|
Rohan Ajila
|
| | | |
|
Gautham Pai
Co-Chairman of the Board of Directors |
| | | |
|
Global Consumer Acquisition Corp.
[•], 2022 |
| | | |
|
Rohan Ajila
|
| | | |
|
Gautham Pai
Co-Chairman of the Board of Directors |
| | | |
|
Global Consumer Acquisition Corp.
[•], 2022 |
| | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 3 | | | |
| | | | | 14 | | | |
| | | | | 26 | | | |
| | | | | 28 | | | |
| | | | | 69 | | | |
| | | | | 81 | | | |
| | | | | 82 | | | |
| | | | | 88 | | | |
| | | | | 106 | | | |
| | | | | 130 | | | |
| | | | | 133 | | | |
| | | | | 136 | | | |
| | | | | 138 | | | |
| | | | | 140 | | | |
| | | | | 145 | | | |
| | | | | 146 | | | |
| | | | | 155 | | | |
| | | | | 159 | | | |
| | | | | 165 | | | |
| | | | | 171 | | | |
| | | | | 186 | | | |
| | | | | 199 | | | |
| | | | | 216 | | | |
| | | | | 220 | | | |
| | | | | 227 | | | |
| | | | | 232 | | | |
| | | | | 239 | | | |
| | | | | 246 | | | |
| | | | | 247 | | | |
| | | | | 247 | | | |
| | | | | 247 | | | |
| | | | | 247 | | | |
| | | | | 247 | | | |
| | | | | 247 | | | |
| EXPERTS | | | | | 248 | | |
| | | | | F-1 | | |
| | |
Luminex
(Historical) |
| |
GP Global
(Historical) |
| |
GACQ
(Historical) |
| |
Pro Forma
Adjustments Assuming Minimum Redemption |
| | | | |
Pro Forma
Combined Assuming Minimum Redemption |
| |
Pro Forma
Adjustments Assuming Maximum Redemption |
| | | | |
Pro Forma
Combined Assuming Maximum Redemption |
| |||||||||||||||||||||
ASSETS
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ` | | | | | | | | | | | |
Current assets:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 8,414 | | | | | | 15,084 | | | | | $ | 251 | | | | | $ | 183,556 | | | |
A
|
| | | $ | 100,780 | | | | | $ | (100,780) | | | |
M
|
| | | $ | — | | |
| | | | | | | | | | | | | | | | | | | | | | | (5,935) | | | |
B
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (6,000) | | | |
C
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 100,000 | | | |
F
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (200,000) | | | |
H
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 5,410 | | | |
L
|
| | | | | | | | | | | | | | | | | | | | | |
Restricted cash
|
| | | | | | | | | | 30,016 | | | | | | | | | | | | | | | | | | | | | 30,016 | | | | | | | | | | | | | | | 30,016 | | |
Accounts receivable
|
| | | | 20,934 | | | | | | 13,344 | | | | | | 388 | | | | | | | | | | | | | | | 34,666 | | | | | | | | | | | | | | | 34,666 | | |
Inventories
|
| | | | 89,181 | | | | | | 27,907 | | | | | | | | | | | | | | | | | | | | | 117,088 | | | | | | | | | | | | | | | 117,088 | | |
Prepaid expenses and other current assets
|
| | | | 13,167 | | | | | | 5,885 | | | | | | 51 | | | | | | | | | | | | | | | 19,103 | | | | | | | | | | | | | | | 19,103 | | |
Total current assets
|
| | | | 131,696 | | | | | | 92,236 | | | | | | 690 | | | | | | 77,031 | | | | | | | | | 301,653 | | | | | | (100,780) | | | | | | | | | 200,873 | | |
Non-current assets:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and investments held in Trust Account
|
| | | | — | | | | | | — | | | | | | 183,556 | | | | | | (183,556) | | | |
A
|
| | | | — | | | | | | | | | | | | | | | — | | |
Investments
|
| | | | — | | | | | | 26 | | | | | | — | | | | | | | | | | | | | | | 26 | | | | | | | | | | | | | | | 26 | | |
Intangible assets, net
|
| | | | 5,346 | | | | | | 230 | | | | | | | | | | | | | | | | | | | | | 5,576 | | | | | | | | | | | | | | | 5,576 | | |
Equity accounted investments
|
| | | | | | | | | | 1,922 | | | | | | | | | | | | | | | | | | | | | 1,922 | | | | | | | | | | | | | | | 1,922 | | |
Deferred income tax asset
|
| | | | 3,902 | | | | | | | | | | | | | | | | | | 2,986 | | | |
K
|
| | | | 6,888 | | | | | | | | | | | | | | | 6,888 | | |
Property and equipment, net
|
| | | | 32,713 | | | | | | 29,463 | | | | | | | | | | | | | | | | | | | | | 62,176 | | | | | | | | | | | | | | | 62,176 | | |
Identified tangible and intangible assets and goodwill
|
| | | | | | | | | | | | | | | | | | | | | | 178,445 | | | |
I, J
|
| | | | 178,445 | | | | | | | | | | | | | | | 178,445 | | |
Other non-current assets
|
| | | | 4,405 | | | | | | 3,891 | | | | | | | | | | | | | | | | | | | | | 8,296 | | | | | | | | | | | | | | | 8,296 | | |
Total non-current assets
|
| | | | 46,366 | | | | | | 35,532 | | | | | | 183,556 | | | | | | (2,125) | | | | | | | | | 263,329 | | | | | | — | | | | | | | | | 263,329 | | |
TOTAL ASSETS
|
| | | $ | 178,062 | | | | | $ | 127,768 | | | | |
$
|
184,246
|
| | | |
$
|
74,906
|
| | | | | | |
$
|
564,982
|
| | | | $ | (100,780) | | | | | | | | $ | 464,202 | | |
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 36,546 | | | | | $ | 32,239 | | | | |
$
|
|
| | | | $ | | | | | | | |
$
|
68,785
|
| | | | $ | | | | | | | | $ | 68,785 | | | ||
Accounts payable – related party
|
| | | | 4,116 | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,116 | | | | | | | | | | | | | | | 4,116 | | |
Short-term debt
|
| | | | 787 | | | | | | 65,337 | | | | | | | | | | | | (26,337) | | | |
E
|
| | | | 39,787 | | | | | | | | | | | | | | | 39,787 | | |
Other current liablities
|
| | | | 26,034 | | | | | | 27,178 | | | | | | 16 | | | | | | | | | | | | | | | 53,228 | | | | | | | | | | | | | | | 53,228 | | |
Total current liabilities
|
| | | | 67,483 | | | | | | 124,754 | | | | | | 16 | | | | | | (26,337) | | | | | | | | | 165,916 | | | | | | | | | | | | | | | 165,916 | | |
| | |
Luminex
(Historical) |
| |
GP Global
(Historical) |
| |
GACQ
(Historical) |
| |
Pro Forma
Adjustments Assuming Minimum Redemption |
| | | | |
Pro Forma
Combined Assuming Minimum Redemption |
| |
Pro Forma
Adjustments Assuming Maximum Redemption |
| | | | |
Pro Forma
Combined Assuming Maximum Redemption |
| |||||||||||||||||||||
Non-current liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-term debt
|
| | | | 74,891 | | | | | | 146,370 | | | | | | | | | | | | (58,370) | | | |
E
|
| | | | 162,891 | | | | | | | | | | | | | | | 162,891 | | |
Employee compensation and benefits
|
| | | | | | | | | | 539 | | | | | | | | | | | | | | | | | | | | | 539 | | | | | | | | | | | | | | | 539 | | |
Other non-current liabilities
|
| | | | 13,536 | | | | | | 547 | | | | | | | | | | | | | | | | | | | | | 14,083 | | | | | | | | | | | | | | | 14,083 | | |
Deferred tax liabilities, net
|
| | | | 597 | | | | | | 137 | | | | | | | | | | | | | | | | | | | | | 734 | | | | | | | | | | | | | | | 734 | | |
Warrant liability
|
| | | | | | | | | | | | | | | | 4,406 | | | | | | | | | | | | | | | 4,406 | | | | | | | | | | | | | | | 4,406 | | |
Deferred underwriting fees
payable |
| | | | | | | | | | | | | | | | 5,935 | | | | | | (5,935) | | | |
B
|
| | | | — | | | | | | | | | | | | | | | — | | |
Total non-current liabilities
|
| | | | 89,024 | | | | | | 147,593 | | | | | | 10,341 | | | | | | (64,305) | | | | | | | | | 182,653 | | | | | | | | | | | | | | | 182,653 | | |
Total liabilities
|
| | |
|
156,507
|
| | | |
|
272,347
|
| | | |
|
10,357
|
| | | |
|
(90,642)
|
| | | | | | |
|
348,569
|
| | | | | | | | | | | | |
|
348,569
|
| |
COMMITMENTS AND CONTINGENCIES
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Temporary equity:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock subject to possible redemption
|
| | | | | | | | | | | | | | | | 183,543 | | | | | | (183,543) | | | |
D
|
| | | | — | | | | | | | | | | | | | | | — | | |
Shareholders’ equity (deficit):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock
|
| | | | | | | | | | 1,873 | | | | | | 1 | | | | | | (1,873) | | | |
E
|
| | | | 6 | | | | | | (1) | | | |
M
|
| | | | 5 | | |
| | | | | | | | | | | | | | | | | | | | | | | 2 | | | |
E
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 2 | | | |
D
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 1 | | | |
F
|
| | | | | | | | | | | | | | | | | | | | | |
Additional paid-in capital
|
| | | | 107,584 | | | | | | | | | | | | | | | | | | 183,541 | | | |
D
|
| | | | 354,463 | | | | | | (100,779) | | | |
M
|
| | | | 253,684 | | |
| | | | | | | | | | | | | | | | | | | | | | | 86,578 | | | |
E
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (9,655) | | | |
G
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (6,000) | | | |
C
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 99,999 | | | |
F
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (107,584) | | | |
H
|
| | | | | | | | | | | | | | | | | | | | | |
Accumulated other comprehensive income (loss)
|
| | | | 18,830 | | | | | | 3,576 | | | | | | | | | | | | (18,830) | | | |
H
|
| | | | 3,576 | | | | | | | | | | | | | | | 3,576 | | |
Accumulated deficit
|
| | | | (104,859) | | | | | | (143,781) | | | | | | (9,655) | | | | | | 9,655 | | | |
G
|
| | | | (140,795) | | | | | | | | | | | | | | | (140,795) | | |
| | | | | | | | | | | | | | | | | | | | | | | 104,859 | | | |
H
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 2,986 | | | |
K
|
| | | | | | | | | | | | | | | | | | | | | |
Non-controlling interest
|
| | | | | | | | | | (6,247) | | | | | | | | | | | | 5,410 | | | |
L
|
| | | | (837) | | | | | | | | | | | | | | | (837) | | |
Total shareholders’ equity
(deficit) |
| | |
|
21,555
|
| | | |
|
(144,579)
|
| | | |
|
(9,654)
|
| | | |
|
349,091
|
| | | | | | |
|
216,413
|
| | | |
|
(100,780)
|
| | | | | | |
|
115,633
|
| |
TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’
DEFICIT |
| | |
$
|
178,062
|
| | | |
$
|
127,768
|
| | | | $ | 184,246 | | | | | $ | 74,906 | | | | | | | | $ | 564,982 | | | | |
$
|
(100,780)
|
| | | | | | |
$
|
464,202
|
| |
|
| | |
Luminex
(Historical) |
| |
GP Global
(Historical) |
| |
GACQ
(Historical) |
| |
Pro Forma
Adjustments Assuming Minimum and Maximum Redemption |
| | | | | | | |
Pro Forma
Combined Assuming Minimum and Maximum Redemption |
| |||||||||||||||
Revenue:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 215,165 | | | | | $ | 83,570 | | | | | $ | | | | | $ | | | | | | | | | | | $ | 298,735 | | | ||
Cost of revenue
|
| | | | 146,049 | | | | | | 55,462 | | | | | | | | | | | | | | | | | | | | | | | | 201,511 | | |
Gross profit
|
| | | | 69,116 | | | | | | 28,108 | | | | | | | | | | | | | | | | | | | | | | | | 97,224 | | |
Operating costs and expenses:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and
administrative |
| | | | 69,364 | | | | | | 32,332 | | | | | | 250 | | | | | | | | | | | | | | | | | | 101,946 | | |
Restructuring
|
| | | | 240 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 240 | | |
Management fees
|
| | | | 375 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 375 | | |
Total operating costs and
expenses |
| | | | 69,979 | | | | | | 32,332 | | | | | | 250 | | | | | | | | | | | | | | | | | | 102,561 | | |
Loss from operations
|
| | | | (863) | | | | | | (4,224) | | | | | | (250) | | | | | | | | | | | | | | | | | | (5,337) | | |
Other income (expense):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | | | | | | | 54 | | | | | | 12 | | | | | | (12) | | | | | | AA | | | | | | 54 | | |
Interest expense
|
| | | | (4,235) | | | | | | (8,653) | | | | | | | | | | | | | | | | | | | | | | | | (12,888) | | |
Other income, net
|
| | | | 73 | | | | | | 7,043 | | | | | | | | | | | | | | | | | | | | | | | | 7,116 | | |
Foreign exchange
|
| | | | (848) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (848) | | |
Change in fair value of warrant liabilities
|
| | | | | | | | | | | | | | | | 5,376 | | | | | | | | | | | | | | | | | | 5,376 | | |
Transaction costs allocated to warrant liabilities
|
| | | | | | | | | | | | | | | | (451) | | | | | | | | | | | | | | | | | | (451) | | |
Total other income (expense)
|
| | | | (5,010) | | | | | | (1,556) | | | | | | 4,937 | | | | | | (12) | | | | | | | | | | | | (1,641) | | |
Net income (loss) before income tax
provision |
| | | | (5,873) | | | | | | (5,780) | | | | | | 4,687 | | | | | | (12) | | | | | | | | | | | | (6,978) | | |
Income tax provision
|
| | | | 2,986 | | | | | | (1,658) | | | | | | | | | | | | (2,986) | | | | | | BB | | | | | | (1,658) | | |
Net income (loss) before equity method investment
|
| | | | (2,887) | | | | | | (7,438) | | | | | | 4,687 | | | | | | (2,998) | | | | | | | | | | | | (8,636) | | |
Share of profit on equity method investment
|
| | | | | | | | | | 1,128 | | | | | | | | | | | | | | | | | | | | | | | | 1,128 | | |
Net income (loss) after equity method investment
|
| | | | (2,887) | | | | | | (6,310) | | | | | | 4,687 | | | | | | (2,998) | | | | | | | | | | | | (7,508) | | |
Net loss attributable to noncontrolling interest
|
| | | | | | | | | | (474) | | | | | | | | | | | | 410 | | | | | | CC | | | | | | (64) | | |
Net income (loss)
|
| | | $ | (2,887) | | | | | $ | (5,836) | | | | | $ | 4,687 | | | | | $ | (3,408) | | | | | | | | | | | $ | (7,444) | | |
| | |
Luminex
(Historical) |
| |
GP Global
(Historical) |
| |
GACQ
(Historical) |
| |
Assuming
Minimum Redemption |
| |
Assuming
Maximum Redemption |
| |||||||||||||||
Weighted average Common shares outstanding
|
| | | | 50,000 | | | | | | 6,880,000 | | | | | | 12,080,542 | | | | | | 47,615,398 | | | | | | 36,890,933 | | |
Net income (loss) per share, basic and
diluted |
| | | $ | (57.74) | | | | | $ | (0.85) | | | | | $ | 0.39 | | | | | $ | (0.16) | | | | | $ | (0.20) | | |
| | |
Luminex
(Historical) |
| |
GP Global
(Historical) |
| |
GACQ
(Historical) |
| |
Pro Forma
Adjustments Assuming Minimum and Maximum Redemption |
| |
Pro Forma
Combined Assuming Minimum and Maximum Redemption |
| |||||||||||||||
Revenue:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 333,232 | | | | | $ | 126,236 | | | | | $ | | | | | $ | | | | | $ | 459,468 | | | ||
Cost of revenue
|
| | | | 209,251 | | | | | | 90,296 | | | | | | | | | | | | | | | | | | 299,547 | | |
Gross profit
|
| | | | 123,981 | | | | | | 35,940 | | | | | | | | | | | | | | | | | | 159,921 | | |
Operating costs and expenses:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 113,823 | | | | | | 44,799 | | | | | | | | | | | | | | | | | | 158,622 | | |
Restructuring
|
| | | | 7,272 | | | | | | | | | | | | | | | | | | | | | | | | 7,272 | | |
Management fees
|
| | | | 885 | | | | | | | | | | | | | | | | | | | | | | | | 885 | | |
Intangible impairment
|
| | | | 4,285 | | | | | | | | | | | | | | | | | | | | | | | | 4,285 | | |
Goodwill impairment
|
| | | | 40,148 | | | | | | | | | | | | | | | | | | | | | | | | 40,148 | | |
Total operating costs and expenses
|
| | | | 166,413 | | | | | | 44,799 | | | | | | — | | | | | | | | | | | | 211,212 | | |
Loss from operations
|
| | | | (42,432) | | | | | | (8,859) | | | | |
|
—
|
| | | | | | | | | | | (51,291) | | |
Other income (expense):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | | | | | | | 71 | | | | | | | | | | | | | | | | | | 71 | | |
Interest expense
|
| | | | (6,022) | | | | | | (13,330) | | | | | | | | | | | | | | | | | | (19,352) | | |
Other income, net
|
| | | | (259) | | | | | | 1,993 | | | | | | | | | | | | | | | | | | 1,734 | | |
Foreign exchange
|
| | | | 696 | | | | | | | | | | | | | | | | | | | | | | | | 696 | | |
Total other income (expense)
|
| | | | (5,585) | | | | | | (11,266) | | | | | | — | | | | | | — | | | | | | (16,851) | | |
Net income (loss) before income tax provision
|
| | | | (48,017) | | | | | | (20,125) | | | | |
|
—
|
| | | | | | | | | | | (68,142) | | |
Income tax provision
|
| | | | (1,298) | | | | | | (7,047) | | | | | | | | | | | | | | | | | | (8,345) | | |
Net income (loss) before equity method investment
|
| | | | (49,315) | | | | | | (27,172) | | | | |
|
—
|
| | | |
|
—
|
| | | | | (76,487) | | |
Share of profit on equity method investment
|
| | | | | | | | | | 1,074 | | | | | | | | | | | | | | | | | | 1,074 | | |
Net income (loss) after equity method investment
|
| | | | (49,315) | | | | | | (26,098) | | | | | | | | | | | | | | | | | | (75,413) | | |
Net loss attributable to noncontrolling interest
|
| | | | | | | | | | (1,746) | | | | | | | | | | | | 1,512 | | | | | | (234) | | |
Net income (loss)
|
| | | $ | (49,315) | | | | | $ | (24,352) | | | | | $ | | | | | $ | 1,512 | | | | | $ | (72,155) | | |
| | |
Luminex
(Historical) |
| |
GP Global
(Historical) |
| |
GACQ
(Historical) |
| |
Assuming
Minimum Redemption |
| |
Assuming
Maximum Redemption |
| ||||||||||||
Weighted average Common shares outstanding
|
| | | | 50,000 | | | | | | 6,880,000 | | | | | | | | | 47,615,398 | | | | | | 36,890,933 | | |
Net loss per share, basic and diluted
|
| | | $ | (986.30) | | | | | $ | (3.54) | | | | | | | | $ | (1.52) | | | | | $ | (1.96) | | |
Nine Months Ended September 30, 2021
|
| |
Scenario 1
(Assuming Minimum Redemption) |
| |
Scenario 2
(Assuming Maximum Redemption) |
| ||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||
Pro forma net loss
|
| | | $ | (7,444) | | | | | $ | (7,444) | | |
Weighted average shares outstanding – basic and diluted
|
| | | | 47,615,398 | | | | | | 36,890,933 | | |
Net loss per share – basic and diluted
|
| | | $ | (0.16) | | | | | $ | (0.20) | | |
Pro Forma weighted average shares calculation – basic and diluted | | | | | | | | | | | | | |
GACQ public stockholders
|
| | | | 18,263,000 | | | | | | 7,538,535 | | |
GACQ Sponsor
|
| | | | 5,019,363 | | | | | | 5,019,363 | | |
Total
|
| | | | 23,282,363 | | | | | | 12,557,898 | | |
PIPE
|
| | | | 10,000,000 | | | | | | 10,000,000 | | |
GP Global – shares issued upon reverse acquisition
|
| | | | 14,333,035 | | | | | | 14,333,035 | | |
Pro Forma weighted average shares outstanding – basic and
diluted |
| | | | 47,615,398 | | | | | | 36,890,933 | | |
Year Ended December 31, 2020
|
| |
Scenario 1
(Assuming Minimum Redemption) |
| |
Scenario 2
(Assuming Maximum Redemption) |
| ||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||
Pro forma net loss
|
| | | $ | (72,155) | | | | | $ | (72,155) | | |
Weighted average shares outstanding – basic and diluted
|
| | | | 47,615,398 | | | | | | 36,890,933 | | |
Year Ended December 31, 2020
|
| |
Scenario 1
(Assuming Minimum Redemption) |
| |
Scenario 2
(Assuming Maximum Redemption) |
| ||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||
Net loss per share – basic and diluted
|
| | | $ | (1.52) | | | | | $ | (1.96) | | |
Pro Forma weighted average shares calculation – basic and diluted | | | | | | | | | | | | | |
GACQ public stockholders
|
| | | | 18,263,000 | | | | | | 7,538,535 | | |
GACQ Sponsor
|
| | | | 5,019,363 | | | | | | 5,019,363 | | |
Total
|
| | | | 23,282,363 | | | | | | 12,557,898 | | |
Private placement
|
| | | | 10,000,000 | | | | | | 10,000,000 | | |
GP Global – shares issued upon reverse acquisition
|
| | | | 14,333,035 | | | | | | 14,333,035 | | |
Pro Forma weighted average shares outstanding – basic and
diluted |
| | | | 47,615,398 | | | | | | 36,890,933 | | |
|
| | |
Luminex
(Historical) |
| |
GP Global
(Historical) |
| |
GACQ
(Historical) |
| |
Minimum
Redemption |
| |
Maximum
Redemption |
| |||||||||||||||
As of September 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per diluted share
|
| | | | 431.10 | | | | | | (21.01) | | | | | | (0.80) | | | | | | 4.55 | | | | | | 3.32 | | |
For the nine months ended September 30, 2021
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average Common shares outstanding
|
| | | | 50,000 | | | | | | 6,880,000 | | | | | | 12,080,542 | | | | | | 47,615,398 | | | | | | 38,042,320 | | |
Net income (loss) per share, basic and diluted
|
| | | | (57.74) | | | | | | (0.85) | | | | | | 0.39 | | | | | | (0.16) | | | | | | (0.20) | | |
For the year ended December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average Common shares outstanding
|
| | | | 50,000 | | | | | | 6,880,000 | | | | | | — | | | | | | 47,615,398 | | | | | | 38,042,320 | | |
Net loss per share, basic and diluted
|
| | | | (986.30) | | | | | | (3.54) | | | | | | — | | | | | | (1.52) | | | | | | (1.90) | | |
Ascense P&L [In USD Million]
|
| |
FY22
|
| |
FY23
|
| |
FY24
|
| |
FY25
|
| |
FY26
|
| |||||||||||||||
Net Revenue from Operations
|
| | |
|
553
|
| | | |
|
639
|
| | | |
|
718
|
| | | |
|
777
|
| | | |
|
831
|
| |
Cost of Goods Sold
|
| | | | 387 | | | | | | 452 | | | | | | 511 | | | | | | 549 | | | | |
|
581
|
| |
Less: Inter-Co
|
| | | | 18 | | | | | | 34 | | | | | | 45 | | | | | | 47 | | | | |
|
50
|
| |
Add/(Less): Synergies
|
| | | | — | | | | | | -4 | | | | | | -6 | | | | | | -5 | | | | |
|
-5
|
| |
Net cost of goods sold
|
| | |
|
368
|
| | | |
|
414
|
| | | |
|
460
|
| | | |
|
497
|
| | | |
|
527
|
| |
% of Revenue
|
| | | | 67% | | | | | | 65% | | | | | | 64% | | | | | | 64% | | | | | | 63% | | |
Selling and Distribution Expenses
|
| | | | 80 | | | | | | 86 | | | | | | 92 | | | | | | 98 | | | | |
|
104
|
| |
Add/(Less): Synergies
|
| | | | — | | | | | | -1 | | | | | | -3 | | | | | | -3 | | | | |
|
-3
|
| |
Net Selling & Distribution Expenses
|
| | | | 80 | | | | | | 84 | | | | | | 89 | | | | | | 95 | | | | |
|
101
|
| |
% of Revenue
|
| | | | 14% | | | | | | 13% | | | | | | 12% | | | | | | 12% | | | | |
|
12%
|
| |
Other Expenses (Gen & Admin Exp.)
|
| | | | 60 | | | | | | 70 | | | | | | 77 | | | | | | 80 | | | | |
|
84
|
| |
Add/(Less): Synergies
|
| | | | — | | | | | | -2 | | | | | | -7 | | | | | | -4 | | | | |
|
-4
|
| |
Net Other Expenses (Gen & Admin Exp.)
|
| | | | 60 | | | | | | 69 | | | | | | 70 | | | | | | 76 | | | | |
|
80
|
| |
% of Revenue
|
| | | | 11% | | | | | | 11% | | | | | | 10% | | | | | | 10% | | | | |
|
10%
|
| |
Total Expenses
|
| | | | 508 | | | | | | 567 | | | | | | 619 | | | | | | 668 | | | | |
|
708
|
| |
Operating Income
|
| | |
|
45
|
| | | |
|
72
|
| | | |
|
99
|
| | | |
|
109
|
| | | |
|
123
|
| |
Operating Margin %
|
| | | | 8% | | | | | | 11% | | | | | | 14% | | | | | | 14% | | | | |
|
15%
|
| |
Other Income
|
| | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | |
|
1
|
| |
Less: Inter Co
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | |
|
—
|
| |
Net Other Income
|
| | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | |
|
1
|
| |
Adjusted EBITDA
|
| | | | 45 | | | | | | 73 | | | | | | 100 | | | | | | 110 | | | | | | 124 | | |
Adjusted EBITDA %
|
| | |
|
8%
|
| | | |
|
11%
|
| | | |
|
14%
|
| | | |
|
14%
|
| | | |
|
15%
|
| |
| | | |
Current Charter
|
| |
Proposed Charter
|
|
| Name Change | | | GACQ’s current name is Global Consumer Acquisition Corp. | | | Under the Proposed Charter, the Combined Entity’s name will be Ascense, Inc. | |
| Provisions Specific to a Blank Check Company | | | Under the Current Charter, Article SIXTH sets forth various provisions related to GACQ’s operation as a blank check company prior to the consummation of an initial business combination. | | | The Proposed Charter will not include these blank check company provisions because, upon consummation of the Business Combination, GACQ will cease to be a blank check company. In addition, the provisions requiring that the proceeds from its initial public offering be held in a trust account until a business combination or liquidation of GACQ and the terms governing GACQ’s consummation of a proposed business combination will not be applicable following consummation of the Business Combination. | |
| Authorized Preferred Stock | | | The Current Charter authorizes the issuance of up to 1,000,000 shares of preferred stock, par value $0.0001 per share. | | | The Proposed Charter will authorize the issuance of up to 10,000,000 shares of “blank check” preferred stock, the rights, preferences and privileges of which may be designated from time to time by the Combined Entity’s Board to increase the number of outstanding shares and discourage a takeover attempt. | |
| Voting Threshold for | | | The Current Charter requires the approval of more than 60% of the | | | The Proposed Charter will provide that the removal of directors will require the vote of | |
| | | |
Current Charter
|
| |
Proposed Charter
|
|
| Removal of Directors | | | voting power of GACQ’s then-outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class, to remove directors. | | | holders of more than 66 2∕3% of the voting power of the Combined Entity’s then-outstanding shares of capital stock entitled to vote generally at an election of directors, voting together as a single class. | |
| Business Combinations | | | Current Charter was silent | | |
The Combined Company elects not to be governed by Section 203 of the DGCL.
The Combined Company shall not engage in any business combination with any “interested stockholder” for a three-year period following the time that the stockholder became an interested stockholder, unless (i) prior to the date of the transaction, the Combined Company’s Board approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder, (ii) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the Combined Company’s voting stock outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder), or (iii) on or subsequent to such time, the business combination is approved by the Combined Company’s Board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock of is not owned by the interested stockholder.
|
|
| | | |
Current Charter
|
| |
Proposed Charter
|
|
| Advisory Charter Proposal A — Provisions Specific to a Blank Check Company | | | Under the Current Charter, Article SIXTH sets forth various provisions related to GACQ’s operation as a blank check company prior to the consummation of an initial business combination. | | | The Proposed Charter will not include these blank check company provisions because, upon consummation of the Business Combination, GACQ will cease to be a blank check company. In addition, the provisions requiring that the proceeds from its initial public offering be held in a trust account until a business combination or liquidation of GACQ and the terms governing GACQ’s consummation of a proposed business combination will not be applicable following consummation of the Business Combination. | |
| Advisory Charter Proposal B — Authorized Shares of Blank Check Preferred Stock | | | The Current Charter authorizes the issuance of up to 1,000,000 shares of preferred stock, par value $0.0001 per share. | | | The Proposed Charter will authorize the issuance of up to 10,000,000 shares of “blank check” preferred stock, the rights, preferences and privileges of which may be designated from time to time by the Combined Entity’s Board to increase the number of outstanding shares and discourage a takeover attempt. | |
| Advisory Charter Proposal C — Voting Threshold for Director Removal | | | The Current Charter requires the approval of more than 60% of the voting power of GACQ’s then-outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class, to remove directors. | | | The Proposed Charter will provide that the removal of directors will require the vote of holders of more than 66 2/3% of the voting power of the Combined Entity’s then-outstanding shares of capital stock entitled to vote generally at an election of directors, voting together as a single class. | |
| | | |
Current Charter
|
| |
Proposed Charter
|
|
| Advisory Charter Proposal D — Business Combinations | | | Current Charter was silent | | |
The Combined Company elects not to be governed by Section 203 of the DGCL.
The Combined Company shall not engage in any business combination with any “interested stockholder” for a three-year period following the time that the stockholder became an interested stockholder, unless (i) prior to the date of the transaction, the Combined Company’s Board approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder, (ii) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the Combined Company’s voting stock outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder), or (iii) on or subsequent to such time, the business combination is approved by the Combined Company’s Board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock of is not owned by the interested stockholder.
|
|
Name
|
| |
Age
|
| |
Position
|
|
Rohan Ajila | | | | | | Chief Executive Officer, Chief Financial Officer and Co-Chairman of the Board of Directors | |
Gautham Pai | | | | | | Co-Chairman of the Board of Directors | |
Art Drogue | | | | | | Director | |
Tom Clausen | | | | | | Director | |
Denis Tse | | | | | | Director | |
Name
|
| |
Age
|
| |
Position
|
|
Rohan Ajila | | |
54
|
| |
Chief Executive Officer, Chief Financial Officer and
Co-Chairman of the Board of Directors |
|
Gautham Pai | | |
47
|
| | Co-Chairman of the Board of Directors | |
Art Drogue | | |
76
|
| | Independent Director | |
Tom Clausen | | |
60
|
| | Independent Director | |
Denis Tse | | |
46
|
| | Independent Director | |
Name
|
| |
Age
|
| |
Position(s)
|
|
Sean Peters | | |
52
|
| | Chief Executive Officer | |
Rohan Ajila | | |
54
|
| | Director | |
Gautham Pai | | |
47
|
| | Director | |
Arti Drogue | | |
76
|
| | Director | |
Tom Clausen | | |
60
|
| | Director | |
Dennis Tse | | |
46
|
| | Director | |
| | |
Period Ended August 31,
|
| |||||||||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
$ Change
|
| |
%Change
|
| ||||||||||||
Net sales
|
| | | $ | 134,287 | | | | | $ | 136,108 | | | | | $ | (1,821) | | | | | | -1.3% | | |
Gross profit
|
| | | | 40,995 | | | | | | 49,700 | | | | | | (8,704) | | | | | | -17.5% | | |
Gross margin
|
| | | | 30.5% | | | | | | 36.5% | | | | | | | | | | | | | | |
Operating expenses
|
| | | | 42,506 | | | | | | 48,336 | | | | | | (5,830) | | | | | | -12.1% | | |
Income (loss) from operations before other income (expense)
|
| | | | (1,511) | | | | | | 1,364 | | | | | | (2,875) | | | | | | -210.8% | | |
Operating margin
|
| | | | -1.1% | | | | | | 1.0% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (2,905) | | | | | | (2,829) | | | | | | (76) | | | | | | 2.7% | | |
Foreign exchange gain (loss)
|
| | | | (629) | | | | | | 813 | | | | | | (1,442) | | | | | | -177.4% | | |
Other income (expense)
|
| | | | 58 | | | | | | (137) | | | | | | 195 | | | | | | -142.3% | | |
Income (loss) before income taxes
|
| | | | (4,987) | | | | | | (789) | | | | | | (4,198) | | | | | | 532.2% | | |
Income tax provision
|
| | | | (32) | | | | | | 66 | | | | | | (98) | | | | | | -147.9% | | |
Effective tax rate
|
| | | | 0.6% | | | | | | -8.4% | | | | | | | | | | | | | | |
Net income (loss)
|
| | | | (4,955) | | | | | | (855) | | | | | | (4,100) | | | | | | 479.5% | | |
| | |
Period Ended August 31,
|
| |||||||||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Direct marketing expense
|
| | | $ | 17,501 | | | | | $ | 21,945 | | | | | $ | (4,444) | | | | | | -20.3% | | |
Selling and marketing
|
| | | | 6,646 | | | | | | 8,670 | | | | | | (2,024) | | | | | | -23.3% | | |
General and administration
|
| | | | 17,876 | | | | | | 15,348 | | | | | | 2,528 | | | | | | 16.5% | | |
Management fees
|
| | | | 243 | | | | | | 487 | | | | | | (244) | | | | | | -50.1% | | |
Restructuring expense
|
| | | | 240 | | | | | | 1,886 | | | | | | (1,646) | | | | | | -87.3% | | |
| | |
Years Ended February 28,
|
| |||||||||||||||||||||
(In thousands)
|
| |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net Sales
|
| | | $ | 334,679 | | | | | $ | 324,213 | | | | | $ | 10,465 | | | | | | 3.2% | | |
Gross profit
|
| | | | 126,963 | | | | | | 124,986 | | | | | | 1,977 | | | | | | 1.6% | | |
Gross margin
|
| | | | 37.9% | | | | | | 38.6% | | | | | | | | | | | | | | |
Operating expenses
|
| | | | 117,470 | | | | | | 176,951 | | | | | | (59,481) | | | | | | -33.6% | | |
Income (loss) from operations before other income (expense)
|
| | | | 9,493 | | | | | | (51,965) | | | | | | 61,458 | | | | | | -118.3% | | |
Operating margin
|
| | | | 2.8% | | | | | | -16.0% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (5,880) | | | | | | (6,734) | | | | | | 853 | | | | | | -12.7% | | |
Foreign exchange gain (loss)
|
| | | | 1,126 | | | | | | (890) | | | | | | 2,016 | | | | | | -226.5% | | |
Other income (expense)
|
| | | | (243) | | | | | | 161 | | | | | | (404) | | | | | | -250.9% | | |
Income (loss) before income taxes
|
| | | | 4,496 | | | | | | (59,428) | | | | | | 63,923 | | | | | | -107.6% | | |
Income tax provision
|
| | | | 433 | | | | | | 95 | | | | | | 338 | | | | | | 355.4% | | |
Effective tax rate
|
| | | | 9.6% | | | | | | -0.2% | | | | | | | | | | | | | | |
Net income (loss)
|
| | | | 4,063 | | | | | | (59,523) | | | | | | 63,586 | | | | | | -106.8% | | |
| | |
Years Ended February 28,
|
| |||||||||||||||||||||
(In thousands)
|
| |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Net Sales
|
| | | $ | 334,679 | | | | | $ | 324,213 | | | | | $ | 10,465 | | | | | | 3.2% | | |
Gross profit
|
| | | | 126,963 | | | | | | 124,987 | | | | | | 1,976 | | | | | | 1.6% | | |
Gross margin
|
| | | | 37.9% | | | | | | 38.6% | | | | | | | | | | | | | | |
Operating expenses
|
| | | | 117,470 | | | | | | 176,951 | | | | | | (59,481) | | | | | | -33.6% | | |
Income (loss) from operations before other income (expense)
|
| | | | 9,493 | | | | | | (51,965) | | | | | | 61,458 | | | | | | -118.3% | | |
Operating margin
|
| | | | 2.8% | | | | | | -16.0% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (5,880) | | | | | | (6,734) | | | | | | 853 | | | | | | -12.7% | | |
Foreign exchange gain (loss)
|
| | | | 1,126 | | | | | | (890) | | | | | | 2,016 | | | | | | -226.5% | | |
Other income (expense)
|
| | | | (243) | | | | | | 161 | | | | | | (404) | | | | | | -250.9% | | |
Income (loss) before income taxes
|
| | | | 4,496 | | | | | | (59,428) | | | | | | 63,923 | | | | | | -107.6% | | |
Income tax provision
|
| | | | 433 | | | | | | 95 | | | | | | 338 | | | | | | 355.4% | | |
Effective tax rate
|
| | | | 9.6% | | | | | | -0.2% | | | | | | | | | | | | | | |
Net income (loss)
|
| | | | 4,063 | | | | | | (59,523) | | | | | | 63,586 | | | | | | -106.8% | | |
| | |
Years Ended February 28,
|
| |||||||||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Direct marketing expense
|
| | | $ | 57,245 | | | | | $ | 64,806 | | | | | $ | (7,561) | | | | | | -11.7% | | |
Selling and marketing
|
| | | | 16,595 | | | | | | 21,448 | | | | | | (4,853) | | | | | | -22.6% | | |
General and administration
|
| | | | 35,560 | | | | | | 40,940 | | | | | | (5,380) | | | | | | -13.1% | | |
Management fees
|
| | | | 798 | | | | | | 1,039 | | | | | | (241) | | | | | | -23.2% | | |
Restructuring expense
|
| | | | 7,272 | | | | | | — | | | | | | 7,272 | | | | | | 100.0% | | |
Intangible impairment
|
| | | | — | | | | | | 4,285 | | | | | | (4,285) | | | | | | -100.0% | | |
Goodwill impairment
|
| | | | — | | | | | | 44,433 | | | | | | (44,433) | | | | | | -100.0% | | |
(in thousands)
|
| |
August 31,
2021 |
| |
August 31,
2020 |
| ||||||
5.36% term note
|
| | | $ | 11,478 | | | | | $ | 11,719 | | |
Term note payable A
|
| | | | 10,175 | | | | | | 11,875 | | |
Term note payable B
|
| | | | 10,949 | | | | | | 12,500 | | |
Revolver – (European) | | | |
|
5,689
|
| | | |
|
8,796
|
| |
Revolver – (US) | | | |
|
36,249
|
| | | |
|
25,683
|
| |
COVID Relief
|
| | | | 590 | | | | | | 0 | | |
Capital Lease
|
| | | | 1,076 | | | | | | 994 | | |
| | | | | 76,206 | | | | | | 73,316 | | |
Less: | | | | | | | | | | | | | |
Deferred financing fees
|
| | | | (936) | | | | | | (1,780) | | |
Current maturities – long term debt
|
| | |
|
(1,229)
|
| | | |
|
(3,591)
|
| |
| | | | $ | 74,041 | | | | | $ | 67,945 | | |
| | |
Period Ended August 31,
|
| |||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
$ Change
|
| |||||||||
Net cash provided by (used in) operating activities
|
| | | $ | (16,412) | | | | | $ | 8,844 | | | | | $ | (25,256) | | |
Net cash (used in) investing activities
|
| | | | (1,546) | | | | | | (1,962) | | | | | | 415 | | |
Net cash provided by (used in) financing activities
|
| | | | 18,120 | | | | | | (5,438) | | | | | | 23,558 | | |
| | |
Years Ended February 28,
|
| |||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
$ Change
|
| |||||||||
Net cash provided by (used in) operating activities
|
| | | $ | 25,690 | | | | | $ | (5,513) | | | | | $ | 31,203 | | |
Net cash (used in) investing activities
|
| | | | (4,125) | | | | | | (1,831) | | | | | | (2,294) | | |
Net cash provided by (used in) financing activities
|
| | | | (21,598) | | | | | | 2,329 | | | | | | (23,927) | | |
| | |
For the year ended
February 28, |
| |
For the six months ended
August 31, |
| ||||||||||||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Net Income (Loss)
|
| | | | 4,063 | | | | | | (59,523) | | | | | | (4,955) | | | | | | (855) | | |
Income tax provision
|
| | | | 433 | | | | | | 95 | | | | | | (32) | | | | | | 66 | | |
Interest expense, net
|
| | | | 5,880 | | | | | | 6,734 | | | | | | 2,905 | | | | | | 2,829 | | |
Depreciation & Amortization
|
| | | | 7,065 | | | | | | 6,799 | | | | | | 3,494 | | | | | | 3,400 | | |
EBITDA | | | | $ | 17,441 | | | | | $ | (45,895) | | | | | $ | 1,412 | | | | | $ | 5,440 | | |
Management fee and expenses(1)
|
| | | | 798 | | | | | | 1,039 | | | | | | 243 | | | | | | 487 | | |
Goodwill impairment(2)
|
| | | | — | | | | | | 44,433 | | | | | | — | | | | | | — | | |
Intangible asset impairment(3)
|
| | | | — | | | | | | 4,285 | | | | | | — | | | | | | — | | |
PPP grant income(4)
|
| | | | (8,479) | | | | | | — | | | | | | — | | | | | | (8,458) | | |
PartyLite restructuring(5)
|
| | | | 8,826 | | | | | | — | | | | | | 240 | | | | | | 2,655 | | |
One-time customer costs(6)
|
| | | | — | | | | | | 1,000 | | | | | | — | | | | | | — | | |
COVID-19 non-recurring legal and other costs(7)
|
| | | | 254 | | | | | | — | | | | | | 9 | | | | | | 238 | | |
Unconsummated refinancing costs(8)
|
| | | | 560 | | | | | | 199 | | | | | | 527 | | | | | | — | | |
Unconsummated sale of company(9)
|
| | | | 87 | | | | | | 356 | | | | | | — | | | | | | 60 | | |
Project Aurora(10)
|
| | | | 23 | | | | | | 325 | | | | | | — | | | | | | 23 | | |
Project Revolution(11)
|
| | | | 45 | | | | | | 183 | | | | | | — | | | | | | 45 | | |
Triad deal costs(12)
|
| | | | | | | | | | | | | | | | 176 | | | | | | — | | |
Adjusted EBITDA
|
| | |
$
|
19,556
|
| | | | $ | 5,924 | | | | | $ | 2,607 | | | | | $ | 490 | | |
| | |
For the fiscal year ended
|
| |||||||||
(in USD thousands)
|
| |
March 31, 2021
|
| |
March 31, 2020
|
| ||||||
North America
|
| | | $ | 90,614 | | | | | $ | 129,252 | | |
India
|
| | | $ | 22,437 | | | | | $ | 13,006 | | |
Europe
|
| | | $ | 6,647 | | | | | $ | 3,383 | | |
Australia
|
| | | $ | 4,937 | | | | | $ | 4,654 | | |
Rest of the World
|
| | | $ | 766 | | | | | $ | 4,272 | | |
Product Categories
|
| |
Retail Market
($ million) |
| |
Expected CAGR
2020-2026 |
| |
Contract Manufacturing
Market 2020 ($ million) |
| |||||||||
Air Fresheners (non-solid)
|
| | | | 71 | | | | | | 14% | | | | | | 29 | | |
Deodorants | | | | | 571 | | | | | | 7% | | | | | | 143-157 | | |
Shampoo | | | | | 957 | | | | | | 5% | | | | | | 129-157 | | |
Hand Sanitizers
|
| | | | 314 | | | | | | * | | | | | | 50-57 | | |
Other Personal Care and health & Hygiene category
|
| | | | 429 | | | | | | 7% | | | | | | 50-57 | | |
Disinfectant Spray
|
| | | | 214 | | | | | | * | | | | | | 57-64 | | |
Sub-total | | | | $ | 2,557 | | | | | | | | | | | $ | 458-$522 | | |
| | |
Period Ended
Sep 2021 |
| |||
Revenues
|
| | | | 45,730 | | |
Cost of revenue
|
| | | | 35,733 | | |
Gross Profit
|
| | | | 9,997 | | |
Selling, general & administrative expenses
|
| | | | 13,493 | | |
Depreciation & amortization
|
| | | | 1,239 | | |
Total operating expenses
|
| | | | 14,732 | | |
Operating Income (Loss)
|
| | | | (4,735) | | |
Interest Income
|
| | | | (50) | | |
Interest Expenses
|
| | | | 3,686 | | |
Other (Income), net
|
| | | | (6,333) | | |
Total Other Expenses
|
| | | | 2,697 | | |
Profit/ (Loss) before income taxes
|
| | | | (2,038) | | |
Income tax expense including deferred taxes
|
| | | | 109 | | |
Net income/(loss) after tax
|
| | | | (2,147) | | |
Share of (profit)/loss on equity accounted investment
|
| | | | (773) | | |
Net loss attributable to noncontrolling interests
|
| | | | (93) | | |
Net loss attributable to owners
|
| | | | (1,280) | | |
| | |
Period Ended
Sep 2021 |
| |||
Revenue by Geographical Location | | | | | | | |
USA
|
| | | | 27,564 | | |
India
|
| | | | 9,997 | | |
U.K. | | | | | 3,985 | | |
Australia
|
| | | | 2,875 | | |
Other Countries
|
| | | | 1,309 | | |
Total Revenue
|
| | | | 45,730 | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Revenues
|
| | | | 125,402 | | | | | | 154,568 | | | | | | (29,166) | | | | | | (19)% | | |
Cost of revenue
|
| | | | 99,327 | | | | | | 133,313 | | | | | | (33,986) | | | | | | (25)% | | |
Gross Profit
|
| | | | 26,075 | | | | | | 21,256 | | | | | | 4,820 | | | | | | 23% | | |
Selling, general & administrative expenses
|
| | | | 25,968 | | | | | | 41,623 | | | | | | (15,655) | | | | | | (38)% | | |
Depreciation & amortization
|
| | | | 2,764 | | | | | | 2,730 | | | | | | 34 | | | | | | 1% | | |
Total operating expenses
|
| | | | 28,732 | | | | | | 44,353 | | | | | | (15,621) | | | | | | (35)% | | |
Operating Income (Loss)
|
| | | | (2,657) | | | | | | (23,098) | | | | | | 20,441 | | | | | | (88)% | | |
Interest Income
|
| | | | (211) | | | | | | (323) | | | | | | 112 | | | | | | (35)% | | |
Interest Expenses
|
| | | | 11,070 | | | | | | 13,280 | | | | | | (2,210) | | | | | | (17)% | | |
Other Income, net
|
| | | | (1,351) | | | | | | (3,469) | | | | | | 2,118 | | | | | | (61)% | | |
Total Other Expenses
|
| | | | (9,508) | | | | | | (9,488) | | | | | | (20) | | | | | | 0% | | |
Profit/ (Loss) before income taxes
|
| | | | (12,165) | | | | | | (32,586) | | | | | | 20,420 | | | | | | (63)% | | |
Income tax expense including deferred taxes
|
| | | | 365 | | | | | | 285 | | | | | | 79 | | | | | | 28% | | |
Net income / (loss)
|
| | | | (12,530) | | | | | | (32,871) | | | | | | 20,341 | | | | | | (62)% | | |
Share of (profit)/loss on equity accounted investment
|
| | | | (1,419) | | | | | | (38) | | | | | | (1,381) | | | | | | 3594% | | |
Net loss attributable to noncontrolling interests
|
| | | | (719) | | | | | | (2,241) | | | | | | 1,522 | | | | | | (68)% | | |
Cumulative translation adjustments
|
| | | | (226) | | | | | | 513 | | | | | | (739) | | | | | | (144)% | | |
Total comprehensive income/ (loss)
|
| | | | (11,337) | | | | | | (32,320) | | | | | | 20,983 | | | | | | (65)% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Revenue by Geographical Location | | | | | | | | | | | | | | | | | | | | | | | | | |
USA
|
| | | | 90,614 | | | | | | 129,253 | | | | | | (38,638) | | | | | | (30)% | | |
India
|
| | | | 22,437 | | | | | | 13,006 | | | | | | 9,431 | | | | | | 73% | | |
U.K. | | | | | 6,647 | | | | | | 3,383 | | | | | | 3,264 | | | | | | 96% | | |
Australia
|
| | | | 4,937 | | | | | | 4,654 | | | | | | 283 | | | | | | 6% | | |
Other Countries
|
| | | | 766 | | | | | | 4,272 | | | | | | (3,505) | | | | | | (82)% | | |
Total Revenue
|
| | | | 125,402 | | | | | | 154,568 | | | | | | (29,144) | | | | | | (19)% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Cost of revenues
|
| | | | 95,815 | | | | | | 114,224 | | | | | | (18,409) | | | | | | (16)% | | |
Exceptional items
|
| | | | 3,512 | | | | | | 19,093 | | | | | | (15,581) | | | | | | (82)% | | |
Total cost of revenues
|
| | | | 99,327 | | | | | | 133,317 | | | | | | (33,990) | | | | | | (25)% | | |
Gross profit
|
| | | | 26,075 | | | | | | 21,256 | | | | | | 4,820 | | | | | | 23% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Selling, general & administration expenses
|
| | | | 25,968 | | | | | | 41,623 | | | | | | (15,655) | | | | | | (38)% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Loss after income tax
|
| | | | (12,530) | | | | | | (32,871) | | | | | | 20,341 | | | | | | (62)% | | |
Tax expense
|
| | | | 365 | | | | | | 285 | | | | | | 79 | | | | | | 28% | | |
Interest expense, net
|
| | | | 10,859 | | | | | | 12,958 | | | | | | (2,099) | | | | | | (16)% | | |
Depreciation & amortization
|
| | | | 2,764 | | | | | | 2,730 | | | | | | 34 | | | | | | 1% | | |
EBITDA | | | | | 1,458 | | | | | | (16,898) | | | | | | 18,356 | | | | | | (109)% | | |
| | |
For the Fiscal Year
Ended March 31, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
EBITDA | | | | | 1,458 | | | | | | (16,898) | | |
Supply chain disruption, demurrage expenses(1)
|
| | | | 3,512 | | | | | | 19,093 | | |
Customer Chargebacks(1)
|
| | | | 884 | | | | | | | | |
Covid-19 induced operating expenses in MVP Group(2)
|
| | | | 718 | | | | | | | | |
One-time information technology and other expenses(3)
|
| | | | 90 | | | | | | | | |
Expenses on business right-sizing(4)
|
| | | | | | | | | | 906 | | |
Bank charges
|
| | | | 71 | | | | | | 917 | | |
One-time legal & professional expenses in MVP Group(5)
|
| | | | 108 | | | | | | | | |
One-time legal & professional expenses in Primacy Industries(5)
|
| | | | 83 | | | | | | 125 | | |
Covid-19 impact expenses in operations in Primacy Industries(6)
|
| | | | 400 | | | | | | 73 | | |
Adjusted EBITDA
|
| | | | 7,325 | | | | | | 4,216 | | |
| | |
For the Fiscal Year
Ended March 31, |
| |
2021 vs. 2020
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Cash provided by (used in): | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | | (202) | | | | | | 8,835 | | | | | | (9,037) | | | | | | (102)% | | |
Investing activities
|
| | | | (141) | | | | | | (1,501) | | | | | | 1,360 | | | | | | (91)% | | |
Financing activities
|
| | | | 108 | | | | | | (6,998) | | | | | | 7,106 | | | | | | (102)% | | |
Fiscal year ending March 31
|
| |
Minimum lease
payments |
| |
Minimum sublet
income |
| |
Minimum lease
payments, net |
| |||||||||
2022
|
| | | | 1,367 | | | | | | 1,074 | | | | | | 293 | | |
2023
|
| | | | 114 | | | | | | 90 | | | | | | 25 | | |
2024
|
| | | | — | | | | | | — | | | | | | — | | |
2025
|
| | | | — | | | | | | — | | | | | | — | | |
2026
|
| | | | — | | | | | | — | | | | | | — | | |
Thereafter
|
| | | | — | | | | | | — | | | | | | — | | |
Total minimum future lease payments
|
| | | | 1,481 | | | | | | 1,164 | | | | | | 317 | | |
Fiscal year ending March 31
|
| |
Minimum lease
payments |
| |||
2022
|
| | | | 139 | | |
2023
|
| | | | 139 | | |
2024
|
| | | | 42 | | |
2025
|
| | | | — | | |
2026
|
| | | | — | | |
Thereafter
|
| | | | — | | |
Total minimum future lease payments
|
| | | | 321 | | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| ||||||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Assuming No
Redemptions |
| |
Assuming 100%
Redemptions |
| |||||||||||||||||||||||||||
Name and Address of Beneficial
Owner(1) |
| |
Number of
Shares Beneficially Owned(2) |
| |
% of
Outstanding Shares of Common Stock |
| |
Number of
Shares Beneficially Owned |
| |
% of
Outstanding Shares of Common Stock |
| |
Number of
Shares Beneficially Owned |
| |
% of
Outstanding Shares of Common Stock |
| ||||||||||||||||||
Directors and Executive Officers of GACQ:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Rohan Ajila(3)
|
| | | | 4,827,500 | | | | | | 20.73% | | | | | | 4,827,500 | | | | | | 12.84% | | | | | | 4,827,500 | | | | | | 17.96% | | |
Gautham Pai(3)
|
| | | | 4,827,500 | | | | | | 20.73% | | | | | | 4,827,500 | | | | | | 12.84% | | | | | | 4,827,500 | | | | | | 17.96% | | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| | | ||||||||||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Assuming No
Redemptions |
| |
Assuming 100%
Redemptions |
| | | |||||||||||||||||||||||||||||||
Name and Address of Beneficial
Owner(1) |
| |
Number of
Shares Beneficially Owned(2) |
| |
% of
Outstanding Shares of Common Stock |
| |
Number of
Shares Beneficially Owned |
| |
% of
Outstanding Shares of Common Stock |
| |
Number of
Shares Beneficially Owned |
| |
% of
Outstanding Shares of Common Stock |
| | | ||||||||||||||||||||||
Sanjiv Das(3)
|
| | | | 4,827,500 | | | | | | 20.73% | | | | | | 4,827,500 | | | | | | 12.84% | | | | | | 4,827,500 | | | | | | 17.96% | | | | | ||||
Art Drogue
|
| | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Tom Clausen
|
| | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | |||||||||
Dennis Tse
|
| | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
All Directors and Executive Officers of GACQ as a Group (6 Individuals).
|
| | | | 4,887,500 | | | | | | 20.99% | | | | | | 4,887,500 | | | | | | 13.0% | | | | | | 4,887,500 | | | | | | 18.18% | | | | | ||||
GACQ’s and the Combined Company 5% Stockholders:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Global Consumer Acquisition LLC(3)
|
| | | | 4,827,500 | | | | | | 20.73% | | | | | | 4,827,500 | | | | | | 12.85% | | | | | | 4,827,500 | | | | | | 17.96% | | | | | ||||
Radcliffe Capital Management, L.P.(4)
|
| | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 4.47% | | | | | | 1,680,000 | | | | | | 6.25% | | | | | ||||
Radcliffe SPAC Master Fund, L.P.(4)
|
| | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 4.47% | | | | | | 1,680,000 | | | | | | 6.25% | | | | | ||||
D. E. Shaw Valence Portfolios, L.L.C.(5)
|
| | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 4.47% | | | | | | 1,680,000 | | | | | | 6.25% | | | | | ||||
Highbridge Capital Management, LLC(6)
|
| | | | 1,939,822 | | | | | | 8.33% | | | | | | 1,939,822 | | | | | | 5.16% | | | | | | 1,939,822 | | | | | | 7.22% | | | | | ||||
Boothbay Fund Management, LLC(7)
|
| | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 4.47% | | | | | | 1,680,000 | | | | | | 6.25% | | | | | ||||
Polar Asset Management Partners, Inc.(9)
|
| | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 4.47% | | | | | | 1,680,000 | | | | | | 6.25% | | | | | ||||
Yakira Capital Management, Inc.(10)
|
| | | | 1,426,855 | | | | | | 6.13% | | | | | | 1,426,855 | | | | | | 3.79% | | | | | | 1,426,855 | | | | | | 5.31% | | | | | ||||
Directors and Executive
Officers of the Combined Company: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Rohan Ajila(3)
|
| | | | 4,827,500 | | | | | | 20.73% | | | | | | 4,827,500 | | | | | | 12.85% | | | | | | 4,827,500 | | | | | | 17.96% | | | | | ||||
Gautham Pai(3)
|
| | | | 4,827,500 | | | | | | 20.73% | | | | | | 19,127,500(8) | | | | | | 50.89% | | | | | | 19,127,500(8) | | | | | | 71.15% | | | | | ||||
Sanjiv Das(3)
|
| | | | 4,827,500 | | | | | | 20.73% | | | | | | 4,827,500 | | | | | | 12.85% | | | | | | 4,827,500 | | | | | | 17.96% | | | | | ||||
Art Drogue
|
| | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Tom Clausen
|
| | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Dennis Tse
|
| | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Sean Peters
|
| | | | 0 | | | | | | * | | | | | | 0 | | | | | | | | | | | | 0 | | | | | | * | | | | | ||||
All Directors and Executive Officers of the Combined Company as a Group
(7 Individuals) |
| | | | 4,887,500 | | | | | | 20.99% | | | | | | 19,187,500 | | | | | | 51.05% | | | | | | 19,187,500 | | | | | | 71.38% | | | | |
| Audited Financial Statements of Global Consumer Acquisition Corp. | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| Unaudited Condensed Financial Statements of Global Consumer Acquisition Corp. | | | | | | | |
| | | | | F-18 | | | |
| | | | | F-19 | | | |
| | | | | F-20 | | | |
| | | | | F-21 | | | |
| | | | | F-22 | | | |
| Unaudited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
| | | | | F-40 | | | |
| | | | | F-41 | | | |
| | | | | F-42 | | | |
| | | | | F-43 | | | |
| | | | | F-44 | | | |
| Audited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
|
Independent Auditor’s Report
|
| | | | F- | | |
| | | | | F-68 | | | |
| | | | | F-69 | | | |
| | | | | F-70 | | | |
| | | | | F-71 | | | |
| | | | | F-72 | | | |
| Unaudited Financial Statements of GP Global Limited | | | | | | | |
| | | | | F-126 | | | |
| | | | | F-127 | | | |
| | | | | F-128 | | | |
| | | | | F-129 | | | |
| | | | | F-130 | | | |
| Audited Financial Statements of GP Global Limited | | | | | | | |
| | | | | F-90 | | | |
| | | | | F-91 | | | |
| | | | | F-92 | | | |
| | | | | F-93 | | | |
| | | | | F-94 | | | |
| | | | | F-95 | | |
| | |
January 31,
2021 |
| |
December 31,
2020 |
| | ||||||||
| | |
(Audited)
|
| |
(Audited)
|
| | ||||||||
ASSETS | | | | | | | | | | | | | | | | |
Current asset – cash
|
| | | $ | 70 | | | | | $ | — | | | | ||
Deferred offering costs
|
| | | | 15,000 | | | | | | — | | | | ||
Total Assets
|
| | | $ | 15,070 | | | | | $ | — | | | | ||
LIABILITIES AND STOCKHOLDER’S DEFICIT | | | | | | | | | | | | | | | ||
Current Liabilities | | | | | | | | | | | | | | | | |
Accrued expense
|
| | | $ | 35,478 | | | | | $ | 478 | | | | ||
Amount due to related party
|
| | | | 100 | | | | | | — | | | | ||
Promissory note – related party
|
| | | | 5,150 | | | | | | — | | | | ||
Total Current Liabilities
|
| | | | 40,728 | | | | | | 478 | | | | ||
Commitments and Contingencies (Note 6) | | | | | | | | | | | | | | | ||
Stockholder’s Deficit | | | | | | | | | | | | | | | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued
and outstanding |
| | | | — | | | | | | — | | | | ||
Common stock, par value $0.0001; 10,000,000 shares authorized; 4,887,500 issued and outstanding on January 31, 2021(1)(2)
|
| | | | 489 | | | | | | — | | | | ||
Additional paid-in capital
|
| | | | 24,511 | | | | | | — | | | | ||
Accumulated deficit
|
| | | | (50,658) | | | | | | (478) | | | | ||
Total Stockholder’s Deficit
|
| | |
|
(25,180)
|
| | | |
|
(478)
|
| | | ||
Total Liabilities and Stockholder’s Deficit
|
| | | $ | 15,070 | | | | | $ | — | | | |
| | |
For the
Period from January 1, 2021 through January 31, 2021 |
| |
For the
Period from December 28, 2020 (inception) through December 31, 2020 |
| ||||||
| | |
(Audited)
|
| |
(Audited)
|
| ||||||
Operating costs
|
| | | $ | 50,180 | | | | | $ | 478 | | |
Net Loss
|
| | | $ | (50,180) | | | | | $ | (478) | | |
Weighted average shares outstanding, basic and
diluted(1)(2) |
| | | | 4,250,000 | | | | | | — | | |
Basic and diluted net loss per ordinary share
|
| | | $ | (0.0118) | | | | | $ | — | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholder’s Deficit |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – December 28, 2020 (inception)
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Net income (loss )
|
| | | | — | | | | | | — | | | | | | — | | | | | | (478) | | | | | | (478) | | |
Balance – December 31, 2020 (audited)
|
| | | | — | | | | | | — | | | | | | — | | | | | | (478) | | | | | | (478) | | |
Balance – January 1, 2021
|
| | | | — | | | | | | — | | | | | | — | | | | | $ | (478) | | | | | $ | (478) | | |
Issuance of common stock to Sponsor(1)(2)
|
| | | | 4,887,500 | | | | | | 489 | | | | | | 24,511 | | | | | | — | | | | | | 25,000 | | |
Net income (loss)
|
| | | | — | | | | | | — | | | | | | | | | | | | (50,180) | | | | | | (50,180) | | |
Balance – January 31, 2021 (audited)
|
| | |
|
4,887,500
|
| | | | $ | 489 | | | | | $ | 24,511 | | | | | $ | (50,658) | | | | | $ | (25,658) | | |
| | |
For the
Period from January 1, 2021 through January 31, 2021 |
| |
For the
Period from December 28, 2020 (inception) through December 31, 2020 |
| ||||||
| | |
(Audited)
|
| |
(Audited)
|
| ||||||
Cash flows from Operating Activities: | | | | | | | | | | | | | |
Net Loss
|
| | | $ | (50,180) | | | | | $ | (478) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Proceeds from promissory note
|
| | | | 5,150 | | | | | | — | | |
Accrued expense
|
| | | | 20,000 | | | | | | 478 | | |
Amount due to related party
|
| | | | 100 | | | | | | — | | |
Net cash provided by operating activities
|
| | | | (24,930) | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of common stock to Sponsor
|
| | | | 25,000 | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 25,000 | | | | | | — | | |
Net Change in Cash
|
| | | | 70 | | | | | | — | | |
Cash – Beginning of period
|
| | | | — | | | | | | — | | |
Cash – Ending of period
|
| | | $ | 70 | | | | | $ | — | | |
Supplemental Disclosures of Noncash Financing Activities | | | | | | | | | | | | | |
Deferred offering costs paid directly by Sponsor from proceeds from issuance of common stock
|
| | | $ | 25,000 | | | | | $ | — | | |
Accrued deferred offering costs
|
| | | $ | 15,000 | | | | | $ | — | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
Unaudited
|
| |
Audited
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Cash
|
| | | $ | 251,468 | | | | | $ | — | | |
Prepaid expense
|
| | | | 50,768 | | | | | | — | | |
Other receivables
|
| | | | 387,868 | | | | | | — | | |
Total Current Assets
|
| | | | 690,104 | | | | | | — | | |
Cash and investment held in Trust Account
|
| | | | 183,555,717 | | | | | | — | | |
Total Assets
|
| | | $ | 184,245,821 | | | | | $ | — | | |
LIABILITIES AND STOCKHOLDER’S DIFICIT | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accrued expense
|
| | | $ | 16,128 | | | | | $ | 478 | | |
Total Current Liabilities
|
| | | | 16,128 | | | | | | 478 | | |
Warrant Liability
|
| | | | 4,405,661 | | | | | | — | | |
Deferred underwriting fees
|
| | | | 5,935,475 | | | | | | — | | |
Total Liabilities
|
| | | | 10,357,264 | | | | | | 478 | | |
Commitments and Contingencies (NOTE 7) | | | | | | | | | | | | | |
Common stock subject to possible redemption, 18,263,000 shares at redemption value on September 30, 2021
|
| | | | 183,543,150 | | | | | | — | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | | | | | — | | |
Common stocks, $0.0001 par value; 100,000,000 shares authorized;
5,019,363 and -0- issued and outstanding (excluding 18,263,000 and -0- shares subject to possible redemption) at September 30, 2021 and December 31, 2020, respectively |
| | | | 502 | | | | | | — | | |
| | | | | — | | | | | | | | |
Additional paid-in capital
|
| | | | — | | | | | | — | | |
Accumulated deficit
|
| | | | (9,655,095) | | | | | | (478) | | |
Total Stockholders’ Deficit
|
| | | | (9,654,593) | | | | | | (478) | | |
Total Liabilities and Stockholders’ Deficit
|
| | | $ | 184,245,821 | | | | | $ | — | | |
| | |
Three Months Ended
September 30, 2021 |
| |
Nine Months Ended
September 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Formation and operating costs
|
| | | $ | (130,145) | | | | | $ | (250,451) | | |
Loss from operation costs
|
| | | | (130,145) | | | | | | (250,451) | | |
Other income and expense: | | | | | | | | | | | | | |
Interest earned on investment held in Trust Account
|
| | | $ | 10,541 | | | | | $ | 12,567 | | |
Change in fair value of warrant liability
|
| | | | 5,259,822 | | | | | | 5,376,037 | | |
Offering costs allocated to warrants
|
| | | | — | | | | | | (450,846) | | |
Net Income
|
| | | $ | 5,140,218 | | | | | $ | 4,687,307 | | |
Weighted average shares outstanding of common stock
|
| | | | 23,282,363 | | | | | | 12,080,542 | | |
Basic and diluted net income per common stock
|
| | | $ | 0.22 | | | | | $ | 0.39 | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholder’s Deficit |
| ||||||||||||||||||
|
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||
Balance – December 31, 2020 (audited)
|
| | | | — | | | | | | — | | | | | | — | | | | | | (478) | | | | | $ | (478) | | |
Sale of Founder shares
|
| | | | 4,887,500 | | | | | | 489 | | | | | | 24,511 | | | | | | — | | | | | | 25,000 | | |
Net Loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (45,630) | | | | | | (45,630) | | |
Balance – March 31, 2021 (unaudited)
|
| | | | 4,887,500 | | | | | | 489 | | | | | | 24,511 | | | | | | (46,108) | | | | | | (21,108) | | |
Accretion for common stock to redemption amount
|
| | | | — | | | | | | — | | | | | | (4,321,343) | | | | | | (14,311,924) | | | | | | (18,633,267) | | |
Forfeiture of founder shares(1)
|
| | | | (321,750) | | | | | | (32) | | | | | | 32 | | | | | | — | | | | | | — | | |
Sale of Private Units
|
| | | | 453,613 | | | | | | 45 | | | | | | 4,296,800 | | | | |
|
—
|
| | | | | 4,296,845 | | |
Net Loss
|
| | | | — | | | | | | — | | | | |
|
—
|
| | | | | (437,281) | | | | | | (437,281) | | |
Balance – June 30, 2021 (unaudited and
restated) |
| | | | 5,019,363 | | | | | $ | 502 | | | | | | — | | | | | $ | (14,795,313) | | | | | $ | (14,794,811) | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 5,140,218 | | | | | | 5,140,218 | | |
Balance – September 30, 2021 (unaudited)
|
| | | | 5,019,363 | | | | | $ | 502 | | | | | | — | | | | | $ | (9,655,095) | | | | | $ | (9,654,593) | | |
| | |
Nine Months Ended
September 30, 2021 |
| |||
| | |
Unaudited
|
| |||
Cash flows from operating activities: | | | | | | | |
Net income
|
| | | $ | 4,687,307 | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | |
Interest earned on securities held in Trust Account
|
| | | | (12,567) | | |
Change in fair value of warrant liability
|
| | | | (5,376,037) | | |
Offering costs allocated to warrants
|
| | | | 450,846 | | |
Changes in operating assets and liabilities: | | | | | | | |
Prepaid expenses and other receivable
|
| | | | (438,636) | | |
Accrued expenses
|
| | | | 15,650 | | |
Net cash used in operating activities
|
| | | | (673,437) | | |
Cash flows from investing activities: | | | | | | | |
Investment of cash in Trust Account
|
| | | | (183,543,150) | | |
Net cash used in investing activities
|
| | | | (183,543,150) | | |
Cash flows from financing activities: | | | | | | | |
Proceeds from issue of founder shares
|
| | | | 25,000 | | |
Proceeds from sale of units, net underwriting discount paid
|
| | | | 180,347,125 | | |
Proceeds from sale of private placement
|
| | | | 4,536,125 | | |
Payment of offering costs
|
| | | | (440,195) | | |
Net cash provided by financing activities
|
| | | | 184,468,055 | | |
Net change in cash
|
| | | | 251,468 | | |
Cash at beginning of period
|
| | | | — | | |
Cash at end of period
|
| | | $ | 251,468 | | |
Non-cash investing and financing activities: | | | | | | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | 164,909,883 | | |
Accretion of Common Stock subject to redemption
|
| | | $ | 18,633,267 | | |
Deferred underwriting fee payable
|
| | | $ | 5,935,475 | | |
Initial classification of warrant liability
|
| | | $ | 9,781,698 | | |
| | |
As of September 30, 2021
|
| |||
Gross Proceeds
|
| | | $ | 182,630,000 | | |
Less: | | | | | | | |
Proceeds allocated to public warrants
|
| | | | (9,542,418) | | |
Transaction costs
|
| | | | (8,628,545) | | |
Plus: | | | | | | | |
Reverse the cost allocation to warrants
|
| | | | 450,846 | | |
Accretion of carrying value to redemption value
|
| | | | 18,633,267 | | |
Common stock subject to possible redemption
|
| | | | 183,543,150 | | |
| | |
As Previously
Reported on form 8-K |
| |
Restatement
Adjustment |
| |
As Revised
|
| |||||||||
Temporary Equity | | | | | | | | | | | | | | | | | | | |
Common stock subject to possible redemption;
|
| | | | 152,100,294 | | | | | | 18,749,706 | | | | | | 170,850,000 | | |
Stockholders’ Equity (Deficit) | | | | | | | | | | | | | | | | | | | |
Common Stock, $0.0001 par value;
|
| | | | 718 | | | | | | (187) | | | | | | 531 | | |
Additional paid-in capital
|
| | | | 5,489,923 | | | | | | (5,489,923) | | | | | | — | | |
Accumulated deficit
|
| | | | (490,639) | | | | | | (13,259,597) | | | | | | (13,750,236) | | |
Total Stockholder’s Equity (Deficit)
|
| | | | 5,000,001 | | | | | | (18,749,707) | | | | | | (13,749,705) | | |
Common stocks subject to possible redemption
|
| | | | 15,134,358 | | | | | | 1,865,642 | | | | | | 17,000,000 | | |
| | |
As Previously
Reported |
| |
Restatement
Adjustment |
| |
Restatement
Adjustment of forfeiture shares |
| |
As Restated
|
| ||||||||||||
Temporary Equity | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock subject to possible redemption;
|
| | | | 163,748,338 | | | | | | 19,794,812 | | | | | | — | | | | | | 183,543,150 | | |
Stockholders’ Equity (Deficit) | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock, $0.0001 par value;(1)
|
| | | | 699 | | | | | | (197) | | | | | | — | | | | | | 502 | | |
Additional paid-in capital(1)
|
| | | | 5,482,691 | | | | | | (5,482,723) | | | | | | 32 | | | | | | — | | |
Accumulated deficit
|
| | | | (483,389) | | | | | | (14,311,892) | | | | | | (32) | | | | | | (14,795,313) | | |
Total Stockholders’ Equity (Deficit)
|
| | | | 5,000,001 | | | | | | (19,794,812) | | | | | | — | | | | | | (14,794,811) | | |
Common stocks subject to possible redemption
|
| | | | 16,615,117 | | | | | | 1,647,883 | | | | |
|
—
|
| | | | | 18,263,000 | | |
Common stocks issued and outstanding (excluding 18,263,000 shares subject to possible redemption)
|
| | | | 6,988,996 | | | | | | (1,647,883) | | | | | | (321,750) | | | | | | 5,019,363 | | |
| | |
For six months ended on June 30, 2021
|
| |||||||||||||||
| | |
As Previously
Reported |
| |
Restatement
Adjustment |
| |
As Restated
|
| |||||||||
Weighted average shares outstanding of common stock subject to redemption
|
| | | | 15,985,656 | | | | | | (14,103,435) | | | | | | 1,882,221 | | |
Basic and diluted net income per common stock
|
| | | | 0.00 | | | | | | (0.08) | | | | | | (0.08) | | |
Weighted average shares outstanding of non-redeemable common stock
|
| | | | 5,424,660 | | | | | | (920,082) | | | | | | 4,504,578 | | |
Basic and diluted net income per common stock
|
| | | | (0.09) | | | | | | 0.01 | | | | | | (0.08) | | |
| | |
For three months ended on June 30, 2021
|
| |||||||||||||||
| | |
As Previously
Reported |
| |
Restatement
Adjustment |
| |
As Restated
|
| |||||||||
Weighted average shares outstanding of common stock subject to redemption
|
| | | | 15,985,656 | | | | | | 1,944,976 | | | | | | 17,930,632 | | |
Basic and diluted net income per common stock
|
| | | | 0.00 | | | | | | (0.02) | | | | | | (0.02) | | |
Weighted average shares outstanding of non-redeemable common stock
|
| | | | 5,987,510 | | | | | | (5,776,793) | | | | | | 210,717 | | |
Basic and diluted net income per common stock
|
| | | | (0.07) | | | | | | 0.05 | | | | | | (0.02) | | |
| | |
For the
Three Months Ended September 30, 2021 |
| |
For the
Nine Months Ended September 30, 2021 |
| ||||||
Common stock | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net income allocable to common stock subject to possible redemption
|
| | | $ | 5,140,218 | | | | | $ | 4,687,307 | | |
Denominator: weighted average number of common share
|
| | | | 23,282,363 | | | | | | 12,080,542 | | |
Basic and diluted net income per common share
|
| | | $ | 0.22 | | | | | $ | 0.39 | | |
Description
|
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant Other
Unobservable Inputs (Level 3) |
| |||||||||
Asset: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account
|
| | | $ | 183,555,717 | | | | | $ | — | | | | | $ | — | | |
Warrant Liabilities: | | | | | | | | | | | | | | | | | | | |
Public Warrants
|
| | | $ | 4,291,805 | | | | | $ | — | | | | | $ | — | | |
Private Placement Warrants
|
| | | $ | — | | | | | $ | — | | | | | $ | 113,856 | | |
| | |
June 11, 2021
|
| |
June 30, 2021
|
| |
September 30, 2021
|
| |||||||||
| | |
(Public Warrants
and Private Warrants) |
| |
(Public Warrants
and Private Warrants) |
| |
Private Warrants
|
| |||||||||
Exercise price
|
| | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Share price
|
| | | $ | 10.00 | | | | | $ | 10.00 | | | | | $ | 9.88 | | |
Expected term (years)
|
| | | | 5.0 | | | | | | 5.0 | | | | | | 5.44 | | |
Probability of Acquisition
|
| | | | 75.0% | | | | | | 80.0% | | | | | | 80.0% | | |
Volatility
|
| | | | 18.0% | | | | | | 17.6% | | | | | | 10.9% | | |
Risk-free rate
|
| | | | 0.81% | | | | | | 0.98% | | | | | | 1.05% | | |
Dividend yield (per share)
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
| | |
Private Placement
|
| |
Public Warrant
|
| |
Warrant Liability
|
| |||||||||
Fair value as of June 11, 2021 (Initial Public Offering)
|
| | | $ | 227,622 | | | | | $ | 8,882,500 | | | | | $ | 9,110,122 | | |
Change in valuation inputs or other assumptions(1)
|
| | | | 14,153 | | | | | | 541,208 | | | | | | 555,361 | | |
Fair value as of June 30, 2021
|
| | | $ | 241,775 | | | | | $ | 9,423,708 | | | | | $ | 9,665,483 | | |
Change in valuation inputs or other assumptions(1)(2)
|
| | | | (127,919) | | | | | | (5,151,903) | | | | | | (5,259,822) | | |
Fair value as of September 30, 2021
|
| | | $ | 113,856 | | | | | $ | 4,291,805 | | | | | $ | 4,405,661 | | |
| | | | | F-39 | | | |
| FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-40 | | | |
| | | | | F-41 | | | |
| | | | | F-42 | | | |
| | | | | F-43 | | | |
| | | | | F-44 | | |
| | |
2021
|
| |
2020
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 5,731 | | | | | $ | 5,243 | | |
Accounts receivable, net of allowance for doubtful accounts of $696 and $451, at February 28, 2021 and February 29, 2020, respectively
|
| | | | 19,160 | | | | | | 19,942 | | |
Inventories, net (Note 3)
|
| | | | 75,554 | | | | | | 86,491 | | |
Prepaid expenses and other current assets
|
| | | | 9,565 | | | | | | 11,226 | | |
Total current assets
|
| | | | 110,011 | | | | | | 122,902 | | |
Property, plant and equipment, net (Note 4)
|
| | | | 34,649 | | | | | | 35,850 | | |
Intangible assets, net (Note 5)
|
| | | | 5,741 | | | | | | 6,418 | | |
Deferred income tax asset (Note 9)
|
| | | | 1,635 | | | | | | 1,810 | | |
Other assets
|
| | | | 4,425 | | | | | | 4,479 | | |
Total assets
|
| | | $ | 156,460 | | | | | $ | 171,459 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Current portion long-term debt (Note 6)
|
| | | $ | 1,843 | | | | | $ | 2,375 | | |
Accounts payable – trade
|
| | | | 29,665 | | | | | | 35,399 | | |
Accounts payable with company under common control
|
| | | | 3,399 | | | | | | 4,250 | | |
Accrued payroll
|
| | | | 2,241 | | | | | | 1,237 | | |
Income tax payable
|
| | | | 81 | | | | | | 765 | | |
Sales allowance accrued expenses
|
| | | | 1,893 | | | | | | 2,025 | | |
Deferred revenue
|
| | | | 2,215 | | | | | | 3,093 | | |
Other accrued expenses
|
| | | | 21,512 | | | | | | 19,542 | | |
Total current liabilities
|
| | | | 62,850 | | | | | | 68,686 | | |
Long-term debt, net (Note 6)
|
| | | | 54,981 | | | | | | 73,952 | | |
Deferred income tax liability (Note 9)
|
| | | | 498 | | | | | | 643 | | |
Other long-term liabilities
|
| | | | 15,873 | | | | | | 9,517 | | |
Total liabilities
|
| | | | 134,201 | | | | | | 152,797 | | |
Commitments and contingencies (Note 12) | | | | | | | | | | | | | |
Shareholders’ equity | | | | | | | | | | | | | |
Common stock, par value $.001 per share, 50,000 issued and outstanding
|
| | | | — | | | | | | — | | |
Series A preferred stock, par value $.001 per share, 10,000 issued and outstanding ($1 per share liquidation value)
|
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 107,585 | | | | | | 107,584 | | |
Accumulated deficit
|
| | | | (103,829) | | | | | | (107,891) | | |
Accumulated other comprehensive incoe:
|
| | | | | | | | | | | | |
Foreign currency translation
|
| | | | 18,504 | | | | | | 18,969 | | |
Total shareholders’ equity
|
| | | | 22,260 | | | | | | 18,662 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 156,460 | | | | | $ | 171,459 | | |
| | |
2021
|
| |
2020
|
| ||||||
Net sales
|
| | | $ | 334,679 | | | | | $ | 324,213 | | |
Cost of goods sold
|
| | | | 207,716 | | | | | | 199,227 | | |
Gross profit
|
| | | | 126,963 | | | | | | 124,986 | | |
Operating expenses | | | | | | | | | | | | | |
Direct marketing expense
|
| | | | 57,245 | | | | | | 64,806 | | |
Selling and marketing
|
| | | | 16,595 | | | | | | 21,448 | | |
General and administration
|
| | | | 35,560 | | | | | | 40,940 | | |
Management fees
|
| | | | 798 | | | | | | 1,039 | | |
Restructuring expenses (see note 8)
|
| | | | 7,272 | | | | | | — | | |
Intangible impairment
|
| | | | — | | | | | | 4,285 | | |
Goodwill impairment
|
| | | | — | | | | | | 44,433 | | |
| | | | | 117,470 | | | | | | 176,951 | | |
Income (loss) from operations before other income (expense)
|
| | | | 9,493 | | | | | | (51,965) | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense
|
| | | | (5,880) | | | | | | (6,734) | | |
Foreign exchange gain (loss)
|
| | | | 1,126 | | | | | | (890) | | |
Other income (expense), net
|
| | | | (243) | | | | | | 161 | | |
| | | | | (4,997) | | | | | | (7,463) | | |
Income (loss) before income tax expense
|
| | | | 4,496 | | | | | | (59,428) | | |
Income tax expense
|
| | | | 433 | | | | | | 95 | | |
Net income (loss)
|
| | | | 4,063 | | | | | | (59,523) | | |
Other comprehensive loss | | | | | | | | | | | | | |
Foreign currency translation adjustment
|
| | | | (289) | | | | | | (198) | | |
Loss on foreign currency contracts
|
| | | | (176) | | | | | | — | | |
| | | | | (465) | | | | | | (198) | | |
Comprehensive income (loss)
|
| | | $ | 3,598 | | | | | $ | (59,721) | | |
Weighted average common shares outstanding
|
| | | | 50 | | | | | | 50 | | |
Basic earnings per common share
|
| | | $ | 81 | | | | | $ | (1,190) | | |
Diluted earnings per common share
|
| | | $ | 81 | | | | | $ | (1,190) | | |
| | |
Common
Stock |
| |
Preferred
Stock |
| |
Additional Paid-
in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
|
| ||||||||||||||||||
Balance, March 1, 2019
|
| | | $ | — | | | | | $ | — | | | | | $ | 107,584 | | | | | $ | (48,369) | | | | | $ | 19,167 | | | | | $ | 78,383 | | |
Foreign currency translation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (198) | | | | | | (198) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (59,523) | | | | | | — | | | | | | (59,523) | | |
Balance, February 29, 2020
|
| | | | — | | | | | | — | | | | | | 107,584 | | | | | | (107,892) | | | | | | 18,969 | | | | | | 18,661 | | |
Foreign currency translation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (289) | | | | | | (289) | | |
Loss on foreign currency contracts
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (176) | | | | | | (176) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 4,063 | | | | | | — | | | | | | 4,063 | | |
Balance, February 28, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | 107,584 | | | | | $ | (103,829) | | | | | $ | 18,504 | | | | | $ | 22,259 | | |
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 4,063 | | | | | $ | (59,523) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and intangible and other asset amortization
|
| | | | 7,065 | | | | | | 6,799 | | |
Provision for doubtful accounts
|
| | | | 246 | | | | | | (163) | | |
Intangible impairment
|
| | | | — | | | | | | 4,285 | | |
Goodwill impairment
|
| | | | — | | | | | | 44,433 | | |
(Gain) loss on sale of property, plant and equipment
|
| | | | (21) | | | | | | 4 | | |
Amortization of deferred gain on sale-leaseback
|
| | | | (367) | | | | | | (367) | | |
Amortization of deferred financing fees
|
| | | | 820 | | | | | | 484 | | |
Deferred income taxes
|
| | | | 31 | | | | | | (933) | | |
Increase (decrease) in cash from changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | 835 | | | | | | 1,553 | | |
Inventories
|
| | | | 10,925 | | | | | | (762) | | |
Prepaid expenses and other assets
|
| | | | 1,356 | | | | | | (319) | | |
Accounts payable
|
| | | | (7,100) | | | | | | 12,482 | | |
Accrued expenses and other liabilities
|
| | | | 7,837 | | | | | | (13,486) | | |
Net cash provided by (used in) operating activities
|
| | | | 25,690 | | | | | | (5,513) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Proceeds from sale of assets
|
| | | | 12 | | | | | | — | | |
Purchase of machinery and equipment
|
| | | | (4,137) | | | | | | (1,831) | | |
Net cash (used in) investing activities
|
| | | | (4,125) | | | | | | (1,831) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net (payments) proceeds on line of credit
|
| | | | (19,297) | | | | | | 3,899 | | |
Proceeds from long-term debt
|
| | | | — | | | | | | 837 | | |
Proceeds from German Euro loan
|
| | | | 610 | | | | | | — | | |
Principal payments on capital lease obligations
|
| | | | (1,991) | | | | | | (1,427) | | |
Principal payments on long-term debt
|
| | | | (483) | | | | | | (414) | | |
Loan issuance costs
|
| | | | (437) | | | | | | (566) | | |
Net cash (used in) provided by financing activities
|
| | | | (21,598) | | | | | | 2,329 | | |
Net change in cash
|
| | | | (33) | | | | | | (5,015) | | |
Effect of exchange rate changes on cash
|
| | | | 521 | | | | | | (367) | | |
Cash at beginning of the period
|
| | | | 5,243 | | | | | | 10,625 | | |
Cash at end of the period
|
| | | $ | 5,731 | | | | | $ | 5,243 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Cash paid during the year:
|
| | | | | | | | | | | | |
Interest
|
| | | $ | 4,737 | | | | | $ | 4,693 | | |
Income taxes
|
| | | | 676 | | | | | | 1,220 | | |
Supplemental disclosures of non-cash items: | | | | | | | | | | | | | |
Acquired capital lease
|
| | | $ | 957 | | | | | $ | 4,257 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Balance at beginning of year
|
| | | $ | 450 | | | | | $ | 614 | | |
Provisions charged to expense
|
| | | | 366 | | | | | | 6 | | |
Net Charges and Recoveries
|
| | | | (120) | | | | | | (170) | | |
Balance at end of year
|
| | | $ | 696 | | | | | $ | 450 | | |
| | |
Estimated Useful
Lives (Years) |
|
Building and improvements
|
| |
40
|
|
Machinery and equipment
|
| |
7 to 10
|
|
Vehicles
|
| |
5
|
|
Furniture and fixtures
|
| |
5 to 7
|
|
Data processing equipment and software
|
| |
3 to 5
|
|
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Balance at beginning of year
|
| | | $ | 875 | | | | | $ | 2,311 | | |
Provisions charged to expense
|
| | | | 3,813 | | | | | | (1,184) | | |
Credit memos issued
|
| | | | (2,378) | | | | | | (252) | | |
Balance at end of year
|
| | | $ | 2,310 | | | | | $ | 875 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Inventory on FIFO basis
|
| | | | | | | | | | | | |
Raw materials
|
| | | $ | 21,100 | | | | | $ | 17,110 | | |
Work in process
|
| | | | 4,376 | | | | | | 4,878 | | |
Finished goods
|
| | | | 58,554 | | | | | | 73,010 | | |
| | | | | 84,030 | | | | | | 94,998 | | |
Slow-moving, damaged, and excess inventory reserve
|
| | | | (4,112) | | | | | | (4,075) | | |
LIFO reserve
|
| | | | (4,364) | | | | | | (4,432) | | |
Inventories, net
|
| | | $ | 75,554 | | | | | $ | 86,491 | | |
| | |
2021`
|
| |
2020
|
| | ||||||||
| | |
(in thousands)
|
| | |||||||||||
Balance at beginning of year
|
| | | $ | (8,507) | | | | | $ | (10,840) | | | | ||
Costs charged to expense
|
| | | | (1,571) | | | | | | 911 | | | | ||
Inventory write-off
|
| | | | 1,602 | | | | | | 1,422 | | | | | |
Balance at end of year
|
| | | $ | (8.476) | | | | | $ | (8,507) | | | |
| | |
2021
|
| |
2020
|
| | ||||||||
| | |
(in thousands)
|
| | | | |||||||||
Land
|
| | | $ | 2,839 | | | | | $ | 2,839 | | | | ||
Buildings and improvements
|
| | | | 7,613 | | | | | | 7,183 | | | | ||
Machinery and equipment
|
| | | | 24,050 | | | | | | 20,863 | | | | ||
Vehicles
|
| | | | 30 | | | | | | 52 | | | | ||
Furniture and fixtures
|
| | | | 3,613 | | | | | | 2,976 | | | | ||
Data processing equipment and software
|
| | | | 19,952 | | | | | | 16,973 | | | | ||
Construction in progress
|
| | | | 1,764 | | | | | | 2,523 | | | | ||
| | | | | 59,861 | | | | | | 53,409 | | | | ||
Less, accumulated depreciation
|
| | | | (25,212) | | | | | | (17,559) | | | | ||
Property, plant and equipment, net
|
| | | $ | 34,649 | | | | | $ | 35,850 | | | |
| | |
Gross Carrying
Amount |
| |
Impairment
|
| |
Net Asset
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Goodwill – PartyLite
|
| | | $ | 44,433 | | | | | $ | (44,433) | | | | | $ | — | | |
| | |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Impairment
|
| |
Net Asset
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Trade names – Candle-lite
|
| | | $ | 664 | | | | | $ | — | | | | | $ | — | | | | | $ | 664 | | |
Trade names – PartyLite
|
| | | | 2,574 | | | | | | (1,233) | | | | | | — | | | | | | 1,341 | | |
Customer relationships
|
| | | | 11,773 | | | | | | (3,752) | | | | | | (4,285) | | | | | | 3,736 | | |
Patents
|
| | | | 119 | | | | | | (119) | | | | | | — | | | | | | — | | |
Trademark
|
| | | | 35 | | | | | | (35) | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 15,165 | | | | | $ | (5,139) | | | | | $ | (4,285) | | | | | $ | 5,741 | | |
| | |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| |
Impairment
|
| |
Net Asset
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Trade names – Candle-lite
|
| | | $ | 664 | | | | | $ | — | | | | | $ | — | | | | | $ | 664 | | |
Trade names – PartyLite
|
| | | | 2,574 | | | | | | (976) | | | | | | — | | | | | | 1,598 | | |
Customer relationships
|
| | | | 11,773 | | | | | | (3,332) | | | | | | (4,285) | | | | | | 4,156 | | |
Patents
|
| | | | 119 | | | | | | (119) | | | | | | — | | | | | | — | | |
Trademark
|
| | | | 35 | | | | | | (35) | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 15,165 | | | | | $ | (4,462) | | | | | $ | (4,285) | | | | | $ | 6,418 | | |
|
2022
|
| | | $ | 677 | | |
|
2023
|
| | | | 677 | | |
|
2024
|
| | | | 677 | | |
|
2025
|
| | | | 677 | | |
|
2026
|
| | | | 677 | | |
|
Thereafter
|
| | | | 1,692 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
5.36% term note
|
| | | $ | 11,602 | | | | | $ | 11,836 | | |
Term note payable A
|
| | | | 11,750 | | | | | | 12,000 | | |
Term note payable B
|
| | | | 12,500 | | | | | | 12,500 | | |
Revolver – (European)
|
| | | | 50 | | | | | | 5,069 | | |
Revolver – (US)
|
| | | | 19,619 | | | | | | 33,619 | | |
Covid relief
|
| | | | 605 | | | | | | — | | |
Capital lease
|
| | | | 2,046 | | | | | | 3,075 | | |
| | | | | 58,172 | | | | | | 78,099 | | |
Less: | | | | | | | | | | | | | |
Deferred financing fees
|
| | | | (1,202) | | | | | | (1,772) | | |
Current maturities – long-term debt
|
| | | | (1,843) | | | | | | (2,375) | | |
| | | | $ | 55,127 | | | | | $ | 73,952 | | |
|
2022
|
| | | $ | 1,843 | | |
|
2023
|
| | | | 44,596 | | |
|
2024
|
| | | | 583 | | |
|
2025
|
| | | | 11,055 | | |
|
2026
|
| | | | 95 | | |
|
Total
|
| | | $ | 58,172 | | |
|
2022
|
| | | $ | 1,197 | | |
|
2023
|
| | | | 343 | | |
|
2024
|
| | | | 342 | | |
|
2025
|
| | | | 254 | | |
|
2026
|
| | | | 98 | | |
|
Total minimum lease payments
|
| | | | 2,234 | | |
|
Less amounts representing interest
|
| | | | (188) | | |
| | | | | | 2,046 | | |
|
Less current portion of lease obligations
|
| | | | (1,118) | | |
|
Total lease obligations net of current
|
| | | $ | 928 | | |
|
Severance and related costs
|
| | | $ | 4,265 | | |
|
Contract cancellations
|
| | | | 896 | | |
|
Legal expenses
|
| | | | 546 | | |
|
Lease exit costs
|
| | | | 504 | | |
|
Other
|
| | | | 1,061 | | |
|
Total restructuring costs
|
| | | $ | 7,272 | | |
| | |
February 29,
2020 |
| |
Charges
|
| |
Usage
|
| |
February 28,
2021 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Severance and related costs
|
| | | $ | — | | | | | $ | 4,265 | | | | | $ | (1,599) | | | | | $ | 2,666 | | |
Contract cancellations
|
| | | | — | | | | | | 896 | | | | | | (773) | | | | | | 123 | | |
Legal expenses
|
| | | | — | | | | | | 546 | | | | | | (442) | | | | | | 104 | | |
Lease exist costs
|
| | | | — | | | | | | 504 | | | | | | (28) | | | | | | 476 | | |
Other
|
| | | | — | | | | | | 1,061 | | | | | | (1,057) | | | | | | 4 | | |
Total
|
| | | $ | — | | | | | $ | 7,272 | | | | | $ | (3,899) | | | | | $ | 3,373 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
United States
|
| | | $ | 11,018 | | | | | $ | (53,520) | | |
Foreign
|
| | | | (6,522) | | | | | | (5,908) | | |
| | | | $ | 4,496 | | | | | $ | (59,428) | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Current income tax expense (benefit): | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | 55 | | | | | | 17 | | |
Foreign
|
| | | | 310 | | | | | | 1,028 | | |
| | | | | 365 | | | | | | 1,045 | | |
Deferred income tax expense (benefit): | | | | | | | | | | | | | |
Federal
|
| | | | — | | | | | | — | | |
State
|
| | | | — | | | | | | — | | |
Foreign
|
| | | | 68 | | | | | | (950) | | |
| | | | | 68 | | | | | | (950) | | |
Income tax expense
|
| | | $ | 433 | | | | | $ | 95 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Deferred tax assets:
|
| | | | | | | | | | | | |
Net operating loss
|
| | | $ | 28,480 | | | | | $ | 29,930 | | |
Basis difference on investment
|
| | | | 27,754 | | | | | | 27,754 | | |
Accrued expenses and other
|
| | | | 5,412 | | | | | | 4,346 | | |
Deferred gain on sale of Tilburg
|
| | | | 3,785 | | | | | | 4,010 | | |
Allowance for doubtful accounts
|
| | | | 1,489 | | | | | | 1,440 | | |
Interest expense limitation
|
| | | | 1,450 | | | | | | 2,317 | | |
Deferred tax assets
|
| | | | 68,370 | | | | | | 69,797 | | |
Valuation allowance
|
| | | | (55,620) | | | | | | (56,045) | | |
| | | | | 12,750 | | | | | | 13,752 | | |
Deferred tax liabilities:
|
| | | | | | | | | | | | |
Inventory reserves
|
| | | | (795) | | | | | | (1,044) | | |
Prepaid expenses
|
| | | | (727) | | | | | | (730) | | |
Depreciation
|
| | | | (6,396) | | | | | | (6,862) | | |
Amortization of intangibles
|
| | | | (3,696) | | | | | | (3,949) | | |
| | | | | (11,614) | | | | | | (12,585) | | |
Net deferred tax assets
|
| | | $ | 1,136 | | | | | $ | 1,167 | | |
| | |
2021
|
| |
2020
|
| ||||||
Tax at statutory rate
|
| | | $ | 944 | | | | | $ | (12,480) | | |
Tax effect of:
|
| | | | | | | | | | | | |
Expiration of US capital loss carryforward
|
| | | | — | | | | | | 19,386 | | |
Change in valuation allowance
|
| | | | (425) | | | | | | (16,720) | | |
Goodwill impairment
|
| | | | — | | | | | | 9,538 | | |
PPP loan forgiveness
|
| | | | (2,046) | | | | | | — | | |
Switzerland pension and statutory reserves
|
| | | | 213 | | | | | | 999 | | |
State income taxes
|
| | | | 383 | | | | | | (455) | | |
Return to provision
|
| | | | 154 | | | | | | 272 | | |
Foreign tax rate differential
|
| | | | 1,027 | | | | | | (217) | | |
Foreign dividend and subpart F income
|
| | | | 204 | | | | | | (183) | | |
Change in statutory rate
|
| | | | — | | | | | | (75) | | |
Other
|
| | | | (21) | | | | | | 30 | | |
| | | | $ | 433 | | | | | $ | 95 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Changes in benefit obligation | | | | | | | | | | | | | |
Benefit obligation at beginning of year
|
| | | $ | 6,801 | | | | | $ | 7,492 | | |
Interest cost
|
| | | | — | | | | | | 51 | | |
Service cost
|
| | | | 426 | | | | | | 314 | | |
Contributions by plan participants
|
| | | | 90 | | | | | | 87 | | |
Benefits paid
|
| | | | (756) | | | | | | (54) | | |
Others
|
| | | | — | | | | | | (2,045) | | |
Actuarial (gains) / losses
|
| | | | (346) | | | | | | 741 | | |
Currency translation
|
| | | | 425 | | | | | | 215 | | |
Benefit obligation at end of year
|
| | | $ | 6,640 | | | | | $ | 6,801 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Changes in plan assets | | | | | | | | | | | | | |
Fair value of plan assets at beginning of year
|
| | | $ | 5,200 | | | | | $ | 6,560 | | |
Actual return on plan assets
|
| | | | (103) | | | | | | 215 | | |
Contributions by employer
|
| | | | 279 | | | | | | 266 | | |
Contributions by plan participants
|
| | | | 90 | | | | | | 87 | | |
Benefits paid
|
| | | | (756) | | | | | | (54) | | |
Others
|
| | | | — | | | | | | (2,045) | | |
Currency translation
|
| | | | 324 | | | | | | 170 | | |
Fair value of plan assets at end of year
|
| | | $ | 5,034 | | | | | $ | 5,199 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Funded status | | | | | | | | | | | | | |
Noncurrent liabilities
|
| | | $ | 1,606 | | | | | $ | 1,602 | | |
Net amounts recognized on the consolidated balance sheets
|
| | | $ | 1,606 | | | | | $ | 1,602 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Projected benefit obligation
|
| | | $ | 6,640 | | | | | $ | 6,801 | | |
Accumulated benefit obligation
|
| | | $ | 6,514 | | | | | $ | 6,667 | | |
Fair value of plan assets
|
| | | $ | 5,034 | | | | | $ | 5,199 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Equity instruments
|
| | | $ | 1,518 | | | | | $ | 1,568 | | |
Debt instruments
|
| | | | 2,122 | | | | | | 2,192 | | |
Properties
|
| | | | 1,103 | | | | | | 1,139 | | |
Liquid assets
|
| | | | 146 | | | | | | 151 | | |
Others
|
| | | | 145 | | | | | | 150 | | |
Fair value of plan assets at year end
|
| | | $ | 5,034 | | | | | $ | 5,200 | | |
| | |
2021
|
| |
2020
|
| ||||||
Discount rates
|
| | | | 0.15% | | | | | | 0.00% | | |
Rates of compensation increase
|
| | | | 1.00% | | | | | | 1.00% | | |
Expected long-term rates of return on plan assets
|
| | | | 1.50% | | | | | | 1.50% | | |
Mortality tables
|
| |
BVG 2015 GT
|
| |
BVG 2015 GT
|
|
|
2022
|
| | | $ | 46 | | |
|
2023
|
| | | | 136 | | |
|
2024
|
| | | | 295 | | |
|
2025
|
| | | | 91 | | |
|
2026
|
| | | | 120 | | |
|
Next 5 years
|
| | | | 695 | | |
|
2022
|
| | | $ | 4,788 | | |
|
2023
|
| | | | 4,187 | | |
|
2024
|
| | | | 3,746 | | |
|
2025
|
| | | | 3,042 | | |
|
2026
|
| | | | 2,925 | | |
|
Thereafter
|
| | | | 25,033 | | |
| | | | | $ | 43,721 | | |
| | |
FY 2021
|
| |||||||||||||||||||||||||||||||||
| | |
Candle-Lite
|
| |
PartyLite
|
| |
Combined
|
| |
Corporate
|
| |
Eliminations
|
| |
Consolidated
|
| ||||||||||||||||||
Sales to external customers
|
| | | $ | 170,931 | | | | | | 163,748 | | | | | | 334,679 | | | | | | — | | | | | | — | | | | | | 334,679 | | |
Intersegment sales
|
| | | | 24,621 | | | | | | — | | | | | | 24,621 | | | | | | — | | | | | | (24,621) | | | | | | — | | |
Gross Profit
|
| | | | 31,642 | | | | | | 95,321 | | | | | | 126,963 | | | | | | — | | | | | | — | | | | | | 126,963 | | |
Depreciation and amortization expense
|
| | | $ | 2,643 | | | | | | 4,422 | | | | | | 7,065 | | | | | | — | | | | | | — | | | | | | 7,065 | | |
Interest expense
|
| | | | 5,461 | | | | | | 419 | | | | | | 5,880 | | | | | | — | | | | | | — | | | | | | 5,880 | | |
Income tax expense(benefit)
|
| | | | 51 | | | | | | 634 | | | | | | 685 | | | | | | (252) | | | | | | — | | | | | | 433 | | |
Net income (loss)
|
| | | | 15,779 | | | | | | (5,881) | | | | | | 9,898 | | | | | | (5,835) | | | | | | — | | | | | | 4,063 | | |
Total assets
|
| | | | 145,788 | | | | | | 67,037 | | | | | | 212,825 | | | | | | (1,542) | | | | | | (53,387) | | | | | | 157,896 | | |
Capital expenditures
|
| | | | 1,322 | | | | | | 2,815 | | | | | | 4,137 | | | | | | — | | | | | | — | | | | | | 4,137 | | |
| | |
FY 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Candle-Lite
|
| |
PartyLite
|
| |
Combined
|
| |
Corporate
|
| |
Eliminations
|
| |
Consolidated
|
| ||||||||||||||||||
Sales to external customers
|
| | | | 145,251 | | | | | | 178,962 | | | | | | 324,213 | | | | | | — | | | | | | — | | | | | | 324,213 | | |
Intersegment sales
|
| | | | 22,008 | | | | | | — | | | | | | 22,008 | | | | | | — | | | | | | (22,008) | | | | | | — | | |
Gross Profit
|
| | | | 17,879 | | | | | | 107,108 | | | | | | 124,987 | | | | | | — | | | | | | — | | | | | | 124,986 | | |
Depreciation and amortization expense
|
| | | | 2,653 | | | | | | 4,145 | | | | | | 6,798 | | | | | | — | | | | | | — | | | | | | 6,799 | | |
Interest expense
|
| | | | 6,153 | | | | | | 580 | | | | | | 6,733 | | | | | | — | | | | | | — | | | | | | 6,734 | | |
Income tax expense(benefit)
|
| | | | (2) | | | | | | 272 | | | | | | 271 | | | | | | (175) | | | | | | — | | | | | | 95 | | |
Net income (loss)
|
| | | | 2,322 | | | | | | (56,920) | | | | | | (54,598) | | | | | | (4,925) | | | | | | — | | | | | | (59,523) | | |
Total assets
|
| | | | 150,871 | | | | | | 83,750 | | | | | | 234,621 | | | | | | 7,833 | | | | | | (69,376) | | | | | | 173,078 | | |
Capital expenditures
|
| | | | 1,794 | | | | | | 37 | | | | | | 1,831 | | | | | | — | | | | | | — | | | | | | 1,831 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net sales to external customers | | | | | | | | | | | | | |
United States
|
| | | $ | 188,949 | | | | | $ | 167,276 | | |
Germany
|
| | | | 47,777 | | | | | | 52,304 | | |
France
|
| | | | 31,053 | | | | | | 35,625 | | |
Other foreign countries
|
| | | | 66,900 | | | | | | 69,008 | | |
| | | | $ | 334,679 | | | | | $ | 324,213 | | |
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Long-lived assets | | | | | | | | | | | | | |
United States
|
| | | $ | 33,624 | | | | | $ | 33,342 | | |
Foreign countries
|
| | | | 1,025 | | | | | | 1,347 | | |
| | | | $ | 34,649 | | | | | $ | 34,689 | | |
| FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-68 | | | |
| | | | | F-69 | | | |
| | | | | F-70 | | | |
| | | | | F-71 | | | |
| | | | | F-72 | | |
| | |
August 31,
2021 (Unaudited) |
| |
February 28,
2021 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and Cash
|
| | | | | | | | | | | | |
Equivalents | | | | $ | 5,755 | | | | | $ | 5,731 | | |
Accounts receivable, net of allowance for doubtful accounts of $634 and $696, at August 31, 2021 and February 28, 2021, respectively
|
| | | | 20,128 | | | | | | 19,160 | | |
Inventories, net (Note 3)
|
| | | | 91,579 | | | | | | 75,554 | | |
Prepaid expenses and other current assets
|
| | | | 11,088 | | | | | | 9,565 | | |
Total current assets
|
| | | | 128,550 | | | | | | 110,011 | | |
Property, plant and equipment, net (Note 4)
|
| | | | 32,993 | | | | | | 34,649 | | |
Intangible assets, net (Note 5)
|
| | | | 5,403 | | | | | | 5,741 | | |
Deferred income tax asset (Note 9)
|
| | | | 1,733 | | | | | | 1,635 | | |
Other assets
|
| | | | 4,696 | | | | | | 4,425 | | |
Total assets
|
| | | $ | 173,374 | | | | | $ | 156,460 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Current portion long-term debt (Note 6)
|
| | | $ | 1,229 | | | | | $ | 1,843 | | |
Accounts payable – trade
|
| | | | 41,820 | | | | | | 29,665 | | |
Accounts payable with Company under Common Control
|
| | | | 1,049 | | | | | | 3,399 | | |
Accrued payroll
|
| | | | 297 | | | | | | 2,241 | | |
Income tax payable
|
| | | | (57) | | | | | | 81 | | |
Sales allowance accrued expenses
|
| | | | 2,403 | | | | | | 1,893 | | |
Deferred revenue
|
| | | | 1,965 | | | | | | 2,215 | | |
Other accrued expenses
|
| | | | 19,067 | | | | | | 21,512 | | |
Total current liabilities
|
| | | | 67,774 | | | | | | 62,850 | | |
Long-term debt, net (Note 6)
|
| | | | 74,041 | | | | | | 54,981 | | |
Deferred income tax liability (Note 9)
|
| | | | 595 | | | | | | 498 | | |
Other long-term liabilities
|
| | | | 13,427 | | | | | | 15,873 | | |
Total liabilities
|
| | | | 155,837 | | | | | | 134,201 | | |
Commitments and contingencies (Note 12) | | | | | | | | | | | | | |
Shareholders’ equity | | | | | | | | | | | | | |
Common stock, par value $.001 per share, 50,000 issued and outstanding
|
| | | | — | | | | | | — | | |
Preferred stock, par value $.001 per share, 10,000 issued and outstanding ($1 per share liquidation value)
|
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 107,584 | | | | | | 107,585 | | |
Accumulated deficit
|
| | | | (108,784) | | | | | | (103,829) | | |
Accumulated other comprehensive income:
|
| | | | | | | | | | | | |
Foreign currency translation
|
| | | | 18,737 | | | | | | 18,504 | | |
Total shareholders’ equity
|
| | | | 17,537 | | | | | | 22,260 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 173,374 | | | | | $ | 156,460 | | |
| | |
Six Months Ended August 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Net sales
|
| | | $ | 134,287 | | | | | $ | 136,108 | | |
Cost of goods sold
|
| | | | 93,292 | | | | | | 86,408 | | |
Gross profit
|
| | | | 40,995 | | | | | | 49,700 | | |
Operating expenses | | | | | | | | | | | | | |
Direct marketing expense
|
| | | | 17,501 | | | | | | 21,945 | | |
Selling and marketing
|
| | | | 6,646 | | | | | | 8,670 | | |
General and administration
|
| | | | 17,876 | | | | | | 15,348 | | |
Management fees
|
| | | | 243 | | | | | | 487 | | |
Restructuring expenses (see note 8)
|
| | | | 240 | | | | | | 1,886 | | |
| | | | | 42,506 | | | | | | 48,336 | | |
Income (loss) from operations before other income (expense)
|
| | | | (1,511) | | | | | | 1,364 | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense
|
| | | | (2,905) | | | | | | (2,829) | | |
Foreign exchange gain (loss)
|
| | | | (629) | | | | | | 813 | | |
Other income (expense), net
|
| | | | 58 | | | | | | (137) | | |
| | | | | (3,476) | | | | | | (2,153) | | |
Income (loss) before income tax expense
|
| | | | (4,987) | | | | | | (789) | | |
Income tax benefit (expense)
|
| | | | (32) | | | | | | 66 | | |
Net income (loss)
|
| | | | (4,955) | | | | | | (855) | | |
Other comprehensive income (loss) | | | | | | | | | | | | | |
Foreign currency translation adjustment
|
| | | | 233 | | | | | | (507) | | |
Comprehensive income (loss)
|
| | | $ | (4,722) | | | | | $ | (1,362) | | |
Weighted average common shares outstanding
|
| | | | 50 | | | | | | 50 | | |
Basic earnings (loss) per common share
|
| | | $ | (99) | | | | | $ | (17) | | |
Diluted earnings (loss) per common share
|
| | | $ | (99) | | | | | $ | (17) | | |
| | |
For the Six Months Ended August 31, 2021
|
| |||||||||||||||||||||||||||||||||
| | |
Common
Stock |
| |
Preferred
Stock |
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
|
| ||||||||||||||||||
Balance, February 28, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | 107,584 | | | | | $ | (103,829) | | | | | $ | 18,504 | | | | | $ | 22,259 | | |
Foreign currency translation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 233 | | | | | | 233 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (4,955) | | | | | | — | | | | | | (4,955) | | |
Balance, August 31, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | 107,584 | | | | | $ | (108,784) | | | | | $ | 18,737 | | | | | $ | 17,537 | | |
| | |
For the Six Months Ended August 31, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Common
Stock |
| |
Preferred
Stock |
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
|
| ||||||||||||||||||
Balance, February 29, 2020
|
| | | $ | — | | | | | $ | — | | | | | $ | 107,584 | | | | | $ | (107,892) | | | | | $ | 18,969 | | | | | $ | 18,661 | | |
Foreign currency translation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (507) | | | | | | (507) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (855) | | | | | | — | | | | | | (855) | | |
Balance, August 31, 2020
|
| | | $ | — | | | | | $ | — | | | | | $ | 107,584 | | | | | $ | (108,746) | | | | | $ | 18,462 | | | | | $ | 17,300 | | |
| | |
Six Months Ended August 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | (4,955) | | | | | $ | (855) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and intangible and other asset amortization
|
| | | | 3,494 | | | | | | 3,400 | | |
Provision for doubtful accounts
|
| | | | (62) | | | | | | 247 | | |
(Gain) loss on sale of property, plant and equipment
|
| | | | 216 | | | | | | (1) | | |
Amortization of deferred gain on sale-leaseback
|
| | | | (184) | | | | | | (184) | | |
Amortization of deferred financing fees
|
| | | | 411 | | | | | | 354 | | |
Deferred income taxes
|
| | | | 1,706 | | | | | | 478 | | |
Increase (decrease) in cash from changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (957) | | | | | | 3,003 | | |
Inventories
|
| | | | (16,565) | | | | | | 4,730 | | |
Prepaid expenses and other assets
|
| | | | (4,326) | | | | | | (956) | | |
Accounts payable
|
| | | | 9,921 | | | | | | (4,187) | | |
Accrued expenses and other liabilities
|
| | | | (5,111) | | | | | | 2,815 | | |
Net cash provided by (used in) operating activities
|
| | | | (16,412) | | | | | | 8,844 | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Purchase of machinery and equipment
|
| | | | (1,546) | | | | | | (1,962) | | |
Net cash (used in) investing activities
|
| | | | (1,546) | | | | | | (1,962) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net (payments) proceeds on line of credit
|
| | | | 22,339 | | | | | | (3,695) | | |
Principal payments on capital lease obligations
|
| | | | (969) | | | | | | (1,114) | | |
Principal payments on long-term debt
|
| | | | (3,250) | | | | | | (242) | | |
Loan issuance costs
|
| | | | — | | | | | | (387) | | |
Net cash (used in) provided by financing activities
|
| | | | 18,120 | | | | | | (5,438) | | |
Net change in cash
|
| | | | 162 | | | | | | 1,442 | | |
Effect of exchange rate changes on cash
|
| | | | (138) | | | | | | 420 | | |
Cash at beginning of the period
|
| | | | 5,731 | | | | | | 5,243 | | |
Cash at end of the period
|
| | | $ | 5,755 | | | | | $ | 7,107 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Cash paid during the year:
|
| | | | | | | | | | | | |
Interest
|
| | | $ | 2,061 | | | | | $ | 3,021 | | |
Income taxes
|
| | | | 49 | | | | | | (3) | | |
Supplemental disclosures of non-cash items: | | | | | | | | | | | | | |
Acquired capital lease
|
| | | $ | — | | | | | $ | 590 | | |
| | |
Estimated Useful
Lives (Years) |
|
Building and improvements
|
| |
40
|
|
Machinery and equipment
|
| |
7 to 10
|
|
Vehicles
|
| |
5
|
|
Furniture and fixtures
|
| |
5 to 7
|
|
Data processing equipment and software
|
| |
3 to 5
|
|
| | |
August 31,
2021 |
| |
February 28,
2021 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Inventory on FIFO basis
|
| | | | | | | | | | | | |
Raw materials
|
| | | $ | 21,454 | | | | | $ | 21,100 | | |
Work in process
|
| | | | 6,540 | | | | | | 4,376 | | |
Finished goods
|
| | | | 72,608 | | | | | | 58,554 | | |
| | | | | 100,602 | | | | | | 84,030 | | |
Slow-moving, damaged, and excess inventory reserve
|
| | | | (4,839) | | | | | | (4,112) | | |
LIFO reserve
|
| | | | (4,184) | | | | | | (4,364) | | |
Inventories, net
|
| | | $ | 91,579 | | | | | $ | 75,554 | | |
| | |
August 31,
2021 |
| |
February 28,
2021 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Land
|
| | | $ | 2,839 | | | | | $ | 2,839 | | |
Buildings and improvements
|
| | | | 7,646 | | | | | | 7,613 | | |
Machinery and equipment
|
| | | | 24,278 | | | | | | 24,050 | | |
Vehicles
|
| | | | 30 | | | | | | 30 | | |
Furniture and fixtures
|
| | | | 3,485 | | | | | | 3,613 | | |
Data processing equipment and software
|
| | | | 20,781 | | | | | | 19,952 | | |
Construction in progress
|
| | | | 1,723 | | | | | | 1,764 | | |
| | | | | 60,782 | | | | | | 59,861 | | |
Less, accumulated depreciation
|
| | | | (27,789) | | | | | | (25,212) | | |
Property, plant and equipment, net
|
| | | $ | 32,993 | | | | | $ | 34,649 | | |
| | |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| |
Impairment
|
| |
Net Asset
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Trade names – Candle-lite
|
| | | $ | 664 | | | | | $ | — | | | | | $ | — | | | | | $ | 664 | | |
Trade names – PartyLite
|
| | | | 2,574 | | | | | | (1,363) | | | | | | — | | | | | | 1,212 | | |
Customer relationships
|
| | | | 11,773 | | | | | | (3,961) | | | | | | (4,285) | | | | | | 3,527 | | |
Patents
|
| | | | 119 | | | | | | (119) | | | | | | — | | | | | | — | | |
Trademark
|
| | | | 35 | | | | | | (35) | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 15,165 | | | | | $ | (5,477) | | | | | $ | (4,285) | | | | | $ | 5,403 | | |
| | |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Impairment
|
| |
Net Asset
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Trade names – Candle-lite
|
| | | $ | 664 | | | | | $ | — | | | | | $ | — | | | | | $ | 664 | | |
Trade names – PartyLite
|
| | | | 2,574 | | | | | | (1,233) | | | | | | — | | | | | | 1,341 | | |
Customer relationships
|
| | | | 11,773 | | | | | | (3,751) | | | | | | (4,285) | | | | | | 3,736 | | |
Patents
|
| | | | 119 | | | | | | (119) | | | | | | — | | | | | | — | | |
Trademark
|
| | | | 35 | | | | | | (35) | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 15,165 | | | | | $ | (5,139) | | | | | $ | (4,285) | | | | | $ | 5,741 | | |
|
2022
|
| | | $ | 339 | | |
|
2023
|
| | | | 677 | | |
|
2024
|
| | | | 677 | | |
|
2025
|
| | | | 677 | | |
|
2026
|
| | | | 677 | | |
|
Thereafter
|
| | | | 1,692 | | |
| | |
August 31,
2021 |
| |
February 28,
2021 |
| ||||||
| | |
(in thousands)
|
| |||||||||
5.36% term note
|
| | | $ | 11,478 | | | | | $ | 11,602 | | |
Term note payable A
|
| | | | 10,175 | | | | | | 11,750 | | |
Term note payable B
|
| | | | 10,949 | | | | | | 12,500 | | |
Revolver – (European)
|
| | | | 5,689 | | | | | | 50 | | |
Revolver – (US)
|
| | | | 36,249 | | | | | | 19,619 | | |
Covid Relief
|
| | | | 590 | | | | | | 605 | | |
Capital Lease
|
| | | | 1,076 | | | | | | 2,046 | | |
| | | | | 76,206 | | | | | | 58,172 | | |
Less: | | | | | | | | | | | | | |
Deferred financing fees
|
| | | | (936) | | | | | | (1,202) | | |
Current maturities – long-term debt
|
| | | | (1,229) | | | | | | (1,843) | | |
| | | | $ | 74,041 | | | | | $ | 55,127 | | |
|
2022
|
| | | $ | 608 | | |
|
2023
|
| | | | 63,857 | | |
|
2024
|
| | | | 584 | | |
|
2025
|
| | | | 11,054 | | |
|
2026
|
| | | | 103 | | |
|
Total
|
| | | $ | 76,206 | | |
|
2022
|
| | | $ | 177 | | |
|
2023
|
| | | | 343 | | |
|
2024
|
| | | | 342 | | |
|
2025
|
| | | | 254 | | |
|
2026
|
| | | | 98 | | |
|
Total minimum lease payments
|
| | | | 1,214 | | |
|
Less amounts representing interest
|
| | | | (138) | | |
| | | | | | 1,076 | | |
|
Less current portion of lease obligations
|
| | | | (257) | | |
|
Total lease obligations net of current
|
| | | $ | 819 | | |
| | |
August 31,
2021 |
| |
August 31,
2020 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Severance and related costs
|
| | | $ | 72 | | | | | $ | 996 | | |
Legal expenses
|
| | | | 135 | | | | | | 481 | | |
Incentive Trip Cancellation
|
| | | | — | | | | | | 409 | | |
Other
|
| | | | 33 | | | | | | — | | |
Total restructuring costs
|
| | | $ | 240 | | | | | $ | 1,886 | | |
| | |
February 28,
2021 |
| |
Charges
|
| |
Usage
|
| |
August 31,
2021 |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Severance and related costs
|
| | | $ | 2,666 | | | | | $ | 72 | | | | | $ | (2,150) | | | | | $ | 588 | | |
Contract cancellations
|
| | | | 123 | | | | | | — | | | | | | (123) | | | | | | — | | |
Legal expenses
|
| | | | 104 | | | | | | 135 | | | | | | (145) | | | | | | 94 | | |
Lease exit costs
|
| | | | 476 | | | | | | — | | | | | | (305) | | | | | | 171 | | |
Other
|
| | | | 4 | | | | | | 33 | | | | | | (36) | | | | | | — | | |
Total
|
| | | $ | 3,373 | | | | | $ | 240 | | | | | $ | (2,760) | | | | | $ | 853 | | |
| | |
February 28,
2020 |
| |
Charges
|
| |
Usage
|
| |
August 31,
2020 |
| ||||||||||||
| | | | | | | | |
(in thousands)
|
| | | | | | | |||||||||
Severance and related costs
|
| | | $ | — | | | | | $ | 996 | | | | | $ | 831 | | | | | $ | 165 | | |
Contract cancellations
|
| | | | — | | | | | | 409 | | | | | | 409 | | | | | | — | | |
Legal expenses
|
| | | | — | | | | | | 481 | | | | | | 384 | | | | | | 97 | | |
Lease exit costs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | — | | | | | $ | 1,886 | | | | | $ | 1,624 | | | | | $ | 262 | | |
|
2022
|
| | | $ | 2,366 | | |
|
2023
|
| | | | 3,195 | | |
|
2024
|
| | | | 2,806 | | |
|
2025
|
| | | | 2,386 | | |
|
2026
|
| | | | 2,157 | | |
|
Thereafter
|
| | | | 7,510 | | |
| | | | | $ | 20,420 | | |
| | |
Six Months Ended August 31, 2021
|
| |||||||||||||||||||||||||||||||||
| | |
Candle-Lite
|
| |
PartyLite
|
| |
Combined
|
| |
Corporate
|
| |
Eliminations
|
| |
Consolidated
|
| ||||||||||||||||||
Sales to external customers
|
| | | $ | 78,740 | | | | | | 55,547 | | | | | | 134,287 | | | | | | — | | | | | | — | | | | | $ | 134,287 | | |
Intersegment sales
|
| | | $ | 11,014 | | | | | | — | | | | | | 11,014 | | | | | | — | | | | | | (11,014) | | | | | $ | — | | |
Gross Profit
|
| | | $ | 9,536 | | | | | | 31,459 | | | | | | 40,995 | | | | | | — | | | | | | — | | | | | $ | 40,995 | | |
Depreciation and amortization expense
|
| | | $ | 1,359 | | | | | | 2,135 | | | | | | 3,494 | | | | | | — | | | | | | — | | | | | $ | 3,494 | | |
Interest expense
|
| | | $ | 2,793 | | | | | | 112 | | | | | | 2,905 | | | | | | — | | | | | | — | | | | | $ | 2,905 | | |
Income tax expense(benefit)
|
| | | $ | 106 | | | | | | (138) | | | | | | (32) | | | | | | — | | | | | | — | | | | | $ | (32) | | |
Net income (loss)
|
| | | $ | 669 | | | | | | (3,264) | | | | | | (2,595) | | | | | | (2,360) | | | | | | — | | | | | $ | (4,955) | | |
Capital expenditures
|
| | | $ | 840 | | | | | | 706 | | | | | | 1,546 | | | | | | — | | | | | | — | | | | | $ | 1,546 | | |
| | |
Six Months Ended August 31, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Candle-Lite
|
| |
PartyLite
|
| |
Combined
|
| |
Corporate
|
| |
Eliminations
|
| |
Consolidated
|
| ||||||||||||||||||
Sales to external customers
|
| | | $ | 71,864 | | | | | | 64,244 | | | | | | 136,108 | | | | | | — | | | | | | — | | | | | $ | 136,108 | | |
Intersegment sales
|
| | | $ | 9,020 | | | | | | — | | | | | | 9,020 | | | | | | — | | | | | | (9,020) | | | | | $ | — | | |
Gross Profit
|
| | | $ | 14,219 | | | | | | 35,481 | | | | | | 49,700 | | | | | | — | | | | | | — | | | | | $ | 49,700 | | |
Depreciation and amortization expense
|
| | | $ | 1,272 | | | | | | 2,128 | | | | | | 3,400 | | | | | | — | | | | | | — | | | | | $ | 3,400 | | |
Interest expense
|
| | | $ | 2,573 | | | | | | 256 | | | | | | 2,829 | | | | | | — | | | | | | — | | | | | $ | 2,829 | | |
Income tax expense(benefit)
|
| | | $ | — | | | | | | 41 | | | | | | 41 | | | | | | 25 | | | | | | — | | | | | $ | 66 | | |
Net income (loss)
|
| | | $ | 7,425 | | | | | | (4,890) | | | | | | 2,535 | | | | | | (3,390) | | | | | | — | | | | | $ | (855) | | |
Capital expenditures
|
| | | $ | 207 | | | | | | 1,755 | | | | | | 1,962 | | | | | | — | | | | | | — | | | | | $ | 1,962 | | |
| | |
August 31, 2021
|
| |||||||||||||||||||||||||||||||||
| | |
Candle-Lite
|
| |
PartyLite
|
| |
Combined
|
| |
Corporate
|
| |
Eliminations
|
| |
Consolidated
|
| ||||||||||||||||||
Total assets
|
| | | $ | 165,306 | | | | | | 74,867 | | | | | | 240,173 | | | | | | (3,169) | | | | | | (63,630) | | | | | $ | 173,374 | | |
| | |
February 28, 2021
|
| |||||||||||||||||||||||||||||||||
| | |
Candle-Lite
|
| |
PartyLite
|
| |
Combined
|
| |
Corporate
|
| |
Eliminations
|
| |
Consolidated
|
| ||||||||||||||||||
Total assets
|
| | | $ | 144,352 | | | | | | 67,037 | | | | | | 211,389 | | | | | | (1,542) | | | | | | (53,387) | | | | | $ | 156,460 | | |
| | |
2021
|
| |
2020
|
| ||||||
United States
|
| | | $ | 82,354 | | | | | $ | 82,766 | | |
Germany
|
| | | | 19,404 | | | | | | 14,817 | | |
France
|
| | | | 13,362 | | | | | | 13,860 | | |
Other foreign countries
|
| | | | 19,167 | | | | | | 24,665 | | |
| | | | $ | 134,287 | | | | | $ | 136,108 | | |
| | |
8/31/2021
|
| |
2/28/2021
|
| ||||||
United States
|
| | | $ | 32,133 | | | | | $ | 33,624 | | |
Foreign countries
|
| | | | 860 | | | | | | 1,025 | | |
| | | | $ | 32,993 | | | | | $ | 34,649 | | |
| | | | | F-90 | | | |
| CONSOLIDATED FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-91 | | | |
| | | | | F-92 | | | |
| | | | | F-93 | | | |
| | | | | F-94 | | | |
| | | | | F-95 | | |
| | | | | | | | |
As at March 31,
|
| |||||||||
| | |
Note
|
| |
2021
|
| |
2020
|
| |||||||||
ASSETS | | | | | | | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | | | | | | | 3,158,891 | | | | | | 2,166,498 | | |
Restricted cash balance
|
| | | | | | | | | | 396,442 | | | | | | 2,340,830 | | |
Accounts receivable, net of allowance of 969,312 and 1,333,304, respectively
|
| | | | 3 | | | | | | 16,283,709 | | | | | | 15,825,688 | | |
Inventories
|
| | | | 4 | | | | | | 23,018,674 | | | | | | 39,292,964 | | |
Prepaid expenses and other current assets
|
| | | | 5 | | | | | | 5,091,394 | | | | | | 5,534,188 | | |
Total current assets
|
| | | | | | | | | | 47,949,110 | | | | | | 65,160,168 | | |
Investments
|
| | | | | | | | | | 25,990 | | | | | | 33,316 | | |
Property, plant and equipment, net
|
| | | | 6 | | | | | | 31,749,657 | | | | | | 33,306,062 | | |
Intangible assets, net
|
| | | | 7 | | | | | | 251,845 | | | | | | 501,993 | | |
Equity accounted investments
|
| | | | 8 | | | | | | 1,148,624 | | | | | | — | | |
Other non-current assets
|
| | | | 9 | | | | | | 4,211,768 | | | | | | 3,745,247 | | |
Total assets
|
| | | | | | | | | | 85,336,994 | | | | | | 102,746,786 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | | | | | | | |
Short-term debt
|
| | | | 10 | | | | | | 129,558,557 | | | | | | 125,404,449 | | |
Accounts payables
|
| | | | | | | | | | 31,203,774 | | | | | | 44,803,274 | | |
Other current liabilities
|
| | | | 11 | | | | | | 23,268,032 | | | | | | 25,693,667 | | |
Total current liabilities
|
| | | | | | | | | | 184,030,363 | | | | | | 195,901,390 | | |
Long-term debt
|
| | | | 12 | | | | | | 43,232,664 | | | | | | 36,856,856 | | |
Employee compensation and benefits
|
| | | | 17 | | | | | | 516,206 | | | | | | 464,621 | | |
Deferred tax liabilities, net
|
| | | | 18 | | | | | | 119,226 | | | | | | 27,856 | | |
Other non-current liabilities
|
| | | | 13 | | | | | | 805,891 | | | | | | 1,255,977 | | |
Liability towards equity accounted investments
|
| | | | | | | | | | | | | | | | 270,722 | | |
Total liabilities
|
| | | | | | | | | | 228,704,350 | | | | | | 234,777,422 | | |
Commitments & contingencies (refer note 14) | | | | | | | | | | | | | | | | | | | |
STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | |
Common stock, $0.2723 par value per share, 6,880,000 shares authorized, issued and outstanding
|
| | | | 15 | | | | | | 1,873,433 | | | | | | 1,873,433 | | |
Accumulated other comprehensive income
|
| | | | | | | | | | 3,464,361 | | | | | | 3,682,729 | | |
Accumulated deficit
|
| | | | | | | | | | (142,469,033) | | | | | | (132,077,498) | | |
Total stockholders’ deficit
|
| | | | | | | | | | (137,131,239) | | | | | | (126,521,336) | | |
Non-controlling interest
|
| | | | | | | | | | (6,236,117) | | | | | | (5,509,300) | | |
Total deficit
|
| | | | | | | | | | (143,367,356) | | | | | | (132,030,636) | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
| | | | | | | | | | 85,336,994 | | | | | | 102,746,786 | | |
| | | | | |
For the years ended March 31,
|
| |||||||||
| | |
Note
|
| |
2021
|
| |
2020
|
| ||||||
Revenue, net
|
| |
16
|
| | | | 125,402,233 | | | | | | 154,568,313 | | |
Cost of goods sold
|
| | | | | | | 99,326,930 | | | | | | 133,312,640 | | |
Gross profit
|
| | | | | | | 26,075,303 | | | | | | 21,255,673 | | |
OPERATING EXPENSES | | | | | | | | | | | | | | | | |
Selling, general & administrative expenses
|
| | | | | | | 25,968,325 | | | | | | 41,623,030 | | |
Depreciation & amortization
|
| |
6 & 7
|
| | | | 2,764,189 | | | | | | 2,730,359 | | |
Total operating expenses
|
| | | | | | | 28,732,514 | | | | | | 44,353,389 | | |
Loss from operations before other income (expense) and share of profit
on equity accounted investments |
| | | | | | | (2,657,211) | | | | | | (23,097,716) | | |
OTHER INCOME/(EXPENSE) | | | | | | | | | | | | | | | | |
Interest income
|
| | | | | | | 210,875 | | | | | | 322,668 | | |
Interest expense
|
| | | | | | | (11,070,335) | | | | | | (13,280,314) | | |
Other income, net
|
| | | | | | | 1,351,202 | | | | | | 3,469,412 | | |
Total other (expense)
|
| | | | | | | (9,508,258) | | | | | | (9,488,234) | | |
Loss before income taxes and share of profit on equity accounted investments
|
| | | | | | | (12,165,469) | | | | | | (32,585,950) | | |
Provision for income taxes
|
| |
18
|
| | | | (364,846) | | | | | | (285,443) | | |
Net loss before share of profit on equity accounted investments
|
| | | | | | | (12,530,315) | | | | | | (32,871,393) | | |
Share of profit on equity accounted investment
|
| |
8
|
| | | | 1,419,346 | | | | | | 38,419 | | |
Net loss after share of profit on equity accounted investments
|
| | | | | | | (11,110,969) | | | | | | (32,832,974) | | |
Net loss attributable to noncontrolling interest
|
| | | | | | | (719,434) | | | | | | (2,241,005) | | |
Net loss attributable to owners
|
| | | | | | | (10,391,535) | | | | | | (30,591,969) | | |
Other comprehensive (loss)/ income | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | | | | (225,751) | | | | | | 512,934 | | |
Total other comprehensive (loss)/ income
|
| | | | | | | (225,751) | | | | | | 512,934 | | |
Other comprehensive (loss)/ income attributable
to noncontrolling interest |
| | | | | | | (7,383) | | | | | | 25,682 | | |
Other comprehensive (loss)/ income attributable
to owners |
| | | | | | | (218,368) | | | | | | 487,252 | | |
Total comprehensive loss
|
| | | | | | | (11,336,720) | | | | | | (32,320,040) | | |
Weighted average common shares outstanding
|
| | | | | | | 6,880,000 | | | | | | 6,880,000 | | |
Basic loss per common share
|
| | | | | | | (1.51) | | | | | | (4.45) | | |
Diluted loss per common share
|
| | | | | | | (1.51) | | | | | | (4.45) | | |
| | |
Common stock
|
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive income |
| |
Non-controlling
interest |
| |
Total
stockholders’ deficit |
| |||||||||||||||||||||
| | |
Nos. of shares
|
| |
Par value
|
| ||||||||||||||||||||||||||||||
Balance as at April 01, 2019
|
| | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (101,278,506) | | | | | | 3,195,477 | | | | | | (3,501,000) | | | | | | (99,710,596) | | |
Net loss for the year
|
| | | | — | | | | | | — | | | | | | (30,591,969) | | | | | | — | | | | | | (2,241,005) | | | | | | (32,832,974) | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 487,252 | | | | | | 25,682 | | | | | | 512,934 | | |
Transactions with non-controlling interest*
|
| | | | — | | | | | | — | | | | | | (207,023) | | | | | | — | | | | | | 207,023 | | | | | | — | | |
Balance as at March 31, 2020
|
| | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (132,077,498) | | | | | | 3,682,729 | | | | | | (5,509,300) | | | | | | (132,030,636) | | |
Net loss for the year
|
| | | | — | | | | | | — | | | | | | (10,391,535) | | | | | | — | | | | | | (719,434) | | | | | | (11,110,969) | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (218,368) | | | | | | (7,383) | | | | | | (225,751) | | |
Balance as at March 31, 2021
|
| | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (142,469,033) | | | | | | 3,464,361 | | | | | | (6,236,117) | | | | | | (143,367,356) | | |
| | |
For the years ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net loss for the year
|
| | | | (11,110,969) | | | | | | (32,832,974) | | |
Adjustments: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 2,764,189 | | | | | | 2,730,359 | | |
Tax expense (net)
|
| | | | 364,846 | | | | | | 285,443 | | |
Loss on deconsolidation of a subsidiary
|
| | | | 463,134 | | | | | | — | | |
Provision for gratuity
|
| | | | 34,903 | | | | | | 111,555 | | |
Provision for corporate social responsibility (“CSR”)
|
| | | | 147,694 | | | | | | — | | |
Loss on sale of property, plant and equipment
|
| | | | 82,608 | | | | | | 19 | | |
Share of profit on equity accounted investment
|
| | | | (1,419,346) | | | | | | (38,419) | | |
Effect of foreign exchange fluctuation
|
| | | | 2,786,356 | | | | | | (2,628,553) | | |
| | | | | (5,886,585) | | | | | | (32,372,570) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivables
|
| | | | (220,798) | | | | | | (2,787,168) | | |
Inventories
|
| | | | 16,580,299 | | | | | | 8,736,263 | | |
Prepaid expenses and other current assets
|
| | | | 3,409,135 | | | | | | (1,434,854) | | |
Accounts payables and other liabilities
|
| | | | (14,083,776) | | | | | | 36,693,612 | | |
Cash (used in) generated from operating activities
|
| | | | (201,725) | | | | | | 8,835,283 | | |
CASH FLOW FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchase of property, plant and equipment and intangible
assets |
| | | | (146,090) | | | | | | (1,501,867) | | |
Sale of property, plant and equipment and intangible assets
|
| | | | 4,603 | | | | | | 433 | | |
Net cash used in investing activities
|
| | | | (141,487) | | | | | | (1,501,434) | | |
CASH FLOW FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Short term debt, net
|
| | | | 486,779 | | | | | | 1,724,594 | | |
Long term debt received
|
| | | | 2,922,154 | | | | | | — | | |
Repayment of long-term debt
|
| | | | (2,382,512) | | | | | | (8,281,566) | | |
Principal payments under capital lease
|
| | | | (918,151) | | | | | | (441,145) | | |
Net cash generated from (used in) financing activities
|
| | | | 108,270 | | | | | | (6,998,117) | | |
Net (decrease)/ increase in cash and cash equivalents
|
| | | | (234,942) | | | | | | 335,732 | | |
Cash and cash equivalents, and restricted cash at the beginning of the year
|
| | | | 4,507,328 | | | | | | 2,959,542 | | |
Reduction due to deconsolidation of a subsidiary
|
| | | | (72,163) | | | | | | — | | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
| | | | (644,890) | | | | | | 1,212,054 | | |
Cash and cash equivalents and restricted cash at the end of the year
|
| | | | 3,555,333 | | | | | | 4,507,328 | | |
Supplemental cash flow disclosure: | | | | | | | | | | | | | |
Income tax paid (net of refunds)
|
| | | | 37,633 | | | | | | 301,210 | | |
Interest paid
|
| | | | 7,923,389 | | | | | | 15,064,788 | | |
Reconciliation of cash and cash equivalents and restricted cash reported in the consolidated balance sheets
|
| | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | 3,158,891 | | | | | | 2,166,498 | | |
Restricted cash
|
| | | | 396,442 | | | | | | 2,340,830 | | |
Total cash, cash equivalents, and restricted cash reported in the statements of consolidated cash flows
|
| | | | 3,555,333 | | | | | | 4,507,328 | | |
| | |
March 31, 2021
|
| |
March 31, 2020
|
| ||||||
Cash on Hand
|
| | | | 17,344 | | | | | | 15,956 | | |
Balances with Banks
|
| | | | 3,141,547 | | | | | | 2,150,542 | | |
Restricted Cash balances
|
| | | | 396,442 | | | | | | 2,340,830 | | |
Total cash and cash equivalent (Including restricted cash balance)
|
| | | | 3,555,333 | | | | | | 4,507,328 | | |
|
Building
|
| |
30 – 60 years
|
|
|
Plant and machinery
|
| |
3 – 15 years
|
|
|
Computer and accessories
|
| |
3 – 15 years
|
|
|
Leasehold improvements
|
| |
3 – 15 years
|
|
|
Office equipment, canteen equipment and lab equipment
|
| |
3 – 15 years
|
|
|
Electronic fittings and furniture
|
| |
3 – 15 years
|
|
|
Vehicles
|
| |
3 – 10 years
|
|
|
Software
|
| |
3 – 10 years
|
|
|
Trademark
|
| |
10 years
|
|
|
Customer relationship
|
| |
10 years
|
|
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Accounts receivable
|
| | | | 17,253,021 | | | | | | 17,158,992 | | |
| | | | | 17,253,021 | | | | | | 17,158,992 | | |
Less: Provision for doubtful accounts
|
| | | | (969,312) | | | | | | (1,333,304) | | |
Accounts receivable, net
|
| | | | 16,283,709 | | | | | | 15,825,688 | | |
The movement in provision for doubtful accounts is as follows: | | | | | | | | | | | | | |
Balance as at beginning of the year
|
| | | | (1,333,304) | | | | | | (2,065,588) | | |
Net movement including provision/reversals
|
| | | | 363,992 | | | | | | 732,284 | | |
Balance as at end of the year
|
| | | | (969,312) | | | | | | (1,333,304) | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Raw materials and components
|
| | | | 18,449,002 | | | | | | 22,619,332 | | |
Work in progress and semi-finished goods
|
| | | | 94,364 | | | | | | 136,533 | | |
Finished goods
|
| | | | 11,371,577 | | | | | | 22,123,195 | | |
Packaging material
|
| | | | 1,178,211 | | | | | | 1,361,251 | | |
Consumables
|
| | | | 90,506 | | | | | | 135,557 | | |
Less: Provision for slow-moving, damaged, and excess inventory
|
| | | | (8,164,986) | | | | | | (7,082,904) | | |
Inventories, net
|
| | | | 23,018,674 | | | | | | 39,292,964 | | |
The movement in provision for slow-moving, damaged, and excess inventory is as follows:
|
| | | | | | | | | | | | |
Balance as at beginning of the year
|
| | | | (7,082,904) | | | | | | (3,380,435) | | |
Net movement including provision/reversals
|
| | | | (1,082,082) | | | | | | (3,702,469) | | |
Balance as at end of the year
|
| | | | (8,164,986) | | | | | | (7,082,904) | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Balance with statutory / Government authorities
|
| | | | 2,932,719 | | | | | | 3,340,464 | | |
Income tax receivable
|
| | | | 201,149 | | | | | | 406,296 | | |
Interest accrued
|
| | | | 298,794 | | | | | | 14,359 | | |
Prepaid expenses
|
| | | | 426,962 | | | | | | 319,401 | | |
Security deposits
|
| | | | 33,235 | | | | | | 100,889 | | |
Other advances*
|
| | | | 1,198,535 | | | | | | 1,352,779 | | |
| | | | | 5,091,394 | | | | | | 5,534,188 | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Land (refer note 10(1), 12(2) and 12(3))
|
| | | | 9,277,919 | | | | | | 9,305,097 | | |
Building (refer note 10(1))
|
| | | | 18,779,178 | | | | | | 18,983,623 | | |
Plant and machinery (refer note 10(1))
|
| | | | 21,209,881 | | | | | | 19,907,787 | | |
Computer and accessories
|
| | | | 6,562,442 | | | | | | 6,550,542 | | |
Leasehold improvements
|
| | | | 2,451,432 | | | | | | 2,456,350 | | |
Office equipment, canteen equipment and lab equipment
|
| | | | 779,478 | | | | | | 764,703 | | |
Electronic fittings and furniture
|
| | | | 986,941 | | | | | | 2,166,666 | | |
Vehicles
|
| | | | 233,735 | | | | | | 232,309 | | |
Capital work-in-progress
|
| | | | 137,732 | | | | | | 118,841 | | |
Property, plant and equipment (gross)
|
| | |
|
60,418,738
|
| | | |
|
60,485,918
|
| |
Less: Accumulated depreciation
|
| | | | (28,669,081) | | | | | | (27,179,856) | | |
Property, plant and equipment, net
|
| | | | 31,749,657 | | | | | | 33,306,062 | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Trademarks
|
| | | | 6,839 | | | | | | 6,610 | | |
Capitalized software
|
| | | | 333,399 | | | | | | 320,810 | | |
Customer relationship
|
| | | | 4,500,000 | | | | | | 4,500,000 | | |
Intangible assets (gross)
|
| | |
|
4,840,238
|
| | | |
|
4,827,420
|
| |
Less: Accumulated amortization
|
| | | | (4,588,393) | | | | | | (4,325,427) | | |
Intangible assets, net
|
| | | | 251,845 | | | | | | 501,993 | | |
|
2022
|
| | | | 36,433 | | |
|
2023
|
| | | | 34,482 | | |
|
2024
|
| | | | 33,157 | | |
|
2025
|
| | | | 32,382 | | |
|
2026
|
| | | | 31,412 | | |
|
2027
|
| | | | 31,395 | | |
|
2028
|
| | | | 29,612 | | |
|
2029
|
| | | | 22,972 | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Total initial cost
|
| | | | — | | | | | | — | | |
Accumulated gain/(loss)
|
| | | | 1,148,624 | | | | | | (270,722) | | |
Carrying value
|
| | | | 1,148,624 | | | | | | (270,722) | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Current assets
|
| | | | 8,938,143 | | | | | | 3,326,994 | | |
Non-current assets
|
| | | | 3,143,442 | | | | | | 3,116,638 | | |
Current liabilities
|
| | | | 6,447,796 | | | | | | 3,459,599 | | |
Non-current liabilities
|
| | | | 3,285,168 | | | | | | 3,285,168 | | |
Net sales or gross revenue
|
| | | | 30,610,441 | | | | | | 11,270,708 | | |
Gross profit
|
| | | | 10,805,808 | | | | | | 2,855,540 | | |
Net income
|
| | | | 2,838,693 | | | | | | 76,838 | | |
Net income attributable to the Group
|
| | | | 1,419,346 | | | | | | 38,419 | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Security deposits
|
| | | | 723,942 | | | | | | 328,677 | | |
Capital Advances
|
| | | | 119,045 | | | | | | 52,570 | | |
Other Advances*
|
| | | | 3,367,435 | | | | | | 3,362,979 | | |
Interest accrued
|
| | | | 1,346 | | | | | | 1,021 | | |
| | | | | 4,211,768 | | | | | | 3,745,247 | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Post-shipment credit
|
| | | | 8,251,376 | | | | | | 8,613,345 | | |
Pre-shipment credit
|
| | | | 5,047,857 | | | | | | 5,282,244 | | |
Inter corporate loans
|
| | | | 5,002,604 | | | | | | 5,932,513 | | |
Loans payable under bank line of credit
|
| | | | 101,888,857 | | | | | | 100,576,347 | | |
Notes payable due within one year
|
| | | | 9,367,863 | | | | | | 5,000,000 | | |
| | | | | 129,558,557 | | | | | | 125,404,449 | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Accrued payroll and related expenses
|
| | | | 2,190,193 | | | | | | 2,253,141 | | |
Advance from customers
|
| | | | 2,335,118 | | | | | | 526,953 | | |
Current maturities of long-term debt
|
| | | | 3,681,444 | | | | | | 9,292,340 | | |
Current maturities of capital lease obligations
|
| | | | 713,549 | | | | | | 901,121 | | |
Interest accrued
|
| | | | 6,808,357 | | | | | | 3,084,106 | | |
Other outstanding expenses
|
| | | | 7,539,371 | | | | | | 9,636,006 | | |
| | | | | 23,268,032 | | | | | | 25,693,667 | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Term loan from bank
|
| | | | 28,542,039 | | | | | | 22,166,231 | | |
Loans payable to affiliated company
|
| | | | 14,690,625 | | | | | | 14,690,625 | | |
| | | | | 43,232,664 | | | | | | 36,856,856 | | |
For March 31,:
|
| | | | | | |
2022
|
| | | | 3,681,444 | | |
2023
|
| | | | 2,726,305 | | |
2024
|
| | | | 2,611,224 | | |
2025
|
| | | | 7,670,853 | | |
2026
|
| | | | 15,533,657 | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Capital lease obligation (net of current portion)
|
| | | | 805,891 | | | | | | 1,255,977 | | |
| | | | | 805,891 | | | | | | 1,255,977 | | |
|
Minimum lease payments at inception
|
| | | | 3,132,294 | | |
|
Imputed rate of interest
|
| | | | 5.50% | | |
|
Amount of imputed interest
|
| | | | 258,170 | | |
|
Present value of lease obligation at inception
|
| | | | 2,874,124 | | |
| Minimum lease payments as on 31 March 21: | | | | | | | |
|
2022
|
| | | | 875,362 | | |
|
2023
|
| | | | 723,546 | | |
|
Total minimum lease payments
|
| | | | 1,598,908 | | |
|
Amount of imputed interest
|
| | | | 79,468 | | |
|
Principal balance
|
| | | | 1,519,440 | | |
|
– Current
|
| | | | 713,549 | | |
|
– Non-current
|
| | | | 805,891 | | |
Year Ending March 31
|
| |
Minimum lease
payments |
| |
Minimum
sublet income |
| |
Minimum lease
payments, net |
| |||||||||
2022
|
| | | | 1,366,792 | | | | | | 1,074,115 | | | | | | 292,677 | | |
2023
|
| | | | 114,141 | | | | | | 89,591 | | | | | | 24,550 | | |
2024
|
| | | | — | | | | | | — | | | | | | — | | |
2025
|
| | | | — | | | | | | — | | | | | | — | | |
2026
|
| | | | — | | | | | | — | | | | | | — | | |
Thereafter
|
| | | | — | | | | | | — | | | | | | — | | |
Total minimum future lease payments
|
| | | | 1,480,933 | | | | | | 1,163,706 | | | | | | 317,227 | | |
Year Ending March 31
|
| | | | | | |
2022
|
| | | | 139,346 | | |
2023
|
| | | | 139,346 | | |
2024
|
| | | | 42,346 | | |
2025
|
| | | | — | | |
2026
|
| | | | — | | |
Thereafter
|
| | | | — | | |
Total minimum future lease payments
|
| | | | 321,038 | | |
| | |
For the years ended March 31,
|
| |||||||||
Geography
|
| |
2021
|
| |
2020
|
| ||||||
India
|
| | | | 22,437,237 | | | | | | 13,006,321 | | |
United States of America
|
| | | | 90,614,328 | | | | | | 129,252,673 | | |
Australia
|
| | | | 4,936,949 | | | | | | 4,654,243 | | |
United Kingdom
|
| | | | 6,647,265 | | | | | | 3,383,013 | | |
| | |
For the years ended March 31,
|
| |||||||||
Geography
|
| |
2021
|
| |
2020
|
| ||||||
Other countries
|
| | | | 766,454 | | | | | | 4,272,063 | | |
| | | | | 125,402,233 | | | | | | 154,568,313 | | |
|
| | |
March 31,
2021 |
| |
March 31,
2020 |
| ||||||
Net employee benefit expenses recognized in the employee cost | | | | | | | | | | | | | |
a) Changes in defined benefit obligations | | | | | | | | | | | | | |
Present value of obligation as at the beginning of the year
|
| | | | 762,291 | | | | | | 751,168 | | |
Interest cost
|
| | | | 59,107 | | | | | | 62,473 | | |
Current service cost
|
| | | | 91,255 | | | | | | 99,310 | | |
Remeasurements – net actuarial (gains)/ losses
|
| | | | (100,710) | | | | | | (30,834) | | |
Benefits paid
|
| | | | (45,083) | | | | | | (51,987) | | |
Foreign currency translation reserve
|
| | | | 26,457 | | | | | | (67,839) | | |
Present value of obligation as at the end of the year
|
| | | | 793,317 | | | | | | 762,291 | | |
b) Changes in fair value of the plan assets of the gratuity plan | | | | | | | | | | | | | |
Plan assets at the beginning of the year
|
| | | | 297,670 | | | | | | 355,775 | | |
| | |
March 31,
2021 |
| |
March 31,
2020 |
| ||||||
Contribution by employer
|
| | | | — | | | | | | 5,023 | | |
Benefits paid
|
| | | | (45,083) | | | | | | (51,987) | | |
Return on plan assets (incl. interest income)
|
| | | | 14,750 | | | | | | 18,149 | | |
Foreign currency translation reserve
|
| | | | 9,774 | | | | | | (29,290) | | |
Fair value of the plan assets at the end of the year
|
| | | | 277,111 | | | | | | 297,670 | | |
c) Expenses recognized in the consolidated statement of comprehensive loss | | | | | | | | | | | | | |
Current service cost
|
| | | | 91,255 | | | | | | 99,310 | | |
Interest cost and benefit obligation
|
| | | | 59,107 | | | | | | 62,473 | | |
Expected return on plan assets
|
| | | | (19,230) | | | | | | (23,662) | | |
Net actuarial (gain)loss recognized in the year
|
| | | | (96,230) | | | | | | (25,320) | | |
Changes in foreign currency translation reserves
|
| | | | 606 | | | | | | (4,839) | | |
Net benefit expense
|
| | | | 35,508 | | | | | | 107,962 | | |
d) Net amount recognized in the balance sheet | | | | | | | | | | | | | |
Present value of defined benefit obligation
|
| | | | (793,317) | | | | | | (762,291) | | |
Fair value of plan assets
|
| | | | 277,111 | | | | | | 297,670 | | |
Plan (liability)
|
| | | | (516,206) | | | | | | (464,621) | | |
|
Gratuity
|
| |
March 31,
2021 |
| |
March 31,
2020 |
| ||||||
Defined benefit obligation
|
| | | | (793,317) | | | | | | (762,291) | | |
Plan assets
|
| | | | 277,111 | | | | | | 297,670 | | |
Gratuity (liability)
|
| | | | (516,206) | | | | | | (464,621) | | |
| | |
For the year ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Expected Group contributions during next financial year
|
| | | | 67,222 | | | | | | 70,447 | | |
Expected benefit payments during | | | | | | | | | | | | | |
Year 1
|
| | | | 124,170 | | | | | | 127,978 | | |
Year 2
|
| | | | 120,004 | | | | | | 134,487 | | |
Year 3
|
| | | | 133,079 | | | | | | 134,541 | | |
Year 4
|
| | | | 131,210 | | | | | | 151,400 | | |
Year 5
|
| | | | 134,518 | | | | | | 153,756 | | |
Year 6 to Year 10
|
| | | | 615,144 | | | | | | 760,525 | | |
| | |
For the year ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Discount rate (p.a.)
|
| | | | 7.35% | | | | | | 6.30% | | |
Rate of compensation increase (p.a.)
|
| |
13.00% until
year 1 inclusive, then 8.00% |
| |
13.00% until
year 2 inclusive, then 8.00% |
|
| | |
For the year ended March 31,
|
| |||||||||
| | |
2021
|
| |
2022
|
| ||||||
Discount rate (p.a.)
|
| | | | 7.35% | | | | | | 6.30% | | |
Rate of compensation increase (p.a.)
|
| |
13.00% until
year 2 inclusive, then 8.00% |
| |
13.00% until
year 1 inclusive, then 8.00% |
| ||||||
Expected rate of return on plan assets (p.a.)
|
| | | | 7.00% | | | | | | 7.00% | | |
|
As at March 31, 2020
|
| | | $ | 231,244 | | |
|
As at March 31, 2021
|
| | | $ | 210,899 | | |
| | |
For the years ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
United States of America
|
| | | | 7,146,760 | | | | | | 16,040,721 | | |
India
|
| | | | 3,591,922 | | | | | | 16,500,770 | | |
Others
|
| | | | 7,441 | | | | | | 6,040 | | |
Total | | | | | 10,746,123 | | | | | | 32,547,531 | | |
| | |
For the years ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Current tax provision: | | | | | | | | | | | | | |
United States – Federal
|
| | | | — | | | | | | — | | |
United States – State and Local
|
| | | | — | | | | | | — | | |
| | |
For the years ended
March 31, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
India
|
| | | | 168,642 | | | | | | 121,880 | | |
Total current tax provision
|
| | | | 168,642 | | | | | | 121,880 | | |
Deferred tax provision: | | | | | | | | | | | | | |
United States – Federal
|
| | | | 52,669 | | | | | | 92,209 | | |
United States – State and Local
|
| | | | — | | | | | | — | | |
India
|
| | | | (17,177) | | | | | | (25,610) | | |
Total deferred tax provision
|
| | | | 35,492 | | | | | | 66,599 | | |
Tax pertaining to earlier years: | | | | | | | | | | | | | |
India
|
| | | | 160,712 | | | | | | 96,964 | | |
Provision for income taxes
|
| | | | 364,846 | | | | | | 285,443 | | |
|
|
Computed expected tax
|
| | | | 2,467,001 | | | | | | 7,046,547 | | |
|
State income taxes (net of federal benefit)
|
| | | | 124,055 | | | | | | 360,550 | | |
|
Non-deductible expenses, net
|
| | | | (223,538) | | | | | | 1,784,561 | | |
|
Valuation allowance
|
| | | | (2,469,310) | | | | | | (9,199,204) | | |
|
Adjustments for change in rates due to different tax jurisdiction
|
| | | | (160,712) | | | | | | (96,964) | | |
|
Others
|
| | | | (102,342) | | | | | | (180,933) | | |
|
Provision for income tax
|
| | |
|
364,846
|
| | | |
|
285,443
|
| |
|
Effective tax rate
|
| | | | -3% | | | | | | -1% | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Amortization and depreciation
|
| | | | 2,606,006 | | | | | | 2,326,405 | | |
Accrued liabilities and other reserves
|
| | | | 2,672,606 | | | | | | 2,985,013 | | |
Interest limitation u/s 163(j)
|
| | | | 5,569,912 | | | | | | 4,055,358 | | |
Tax credit carry forward
|
| | | | 178,655 | | | | | | 270,376 | | |
Net operating loss carryover
|
| | | | 32,866,428 | | | | | | 31,503,618 | | |
Total deferred tax asset before valuation allowance
|
| | | | 43,893,608 | | | | | | 41,140,770 | | |
Valuation allowance
|
| | | | (42,482,286) | | | | | | (40,012,977) | | |
Total deferred tax asset, net of valuation allowance
|
| | | | 1,411,322 | | | | | | 1,127,793 | | |
Deferred tax liability | | | | | | | | | | | | | |
Amortization and depreciation
|
| | | | (441,270) | | | | | | (439,781) | | |
Intangibles/goodwill
|
| | | | (770,398) | | | | | | (695,051) | | |
Passthrough income
|
| | | | (318,880) | | | | | | (20,817) | | |
| | |
As of March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Deferred tax liability
|
| | | | (1,530,548) | | | | | | (1,155,649) | | |
Net deferred tax liability
|
| | | | (119,226) | | | | | | (27,856) | | |
|
| Ultimate Holding Company: | |
|
M/s. TGP Trading FZCO, U.A.E.
|
|
| Direct Subsidiaries: | |
|
Primacy Industries Limited
|
|
|
Primacy Global Enterprises Private Limited
|
|
|
GP Global USA LLC (lost control w.e.f April 2020)
|
|
| Step-down Subsidiary: | |
|
MVP International Inc.
|
|
|
World Care Products LLC (lost control w.e.f April 2020)
|
|
|
2700 East Avenue LLC (lost control w.e.f April 2020)
|
|
| Associate/ significant influence: | |
|
Goose Creek Candles LLC
|
|
| Minority owner: | |
|
Manipal Media Network Limited
|
|
| Key Managerial Personnel: | |
|
Ms. Sandhya Satish Pai
|
|
|
Mr. Tonse Pai
|
|
|
Mr. T Gautham Pai
|
|
|
Mr. Satish Pai
|
|
|
Ms. Vanita Pai
|
|
| | |
For the years ended March 31,
|
| |||||||||
Geography
|
| |
2021
|
| |
2020
|
| ||||||
India
|
| | | | 22,437,237 | | | | | | 13,006,321 | | |
United States of America
|
| | | | 90,614,328 | | | | | | 129,252,673 | | |
Australia
|
| | | | 4,936,949 | | | | | | 4,654,243 | | |
United Kingdom
|
| | | | 6,647,265 | | | | | | 3,383,013 | | |
Other countries
|
| | | | 766,454 | | | | | | 4,272,063 | | |
| | | | | 125,402,233 | | | | | | 154,568,313 | | |
| | |
As at March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
United States
|
| | | | 25,891,553 | | | | | | 27,067,423 | | |
India
|
| | | | 5,858,104 | | | | | | 6,238,639 | | |
| | | | | 31,749,657 | | | | | | 33,306,062 | | |
| | |
December 31, 2020
|
| |||
Revenue
|
| | | | 126,236,368 | | |
Cost of revenue
|
| | | | 90,295,556 | | |
Gross profit
|
| | | | 35,940,812 | | |
OPERATING EXPENSES | | | | | | | |
Selling, general & administrative expenses
|
| | | | 40,542,249 | | |
Depreciation & Amortization
|
| | | | 4,257,465 | | |
Total operating expenses
|
| | | | 44,799,714 | | |
Loss before income taxes and share of profit on equity accounted investments
|
| | | | (8,858,902) | | |
OTHER (INCOME) / EXPENSE | | | | | | | |
Interest income
|
| | | | (70,629) | | |
Interest expense
|
| | | | 13,329,886 | | |
Other income, net
|
| | | | (1,992,726) | | |
Total other expense
|
| | | | (11,266,531) | | |
Loss before income taxes and share of profit on equity accounted investments
|
| | | | (20,125,433) | | |
Provision for income taxes
|
| | | | 7,046,492 | | |
Net loss before share of profit on equity accounted investments
|
| | | | (27,171,925) | | |
Share of profit on Equity accounted investment
|
| | | | (1,074,115) | | |
Net loss for the period
|
| | | | (26,097,810) | | |
Net loss attributable to non-controlling interest
|
| | | | (1,745,546) | | |
Net loss attributable to owners
|
| | | | (24,352,264) | | |
Other comprehensive income/ (loss) | | | | | | | |
Foreign currency translation adjustments
|
| | | | 52,895 | | |
Total Other Comprehensive income / (loss)
|
| | | | 52,895 | | |
Comprehensive income / (loss) attributable to non-controlling interest, net of tax
|
| | | | (4,465) | | |
Comprehensive income / (loss) attributable to owners
|
| | | | 57,360 | | |
Total Comprehensive loss
|
| | | | (26,044,915) | | |
Weighted average common shares outstanding
|
| | | | 6,880,000 | | |
Basic loss per common share
|
| | | | (3.54) | | |
Diluted loss per common share
|
| | | | (3.54) | | |
| FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-126 | | | |
| | | | | F-127 | | | |
| | | | | F-128 | | | |
| | | | | F-129 | | | |
| | | | | F-130 | | |
| | |
Note
|
| |
September 30, 2021
|
| ||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | | | | | | | 15,083,519 | | |
Restricted cash balance
|
| | | | | | | | | | 30,015,825 | | |
Accounts receivable, net of allowance for doubtful accounts of $1,039,403
|
| | | | 3 | | | | | | 13,343,846 | | |
Inventories
|
| | | | 4 | | | | | | 27,907,381 | | |
Prepaid expenses
|
| | | | | | | | | | 432,918 | | |
Other current assets
|
| | | | 5 | | | | | | 5,452,644 | | |
Total current assets
|
| | | | | | | | | | 92,236,133 | | |
Investments
|
| | | | | | | | | | 25,500 | | |
Property, plant and equipment, net
|
| | | | 6 | | | | | | 29,463,135 | | |
Intangible assets, net
|
| | | | 7 | | | | | | 230,323 | | |
Equity accounted investments
|
| | | | 8 | | | | | | 1,921,736 | | |
Other non-current assets
|
| | | | 9 | | | | | | 3,890,650 | | |
Total assets
|
| | | | | | | | | | 127,767,477 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Short-term debt
|
| | | | 10 | | | | | | 65,337,298 | | |
Accounts payables
|
| | | | | | | | | | 32,238,841 | | |
Other current liabilities
|
| | | | 11 | | | | | | 27,178,523 | | |
Total current liabilities
|
| | | | | | | | | | 124,754,662 | | |
Long-term debt
|
| | | | 12 | | | | | | 146,370,377 | | |
Employee compensation and benefits
|
| | | | 17 | | | | | | 539,205 | | |
Other non-current liabilities
|
| | | | 13 | | | | | | 546,530 | | |
Deferred tax liabilities, net
|
| | | | 18 | | | | | | 137,174 | | |
Total liabilities
|
| | | | | | | | | | 272,347,948 | | |
STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Common stock, $0.2723 par value per share, 6,880,000 shares
authorized, issued and outstanding |
| | | | 15 | | | | | | 1,873,433 | | |
Accumulated deficit
|
| | | | | | | | | | (143,812,031) | | |
Foreign currency translation reserve
|
| | | | | | | | | | 3,605,369 | | |
Total stockholders’ deficit
|
| | | | | | | | | | (138,333,229) | | |
Non-controlling interest
|
| | | | | | | | | | (6,247,242) | | |
Total deficit
|
| | | | | | | | | | (144,580,471) | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
| | | | | | | | | | 127,767,477 | | |
| | |
Note
|
| |
September 30, 2021
|
| |||
Revenue, net
|
| |
16
|
| | | | 45,730,479 | | |
Cost of goods sold
|
| | | | | | | 35,733,179 | | |
Gross profit
|
| | | | | |
|
9,997,300
|
| |
OPERATING EXPENSES | | | | | | | | | | |
Selling, general & administrative expenses
|
| | | | | | | 13,492,829 | | |
Depreciation & amortization
|
| |
6 & 7
|
| | | | 1,239,487 | | |
Total operating expenses
|
| | | | | | | 14,732,316 | | |
Loss before income taxes and share of profit on equity accounted investments
|
| | | | | | | (4,735,016) | | |
OTHER INCOME / (EXPENSE) | | | | | | | | | | |
Interest income
|
| | | | | | | 49,705 | | |
Interest expense
|
| | | | | | | (3,685,620) | | |
Other income, net
|
| | | | | | | 6,333,229 | | |
Total other income
|
| | | | | | | 2,697,314 | | |
Loss before income taxes and share of profit on equity accounted investments
|
| | | | | | | (2,037,702) | | |
Provision for income taxes
|
| |
18
|
| | | | 109,183 | | |
Net loss before share of profit on equity accounted investments
|
| | | | | | | (2,146,885) | | |
Share of profit on equity accounted investment
|
| | | | | | | 773,112 | | |
Net loss for the period
|
| | | | | | | (1,373,773) | | |
Net loss attributable to non-controlling interest
|
| | | | | | | (91,414) | | |
Net loss attributable to owners
|
| | | | | | | (1,282,359) | | |
Other comprehensive income | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | | | | 148,836 | | |
Total other comprehensive income
|
| | | | | | | 148,836 | | |
Other comprehensive income attributable to non-controlling interest, net of tax
|
| | | | | | | 7,828 | | |
Other comprehensive income attributable to owners
|
| | | | | | | 141,008 | | |
Total comprehensive loss
|
| | | | | | | (1,224,937) | | |
Weighted average common shares outstanding
|
| | | | | | | 6,880,000 | | |
Basic loss per common share
|
| | | | | | | (0.19) | | |
Diluted loss per common share
|
| | | | | | | (0.19) | | |
| | |
Common stock
|
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive income |
| |
Non-
controlling interest |
| |
Total
stockholders’ deficit |
| |||||||||||||||||||||
| | |
Nos. of shares
|
| |
Par Value
|
| ||||||||||||||||||||||||||||||
Balance as at April 01, 2021
|
| | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (142,469,033) | | | | | | 3,464,361 | | | | | | (6,236,117) | | | | | | (143,367,356) | | |
Net loss for the period
|
| | | | — | | | | | | — | | | | | | (1,282,359) | | | | | | — | | | | | | (91,414) | | | | | | (1,373,773) | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 141,008 | | | | | | 7,828 | | | | | | 148,836 | | |
Transactions with non-controlling interest*
|
| | | | — | | | | | | — | | | | | | (60,639) | | | | | | — | | | | | | 72,461 | | | | | | 11,822 | | |
Balance as at September 30, 2021
|
| | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (143,812,031) | | | | | | 3,605,369 | | | | | | (6,247,242) | | | | | | (144,580,471) | | |
| | |
September 30,
2021 |
| |||
(A) CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | |
Net loss for the period
|
| | | | (1,373,773) | | |
Adjustments: | | | | | | | |
Depreciation and amortization
|
| | | | 1,239,487 | | |
Tax expense (net)
|
| | | | 109,183 | | |
Provision for gratuity
|
| | | | 40,281 | | |
Provision for Corporate Social Responsibility (“CSR”)
expense |
| | | | 26,109 | | |
Profit on sale of property, plant and equipment
|
| | | | (706,246) | | |
Share of profit of from equity accounted investments
|
| | | | (773,112) | | |
Gain on forgiveness on loan
|
| | | | (4,367,862) | | |
Effect of foreign exchange fluctuation
|
| | | | 209,010 | | |
| | | | | (5,596,923) | | |
Changes in operating assets and liabilities: | | | | | | | |
Accounts receivables
|
| | | | 2,890,631 | | |
Inventories
|
| | | | (6,115,362) | | |
Other current assets
|
| | | | 4,861,333 | | |
Accounts payables and other liabilities
|
| | | | 3,542,073 | | |
Cash used in operating activities
|
| | | | (418,248) | | |
(B) CASH FLOW FROM INVESTING ACTIVITIES | | | | | | | |
(Purchase)/Disposal of property, plant, and equipment / intangible assets (net)
|
| | | | 1,699,572 | | |
Net cash generated from investing activities
|
| | | | 1,699,572 | | |
(C) CASH FLOW FROM FINANCING ACTIVITIES | | | | | | | |
Short term debt, net
|
| | | | (2,619,585) | | |
Long term debt received
|
| | | | 43,877,286 | | |
Repayment of long-term debt
|
| | | | (554,982) | | |
Principal payments under capital lease
|
| | | | (360,453) | | |
Issue of share capital to non-controlling interests
|
| | | | 13,582 | | |
Net cash generated from financing activities
|
| | | | 40,355,848 | | |
Net increase in cash and cash equivalents
|
| | | | 41,637,172 | | |
Cash, cash equivalents, and restricted cash at the beginning of the period
|
| | | | 3,555,333 | | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
| | | | (93,161) | | |
Cash and cash equivalents and restricted cash at the end of the period
|
| | | | 45,099,344 | | |
Supplemental cash flow disclosure: | | | | | | | |
Income tax paid (net of refunds)
|
| | | | 47,537 | | |
Interest paid
|
| | | | 6,855,479 | | |
Reconciliation of cash and cash equivalents and restricted cash reported in the interim consolidated balance sheet
|
| | | | | | |
Cash and cash equivalents
|
| | | | 15,083,519 | | |
Restricted cash
|
| | | | 30,015,825 | | |
Restricted cash included in other long-term assets
|
| | | | — | | |
Total cash, cash equivalents, and restricted cash reported in the statement of cash flows
|
| | | | 45,099,344 | | |
| | |
September 30,
2021 |
| |||
Cash on hand
|
| | | | 17,498 | | |
Balances with banks
|
| | | | 15,066,021 | | |
Restricted cash balances
|
| | | | 30,015,825 | | |
Total cash and cash equivalent (Including restricted cash balance)
|
| | | | 45,099,344 | | |
| Building | | |
30 – 60 years
|
|
| Plant and machinery | | |
3 – 15 years
|
|
| Office equipment, canteen equipment and lab equipment | | |
3 – 15 years
|
|
| Electronic fittings and furniture | | |
3 – 15 years
|
|
| Computer and accessories | | |
3 – 10 years
|
|
| Vehicles | | |
3 – 10 years
|
|
| Leasehold improvements | | |
3 – 10 years
|
|
| Software | | |
3 – 10 years
|
|
| Trademark | | |
10 years
|
|
Assets and liabilities measured at fair value on a recurring basis
|
| |
Fair Value
|
| |
Fair Value
hierarchy |
| |||
Compulsorily convertible debentures
|
| | | | 41,797,551 | | | |
Level 3
|
|
| | |
September 30,
2021 |
| |||
Accounts receivable
|
| | | | 14,383,249 | | |
| | | | | 14,383,249 | | |
Less: Allowance for doubtful accounts
|
| | | | (1,039,403) | | |
Accounts receivable, net
|
| | | | 13,343,846 | | |
The movement in allowance for doubtful accounts is as follows: | | | | | | | |
Balance as at beginning of the period
|
| | | | (969,313) | | |
Net movement including allowance/reversals
|
| | | | (70,090) | | |
Balance as at end of the period
|
| | |
|
(1,039,403)
|
| |
| | |
September 30,
2021 |
| |||
Raw materials and components
|
| | | | 20,473,880 | | |
Work in progress and semi-finished goods
|
| | | | 113,252 | | |
Finished goods
|
| | | | 13,790,508 | | |
Packing material
|
| | | | 1,004,227 | | |
Consumables
|
| | | | 113,032 | | |
Less: Provision for slow-moving, damaged, and excess inventory
|
| | | | (7,587,518) | | |
Inventories, net
|
| | | | 27,907,381 | | |
The movement in provision for slow-moving, damaged, and excess inventory is as follows:
|
| | | | | | |
Balance as at beginning of the period
|
| | | | (8,164,986) | | |
Net movement including provision/reversals
|
| | | | 577,468 | | |
Balance as at end of the period
|
| | | | (7,587,518) | | |
| | |
September 30,
2021 |
| |||
Balance with statutory / government authorities
|
| | | | 2,822,911 | | |
Income tax receivable
|
| | | | 254,083 | | |
Interest accrued
|
| | | | 1,691 | | |
Security deposits
|
| | | | 32,668 | | |
Other advances*
|
| | | | 2,341,291 | | |
| | | | | 5,452,644 | | |
| | |
September 30,
2021 |
| |||
Land [refer note 12(1) and 12(2)]
|
| | | | 9,268,412 | | |
Building [refer note 10(2)]
|
| | | | 17,598,385 | | |
Plant and machinery [refer note 10(2)]
|
| | | | 21,004,831 | | |
Computer and accessories
|
| | | | 6,563,640 | | |
Leasehold improvements
|
| | | | 2,455,947 | | |
Office equipment, canteen equipment and lab equipment
|
| | | | 777,775 | | |
Electronic fittings and furniture
|
| | | | 999,708 | | |
Vehicles
|
| | | | 233,141 | | |
Capital work-in-progress
|
| | | | 193,241 | | |
Property, plant and equipment (gross)
|
| | |
|
59,095,080
|
| |
Less: Accumulated depreciation
|
| | | | (29,631,945) | | |
Property, plant and equipment (Net)
|
| | | | 29,463,135 | | |
| | |
September 30,
2021 |
| |||
Capitalized software
|
| | | | 335,452 | | |
Intangible assets (gross)
|
| | |
|
333,452
|
| |
Less: Accumulated amortization
|
| | | | (105,129) | | |
Intangible assets, net
|
| | | | 230,323 | | |
|
2022
|
| | | | 17,963 | | |
|
2023
|
| | | | 34,001 | | |
|
2024
|
| | | | 32,695 | | |
|
2025
|
| | | | 31,931 | | |
|
2026
|
| | | | 30,974 | | |
|
2027
|
| | | | 30,958 | | |
|
2028
|
| | | | 29,200 | | |
|
2029
|
| | | | 22,601 | | |
| | |
September 30,
2021 |
| |||
Total initial cost
|
| | | | — | | |
Accumulated gain
|
| | | | 1,921,736 | | |
Carrying value
|
| | | | 1,921,736 | | |
Summarized financial information of Goose Creek Candles LLC | | | | | | | |
Current Assets
|
| | | | 13,577,084 | | |
Non-current assets
|
| | | | 3,000,652 | | |
Current liabilities
|
| | | | 9,641,778 | | |
Non-current liabilities
|
| | | | 3,285,168 | | |
Net sales or gross revenue
|
| | | | 4,195,735 | | |
Gross profit
|
| | | | 1,705,309 | | |
Net income
|
| | | | 1,546,224 | | |
Net income attributable to the Group
|
| | | | 773,112 | | |
| | |
September 30,
2021 |
| |||
Security deposits
|
| | | | 655,125 | | |
Other Advances*
|
| | | | 3,234,198 | | |
Interest accrued
|
| | | | 1,327 | | |
| | | | | 3,890,650 | | |
| | |
September 30,
2021 |
| |||
Post-shipment credit
|
| | | | 8,136,402 | | |
Pre-shipment credit
|
| | | | 3,967,280 | | |
Inter corporate loans
|
| | | | 7,049,183 | | |
Working capital loan (refer note 12(7))
|
| | | | 41,184,433 | | |
Notes payable due within one year
|
| | | | 5,000,000 | | |
| | | | | 65,337,298 | | |
| | |
September 30,
2021 |
| |||
Accrued payroll and related expenses
|
| | | | 2,040,159 | | |
Advance from customers
|
| | | | 50,344 | | |
Current maturities of long-term debt
|
| | | | 6,031,329 | | |
Interest accrued
|
| | | | 10,122,653 | | |
Other outstanding expenses
|
| | | | 8,253,579 | | |
Current maturities of capital lease obligations
|
| | | | 680,459 | | |
| | | | | 27,178,523 | | |
| | |
September 30,
2021 |
| |||
Term loan from bank
|
| | | | 45,616,274 | | |
Loans payable to affiliated company
|
| | | | 15,916,624 | | |
Compulsorily convertible debentures | | | |||||
– measured at fair value on recurring basis
|
| | | | 41,797,551 | | |
– measured at amortized cost
|
| | | | 43,039,928 | | |
| | | | | 146,370,377 | | |
|
Working capital loan (presented as short-term debt in note 10)
|
| | | $ | 41,184,433 | | |
|
Term loan from bank
|
| | | $ | 29,049,085 | | |
|
CCD (at amortized cost)*
|
| | | $ | 43,039,928 | | |
| | |
September 30,
2021 |
| |||
Capital lease obligation (net of current portion)
|
| | | | 546,530 | | |
| | | | | 546,530 | | |
|
Minimum lease payments at inception
|
| | | | 3,132,294 | | |
|
Imputed rate of interest
|
| | | | 5.50% | | |
|
Amount of imputed interest
|
| | | | 258,170 | | |
|
Present value of lease obligation at inception
|
| | | | 2,874,124 | | |
| Minimum lease payments as on September 30, 2021: | | | | | | | |
|
2022
|
| | | | 549,060 | | |
|
2023
|
| | | | 723,346 | | |
|
Total minimum lease payments
|
| | | | 1,272,406 | | |
|
Amount of imputed interest
|
| | | | 45,417 | | |
|
Principal balance
|
| | | | 1,226,989 | | |
|
– Current
|
| | | | 680,459 | | |
|
– Non-current
|
| | | | 546,530 | | |
Period ending September 30
|
| |
Minimum
lease payments |
| |
Minimum
sublet income |
| |
Minimum lease
payments, net |
| |||||||||
2022
|
| | | | 798,994 | | | | | | 627,138 | | | | | | 171,850 | | |
2023
|
| | | | — | | | | | | — | | | | | | — | | |
2024
|
| | | | — | | | | | | — | | | | | | — | | |
2025
|
| | | | — | | | | | | — | | | | | | — | | |
2026
|
| | | | — | | | | | | — | | | | | | — | | |
Thereafter
|
| | | | — | | | | | | — | | | | | | — | | |
Total minimum future lease payments
|
| | | | 798,994 | | | | | | 627,138 | | | | | | 171,850 | | |
Period ending September 30
|
| | | | | | |
2022
|
| | | | 139,346 | | |
2023
|
| | | | 111,999 | | |
2024
|
| | | | — | | |
2025
|
| | | | — | | |
2026
|
| | | | — | | |
Thereafter
|
| | | | — | | |
Total minimum future lease payments
|
| | | | 251,345 | | |
Geography
|
| |
For six months ended
September 30, 2021 |
| |||
India
|
| | | | 9,997,165 | | |
United States of America
|
| | | | 27,564,164 | | |
Australia
|
| | | | 2,875,422 | | |
United Kingdom
|
| | | | 3,985,116 | | |
Other countries
|
| | | | 1,308,612 | | |
| | | | | 45,730,479 | | |
Gratuity
|
| |
September 30,
2021 |
| |||
Defined benefit Obligation
|
| | | | (816,316) | | |
Plan Assets
|
| | | | 277,111 | | |
Gratuity Asset/(Liability)
|
| | | | (539,205) | | |
| | |
September 30,
2021 |
| |||
United States
|
| | | | (3,770,880) | | |
India
|
| | | | 5,033,203 | | |
Others
|
| | | | 2,267 | | |
Total
|
| | | | 1,264,590 | | |
| | |
September 30,
2021 |
| |||
Current tax provision: | | | | | | | |
United States – Federal
|
| | | | 94,851 | | |
United States – State and Local
|
| | | | — | | |
India
|
| | | | (2,474) | | |
Total current tax provision
|
| | | | 92,377 | | |
Deferred tax provision: | | | | | | | |
United States – Federal
|
| | | | 285,937 | | |
United States – State and Local
|
| | | | — | | |
India
|
| | | | (269,477) | | |
Total deferred tax provision
|
| | | | 16,460 | | |
Tax pertaining to earlier years: | | | | | | | |
India
|
| | | | 346 | | |
Total tax pertaining to earlier years
|
| | | | 346 | | |
Provision for income taxes
|
| | | | 109,183 | | |
|
Loss before tax
|
| | | | 1,264,590 | | |
|
Provision for income tax and deferred tax
|
| | | | 108,837 | | |
|
Effective tax rate
|
| | | | 9% | | |
| | |
September 30,
2021 |
| |||
Amortization and depreciation
|
| | | | 2,390,093 | | |
Accrued liabilities and other reserves
|
| | | | 2,597,051 | | |
Interest limitation u/s 163(j)
|
| | | | 5,569,912 | | |
Tax credit carryforward
|
| | | | 176,166 | | |
Net operating loss carryover
|
| | | | 33,015,754 | | |
Total deferred tax asset before valuation allowance
|
| | | | 43,748,976 | | |
Valuation allowance
|
| | | | 42,468,708 | | |
Total deferred tax asset, net of valuation allowance
|
| | | | 1,280,268 | | |
Deferred tax liability | | | | | | | |
Amortisation and depreciation
|
| | | | (165,808) | | |
Intangibles/Goodwill
|
| | | | (770,397) | | |
Passthrough income
|
| | | | (481,327) | | |
Deferred tax liability
|
| | | | (1,417,442) | | |
Net deferred tax liability
|
| | | | (137,174) | | |
| Ultimate holding company: | |
|
M/s. TGP Trading FZCO, U.A.E.
|
|
| Direct subsidiaries: | |
|
Primacy Industries Limited (“PIL”)
|
|
|
Primacy Global Enterprises Private Limited (“PGEPL”)
|
|
| Step-down subsidiary: | |
|
MVP International Inc. (“MVP”)
|
|
| Associate/ Significant influence: | |
|
Goose creek candles LLC (“GC”)
|
|
| Minority owner: | |
|
Manipal Media Network Limited
|
|
| Key Managerial Personnel: | |
|
Ms. Sandhya Satish Pai
|
|
|
Mr. Tonse Pai
|
|
|
T Gautham Pai
|
|
|
Satish Pai
|
|
|
Vanita Pai
|
|
Geography
|
| |
September 30,
2021 |
| |||
India
|
| | | | 9,997,165 | | |
United States of America
|
| | | | 27,564,164 | | |
Australia
|
| | | | 2,875,422 | | |
United Kingdom
|
| | | | 3,985,116 | | |
Other countries
|
| | | | 1,308,612 | | |
| | | | | 45,730,479 | | |
|
The Group’s long-lived assets by geographic location as of September 30, 2021 is as follows:
|
| | | | | | |
|
United States
|
| | | | 23,959,818 | | |
|
India
|
| | | | 5,503,317 | | |
| | | | | | 29,463,135 | | |
| FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-154 | | | |
| | | | | F-155 | | |
| | |
September 30,
2021 |
| |||
ASSETS | | | | | | | |
CURRENT ASSETS: | | | | | | | |
Cash and cash equivalents
|
| | | | 15,083,519 | | |
Restricted cash balance
|
| | | | 30,015,825 | | |
Accounts receivable, net of allowance for doubtful accounts of $1,039,403
|
| | | | 13,343,846 | | |
Inventories
|
| | | | 27,907,381 | | |
Prepaid expenses
|
| | | | 432,918 | | |
Other current assets
|
| | | | 5,452,644 | | |
Total current assets
|
| | | | 92,236,133 | | |
Investments
|
| | | | 25,500 | | |
Property, plant and equipment, net
|
| | | | 29,463,135 | | |
Intangible assets, net
|
| | | | 230,323 | | |
Equity accounted investments
|
| | | | 1,921,736 | | |
Other non-current assets
|
| | | | 3,890,650 | | |
Total assets
|
| | | | 127,767,477 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | |
CURRENT LIABILITIES | | | | | | | |
Short-term debt
|
| | | | 65,337,298 | | |
Accounts payables
|
| | | | 32,238,841 | | |
Other current liabilities
|
| | | | 27,178,523 | | |
Total current liabilities
|
| | | | 124,754,662 | | |
Long-term debt
|
| | | | 146,370,378 | | |
Employee compensation and benefits
|
| | | | 539,205 | | |
Other non-current liabilities
|
| | | | 546,530 | | |
Deferred tax liabilities, net
|
| | | | 137,177 | | |
Total liabilities
|
| | | | 272,347,769 | | |
STOCKHOLDERS’ DEFICIT | | | | | | | |
Common stock, $0.2723 par value per share, 6,880,000 shares authorized, issued and outstanding
|
| | | | 1,873,433 | | |
Accumulated deficit
|
| | | | (143,782,642) | | |
Foreign currency translation reserve
|
| | | | 3,576,293 | | |
Total stockholders’ equity
|
| | | | (138,332,929) | | |
Non-controlling interest
|
| | | | (6,247,242) | | |
Total deficit
|
| | | | (144,580,471) | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
| | | | 127,767,477 | | |
| | |
September 30,
2021 |
| |||
Revenue
|
| | | | 83,570,228 | | |
Cost of revenue
|
| | | | 55,462,021 | | |
Gross profit
|
| | | | 28,108,207 | | |
OPERATING EXPENSES | | | | | | | |
Selling, general & administrative expenses
|
| | | | 30,039,562 | | |
Depreciation & Amortization
|
| | | | 2,291,962 | | |
Total operating expenses
|
| | | | 32,331,524 | | |
Loss before income taxes and share of profit on equity accounted investments
|
| | | | (4,223,317) | | |
OTHER (INCOME) / EXPENSE | | | | | | | |
Interest income
|
| | | | (54,281) | | |
Interest expense
|
| | | | 8,653,072 | | |
Other income, net
|
| | | | (7,042,604) | | |
Total other income
|
| | | | (1,556,187) | | |
Loss before income taxes and share of profit on equity accounted investments
|
| | | | (5,779,504) | | |
Provision for income taxes
|
| | | | 1,659,221 | | |
Net loss before share of profit on equity accounted investments
|
| | | | (7,438,725) | | |
Share of profit on Equity accounted investment
|
| | | | (1,127,949) | | |
Net loss for the period
|
| | | | (6,310,776) | | |
Net loss attributable to non-controlling interest
|
| | | | (474,447) | | |
Net loss attributable to owners
|
| | | | (5,836,329) | | |
Other comprehensive income | | | | | | | |
Foreign currency translation adjustments
|
| | | | 112,230 | | |
Total Other Comprehensive income
|
| | | | 112,230 | | |
Comprehensive income attributable to noncontrolling interest, net of tax
|
| | | | 3,588 | | |
Comprehensive income attributable to owners
|
| | | | 108,642 | | |
Total Comprehensive loss
|
| | | | (6,198,546) | | |
Weighted average common shares outstanding
|
| | | | 6,880,000 | | |
Basic loss per common share
|
| | | | (0.85) | | |
Diluted loss per common share
|
| | | | (0.85) | | |
| | |
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| Exhibit A – Purchaser Support Agreement | |
| Exhibit B – Accounting Methodologies | |
| Exhibit C – Form of Escrow Agreement | |
| Schedule 1.1(a): Assumed Funded Debt | |
| Schedule 1.1(b): Closing Funded Debt | |
| Schedule 1.1(c): Retention Payments | |
| Schedule 1.1(d): Company Expenses (Liabilities and Obligations) | |
| Schedule 1.1(e): Dormant Subsidiaries | |
| Schedule 1.1(f): Excluded Severance | |
| Schedule 1.1(g): Incurred Purchaser Expenses | |
| Schedule 1.1(h): Leases | |
| Schedule 1.1(i): LTM EBITDA Methodologies | |
| Schedule 1.1(j): Permitted Liens | |
| Schedule 1.1(k): Sponsor Supporters | |
| Schedule 6.1(a): Conduct of the Business | |
| Schedule 6.13(b): Restricted Employees | |
| Schedule 7.2(i): Company Consents | |
| Schedule 7.2(j): Payoff Letters | |
| Schedule 7.2(k): Director Resignations | |
| | | | PURCHASER: | | |||
| | | | GLOBAL CONSUMER ACQUISITION CORP. | | |||
| | | | By: | | |
/s/ Rohan Ajila
|
|
| | | | | | | Name: Rohan Ajila | |
| | | | | | | Title: Chief Executive Officer | |
| | | | SELLER: | | |||
| | | | CLP LUMINEX HOLDINGS, LLC | | |||
| | | | By: | | |
/s/ Mayank Singh
|
|
| | | | | | | Name: Mayank Singh | |
| | | | | | | Title: Authorized Signatory | |
| | | | COMPANY: | | |||
| | | | LUMINEX HOME DECOR & FRAGRANCE HOLDING CORPORATION | | |||
| | | | By: | | |
/s/ Scott Meader
|
|
| | | | | | | Name: Scott Meader | |
| | | | | | | Title: Chief Executive Officer | |
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| | | | PURCHASER: | | |||
| | | | GLOBAL CONSUMER ACQUISITION CORP. | | |||
| | | | By: | | |
/s/ Rohan Ajila
Name: Rohan Ajila
Title: Chief Executive Officer |
|
| | | | SELLER: | | |||
| | | | TGP TRADING FZCO | | |||
| | | | By: | | |
/s/ Gautham Pai
Name: Gautham Pai
Title: Director and Authorized Signatory |
|
| | | | COMPANY: | | |||
| | | | GP GLOBAL LIMITED | | |||
| | | | By: | | |
/s/ Gautham Pai
Name: Gautham Pai
Title: Director |
|
Exhibit 107
Calculation of Filing Fee Tables
FORM PRE
14A
(Form Type)
Global Consumer
Acquisition Corp
(Exact Name of Registrant as Specified in its Charter)
Title of each class of securities to be registered | Aggregate number of securities to which transaction applies |
Proposed maximum aggregate value of transaction(2) |
Total fee(3) | ||||||
Common stock, par value $0.0001 per share(1) | 14,300,000 | $ | 470,000,000 | $ | 43,569 |
(1) | Based on the maximum number of 14,300,000 shares of GACQ’s common stock being issued to TGP Trading FZCO, which is subject to adjustment as described elsewhere herein. Assuming the issuance of 14,300,000 shares, there would be 37,582,362 shares of GACQ’s common stock to be issued and outstanding. |
(2) | The proposed maximum aggregate value of the transaction was based on a combined enterprise value of $200,000,000 for Luminex Home Decor & Fragrance Holding Corporation and $270,000,000 for GP Global Limited, which enterprise values are subject to a downward adjustment determined prior to the closing by GACQ but in any event shall not be less than a total of $380,000,000, according to certain stock purchase agreements entered into and between GACQ and Luminex Home Decor & Fragrance Holding Corporation on December 13, 2021, and between GACQ and GP Global Limited on December 13, 2021, respectively. |
(3) | Calculated pursuant to Rule 457 of the Securities Act by calculating the product of (i) the proposed maximum aggregate offering price and (ii) 0.0000927. |