Significant Accounting Policies and Restatement of Previously Issued Financial Statements (As Restated) (Tables)

6 Months Ended

Jun. 30, 2022

Significant Accounting Policies and Restatement of Previously Issued Financial Statements (As Restated)

Schedule of restated financial statements

Consolidated Balance Sheet:

	June 30, 2022
	As		ASC 842			Property-related
	Previously		Lease			and Other Expense		As
	Reported		Adjustments			Adjustments		Restated
	(in thousands)
Accounts receivable, net	$	2,725	$	—	$	(949)	$	1,776
Total current assets		161,558		—		(949)		160,609
Right of use assets		236,393		23,321		—		259,714
Total assets		432,218		23,321		(949)		454,590
Accounts payable		35,319		(596)		(2,280)		32,443
Lease liability - current		65,210		9,035		—		74,245
Total current liabilities		295,492		8,439		(2,280)		301,651
Lease liability - noncurrent		177,597		14,389		—		191,986
Total liabilities		494,477		22,828		(2,280)		515,025
Accumulated deficit		(226,361)		198		443		(225,720)
Total equity excluding noncontrolling interest		18,450		198		443		19,091
Noncontrolling interests		(80,709)		295		888		(79,526)
Total equity		(62,259)		493		1,331		(60,435)
Total liabilities, temporary equity, and equity	$	432,218	$	23,321	$	(949)	$	454,590

Condensed Consolidated Statement of Operations and Comprehensive Loss:

	Three Months Ended June 30, 2022
	As		ASC 842			Property-related
	Previously		Lease			and Other Expense		As
	Reported		Adjustments			Adjustments		Restated
	(in thousands)
Cost of revenue	$	60,081	$	(538)	$	(2,141)	$	57,402
Gross margin		23,617		538		2,141		26,296
General and administrative		15,782		—		468		16,250
Loss and comprehensive loss before income taxes		(7,042)		539		1,673		(4,830)
Net loss and comprehensive loss		(7,248)		539		1,673		(5,036)
Net loss and comprehensive loss attributable to noncontrolling interests		4,274		(320)		(985)		2,969
Net loss and comprehensive loss attributable to Inspirato Incorporated		(2,974)		219		688		(2,067)
Basic and diluted net loss attributable to Inspirato Incorporated per common unit and class A share	$	(0.06)	$	—	$	0.02	$	(0.04)

Condensed Consolidated Statement of Operations and Comprehensive Loss:

	Six Months Ended June 30, 2022
	As		ASC 842			Property-related
	Previously		Lease			and Other Expense		As
	Reported		Adjustments			Adjustments		Restated
	(in thousands)
Cost of revenue	$	107,002	$	(493)	$	(1,798)	$	104,711
Gross margin		58,769		493		1,798		61,060
General and administrative		33,476		—		468		33,944
Loss and comprehensive loss before income taxes		(30,676)		493		1,331		(28,852)
Net loss and comprehensive loss		(31,063)		493		1,331		(29,239)
Net loss and comprehensive loss attributable to noncontrolling interests		16,053		(295)		(888)		14,870
Net loss and comprehensive loss attributable to Inspirato Incorporated		(15,010)		198		443		(14,369)
Basic and diluted net loss attributable to Inspirato Incorporated per common unit and class A share	$	(0.32)	$	—	$	0.02	$	(0.30)

Condensed Consolidated Statement of Cash Flows

	Six Months Ended June 30, 2022
	As		ASC 842			Property-related
	Previously		Lease			and Other Expense		As
	Reported		Adjustments			Adjustments		Restated
	(in thousands)
Consolidated net loss	$	(31,063)	$	493	$	1,331	$	(29,239)
Non-cash lease expense		76		103		—		179
Accounts receivable, net		(336)		—		949		613
Accounts payable		2,179		(596)		(2,280)		(697)
Operating lease right-of-use assets exchanged for lease obligations	$	—	$	306,912	$	—	$	306,912

Condensed Consolidated Statement of Equity

	Six Months Ended June 30, 2022
	As		ASC 842			Property-related
	Previously		Lease			and Other Expense		As
	Reported		Adjustments			Adjustments		Restated
	(in thousands)
	Accumulated deficit
Consolidated net loss	$	(12,036)	$	(31)	$	(235)	$	(12,302)
Balance at March 31, 2022		(223,387)		(31)		(235)		(223,653)
Consolidated net loss		(2,974)		219		688		(2,067)
Balance at June 30, 2022		(226,361)		198		443		(225,720)
	Noncontrolling interest
Consolidated net loss		(11,779)		(14)		(108)		(11,901)
Balance at March 31, 2022		(76,435)		(14)		(108)		(76,557)
Consolidated net loss		(4,274)		320		985		(2,969)
Balance at June 30, 2022		(80,709)		295		888		(79,526)
	Total equity
Consolidated net loss		(23,815)		(45)		(343)		(24,203)
Balance at March 31, 2022		(62,377)		(45)		(343)		(62,765)
Consolidated net loss		(7,248)		539		1,673		(5,036)
Balance at June 30, 2022	$	(62,259)	$	493	$	1,331	$	(60,435)

Schedule of cumulative effect of changes for the adoption of the new lease standard

	Balances at December 31,		Adjustments from Adoption of New Lease		Balances at January 1,
	2021		Standard		2022
	(in thousands)
Assets	(As Restated)
Prepaid expenses	$	11,101	$	(1,094)	$	10,007
Operating lease ROU assets		—		201,728		201,728
Liabilities
Current lease liabilities	$	—	$	63,415	$	63,415
Other current liabilities		457		(457)		—
Long-term lease liabilities		—		145,144		145,144
Other long-term liabilities		7,468		(7,468)		—