The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management of Iconix Brand Group, Inc. (the “Company,” “we,” “us,” or “our”), all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 (“Current Quarter”) are not necessarily indicative of the results that may be expected for a full fiscal year. The interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

During the first quarter of FY 2021, the Company determined certain equity transactions were incorrectly recorded by the Company in the second and fourth quarters of FY2020 in the Company’s consolidated financial statements and has been corrected in the consolidated financial statements included in this Form 10-Q. Management evaluated the materiality of these errors from a quantitative and qualitative perspective and concluded that the adjustments related to these transactions individually and in aggregate were not material to any of the Company’s previously issued consolidated financial statements and disclosures. However, the impact of the out-of-period adjustments were material to the consolidated financial statements for the three months ended March 31, 2021. Accordingly, no amendments to previously filed reports are deemed necessary. A summary of the effects of these revisions for FY 2020 and quarterly consolidated financial statements are presented below. The information in the tables below represent the statements of operations, balance sheets, and statements of cash flows line items affected by the revisions. The financial information included in the accompanying consolidated financial statements and notes thereto reflect the effects of the corrections and other adjustments described in the preceding discussion and following tables.

Revised Consolidated Statement of Operations (in thousands,
except earnings per share data)	For the Twelve Months Ended December 31, 2020
	As Reported			Adjustment			As Revised
Selling, general and administrative expenses	$	59,398		$	278		$	59,676
Gain on Sale of Investment		(1,600	)		1,600			—
Operating Income		67,601			(1,878	)		65,723
Net Loss		(2,976	)		(1,878	)		(4,854	)
Net Loss per share - basic and diluted		(0.60	)	$	(0.15	)	$	(0.75	)

Revised Consolidated Balance Sheet (in thousands)	December 31, 2020
	As Reported			Adjustments			As Revised
Accounts payable and accrued expenses	$	29,847		$	278			30,125
Additional Paid-in Capital		1,047,504			1,600			1,049,104
Accumulated Losses		(435,562	)		(1,878	)		(437,440	)

Revised Consolidated Statement of Cash Flows (in thousands)	For the Twelve Months Ended December 31, 2020
	As Reported			Adjustment			As Revised
Net cash used in investing activities	$	77,141		$	(1,600	)		75,541
Net cash used in financing activities		(110,339	)		1,600			(108,739	)

Revised Consolidated Statement of Operations (in thousands,
except earnings per share data)	For the Three Months Ended June 30, 2020
	As Reported			Adjustment			As Revised
Gain on Sale of Investment	$	(1,600	)	$	1,600			—
Operating Income		3,765			(1,600	)		2,165
Net Loss		(15,464	)		(1,600	)		(17,064	)
Net Loss per share - basic and diluted	$	(1.44	)	$	(0.13	)	$	(1.58	)

Revised Consolidated Statement of Operations (in thousands,
except earnings per share data)	For the Six Months Ended June 30, 2020
	As Reported			Adjustment			As Revised
Gain on Sale of Investment	$	(1,600	)	$	1,600		$	—
Operating Income		(1,087	)		(1,600	)		(2,687	)
Net Loss		(36,466	)		(1,600	)		(38,066	)
Net Loss per share - basic and diluted	$	(3.33	)	$	(0.14	)	$	(3.47	)

Revised Consolidated Balance Sheet (in thousands)	June 30, 2020
	As Reported			Adjustments			As Revised
Additional Paid-in Capital	$	1,045,408		$	1,600			1,047,008
Accumulated Losses		(468,162	)		(1,600	)		(469,762	)

Revised Consolidated Statement of Cash Flows (in thousands)	For the Six Months Ended June 30, 2020
	As Reported			Adjustment			As Revised
Net cash used in investing activities	$	(1,008	)	$	(1,600	)		(2,608	)
Net cash used in financing activities		(27,291	)		1,600			(25,691	)

Revised Consolidated Statement of Operations (in thousands,
except earnings per share data)	For the Nine Months Ended September 30, 2020
	As Reported			Adjustment			As Revised
Gain on Sale of Investment		(1,600	)		1,600			—
Operating Income		65,263			(1,600	)		63,663
Net Loss		10,263			(1,600	)		8,663
Earnings (loss) per share - basic	$	0.54		$	(0.13	)	$	0.41
Earnings (loss) per share - diluted	$	0.37		$	(0.05	)	$	0.32

Revised Consolidated Balance Sheet (in thousands)	September 30, 2020
	As Reported			Adjustments			As Revised
Additional Paid-in Capital	$	1,047,167		$	1,600			1,048,767
Accumulated Losses		(422,436	)		(1,600	)		(424,036	)

Revised Consolidated Statement of Cash Flows (in thousands)	For the Nine Months Ended September 30, 2020
	As Reported			Adjustment			As Revised
Net cash used in investing activities	$	77,317		$	(1,600	)		75,717
Net cash used in financing activities		(85,116	)		1,600			(83,516	)

Certain reclassifications, which were immaterial, have been made to conform prior year data to the current presentation.

These condensed consolidated financial statements are prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities, in each case, in the ordinary course of business consistent with the Company’s prior periods. The Company has experienced substantial and recurring losses from operations, which losses have caused an accumulated deficit of $433.3 million as of March 31, 2021. Net losses incurred for the years ended December 31, 2020 and 2019 amounted to approximately $4.9 million and $99.9 million, respectively. The Company has generated positive cash flows from operations in recent periods and has managed its cost structure, its relationships with licensees and sold non-strategic assets to mitigate the adverse impact of the COVID-19 pandemic on its operating results, liquidity and financial condition. The Company does not expect the occurrence of any payment defaults on its outstanding debt facilities in the next twelve months, and otherwise expects to generate sufficient cash to meet its operating cash flow needs and maintain compliance with the financial covenants set forth in its various debt facilities during such period. Management believes the Company will be able to exist as a going concern for the next twelve months.

The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary, should the Company not continue as a going concern.

For additional information, please refer to Note 1 of Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The spread of the novel coronavirus or COVID-19 (“COVID-19”) during the first quarter of 2020 and its continued spread into 2021, has caused an economic downturn on a global scale, as well as significant volatility in the financial markets. In March 2020, the World Health Organization declared COVID-19 a pandemic. The COVID-19 pandemic is an ongoing phenomenon with uncertain scale and has had severe global macroeconomic and financial market impacts. and had a material adverse effect on our results of operations and liquidity. Continued material disruptions on discretionary spending and consumer demand could further negatively affect our licenses and impact our financial position, results of operations and cash flows. Certain of our licensees have been and may continue to be adversely impacted by the pandemic due to manufacturing facility closures, store closures, impacts to their distribution networks and a general decrease in customer traffic. We have, in many cases, suspended or deferred capital expenditures. We continue to take steps to increase available cash on hand including, but not limited to, targeted reductions in discretionary operating expenses, and our completed sales of certain of our brands. We have also taken certain precautions to provide a safe work environment for our employees. We continue to evaluate further actions that we determine are in the best interests of our employees or as required by federal, state, or local authorities.