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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
OPERATING ACTIVITIES:    
Net loss $ (74,564) $ (196,292)
Adjustments to reconcile net loss to net cash used by operating activities:    
Depreciation and amortization 3,886 7,521
Provision for sales returns (413) 56
Amortization of deferred financing cost and debt discounts 429 429
Issuance of common stock 0 43
Change in deferred tax balance (1,153) 0
Stock-based compensation 8,336 14,594
Gain from decrease of contingent earn-out liability fair value 0 (5,240)
Change in inventory provisions (3,149) 0
Gain in connection with the change in warrant fair value (2,440) (470)
Gain in connection with settlement of note payable 0 (2,012)
Loss on initial issuance of equity 0 18,669
Impairment loss on goodwill 0 120,409
Impairment loss on intangibles 39,728 [1],[2] 3,118 [3]
Provision for barter credits 323 1,643
Allowance for doubtful accounts and other 85 367
Changes in assets and liabilities:    
Accounts receivable 205 5,596
Inventory 26,426 19,438
Prepaid and other current assets 2,597 5,564
Accounts payable, accrued and other liabilities (13,684) (10,910)
Cash used in operating activities (13,388) (17,477)
INVESTING ACTIVITIES:    
Purchase of fixed assets (119) (82)
Purchase of Step and Go assets (125) (595)
Cash used in investing activities (244) (677)
FINANCING ACTIVITIES:    
Proceeds from equity offering, net of issuance costs 0 46,834
Repayments on note payable to Smash (668) (3,423)
Payment of Squatty Potty earn-out 0 (3,983)
Borrowings from MidCap credit facilities 79,806 136,687
Repayments for MidCap credit facilities (90,190) (148,907)
Insurance obligation payments (1,042) (2,311)
Insurance financing proceeds 986 2,099
Cash provided (used) by financing activities (11,108) 26,996
Foreign currency effect on cash, cash equivalents, and restricted cash 306 (528)
Net change in cash and restricted cash for the year (24,434) 8,314
Cash and restricted cash at beginning of year 46,629 38,315
Cash and restricted cash at end of year 22,195 46,629
RECONCILIATION OF CASH AND RESTRICTED CASH:    
Cash 20,023 43,574
Restricted Cash—Prepaid and other current assets 2,043 2,926
Restricted cash—Other non-current assets 129 129
TOTAL CASH AND RESTRICTED CASH 22,195 46,629
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid for interest 1,718 1,875
Cash paid for taxes 94 100
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Non-cash consideration paid to contractors 321 1,137
Fair value of warrants issued in connection with equity offering 0 18,982
Issuance of common stock related to exercises of warrants 0 767
Initial issuance of equity 0 18,669
Issuance of common stock 0 43
Exercise of prefunded warrants $ 0 $ 15,039
[1] As of December 31, 2023, the weighted-average remaining amortization period for Trademarks and Customer Relations was 7.21 years and 7.33 years, respectively. The weighted-average remaining amortization period for total intangibles was 7.26 years.
[2] On March 20, 2023, the Company made certain leadership changes in our essential oil business resulting in a change in strategy and outlook for the business which will result in a reduced portfolio offering. This reduction in the portfolio will be impactful to our essential oil business's future revenues and profitability and as a result the Company made revisions to our internal forecasts. The Company concluded that this change was an interim triggering event for the three months ending March 31, 2023 indicating the carrying value of our essential oil business's long-lived assets including trademarks may not be recoverable. Accordingly, the Company performed an interim impairment test of the trademark and assessed the recoverability of the related intangible assets by using level 3 inputs and comparing the carrying value of an asset group to the net undiscounted cash flow expected to be generated. The recoverability test indicated that certain definite-live trademark intangible assets were impaired. The Company concluded the carrying value of the trademark exceeded its estimated fair value which was determined utilizing the relief-from-royalty method to determine discounted projected future cash flows which resulted in an impairment charge. The Company recorded an intangible impairment charge of $16.7 million in the three months ending March 31, 2023 within impairment loss on intangibles on the condensed consolidated statement of operations. During the three months ended June 30, 2023, the Company had a substantial decrease in its market capitalization, primarily relating to a decrease in share price. Further, the Company continues to see reduced net revenues across its portfolio primarily due to the current macroeconomic environment reducing demand for consumer goods. Finally, during the three months ending June 30, 2023, the Company implemented a strategy of rationalizing certain less profitable products and reducing its product offering, specifically related to its kitchen appliance products. As a result of this rationalization, along with the reduced demand for its products, the Company has made certain revisions to its internal forecasts for its Paper business and Kitchen appliance business. The Company concluded that these factors were an interim triggering event for the three months ending June 30, 2023 indicating the carrying value of our Paper and Kitchen appliance business’s long-lived assets, including trademarks, may not be recoverable. Accordingly, the Company performed an interim impairment test of the trademark and assessed the recoverability of the related intangible assets by using level 3 inputs and comparing the carrying value of an asset group to the net undiscounted cash flow expected to be generated. The recoverability test indicated that certain definite-live trademark intangible assets were impaired. The Company concluded the carrying value of the trademark exceeded its estimated fair value which was determined utilizing the relief-from-royalty method to determine discounted projected future cash flows which resulted in an impairment charge. The Company recorded an intangible impairment charge of $22.8 million for the Paper business and Kitchen appliance business during the three months ending June 30, 2023 within impairment loss on intangibles on the condensed consolidated statement of operations. During the three months ended December 31, 2023, The Company continued to see reduced revenue in its paper business resulting in certain revisions to its internal forecasts. Due to these revisions in forecast due to reduced demand,, The Company concluded this was an interim triggering event for the three months ending December 31, 2023 indicating the carrying value of our Paper business’s long-lived assets, including trademarks, may not be recoverable. Accordingly, the Company performed an interim impairment test of the trademark and assessed the recoverability of the related intangible assets by using level 3 inputs and comparing the carrying value of an asset group to the net undiscounted cash flow expected to be generated. The recoverability test indicated that certain definite-live trademark intangible assets were impaired. The Company concluded the carrying value of the trademark exceeded its estimated fair value which was determined utilizing the relief-from-royalty method to determine discounted projected future cash flows which resulted in an impairment charge. The Company recorded an intangible impairment charge of $0.3 million for the Paper business during the three months ending December 31, 2023 within impairment loss on intangibles on the consolidated statement of operations.
[3] Certain asset groups experienced a significant decrease in sales and contribution margin through September 30, 2022. This was considered an interim triggering event for the three months ended September 30, 2022. Based on the analysis of comparing the undiscounted cash flow to the carrying value of the asset group, one group tested indicated that the assets may not be recoverable. For this asset group, the Company compared the fair value to the carrying amount of the asset group and recorded an intangible impairment charge of $3.1 million for the year-ended December 31, 2022.