101 unchanged sentences
Results of Operations
−Removed: Three Months Ended June 30, 2023 compared to Three Months Ended June 30, 2022
−Removed: The following table presents our results of operations for the three months ended June 30, 2023 and 2022:
+Added: Three Months Ended September 30, 2023 compared to Three Months Ended September 30, 2022
+Added: The following table presents our results of operations for the three months ended September 30, 2023 and 2022:
Three Months Ended
+Added: September 30,
Cost of net revenues
7 unchanged sentences
Net income (loss) from continuing operations
−Removed: Revenues increased by $1.8 million to $4.5 million for the three months ended June 30, 2023, compared to $2.7 million in the corresponding fiscal period in 2022.
+Added: Revenues increased by $0.6 million to $3.3 million for the three months ended September 30, 2023, compared to $2.7 million in the corresponding fiscal period in 2022.
The increase was primarily due to full results in 2023 pertaining to the acquisition of Sundry in December 2022.
−Removed: Our gross profit increased by $1.2 million for the three months ended June 30, 2023 to $2.3 million from a gross profit of $1.1 million for the corresponding fiscal period in 2022.
−Removed: The increase in gross margin was primarily attributable to increased revenue in the six months ended June 30, 2023 and the gross profit achieved by Sundry since the acquisition.
−Removed: Our gross margin was 52.0% for three months ended June 30, 2023 compared to 42.0% for the three months ended June 30, 2022.
+Added: Our gross profit increased by $0.7 million for the three months ended September 30, 2023 to $1.7 million from a gross profit of $1.0 million for the corresponding fiscal period in 2022.
+Added: The increase in gross margin was primarily attributable to increased revenue in the nine months ended September 30, 2023 and the gross profit achieved by Sundry since the acquisition.
+Added: Our gross margin was 52.3% for three months ended September 30, 2023 compared to 36.0% for the three months ended September 30, 2022.
The increase in gross margin was due to a shift in sales mix towards e-commerce, led by the Sundry business, which is able to achieve higher margins than wholesale.
Operating Expenses
−Removed: Our operating expenses decreased by $17.0 million for the three months ended June 30, 2023 to a $5.3 million gain compared to $11.8 million for the corresponding fiscal period in 2022.
−Removed: The decrease in operating expenses was primarily due to the change in fair value of contingent consideration of $16.6 million.
−Removed: General and administrative expenses decreased by $0.2 million due to lower consulting and professional fees.
−Removed: Sales and marketing expenses decreased by $0.3 million due to decreased spending on advertising and other cost-cutting marketing efforts.
+Added: Our operating expenses increased by $1.7 million for the three months ended September 30, 2023 to $5.1 million compared to $3.4 million for the corresponding fiscal period in 2022.
+Added: General and administrative expenses increased by $0.8 million due to stock-based compensation for shares issued to employees and consultants.
+Added: Sales and marketing expenses increased by $0.1 million, and other operating expenses increased by $0.8 million primarily due to change in fair value of contingent consideration.
Other Income (Expenses)
−Removed: Other income (expense) was ($1.1) million and $1.2 million for the three months ended June 30, 2023 and 2022, respectively.
+Added: Other expenses was $2.0 million and $2.3 million for the three months ended September 30, 2023 and 2022, respectively.
In 2023, the Company had less interest expense due to less outstanding notes.
1 unchanged sentence
Net Loss from Continuing Operations
−Removed: Our net loss from continuing operations decreased by $16.0 million to a net income from continuing operations of $6.5 million for the three months ended June 30, 2023 compared to a loss from continuing operations of $9.5 million for the corresponding fiscal period in 2022, primarily due to the change in fair value of contingent consideration, higher gross profit and lower operating expenses, partially offset by other expenses.
−Removed: Six Months Ended June 30, 2023 compared to Six Months Ended June 30, 2022
−Removed: The following table presents our results of operations for the six months ended June 30, 2023 and 2022:
−Removed: Six Months Ended
+Added: Our net loss from continuing operations increased by $0.7 million to a net loss from continuing operations of $5.4 million for the three months ended September 30, 2023 compared to a loss from continuing operations of $4.7 million for the corresponding fiscal period in 2022, primarily due to the change in fair value of contingent consideration and increased operating expenses, partially offset by higher gross profit.
+Added: Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022
+Added: The following table presents our results of operations for the nine months ended September 30, 2023 and 2022:
+Added: Nine Months Ended
+Added: September 30,
Cost of net revenues
7 unchanged sentences
Net income (loss) from continuing operations
−Removed: Revenues increased by $3.6 million to $8.9 million for the six months ended June 30, 2023, compared to $5.3 million in the corresponding fiscal period in 2022.
+Added: Revenues increased by $4.2 million to $12.1 million for the nine months ended September 30, 2023, compared to $7.9 million in the corresponding fiscal period in 2022.
The increase was primarily due to full results in 2023 pertaining to the acquisition of Sundry in December 2022.
−Removed: Our gross profit increased by $2.6 million for the six months ended June 30, 2023 to $4.3 million from a gross profit of $1.7 million for the corresponding fiscal period in 2022.
−Removed: The increase in gross margin was primarily attributable to increased revenue in the six months ended June 30, 2023 and the gross profit achieved by Sundry since the acquisition, as well as increasing margins across all entities.
−Removed: Our gross margin was 48.8% for the six months ended June 30, 2023 compared to 32.7% for the six months ended June 30, 2022.
+Added: Our gross profit increased by $3.3 million for the nine months ended September 30, 2023 to $6.0 million from a gross profit of $2.7 million for the corresponding fiscal period in 2022.
+Added: The increase in gross margin was primarily attributable to increased revenue in the nine months ended September 30, 2023 and the gross profit achieved by Sundry since the acquisition, as well as increasing margins across all entities.
+Added: Our gross margin was 49.7% for the nine months ended September 30, 2023 compared to 33.8% for the nine months ended September 30, 2022.
The increase in gross margin was due to a shift in sales mix towards e-commerce, led by the Sundry business, which is able to achieve higher margins than wholesale, as well as heavy discounting in the first quarter of 2022.
Operating Expenses
−Removed: Our operating expenses decreased by $17.6 million for the six months ended June 30, 2023 to $0.2 compared to $17.8 million for the corresponding fiscal period in 2022.
+Added: Our operating expenses decreased by $15.9 million for the nine months ended September 30, 2023 to $5.4 million compared to $21.2 million for the corresponding fiscal period in 2022.
The decrease in operating expenses was primarily due to the change in fair value of contingent consideration of $17.1 million.
−Removed: General and administrative expenses increased by $0.3 million primarily due to Sundry’s operations.
−Removed: Sales and marketing expenses decreased by $0.2 million due to decreased spending on advertising and other cost-cutting marketing efforts.
−Removed: Through the second quarter of 2023, we were able to obtain and efficiencies in fully absorbing all of our brands.
+Added: General and administrative expenses increased by $1.1 million primarily due to Sundry’s operations and stock-based compensation for shares issued to employees and consultants.
+Added: Sales and marketing expenses decreased by $0.1 million.
+Added: Through the third quarter of 2023, we were able to obtain and efficiencies in fully absorbing all of our brands.
Other Income (Expenses)
−Removed: Other expenses was $3.6 million and $1.1 million for the six months ended June 30, 2023 and 2022, respectively.
+Added: Other expenses was $5.6 million and $3.4 million for the nine months ended September 30, 2023 and 2022, respectively.
In 2023, the Company had less interest expense due to less outstanding notes.
1 unchanged sentence
Net Loss from Continuing Operations
−Removed: Our net loss from continuing operations decreased by $17.7 million to income of $0.5 million for the six months ended June 30, 2023 compared to a loss of $17.2 million for the corresponding fiscal period in 2022, primarily due to the change in fair value of contingent consideration, higher gross profit and lower operating expenses, partially offset by other expenses.
+Added: Our net loss from continuing operations decreased by $17.0 million to loss of $5.0 million for the nine months ended September 30, 2023 compared to a loss of $21.9 million for the corresponding fiscal period in 2022, primarily due to the change in fair value of contingent consideration and higher gross profit.
Liquidity and Capital Resources
2 unchanged sentences
Historically each of DBG, Bailey, H&J, Stateside and Sundry 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, 2023, we had cash of $0.3 million, but we had a working capital deficit of $16.0 million.
+Added: As of September 30, 2023, we had cash of $1.1 million, but we had a working capital deficit of $14.7 million.
The Company requires significant capital to meet its obligations as they become due.
4 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, 2023 and 2022:
−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, 2023 and 2022:
+Added: Nine Months Ended
+Added: September 30,
Net cash provided by operating activities:
2 unchanged sentences
Net cash used in operating activities
−Removed: Net cash provided by investing activities
+Added: Net cash provided by (used in) investing activities
Net cash provided by financing activities
1 unchanged sentence
Cash Flows Used In Operating Activities
−Removed: Our cash used by operating activities decrease by $3.6 million to cash used of $3.0 million for the six months ended June 30, 2023 as compared to cash used of $6.6 million for the corresponding fiscal period in 2022.
−Removed: The increase in net cash used in operating activities was primarily driven by the lower net loss and changes in our operating assets and liabilities, partially offset by non-cash adjustments.
−Removed: Cash Flows Provided By Investing Activities
−Removed: Our cash provide by investing activities was $41,331 in 2023 primarily due to a reduction of deposits, partially offset by purchase of property and cash sold in the H&J disposition.
+Added: Our cash used by operating activities decreased by $2.2 million to cash used of $6.5 million for the nine months ended September 30, 2023 as compared to cash used of $8.7 million for the corresponding fiscal period in 2022.
+Added: The increase in net cash used in operating activities was primarily driven by the lower net loss, partially offset by non-cash adjustments.
+Added: Cash Flows Provided By (Used in) Investing Activities
+Added: Our cash provided by investing activities was $41,331 in 2023 primarily due to a reduction of deposits, partially offset by purchase of property and cash sold in the H&J disposition.
Cash Flows Provided by Financing Activities
−Removed: Cash provided by financing activities was $2.0 million for the six months ended June 30, 2023.
−Removed: Cash inflows included $4.3 million in net proceeds from the January Private Transaction, $4.2 million in proceeds from loans and promissory notes and $4.3 million in advances from the factor.
−Removed: Cash provided by financing activities was $6.9 million for the six months ended June 30, 2022.
−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.
+Added: Cash provided by financing activities was $6.2 million for the nine months ended September 30, 2023.
+Added: Cash inflows included $8.1 million in net proceeds from the January Private Placement and August Private Placement and proceeds from loans and notes of $5.8 million.
+Added: Cash outflows are primarily due to $8.8 million in repayments of notes.
+Added: Cash provided by financing activities was $8.4 million for the nine months ended September 30, 2022.
+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.
Contractual Obligations and Commitments
−Removed: As of June 30, 2023, we have a $7.6 million in outstanding principal on debt, primarily our promissory notes due to the Bailey44 Sellers, the March 2023 Notes, PPP and merchant advances.
+Added: As of September 30, 2023, we have $7.0 million in outstanding principal on debt, primarily our promissory notes due to the Bailey44 Sellers, the March 2023 Notes, PPP and merchant advances.
Aside from our remaining non-current SBA obligations, all outstanding loans have maturity dates through 2024.
16 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.