Reorganization In Bankruptcy (Tables)

6 Months Ended

Jun. 30, 2022

Reorganizations [Abstract]

Summarizes the components of liabilities subject compromise

The following table summarizes the components of liabilities subject to compromise included on the unaudited condensed consolidated balance sheet as of June 30, 2022 (in thousands):

(in thousands)	June 30, 2022
Accounts payable	$	6,794
Related party payable to Enjoy UK		5,941
Accrued expenses and other current liabilities		2,528
Contract liability(1)		13,359
Related party unsecured promissory note		10,000
Operating lease liabilities		30,226
Liabilities subject to compromise	$	68,848

(1) Contract liability as of June 30, 2022 relates to customer prepayments and customer chargebacks. A contract liability is recognized when the Company receives payment in advance from a customer but the Company has not yet satisfied its performance obligation. In addition, certain of the Company’s contracts contain provisions that allow for a chargeback by the customer of the Company’s fee for selling the incremental service if the Consumer cancels such services within a specified period from the visit. Chargebacks are recognized as a reduction of revenue, in the period such visit occurs, using an estimate derived from historical information regarding Consumer cancelations of specific services as well as real-time information provided by the customer. Chargeback estimates have historically been presented as a reduction to accounts receivables, net, in the consolidated balance sheets as the contractual right of offset existed, however, the amount is presented as liability as of June 30, 2022 given there were no outstanding receivables from the customer at the end of the period.

Summarizes the Restructuring expenses

The following table summarizes the Restructuring expenses:

	Continuing Operations		Discontinued Operations
Legal fees	$	4,985	$	—
Professional fees		2,460		—
Severance		3,397		—
Payments in lieu of notice termination benefits		—		2,153
Total restructuring expenses	$	10,842	$	2,153

Combined Debtor-In-Possession Financial Information

The financial information for the debtor entities is presented below in an unaudited condensed combined balance sheet as of June 30, 2022:

CONDENSED COMBINED DEBTORS BALANCE SHEET

(Amounts in thousands)

(Unaudited)
 

	Debtor Entities
	June 30, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	440
Restricted cash		2,530
Accounts receivable, net		1,153
Prepaid expenses and other current assets		7,670
Total current assets		11,793
Property and equipment, net		9,687
Operating lease right-of-use assets		27,157
Intangible assets, net		817
Other assets		4,749
Total assets	$	54,203
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	637
Payable to Enjoy Canada		390
Accrued expenses and other current liabilities		11,371
Bridge Loan		2,500
Total current liabilities		14,898
Derivative warrant liabilities		157
Liabilities subject to compromise		68,848
Total liabilities		83,903
Total stockholders’ equity		(29,700	)
Total liabilities and stockholders’ equity	$	54,203

Summary of recognized impairment assets

the Company recognized impairment of certain assets as shown below:

	Continuing Operations		Discontinued Operations
Accounts receivable, net	$	889	$	224
Prepaid expenses and other current assets		101		1,102
Property and equipment, net		1,709		3,574
Operating lease right-of-use assets		4,685		6,399
Other assets		443		1,508
Total assets impaired	$	7,827	$	12,807