Purple Innovation, Inc. Files 10-Q for Quarter Ended March 31, 2024

TL;DR

<b>Purple Innovation, Inc. has filed its Q1 2024 10-Q report, confirming its status as an accelerated filer.</b>

AI Summary

Purple Innovation, Inc. (PRPL) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Purple Innovation, Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024. The company is incorporated in Delaware and its principal executive offices are located in Lehi, Utah. Purple Innovation, Inc. is registered under the ticker symbol PRPL on The NASDAQ Stock Market LLC. The filing indicates the company has been subject to Section 13 or 15(d) filing requirements for the past 90 days. Purple Innovation, Inc. is classified as an accelerated filer and a smaller reporting company.

Why It Matters

For investors and stakeholders tracking Purple Innovation, Inc., this filing contains several important signals. This filing provides the latest financial and operational update for Purple Innovation, Inc., crucial for investors to assess performance and outlook. As an accelerated filer, the company is subject to specific SEC reporting timelines and requirements, indicating a certain level of public float and market capitalization.

Risk Assessment

Risk Level: low — Purple Innovation, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags, indicating routine disclosure.

Analyst Insight

Monitor future 10-Q filings for detailed financial performance, segment revenues, and any changes in risk factors.

Key Numbers

• 001-37523 — Commission File Number (SEC Commission File Number for Purple Innovation, Inc.)
• 47-4078206 — IRS Employer Identification No. (IRS EIN for Purple Innovation, Inc.)
• 20150602 — Date of Name Change (Date Purple Innovation, Inc. changed its name from Global Partner Acquisition Corp.)

Key Players & Entities

• Purple Innovation, Inc. (company) — Registrant name
• PRPL (company) — Trading Symbol
• The NASDAQ Stock Market LLC (company) — Exchange where PRPL is registered
• March 31, 2024 (date) — Quarterly period end date
• 20240507 (date) — Filing date
• Delaware (jurisdiction) — State of incorporation
• Lehi, Utah (location) — Principal executive offices location
• Global Partner Acquisition Corp. (company) — Former company name

FAQ

Industry Context

Purple Innovation, Inc. operates in the household furniture industry, specifically focusing on innovative mattress and sleep product technologies.

Regulatory Implications

The company is subject to standard SEC reporting requirements for public companies, including quarterly filings (10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management's discussion and analysis.
2. Track future SEC filings for updates on revenue, profitability, and strategic initiatives.
3. Analyze any changes in the company's risk factors or business operations disclosed in the report.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-07: Filing Date — Date the 10-Q was filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the previous 10-K filing for fiscal year 2023.

Key Financial Figures

• $0.0001 — stered Class A Common Stock, par value $0.0001 per share PRPL The NASDAQ Stock Market

Filing Documents

• ea0204295-10q_purple.htm (10-Q) — 658KB
• ea020429501ex31-1_purple.htm (EX-31.1) — 12KB
• ea020429501ex31-2_purple.htm (EX-31.2) — 11KB
• ea020429501ex32-1_purple.htm (EX-32.1) — 4KB
• ea020429501ex32-2_purple.htm (EX-32.2) — 3KB
• image_001.jpg (GRAPHIC) — 5KB
• 0001213900-24-040467.txt (&nbsp;) — 5236KB
• prpl-20240331.xsd (EX-101.SCH) — 61KB
• prpl-20240331_cal.xml (EX-101.CAL) — 46KB
• prpl-20240331_def.xml (EX-101.DEF) — 296KB
• prpl-20240331_lab.xml (EX-101.LAB) — 545KB
• prpl-20240331_pre.xml (EX-101.PRE) — 309KB
• ea0204295-10q_purple_htm.xml (XML) — 500KB

Financial Information

Part I. Financial Information 1 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited): 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Stockholders' Equity 3 Condensed Consolidated Statements of Cash Flows 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33 Part II. Other Information 34 Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 34 Item 6. Exhibits 35

Signatures

Signatures 36 i

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS PURPLE INNOVATION, INC. Condensed Consolidated Balance Sheets (unaudited – in thousands, except for par value) March 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 34,477 $ 26,857 Accounts receivable, net 27,742 37,802 Inventories 72,028 66,878 Prepaid expenses 8,480 8,536 Other current assets 1,069 1,737 Total current assets 143,796 141,810 Property and equipment, net 122,468 128,661 Operating lease right-of-use assets 92,643 95,767 Intangible assets, net 21,206 22,196 Other long-term assets 2,015 2,191 Total assets $ 382,128 $ 390,625 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 39,948 $ 49,831 Accrued compensation 9,788 5,064 Customer prepayments 3,994 5,718 Accrued rebates and allowances 8,526 13,243 Accrued warranty liabilities – current portion 8,644 9,793 Operating lease obligations – current portion 14,986 14,843 Other current liabilities 10,020 12,490 Total current liabilities 95,906 110,982 Debt, net of current portion 41,941 26,909 Accrued warranty liabilities, net of current portion 27,315 25,798 Operating lease obligations, net of current portion 105,618 109,094 Warrant liabilities 43,170 — Other long-term liabilities 2,462 2,235 Total liabilities 316,412 275,018 Commitments and contingencies (Note 13) Stockholders' equity: Class A common stock; $ 0.0001 par value, 210,000 shares authorized; 107,480 issued and outstanding at March 31, 2024 and 105,507 issued and outstanding at December 31, 2023 11 11 Class B common stock; $ 0.0001 par value, 90,000 shares authorized; 205 issued and outstanding at March 31, 2024 and at December 31, 2023 — — Additional paid-in capital 591,724 591,380 Accumulated deficit ( 526,186 ) ( 475,969 ) Total stockholders' equity attributable to Purple Innovation, Inc. 65,549 115,422 Noncontrolling inte

financial statements

financial statements. 3. Acquisition The Company acquired Intellibed, a premium sleep and health wellness company, in August 2022. The acquisition date fair value of the consideration transferred for Intellibed was $ 28.2 million. Included in this amount was $ 1.5 million for the fair value of contingent consideration related to 1.5 million shares of Class A common stock issuable to Intellibed security holders if the closing price of the Company's stock did not equal or exceed certain thresholds during the period beginning on the six-month anniversary of the closing date and ending on the 18-month anniversary of the closing date. The contingent shares were valued using a Monte-Carlo simulation model. Because the contingent consideration was payable with a fixed number of shares of the Company's Class A common stock, it was classified as equity and did not require remeasurement in subsequent periods. During March 2024, the Company issued 1.5 million contingent shares to Intellibed security holders since the Company's stock price did not meet any of the indicated thresholds during the contingency period. 4. Fair Value Measurements The Company uses the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1—Quoted market prices in active markets for identical assets or liabilities; Level 2—Significant other observable inputs (i.e., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable, such as interest rate and yield curves, and market-corroborated inputs); and Level 3—Unobservable i