Skillsoft Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Quarterly Results of Operations (Unaudited) (Tables)

Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Jan. 31, 2022

Quarterly Results of Operations (Unaudited)

On October 28, 2021, the FASB issued ASU 2021 08 – Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021 08”). ASU 2021 08 requires an acquirer in a business combination to recognize and measure deferred revenue from acquired contracts using the revenue recognition guidance in Accounting Standards Codification Topic 606, rather than the prior requirement to record deferred revenue at fair value. ASU 2021 08 allows for immediate adoption on a retrospective basis for all business combinations that have occurred since the beginning of the annual period that includes the interim period of adoption. The Company elected to adopt ASU 2021 08 on a retrospective basis, effective at the beginning of the Successor period on June 11, 2021 which

resulted in changes in the Successor information for the period from June 12, 2021 through July 31, 2021. The revised information for that period is shown below.

The following information has been derived from unaudited consolidated financial statements that, in the opinion of management, includes all normal recurring adjustments necessary for a fair presentation of such information.


	Successor
	Three Months		Three Months		From
	Ended		Ended		June 12, 2021
	January 31, 2022		October 31, 2021		to July 31, 2021
Revenues:
Total revenues	$	166,183	$	170,559	$	91,012
Operating expenses:
Costs of revenues		49,517		48,891		28,006
Content and software development		20,367		16,437		9,878
Selling and marketing		43,938		39,938		22,234
General and administrative		26,811		28,120		17,073
Amortization of intangible assets		38,835		37,064		20,023
Recapitalization and acquisition-related costs		6,512		3,687		9,995
Restructuring		2,603		777		316
Total operating expenses		188,583		174,914		107,525
Operating (loss) income		(22,400)		(4,355)		(16,513)
Other (expense) income, net		(542)		(611)		(697)
Fair value adjustment of warrants		37,164		(36,838)		17,115
Interest income		64		18		12
Interest expense		(7,000)		(7,510)		(9,856)
(Loss) income before (benefit from) provision for income taxes		7,286		(49,296)		(9,939)
(Benefit from) provision for income taxes		(617)		(6,441)		1,915
Net (loss) income		7,903		(42,855)		(11,854)

(Loss) income per share:
Ordinary – Basic and Diluted (Successor)		0.06		(0.32)		(0.09)
Weighted average common share outstanding:
Ordinary – Basic and Diluted (Successor)		133,216		133,116		133,059