91 unchanged sentences
Results of Operations
−Removed: Three Months Ended June 30, 2022 compared to Three Months Ended June 30, 2021
−Removed: The following table presents our results of operations for the three months ended June 30, 2022 and 2021:
+Added: Three Months Ended September 30, 2022 compared to Three Months Ended September 30, 2021
+Added: The following table presents our results of operations for the three months ended September 30, 2022 and 2021:
Three Months Ended
+Added: September 30,
Cost of net revenues
3 unchanged sentences
Operating loss
−Removed: Other income (expenses)
+Added: Other expenses
Loss before provision for income taxes
Provision for income taxes
−Removed: Revenues increased by $2.7 million to $3.7 million for the three months ended June 30, 2022, compared to $1.0 million in the corresponding fiscal period in 2021.
−Removed: The increase was primarily due to full results in 2022 pertaining to the acquisition of H&J in May 2021 and Stateside in August 2021.
−Removed: Our gross profit increased by $1.8 million for the three months ended June 30, 2022 to $2.2 million from a gross profit of $0.4 million for the corresponding fiscal period in 2021.
−Removed: The increase in gross margin was primarily attributable to increased revenue in the three months ended June 30, 2022 and the gross profit achieved by H&J and Stateside since the acquisitions.
−Removed: Our gross margin was 58.1% for three months ended June 30, 2022 compared to 39.3% for the three months ended June 30, 2021.
−Removed: The increase in the gross margin was due to H&J and Stateside’s margins in 2021, as well as discounting and liquidation measures by both DBG and Bailey to sell aged inventory in 2021.
+Added: Revenues increased by $1.2 million to $3.4 million for the three months ended September 30, 2022, compared to $2.2 million in the corresponding fiscal period in 2021.
+Added: The increase was primarily due to full results in 2022 pertaining to the acquisition of Stateside in August 2021, as well we increased results from the Company’s other brands including Bailey.
+Added: Our gross profit increased by $0.5 million for the three months ended September 30, 2022 to $1.7 million from a gross profit of $1.2 million for the corresponding fiscal period in 2021.
+Added: The increase in gross margin was primarily attributable to increased revenue in the three months ended September 30, 2022 and the gross profit achieved by Stateside since the acquisition.
+Added: Our gross margin was 48.3% for three months ended September 30, 2022 compared to 55.9% for the three months ended September 30, 2021.
+Added: The decrease in the gross margin was due to H&J and Stateside’s higher margins in 2021, as well as lower margins achieved by Bailey in 2022.
Operating Expenses
−Removed: Our operating expenses increased by $1.6 million for the three months ended June 30, 2022 to $12.8 million compared to $11.2 million for the corresponding fiscal period in 2021.
−Removed: The increase in operating expenses was primarily due to the change in fair value of contingent consideration of $5.9 million and increased marketing expenses, partially offset by lower general and administrative expenses due to the Company’s stock-based compensation expense in the quarter ended June 30, 2021.
+Added: Our operating expenses decreased by $4.9 million for the three months ended September 30, 2022 to $4.2 million compared to $9.1 million for the corresponding fiscal period in 2021.
+Added: The decrease in operating expenses was primarily due to the change in fair value of contingent consideration of $4.0 million in 2021, as well as slightly lower marketing and general and administrative expenses in 2022 due to various cost cutting measures.
We expect operating expenses to increase in total dollars and as a percentage of revenues as our revenue base increases.
Other Income (Expenses)
−Removed: Other income/expenses increased by $2.1 million to a $1.1 million income in the three months ended June 30, 2022 compared to other expenses of $0.1 million in the corresponding fiscal period in 2021.
−Removed: The increase in other income in 2022 was primarily due to the change in fair value of derivative liability and PPP forgiveness.
−Removed: Our net loss decreased by $1.2 million to a loss of $9.5 million for the three months ended June 30, 2022 compared to a loss of $10.7 million for the corresponding fiscal period in 2021 primarily due to the higher gross profit and other income in 2022, partially offset by the increase in the change in fair value of contingent consideration and other operating expenses.
−Removed: Six Months Ended June 30, 2022 compared to Three Months Ended June 30, 2021
−Removed: The following table presents our results of operations for the six months ended June 30, 2022 and 2021:
−Removed: Six Months Ended
+Added: Other income/expenses increased by $1.3 million to $2.3 million in the three months ended September 30, 2022 compared to other expenses of $1.0 million in the corresponding fiscal period in 2021.
+Added: The increase in other expenses in 2022 was primarily due to the amortization of debt discount and interest expense on the Company’s outstanding notes.
+Added: Our net loss decreased by $4.
+Added: million to a loss of $4.9 million for the three months ended September 30, 2022 compared to a loss of $8.9 million for the corresponding fiscal period in 2021 primarily due to less operating expenses driven by the change in fair value of contingent consideration.
+Added: Nine months Ended September 30, 2022 compared to Three Months Ended September 30, 2021
+Added: The following table presents our results of operations for the nine months ended September 30, 2022 and 2021:
+Added: Nine Months Ended
+Added: September 30,
Cost of net revenues
3 unchanged sentences
Operating loss
−Removed: Other income (expenses)
+Added: Other expenses
Loss before provision for income taxes
Provision for income taxes
−Removed: Revenues increased by $5.8 million to $7.2 million for the six months ended June 30, 2022, compared to $1.4 million in the corresponding fiscal period in 2021.
+Added: Revenues increased by $7.0 million to $10.6 million for the nine months ended September 30, 2022, compared to $3.6 million in the corresponding fiscal period in 2021.
The increase was primarily due to full results in 2022 pertaining to the acquisition of H&J in May 2021 and Stateside in August 2021.
−Removed: Our gross profit increased by $3.5 million for the six months ended June 30, 2022 to $3.6 million from a gross profit of $0.2 million for the corresponding fiscal period in 2021.
−Removed: The increase in gross margin was primarily attributable to increased revenue in the six months ended June 30, 2022 and the gross profit achieved by H&J and Stateside since the acquisitions, as well as discounting and liquidation measures by both DBG and Bailey to sell aged inventory in 2021.
−Removed: Our gross margin was 50.8% for six months ended June 30, 2022 compared to 13.2% for the six months ended June 30, 2021.
+Added: Our gross profit increased by $3.9 million for the nine months ended September 30, 2022 to $5.3 million from a gross profit of $1.4 million for the corresponding fiscal period in 2021.
+Added: The increase in gross margin was primarily attributable to increased revenue in the nine months ended September 30, 2022 and the gross profit achieved by H&J and Stateside since the acquisitions, as well as discounting and liquidation measures by both DBG and Bailey to sell aged inventory in 2021.
+Added: Our gross margin was 50.0% for nine months ended September 30, 2022 compared to 39.1% for the nine months ended September 30, 2021.
The increase in the gross margin was due to H&J and Stateside’s margins in 2021, as well as discounting and liquidation measures by both DBG and Bailey to sell aged inventory in 2021.
Operating Expenses
−Removed: Our operating expenses increased by $6.5 million for the six months ended June 30, 2022 to $19.9 million compared to $13.4 million for the corresponding fiscal period in 2021.
−Removed: The increase in operating expenses was primarily due to the change in fair value of contingent consideration of $7.1 million and increased marketing expenses due to full scale operations of all subsidiaries in 2022.
+Added: Our operating expenses increased by $1.6 million for the nine months ended September 30, 2022 to $24.1 million compared to $22.5 million for the corresponding fiscal period in 2021.
+Added: The increase in operating expenses was primarily due to increased general and administrative and marketing expenses due to full scale operations of all subsidiaries in 2022.
Other Income (Expenses)
−Removed: Other expenses decreased by $0.5 million to $1.1 million in the six months ended June 30, 2022 compared to other expenses of $1.6 million in the corresponding fiscal period in 2021.
+Added: Other expenses increased by $0.8 million to $3.4 million in the nine months ended September 30, 2022 compared to other expenses of $2.7 million in the corresponding fiscal period in 2021.
The increase in other expenses in 2022 was primarily due to amortization of debt discount and related interest expense, partially offset by the change in fair value of derivative liability and PPP forgiveness.
−Removed: Our net loss increased by $3.6 million to a loss of $17.4 million for the six months ended June 30, 2022 compared to a loss of $13.7 million for the corresponding fiscal period in 2021 primarily due to increased operating expenses driven by the change in fair value of contingent consideration partially offset by the higher gross profit.
+Added: Our net loss increased by $3.6 million to a loss of $17.4 million for the nine months ended September 30, 2022 compared to a loss of $13.7 million for the corresponding fiscal period in 2021 primarily due to increased operating expenses driven by the change in fair value of contingent consideration partially offset by the higher gross profit.
Liquidity and Capital Resources
2 unchanged sentences
Historically each of DBG, Bailey, H&J and Stateside has maintained credit line facilities to support such working capital needs and makes repayments on that facility with excess cash flow from operations.
−Removed: As of June 30, 2022, we had cash of $802,724, but we had a working capital deficit of $38.4 million.
+Added: As of September 30, 2022, we had cash of $195,399, but we had a working capital deficit of $40.7 million.
The Company requires significant capital to meet its obligations as they become due.
6 unchanged sentences
Cash Flow Activities
−Removed: The following table presents selected captions from our condensed statement of cash flows for the six months ended June 30, 2022 and 2021:
−Removed: Six Months Ended
+Added: The following table presents selected captions from our condensed statement of cash flows for the nine months ended September 30, 2022 and 2021:
+Added: Nine Months Ended
+Added: September 30,
+Added: Net cash provided by operating activities:
Non-cash adjustments
5 unchanged sentences
Cash Flows Used In Operating Activities
−Removed: Our cash used by operating activities was $6.6 million for the six months ended June 30, 2022 and 2021.
−Removed: Cash used in operating activities was primarily driven by our net loss, partially offset by non-cash charges and cash provided by changes in operating assets and liabilities.
+Added: Our cash used by operating activities decreased by $2.6 million to cash used of $8.9 million for the nine months ended September 30, 2022 as compared to cash used of $11.5 million for the corresponding fiscal period in 2021.
+Added: The decrease in net cash used in operating activities was primarily driven by changes in our operating assets and liabilities in 2022.
Cash Flows Provided By Investing Activities
−Removed: Our cash used in investing activities was $0.5 million in 2021, which was primarily related to the cash consideration in the H&J acquisition.
+Added: Cash used in 2021 was primarily related to the cash consideration in the H&J and Stateside acquisitions.
Cash Flows Provided by Financing Activities
−Removed: Cash provided by financing activities was $6.9 million for the six months ended June 30, 2022, compared to $10.6 million for the corresponding fiscal period in 2021.
−Removed: Cash inflows in the three months ended June 30, 2022 were primarily related to $7.3 million in equity proceeds after offering costs, $2.9 million from convertible notes and loans, partially offset by note repayments of $3.1 million.
−Removed: Cash inflows in the six months ended June 30, 2021 were primarily related to $8.6 million in net proceeds from the IPO after deducting underwriting discounts and commissions and offering expenses, as well as $1.4 million in net proceeds from the underwriter’s exercise of their over-allotment option.
−Removed: Cash was also generated in 2021 from proceeds from loan payables of $2.6 million and proceeds from convertible notes payable of $0.5 million, partially offset by loan and note repayments of $2.0 million.
+Added: Cash provided by financing activities was $8.4 million for the nine months ended September 30, 2022, compared to $16.7 million for the corresponding fiscal period in 2021.
+Added: Cash inflows in the nine months ended September 30, 2022 were primarily related to $7.3 million in equity proceeds after offering costs, $3.8 million from convertible notes and loans, partially offset by note repayments of $3.1 million.
+Added: Cash inflows in the nine months ended September 30, 2021 were primarily related to $8.6 million in net proceeds from the IPO after deducting underwriting discounts and commissions and offering expenses, as well as $1.4 million in net proceeds from the underwriter’s exercise of their over-allotment option.
+Added: Cash was also generated in 2021 from proceeds from loan payables of $2.6 million, exercises of warrants of $1.8 million and proceeds from convertible notes payable of $5.1 million, partially offset by loan and note repayments of $2.0 million.
Contractual Obligations and Commitments
3 unchanged sentences
A 5% closing fee is due upon each closing, legal and accounting fees of up to $40,000, and management fees of $4,167-$5,000 per month.
−Removed: As of June 30, 2022, we owed our senior secured lender approximately $6.3 million that is due on the scheduled maturity date of December 31, 2022.
−Removed: We have $8.0 million in outstanding principal pertaining to our convertible notes which mature in various dates through 2023.
+Added: In September 2022, the entire outstanding principal was converted into preferred stock.
+Added: As of September 30, 2022 we have $9.9 million in outstanding principal pertaining to our convertible notes which mature in various dates through 2023.
Critical Accounting Policies and Estimates
15 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.