Purple Innovation, Inc. Files Q2 2024 10-Q Report

TL;DR

Purple Innovation (PRPL) filed its Q2 10-Q. Financials and biz ops detailed.

AI Summary

Purple Innovation, Inc. filed its 10-Q for the quarterly period ended June 30, 2024. The company, incorporated in Delaware, reported its financial status and business operations. Key details regarding its principal executive offices in Lehi, Utah, and its IRS Employer Identification No. 47-4078206 are included in the filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational details of Purple Innovation, Inc. for the second quarter of 2024.

Risk Assessment

Risk Level: medium — As a public company filing a quarterly report, there are inherent risks associated with financial performance and market conditions.

Key Players & Entities

• Purple Innovation, Inc. (company) — Registrant
• June 30, 2024 (date) — Quarterly period ended
• 4100 NORTH CHAPEL RIDGE ROAD SUITE 200 LEHI , UTAH 84043 (address) — Principal executive offices
• 47-4078206 (identifier) — IRS Employer Identification No.
• 001-37523 (identifier) — Commission File Number

FAQ

Key Financial Figures

• $0.0001 — stered Class A Common Stock, par value $0.0001 per share PRPL The NASDAQ Stock Market
• $41.7 million — e of the Company's debt arrangement was $41.7 million. The warrant liabilities (see Note 11

Filing Documents

• ea0209814-10q_purple.htm (10-Q) — 816KB
• ea020981401ex4-3_purple.htm (EX-4.3) — 1KB
• ea020981401ex31-1_purple.htm (EX-31.1) — 15KB
• ea020981401ex31-2_purple.htm (EX-31.2) — 14KB
• ea020981401ex32-1_purple.htm (EX-32.1) — 5KB
• ea020981401ex32-2_purple.htm (EX-32.2) — 6KB
• image_001.jpg (GRAPHIC) — 5KB
• ex4-3_001.jpg (GRAPHIC) — 133KB
• ex4-3_002.jpg (GRAPHIC) — 632KB
• 0001213900-24-065184.txt ( ) — 7025KB
• prpl-20240630.xsd (EX-101.SCH) — 61KB
• prpl-20240630_cal.xml (EX-101.CAL) — 52KB
• prpl-20240630_def.xml (EX-101.DEF) — 319KB
• prpl-20240630_lab.xml (EX-101.LAB) — 558KB
• prpl-20240630_pre.xml (EX-101.PRE) — 324KB
• ea0209814-10q_purple_htm.xml (XML) — 601KB

Signatures

Signatures 37 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) June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 23,408 $ 26,857 Accounts receivable, net 32,083 37,802 Inventories 69,657 66,878 Prepaid expenses 5,368 8,536 Other current assets 886 1,737 Total current assets 131,402 141,810 Property and equipment, net 119,465 128,661 Operating lease right-of-use assets 90,509 95,767 Intangible assets, net 18,711 22,196 Other long-term assets 2,063 2,191 Total assets $ 362,150 $ 390,625 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 37,452 $ 49,831 Accrued compensation 9,186 5,064 Customer prepayments 4,732 5,718 Accrued rebates and allowances 8,635 13,243 Accrued warranty liabilities – current portion 8,141 9,793 Operating lease obligations – current portion 15,122 14,843 Other current liabilities 8,736 12,490 Total current liabilities 92,004 110,982 Related party debt 46,235 — Long-term debt, net of current portion — 26,909 Accrued warranty liabilities, net of current portion 27,291 25,798 Operating lease obligations, net of current portion 102,217 109,094 Warrant liabilities 24,477 — Other long-term liabilities 3,394 2,235 Total liabilities 295,618 275,018 Commitments and contingencies (Note 13) Stockholders' equity: Class A common stock; $ 0.0001 par value, 210,000 shares authorized; 107,503 issued and outstanding at June 30, 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 June 30, 2024 and at December 31, 2023 — — Additional paid-in capital 592,541 591,380 Accumulated deficit ( 526,159 ) ( 475,969 ) Total stockholders' equity attributable to Purple Innovation, Inc. 66,393

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 shares of Class A common stock to Intellibed security holders since the Company's stock price did not meet any of the indicated thresholds during the contingency period. 6 PURPLE INNOVATION, INC. Notes to Condensed Consolidated Financial Statements (unaudited) 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 obs