility
|
| | | | 125.0% | | | | | | 115.0% | | |
Number of Class A Shares
|
| | | | 1.5M% | | | | | | 1.5M% | | |
Term
|
| | | | 0.28 | | | | | | 0.08 | | |
Risk-free rate
|
| | | | 0.09% | | | | | | 0.01% | | |
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | |
| | |
At
issuance |
| |
As of March 31,
2021 |
| ||||||
Exercise price
|
| | | $ | 11.50 | | | | | $ | 11.50 | | |
Stock price
|
| | | $ | 9.97 | | | | | $ | 10.00 | | |
Volatility
|
| | | | 30.0% | | | | | | 25% | | |
| | |
At
issuance |
| |
As of March 31,
2021 |
| ||||||
Probability of completing a Business Combination
|
| | | | 85.0% | | | | | | 90% | | |
Term
|
| | | | 5.28 | | | | | | 5.08 | | |
Risk-free rate
|
| | | | 0.41% | | | | | | 0.94% | | |
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | |
| | |
Private Placement
Warrants |
| |
Public
Warrants |
| |
Warrant Liabilities
|
| |||||||||
January 1, 2021
|
| | | $ | 32,548,000 | | | | | $ | 45,310,000 | | | | | $ | 77,858,000 | | |
Change in valuation inputs or other assumptions
|
| | | | (5,846,000) | | | | | | (11,500,000) | | | | | | (17,346,000) | | |
Fair value as of March 31, 2021
|
| | | | 26,702,000 | | | | | | 33,810,000 | | | | | | 60,512,000 | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||
| | |
January 31,
2021 |
| | |
January 31,
2020 |
| ||||||
ASSETS | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 71,479 | | | | | | $ | 18,799 | | |
Restricted cash
|
| | | | 2,964 | | | | | | | 15,005 | | |
Accounts receivable, less reserves of approximately $294 and $696 as of January 31, 2021 and January 31, 2020, respectively
|
| | | | 179,784 | | | | | | | 193,024 | | |
Prepaid expenses and other current assets
|
| | | | 30,326 | | | | | | | 36,422 | | |
Total current assets
|
| | | | 284,553 | | | | | | | 263,250 | | |
Property and equipment, net
|
| | | | 13,780 | | | | | | | 17,902 | | |
Goodwill
|
| | | | 495,004 | | | | | | | 1,253,822 | | |
Intangible assets, net
|
| | | | 728,633 | | | | | | | 434,985 | | |
Right of use assets
|
| | | | 15,131 | | | | | | | — | | |
Other assets
|
| | | | 8,636 | | | | | | | 16,306 | | |
Total assets
|
| | | $ | 1,545,737 | | | | | | $ | 1,986,265 | | |
LIABILITIES AND SHAREHOLDER’S EQUITY (DEFICIT) | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | |
Current maturities of long-term debt
|
| | | $ | 5,200 | | | | | | $ | 981,998 | | |
Borrowings under accounts receivable facility
|
| | | | 17,022 | | | | | | | 84,786 | | |
Loan amounts due to Predecessor parent company
|
| | | | — | | | | | | | 2,188,938 | | |
Accrued interest due to Predecessor parent company
|
| | | | — | | | | | | | 1,067,132 | | |
Accounts payable
|
| | | | 7,425 | | | | | | | 14,947 | | |
Accrued compensation
|
| | | | 36,375 | | | | | | | 24,576 | | |
Accrued expenses and other current liabilities
|
| | | | 23,125 | | | | | | | 29,267 | | |
Lease liabilities
|
| | | | 4,740 | | | | | | | — | | |
Deferred revenue
|
| | | | 257,549 | | | | | | | 307,383 | | |
Total current liabilities
|
| | | | 351,436 | | | | | | | 4,699,027 | | |
Long-term debt
|
| | | | 510,236 | | | | | | | — | | |
Deferred tax liabilities
|
| | | | 81,008 | | | | | | | 37,623 | | |
Long term lease liabilities
|
| | | | 13,155 | | | | | | | — | | |
Deferred revenue – non-current
|
| | | | 3,035 | | | | | | | 3,787 | | |
Other long-term liabilities
|
| | | | 6,898 | | | | | | | 7,572 | | |
Total long-term liabilities
|
| | | | 614,332 | | | | | | | 48,982 | | |
Commitments and contingencies
|
| | | | — | | | | | | | — | | |
Shareholders’ equity (deficit): | | | | | | | | | | | | | | |
Predecessor Shareholder’s ordinary shares, $1.38 par value: 1,000,000 shares authorized at
January 31, 2020; 100,100 shares issued and outstanding at January 31, 2020 |
| | | | — | | | | | | | 138 | | |
Successor Shareholders’ common stock- Class A and Class B common shares, $0.01 par value: 1,000,000,000 shares authorized (800,000,000 Class A, 200,000,000 Class B) at January 31, 2021; 4,000,000 shares issued and outstanding (3,840,000 Class A, 160,000 Class B) at January 31, 2021
|
| | | | 40 | | | | | | | — | | |
Additional paid-in capital
|
| | | | 674,333 | | | | | | | 83 | | |
Accumulated deficit
|
| | | | (93,722) | | | | | | | (2,761,499) | | |
Accumulated other comprehensive loss
|
| | | | (682) | | | | | | | (466) | | |
Total shareholders’ equity (deficit)
|
| | | | 579,969 | | | | | | | (2,761,744) | | |
Total liabilities and shareholders’ equity (deficit)
|
| | | $ | 1,545,737 | | | | | | $ | 1,986,265 | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||||||||
| | |
August 28,
2020 through January 31, 2021 |
| | |
February 1,
2020 through August 27, 2020 |
| |
Year ended
January 31, 2020 |
| |
Year ended
January 31, 2019 |
| ||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues
|
| | | $ | 108,768 | | | | | | $ | 273,851 | | | | | $ | 514,021 | | | | | $ | 534,141 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenues
|
| | | | 40,898 | | | | | | | 52,160 | | | | | | 96,044 | | | | | | 98,636 | | |
Content and software development
|
| | | | 30,028 | | | | | | | 38,986 | | | | | | 67,951 | | | | | | 57,332 | | |
Selling and marketing
|
| | | | 55,285 | | | | | | | 75,028 | | | | | | 140,785 | | | | | | 150,179 | | |
General and administrative
|
| | | | 21,636 | | | | | | | 37,455 | | | | | | 57,356 | | | | | | 51,421 | | |
Recapitalization and transaction-related costs
|
| | | | 15,928 | | | | | | | 32,099 | | | | | | 16,244 | | | | | | — | | |
Amortization of intangible assets
|
| | | | 39,824 | | | | | | | 34,378 | | | | | | 96,359 | | | | | | 151,752 | | |
Impairment of goodwill and intangible assets
|
| | | | — | | | | | | | 332,376 | | | | | | 440,598 | | | | | | 16,094 | | |
Restructuring
|
| | | | 4,341 | | | | | | | 1,179 | | | | | | 1,900 | | | | | | 2,073 | | |
Total operating expenses
|
| | | | 207,940 | | | | | | | 603,661 | | | | | | 917,237 | | | | | | 527,487 | | |
Operating (loss) income
|
| | | | (99,172) | | | | | | | (329,810) | | | | | | (403,216) | | | | | | 6,654 | | |
Other income (expense), net
|
| | | | 3,452 | | | | | | | 1,273 | | | | | | (1,058) | | | | | | (3,340) | | |
Loss on derivative instruments
|
| | | | — | | | | | | | (5) | | | | | | (4,062) | | | | | | (2,284) | | |
Interest income
|
| | | | 24 | | | | | | | 105 | | | | | | 306 | | | | | | 687 | | |
Interest expense, net
|
| | | | (19,960) | | | | | | | (168,341) | | | | | | (429,963) | | | | | | (396,529) | | |
Reorganization items, net
|
| | | | — | | | | | | | 3,329,245 | | | | | | — | | | | | | — | | |
(Loss) income before (benefit) provision for income taxes
|
| | | | (115,656) | | | | | | | 2,832,467 | | | | | | (837,993) | | | | | | (394,812) | | |
(Benefit) provision for income taxes
|
| | | | (21,934) | | | | | | | 68,455 | | | | | | 11,212 | | | | | | 5,027 | | |
Net (loss) income
|
| | | $ | (93,722) | | | | | | $ | 2,764,012 | | | | | $ | (849,205) | | | | | $ | (399,839) | | |
Net loss per share class (Successor only) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss for Class A
|
| | | $ | (89,973) | | | | | | | * | | | | | | * | | | | | | * | | |
Loss on modifications of terms of participation rights held by Class B shareholders and warrants
|
| | | | (5,900) | | | | | | | * | | | | | | * | | | | | | * | | |
Net loss attributable to Class A
|
| | | $ | (95,873) | | | | | | | * | | | | | | * | | | | | | * | | |
| | | | | | | | | | | | * | | | | | | * | | | | | | * | | |
Net loss for Class B
|
| | | $ | (3,749) | | | | | | | * | | | | | | * | | | | | | * |