What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-03-01 compared with 2021-03-11 · 599 added, 629 removed, 49 unchanged (96% of the section changed)

Purple’s mission is to help “every

body” feel and live better through innovative comfort solutions.

We are a digitally-native

vertical brand founded on comfort product innovation with premium offerings.

We design and manufacture a variety of innovative,

branded and premium comfort products, including mattresses, pillows, cushions, frames, sheets and more.

Our products are the result

of decades of innovation and investment in proprietary and patented comfort technologies and the development of our own manufacturing

Our proprietary gel technology, Hyper-Elastic Polymer®, known as the Purple Grid®, underpins many of our comfort

products and provides a range of benefits that differentiate our offerings from other competitors’ products.

Specially engineered

for total pressure relief and unwavering support, Purple’s patented grid technology has been used and tested rigorously within

medical and consumer applications for over 30 years.

Originally designed for use in hospital beds and wheelchairs, we adapted this

unique pressure-relieving material for our mattresses.

We market and sell

our products through direct-to-consumer (“DTC”) online channels, Company showrooms and retail brick-and-mortar wholesale

The foundation of our

business is core competencies in design, development and manufacturing.

Decades of accumulated knowledge enable us to create all

aspects of our innovative products, including fundamental comfort technologies and machines and processes necessary to bring them

We have integrated our operations to include research and development, marketing and manufacturing, resulting in an

ability to rapidly test, learn, adapt and scale our product offerings.

In order to solve complex manufacturing challenges such

as large-format injection molding of our Purple Grid, we designed and produced our own manufacturing equipment including our proprietary

mission is to help “every body” sleep, feel and live better through innovative comfort solutions.

We are a digitally-native vertical brand

founded on comfort product innovation with premium offerings.

We design and manufacture a variety of innovative, branded and premium comfort

products, including mattresses, pillows, cushions, bases, sheets and more.

Our products are the result of decades of innovation and investment

in proprietary and patented comfort technologies and the development of our own manufacturing processes.

Our proprietary gel technology,

Hyper-Elastic Polymer ® , known as the Purple Grid ® , underpins many of our comfort products and provides a

range of benefits that differentiate our offerings from other competitors’ products.

Specially engineered for enhanced pressure

relief and unwavering support, Purple’s patented grid technology has been used and tested rigorously within medical and consumer

applications for over 30 years.

Originally designed for use in hospital beds and wheelchairs, we adapted this unique pressure-relieving

material for our mattresses and other cushion products.

We market and sell our products through

direct-to-consumer e-commerce and Purple retail showrooms (collectively “DTC”) and retail brick-and-mortar wholesale partners.

foundation of our business is core competencies in design, development and manufacturing.

Decades of accumulated knowledge enable us

to create all aspects of our innovative products, including fundamental comfort technologies and machines and processes necessary to

bring them to market.

We have integrated our operations to include research and development, marketing and manufacturing, resulting in

an ability to rapidly test, learn, adapt and scale our product offerings.

In order to solve complex manufacturing challenges such as

large-format injection molding of our Purple Grid, we designed and produced our own manufacturing equipment including our proprietary

and patented Mattress Max™ machinery.

These were and still are fully customized machines unique to Purple that can handle

both our size and scale requirements.

We believe our combination of patents and intellectual property, proprietary and patented

manufacturing equipment, production processes and decades of acquired knowledge create an advantage over our competitors who rely

on commoditized materials, such as foam and outsourced manufacturing.

In addition to developing

transformative, differentiated products and technologies, we have built a brand that has high customer engagement and avid online

We have an experienced digital marketing team, providing efficient customer acquisition and brand affinity.

marketing strategy enables us to market our full product suite to customers, generate frequent interactions online and drive traffic

to all channels offering our products.

We have capitalized

on the DTC macro trend that is transforming the bedding industry.

To complement our DTC channel, we have developed multiple wholesale

relationships with best-in-class retailers in the furniture, mattress specialty, home décor, and department store spaces.

We believe our distinctly differentiated products, marketing strategies, manufacturing capabilities, unique branding and proprietary

technologies position us to continue to drive our growth in comfort products.

For 2020, our DTC sales channel, which includes online

and Company showrooms, accounted for 74.8% of our net revenue and wholesale accounted for 25.2% of net revenue, while sales of

bedding accounted for 92.2% of our net revenue and other products accounted for 7.8%.

In July 2020, Purple entered into a lease for a new facility

in McDonough, Georgia with plans to grow our manufacturing footprint and serve our customers in the eastern U.S.

Purple began operations

in the new facility on March 3, 2021 and for the remainder of 2021 will ramp up to planned capacity of four Mattress Max machines.

We intend to hire over 360 employees to fully staff the facility.

We also grew our DTC efforts by adding four Company showrooms

in 2020, making a total of nine Company showroom locations in cities across the U.S.

We anticipate opening additional Company showrooms

throughout 2021.

Industry and Competition

Our portfolio of products

is driven by our commitment to innovating real comfort solutions that meaningfully help “every body” feel and live

Whether it’s getting a better night’s rest or elevating the work from home experience, we design and manufacture

truly innovative, differentiated products that put our customer’s comfort first.

The bedding category

encompasses a variety of products including mattresses, pillows, bases, foundations, sheets, mattress protectors, blankets and

These were and still are fully customized machines unique to Purple that can handle both

our size and scale requirements.

We believe our combination of patents and intellectual property, proprietary and patented manufacturing

equipment, production processes and decades of acquired knowledge create an advantage over our competitors who rely on commoditized materials,

such as foam and outsourced manufacturing.

In addition to developing transformative,

differentiated products and technologies, we have built a brand that has high customer engagement and avid brand advocates.

experienced marketing team, providing efficient customer acquisition and brand demand development.

Our marketing strategy enables us to

market our full product suite to customers, generate frequent interactions online and drive traffic to all channels offering our products.

Evidencing the strength of our brand, our close rate among consumers who are considering a purchase was at an all-time high in the fourth

quarter of 2021.

As a native DTC brand, our knowledge

of and engagement with consumers across digital and brick and mortar retail channels is advantageous and increasing.

To complement our

DTC efforts, we have developed multiple wholesale relationships with best-in-class retailers in the furniture, mattress specialty, home

décor, and department store spaces.

We believe our distinctly differentiated products, marketing strategies, manufacturing capabilities,

unique branding and proprietary technologies position us to continue to drive our growth in comfort products.

By fourth quarter 2021,

we believe we increased our share in the overall mattress category nearly a full percentage point from the previous high in the fourth

quarter of 2020 and first quarter of 2021.

In 2021, our DTC sales, which includes online and Purple retail showrooms, accounted for 65.3%

of our net revenues and wholesale accounted for 34.7% of net revenues, while sales of sleep products accounted for 91.5% of our net revenues

and other products accounted for 8.5%.

In 2021, Purple opened and scaled

a new facility in McDonough, Georgia to create growth-supporting capacity and a manufacturing footprint that serves our customers in the

We also grew our DTC efforts by adding 19 Purple retail showrooms in 2021 and two thus far in 2022, making a total of 30

Company showroom locations in cities across the United States.

We anticipate opening additional Purple retail showrooms throughout 2022

and to eventually have more than 200 showrooms.

and Competition

portfolio of products is driven by our commitment to innovating real comfort solutions that meaningfully help “every body”

sleep, feel and live better.

Whether it’s getting a better night’s rest or elevating the work from home experience, we design

and manufacture truly innovative, differentiated products that put our customer’s comfort first.

sleep products category encompasses a variety of products including mattresses, pillows, bases, foundations, sheets, mattress protectors,

blankets and duvets.

Meaningful innovation in sleep products has remained stagnant and limited over the last 150 years.

2 unchanged sentences

Latex, water and air mattresses followed, emerging in the latter part of the 20 th century.

Since these early inventions,

the mattress industry has remained complacent with little meaningful innovation, until the introduction of the Purple Grid.

Purple Grid, made from our proprietary Hyper-Elastic Polymer, represents a meaningful innovation in pressure relief, temperature

neutrality, responsiveness, durability and limited motion transfer.

The Purple Grid solves problems that regular mattresses create

and has proven that material innovations can have a positive impact on sleep.

The market for bedding

products is rapidly growing and currently undergoing a fundamental transformation with the rise of e-commerce and DTC distribution.

mattress industry is predominantly comprised of vendors that rely on retail distribution as well as a growing number of

DTC retailers.

With COVID-19's impact on brick-and-mortar retail over the past year, our manufacturing capabilities paired with

our strategic mix of showrooms, e-commerce and third-party retailers, has allowed us to gain share and be a leader in the home

Over the past several

years, growth of the DTC market exceeded that of the broader industry.

The majority of this growth has been seen by new mattress

companies that offer convenience, free shipping and returns, and low prices, while leveraging third-party manufacturing and distribution.

Materials used by online mattress retailers include layers of foam cushioning that are assembled, compressed and folded into a

box for distribution.

This market is highly fragmented, commoditized and competitive, with customer purchase decisions based primarily

Prior to Purple, there has been little recent success disrupting the premium market, where the majority of category revenue

and profit is realized.

Competitors in the premium market include Tempur Sealy and Sleep Number.

While e-commerce home

goods purchases have increased over the past year, traditional brick-and-mortar retailers command a significant part of the market

for bedding products.

Since these early inventions, the

mattress industry has remained complacent with little meaningful innovation, until the introduction of the Purple Grid.

Our Purple Grid,

made from our proprietary Hyper-Elastic Polymer, represents a meaningful innovation in pressure relief, temperature neutrality, responsiveness,

durability and limited motion transfer.

The Purple Grid solves problems that regular mattresses create and has proven that material innovations

can have a positive impact on sleep.

Beginning in 2015, the market

for sleep products underwent a fundamental transformation with the rise of e-commerce-based brands and direct to consumer distribution,

which disrupted the traditional category dynamics and drove the majority of category growth (versus traditional mattress companies) for

several years.

Today, the U.S.

mattress industry has rebalanced to be comprised of vendors that rely on retail distribution as well as

a consolidated number of direct-to-consumer retailers who have tried to expand brick and mortar distribution to capture more market share

in a category still tied to instore product trials.

Amidst this changing category dynamic, Purple’s manufacturing capabilities paired

with our strategic mix of showrooms, e-commerce and third-party retailers, has allowed us to gain share and be a leader in the sleep products

In general, new direct to consumer mattress

companies offer convenience, free shipping and returns, and low prices, while leveraging third-party manufacturing and distribution.

used by online mattress retailers include layers of foam cushioning that are assembled, compressed and folded into a box for distribution.

This market is highly fragmented, commoditized and competitive, with customer purchase decisions based primarily on price.

Prior to Purple,

there has been little recent success disrupting the premium market, where the majority of category revenue and profit is realized.

in the premium market include Tempur Sealy and Sleep Number.

e-commerce home goods purchases have increased over the past five years, traditional brick-and-mortar retailers command a significant

part of the market for mattress products.

This part of the retail market is also highly fragmented and competitive.

The leading brick-and-mortar specialty

mattress retailers in the United States and Canada are, respectively, Mattress Firm and Sleep Country Canada, both of which Purple

has significant partnerships.

These national retailers compete with both regional and local retailers as well as furniture and

department stores.

The leading brick-and-mortar

specialty mattress retailers in the United States and Canada are, respectively, Mattress Firm and Sleep Country Canada, both of which

Purple has significant partnerships with.

These national retailers compete with both regional and local retailers as well as furniture

and department stores.

Purple has also expanded into many of these regional furniture retailers.

Across these channels,

some key factors that impact competition in our industry include product features, reliable logistics and manufacturing capabilities,

marketing efficiency, brand recognition and reputation, expertise of sales and after-market support, pace of innovation and product

roadmap, price of products and services, financial stability and ability to invest in innovation.

Seat Cushions and Other

Our seat cushions

and other category consist of products that can be purchased independent of furniture, such as pet beds.

To the best of our knowledge,

there are no independent market analyses that define the size and growth of this category.

It is important to note that there

is a significantly larger market for cushioning technology embedded within furniture, including chairs and sofas as well as seats

found in transportation and other categories requiring seating solutions.

We believe this is a substantial market opportunity

that we could pursue with either branded product offerings or through branded original equipment manufacturer (OEM) partnerships

to embed our technology.

We saw a significant increase of revenue in this category in 2020, due to the global COVID-19 pandemic

with more people working from home.

What Makes Purple Different?

We believe we have a particular set of competitive

strengths that differentiate and position us for continued success:

History of innovation that produced new comfort technology— We are a company built on innovation and licensing, with more than 30 years of expertise in comfort innovation.

Purple is founded upon decades of history developing innovative comfort solutions, including the invention of our proprietary and patented Hyper-Elastic Polymer technology.

Our breakthrough mattress represents what we believe to be the first substantive innovation in the mattress industry since the introduction of memory foam in 1992.

We believe that the unique properties of the Purple Grid enable several improvements to existing bedding that are not addressed by foam, spring and air mattresses.

Relief— The Purple Grid is designed around the science of column buckling which enables our mattresses to be

both firm and soft.

The Purple Grid offers support across the body’s larger surface areas, such as the back, while

providing pressure relief at local areas or points of pressure, such as the hips and shoulders.

We believe Purple’s

founders were the first to leverage this technology in mattresses after its success in licensing its proprietary Purple Grid

to medical manufacturers for use in wheelchairs, critical care beds and to this day, hospital beds.

The resulting feel is

often described as buoyant, such as floating on water.

● Temperature

Neutral— The Hyper-Elastic Polymer material itself is temperature neutral, with the surface of the Purple Grid

comprised mostly of air, made from thousands of open-air channels.

The channels allow for high airflow and dissipation of heat

This is the opposite of foam beds, which absorb heat from the body and then radiate the heat back, constantly increasing

the temperature.

these channels, some key factors that impact competition in our industry include comfort feel, product features, reliable logistics and

manufacturing capabilities, marketing efficacy and efficiency, brand differentiation, expertise of sales associates, customer care, pace

of innovation and product roadmap, price of products and services, financial stability and ability to invest in innovation.

Makes Purple Different?

believe we have a particular set of competitive strengths that differentiate and position us for continued success:

of innovation that produced new comfort technology— We are a company built on innovation and licensing, with more than

30 years of expertise in comfort innovation.

Purple is founded upon decades of history developing innovative comfort solutions, including

the invention of our proprietary and patented Hyper-Elastic Polymer technology.

Our breakthrough mattress represents what we believe to

be the first substantive innovation in the mattress industry since the introduction of memory foam in 1992.

We believe that the unique

properties of the Purple Grid enable several improvements to existing sleep products that are not addressed by foam, spring and air mattresses.

Relief— The Purple Grid is designed around the science of column buckling which enables our mattresses to be both firm

The Purple Grid offers support across the body’s larger surface areas, such as the back, while providing pressure

relief at local areas or points of pressure, such as the hips and shoulders.

We believe Purple’s founders were the first to

leverage this technology in mattresses after its success in licensing its proprietary Purple Grid to medical manufacturers for use

in wheelchairs, critical care beds and to this day, hospital beds.

The resulting feel is often described as buoyant and responsive.

Neutral— The Hyper-Elastic Polymer material itself is temperature neutral, with the surface of the Purple Grid comprised

mostly of air, made from thousands of open-air channels.

The channels allow for high airflow and dissipation of heat and vapor.

is the opposite of foam beds, which absorb heat from the body and then radiate the heat back, constantly increasing the temperature.

The Purple Grid allows for continual sleeping without waking up hot.

Responsive— Unlike

memory foam, which compresses, gets hard and then takes time to recoil, the Purple Grid is instantly responsive to the body as

memory foam, which compresses, gets hard and then takes time to recoil, the Purple Grid is instantly responsive to the body as it

It will immediately flex to support your position and spring back into place as you readjust during the night.

Durable— Hyper-Elastic Polymer material is a highly durable gel that we believe outlasts most foams by two to three times.

The Hyper-Elastic Polymer technology also has numerous applications beyond mattress products including seat cushions, pillows, pet beds and beyond.

The development of the Hyper-Elastic Polymer technology is only one of numerous innovations we have developed to produce a range of unique and effective comfort products across the bedding, seat cushion and other categories.

● Proprietary

technologies and manufacturing expertise provide a significant competitive advantage— We believe the combination

of patent protection, proprietary manufacturing equipment and decades of accumulated knowledge creates a competitive advantage

through barriers to imitation.

We have over 150 granted or pending patents and over 250 patent filings that cover current and

future products as well as proprietary manufacturing equipment we have designed and fabricated.

In addition to intellectual property

protection of key products and manufacturing capabilities, our team has decades of experience and unique insights derived from

inventing and refining proprietary comfort technologies, machines and products.

Our Mattress Max machine, designed and

built by Purple, allows for large-format injection molding of gels at scale.

Not commercially available outside of

Purple, this machine is essential in producing our proprietary products efficiently and at scale.

a brand with a passionate following— Our brand mirrors our passion for uncompromising performance, quality and durability,

and with effective use of education and viral marketing, has been able to cut-through the competitive noise.

We believe our digital

marketing strategy has achieved a level of engagement few competitors match, including a series of videos that have been seen

more than 4.4 billion times across Facebook and YouTube.

Our brand has extended beyond awareness of individual products and

we have successfully marketed our full suite of products to customers using our DTC strategy.

We believe customer satisfaction

of our product has continued to drive “word of mouth” as the most common reason customers learn about our products.

omni-channel distribution strategy— We have sought opportunities to expand brand awareness in brick-and-mortar retailers

where our beds can be displayed.

This is a very different approach from most bed-in-a-box players who seek traditional Consumer

Packaged Goods distribution, e.g., boxes on shelves.

Our goal is to support the customer wherever and however

they want to learn, try, and buy.

Whether wholesale, Purple-owned showrooms, or DTC channels, we are a leader in the bedding market.

Our flexible return policies and aggressive expansion of wholesale doors and showrooms allow for more of our targeted customers

to feel and experience our products throughout the purchase process.

In our wholesale channel, we sell most of our products through

select national and regional retailers as well as a variety of independent retail partners throughout the United States and Canada.

As a result, we believe we are driving accelerated growth in the bedding market as compared to the traditional retail bedding

● Vertical integration enables nimble design, development

and execution —We design and develop our cushioning products in-house and we have extensive research and development

capabilities led by a team of engineers, industrial designers and marketing specialists.

The ability to develop and test products

in this manner enables us to not only prototype and deploy new ideas, but also design and develop corresponding manufacturing

equipment and processes.

In addition, we continuously refine our production methods to improve product quality and enhance efficiency.

The resulting real-time feedback cycle is a key differentiator compared to other competitors that outsource many of these functions

and lack an integrated approach.

Growth Strategies

Further direct-to-consumer growth and penetration— We believe that we are well positioned to leverage our brand, leading product portfolio, vertical integration and strong marketing capabilities to continue to attract new customers via our DTC channel.

Our e-commerce site was originally built for only a few products and we are investing in redesigning and re-platforming as our assortment has grown.

We have additionally invested in substantially expanding our contact center, enabling live voice, chat and messaging with our sales associates which has driven higher customer satisfaction, higher average order value, and higher conversion.

Continued successful execution within the DTC channel represents a significant growth opportunity.

Expanded omni-channel distribution and retail relationships— Expanding retail distribution of our products via new and existing arrangements represents an opportunity to tap into the large brick-and-mortar category of the cushioning market.

We continue to have discussions with new retail partners to expand our wholesale footprint.

In addition, we currently operate nine Company showrooms in cities across the U.S.

where consumers can experience our brand, learn and engage with our technology, and purchase our products.

We anticipate continual expansion of our showrooms as we optimize the format.

Existing product innovation— We have a rich history of product innovation and have developed core competencies in design, prototyping and manufacturing.

This vertical integration enables us to continuously refine our existing products and manufacturing processes, as well as introduce new offerings, with the potential to attract new customers and drive repeat sales.

New product launches— We have a pipeline of future products we are developing.

We are constantly exploring new technologies and ways to expand the benefits of our technologies through new product offerings.

This includes innovations in mattresses beyond the Purple Grid, an expanded assortment based on the Harmony Pillow TM that includes new patent-pending technology, other assortment expansion and new products in cushioning and additional categories.

In 2020, we added a children’s line of products, enabling us to sell to this underserved demographic and providing an additional opportunity to enter the home.

capacity —In July 2020, we entered into a lease for a new facility in McDonough,

Georgia with plans to grow our manufacturing footprint and serve our customers in the

The new leased facility includes approximately 520,000 square feet that

we anticipate will significantly expand our domestic manufacturing capacity over time.

Our first manufacturing plant outside of Utah, we believe this new location will enable

us to serve our customers on the east coast more efficiently.

We began operations at

the new facility on March 3, 2021 and for the remainder of 2021 will ramp up to planned

capacity of four Mattress Max machines.

International expansion— We believe there is a substantial opportunity for international expansion, and we expect to find new opportunities as we expand into foreign markets.

We entered Canada in Q4 2020 via the wholesale retailer Sleep Country Canada and we plan to expand in other foreign markets in the future.

We believe that our differentiated products, multi-channel distribution strategy, manufacturing capabilities, vertical integration and marketing expertise will enable us to successfully enter new markets.

We are exploring opportunities for international expansion in areas such as marketing, manufacturing and distribution, as well as increasing franchise and wholesale partners.

Our current product portfolio is as follows:

Durable— Hyper-Elastic Polymer material is a highly durable gel that we believe

outlasts most foams by two to three times.

The Hyper-Elastic Polymer technology also has numerous applications beyond mattress

products including seat cushions, pillows, pet beds and beyond.

The development of the Hyper-Elastic Polymer technology is only one of

numerous innovations we have developed to produce a range of unique and effective comfort products across the sleep, seat cushion and

other categories.

technologies and manufacturing expertise provide a significant competitive advantage— We believe the combination of patent protection, proprietary manufacturing

equipment and decades of accumulated knowledge creates a competitive advantage through barriers to imitation.

We have hundreds of granted

or pending patents and hundreds of patent filings that cover current and future products as well as proprietary manufacturing equipment

we have designed and fabricated.

In addition to intellectual property protection of key products and manufacturing capabilities, our team

has decades of experience and unique insights derived from inventing and refining proprietary comfort technologies, machines and products.

Our Mattress Max machine, designed and built by Purple, allows for large-format injection molding of gels at scale.

Not commercially available

outside of Purple, this machine is essential in producing our proprietary products efficiently and at scale.

Growing a brand with a passionate following— Our brand mirrors our passion for uncompromising performance, quality and durability, and our dedication to improving lives by delivering better sleep and better comfort.

We built our brand via a highly engaging digital marketing strategy, which rapidly grew our brand awareness to levels that we believe are very close to premium mattress category leaders in only five years.

Our early brand growth was fueled by viral videos that have been seen more than 4.4 billion times across Facebook and YouTube.

Our brand has extended beyond awareness of individual products and we have successfully marketed our full suite of products to customers using our DTC strategy.

We believe customer satisfaction with our product has continued to drive “word of mouth” recommendation that is one of the most persuasive ways customers learn about our products.

Balanced, omni-channel distribution strategy— We have sought opportunities to expand brand awareness in brick-and-mortar retailers where our beds can be displayed.

This is a very different approach from most bed-in-a-box players who seek traditional consumer packaged goods distribution, e.g., boxes on shelves.

Our goal is to support the customer wherever and however they want to learn, try, and buy.

Whether in wholesale, Purple retail showrooms, or our e-commerce channel, we are a leader in the sleep products market.

Our flexible return policies and aggressive expansion of wholesale doors and showrooms allow for more of our targeted customers to feel and experience our products throughout the purchase process.

In our wholesale channel, we sell most of our products through select national and regional retailers as well as a variety of independent retail partners throughout the United States and Canada.

As a result, we believe we are driving accelerated growth in the sleep products market as compared to the traditional retail sleep product industry.

integration enables nimble design, development and execution —We design and develop our products in-house and we have

extensive research and development capabilities led by a team of engineers, industrial designers and marketing specialists.

to develop and test products in this manner enables us to not only prototype and deploy new ideas, but also design and develop corresponding

manufacturing equipment and processes.

In addition, we continuously refine our production methods to improve product quality and

enhance efficiency.

The resulting real-time feedback cycle is a key differentiator compared to other competitors that outsource many

of these functions and lack an integrated approach.

Amplifying Purple Brand Power— We are building a differentiated brand and investing in brand demand-driving marketing and advertising to create awareness, engagement, and preference for the Purple brand and for our products across all our sales channels.

This strategic focus and capability investment will support our growth plans in the wholesale channel, in Purple retail showrooms, and on Purple.com.

We’ll also harness the evangelism of the ever-growing base of Purple owners whose advocacy of our products is one of the brand’s greatest strengths.

direct-to-consumer growth and penetration— We believe that we are well positioned to leverage our brand, leading

product portfolio, vertical integration and strong marketing capabilities to continue to attract new customers via our e-commerce

We have invested in substantial improvements to our website, enhancing the education, shopping, and buying experiences,

and we have expanded our contact center, enabling live voice, chat and messaging with our sales associates which has driven higher

customer satisfaction, higher average order value, and higher conversion.

Continued successful execution on Purple.com supports

planned e-commerce growth, and growth in all channels given the importance of the site during the customer decision journey.

In addition, we currently operate 30 Company showrooms in cities across the U.S.

where consumers can experience

our brand, learn about and engage with our technology, and purchase our products.

We anticipate continual expansion of our showrooms as

we optimize the format.

wholesale retail relationships— Expanding retail distribution of our products via new and existing arrangements represents

an opportunity to tap into the large brick-and-mortar category of the sleep products market.

We continue to have discussions with new

retail partners to expand our wholesale footprint, as well as with existing retail partners to increase sales.

product innovation— We have a rich history of product innovation and have developed core competencies in design, prototyping

and manufacturing.

This vertical integration enables us to continuously refine our existing products and manufacturing processes,

as well as introduce new offerings, with the potential to attract new customers and drive repeat sales.

product launches— We have a pipeline of future products we are developing.

We are constantly exploring new technologies

and ways to expand the benefits of our technologies through new product offerings.

This includes innovations in mattresses beyond

the Purple Grid, an expanded assortment based on the Harmony Pillow TM that includes new patent-pending technology, other

assortment expansion and new products in sleep, comfort and additional categories.

In 2020, we added a children’s line of products,

enabling us to sell to this underserved demographic and providing an additional opportunity to enter the home.

International

expansion— We believe there is a substantial opportunity for international expansion, and we expect to find new opportunities

as we expand into foreign markets.

We entered the Canada market in Q4 2020 via the wholesale retailer Sleep Country Canada and we

plan to expand in other foreign markets in the future.

We believe that our differentiated products, multi-channel distribution strategy,

manufacturing capabilities, vertical integration and marketing expertise will enable us to successfully enter new markets.

exploring opportunities for international expansion in areas such as marketing, manufacturing, and distribution, as well as increasing

franchise and wholesale partners.

current product portfolio is as follows:

Mattresses —Our

mattresses utilize the unique benefits of the Purple Grid creating a one-of-a-kind sleep

solution that is breathable to help regulate body temperature and soft enough to cradle

pressure points while also providing support through localized buckling columns.

Purple Grid is manufactured with non-toxic, food-grade ingredients that are third-party

tested and free from carcinogenic chemicals.

The patented No Pressure®

technology is used in all Purple mattresses.

The buckling columns in the Purple Grid

instantly adapt to your body to cradle your hips and shoulders while supporting your

spine’s natural alignment for luxurious, supportive comfort.

We back up the quality

and durability of our mattress with a 100-night comfort guarantee and a ten-year warranty.

We currently sell five distinct models of mattresses, ranging from our original Purple

foam-core, to our hybrid with premium pocket coil cores, and premier mattresses which

include three or four inches of Purple Grid.

The results are astounding, achieving a

bed that relaxes under pressure, provides both firm and soft levels of firmness and encompasses

temperature neutrality for optimal sleeping conditions.

currently sell four types of pillows:

The Purple Harmony Pillow™, the Purple Pillow™, the Purple Plush Pillow™

and the Kids Pillow.

The Purple Harmony Pillow is a hybrid, hypoallergenic pillow featuring the world’s first and only

tapered 360º

Purple Grid Hex surrounding a soft, responsive Talalay latex core for optimal head and neck support.

has a cool-to-the-touch, moisture-wicking Breeze Mesh cover to enhance the benefits of the Purple Grid Hex.

Its the ultimate

balance of soft, cool, and responsive no pressure support.

The Purple Pillow utilizes the Purple Grid in a head-specific triangular

grid-shape to protect against breaking down or losing shape.

We believe our pillow is unique, with no other product in the

market like it in appearance, design or comfort.

We also sell a more traditional pillow, the Purple Plush Pillow™, with

other unique, patented features that enable adjustment of the pillow for customized comfort.

We recently launched a Kids Pillow,

which is smaller and softer than our original Purple pillow and adjusted to fit smaller sleepers.

We back up the quality and

durability of our pillows with a 100-night comfort guarantee and a one-year warranty.

Sheets— Made from stretchy and breathable bamboo-based Viscose, our SoftStretch sheets are designed to maximize the functionality of the Purple Grid in our mattresses and pillows.

We developed our own technology to enable customers to experience the full performance potential of our mattress (or any other mattress).

Our sheet sets include pillowcases that also maximize the unique functionality of our pillows.

Mattress Protector —Like our sheets, our mattress protector is designed to optimize the functionality of the Purple Grid in our mattress.

mattresses utilize the unique benefits of the Purple Grid creating a one-of-a-kind sleep solution that is breathable to help regulate

body temperature and soft enough to cradle pressure points while also providing support through localized buckling columns.

Grid is manufactured with non-toxic, food-grade ingredients that are third-party tested and free from carcinogenic chemicals.

patented No Pressure ® Purple Grid technology is used in all Purple mattresses.

The buckling columns in the Purple Grid instantly

adapt to your body to cradle your hips and shoulders while supporting your spine’s natural alignment for uniquely buoyant,

supportive comfort.

We back up the quality and durability of our mattress with a 100-night comfort guarantee and a ten-year warranty.

We currently sell five distinct models of mattresses, ranging from our original Purple foam-core, to our hybrid with premium pocket

coil cores, and premier mattresses which include three or four inches of Purple Grid.

Pillows— We currently sell five types of pillows:

The Purple Harmony Pillow™,

the Purple Pillow™, the Purple Twin Cloud Pillow™, the Purple Cloud Pillow™ and the Kids Pillow.

The Purple Harmony

Pillow is a hybrid, hypoallergenic pillow featuring the world’s first and only tapered 360º Purple Grid Hex surrounding a soft,

responsive Talalay latex core for optimal head and neck support.

It has a cool-to-the-touch, moisture-wicking Breeze Mesh cover to enhance

the benefits of the Purple Grid Hex.

It’s the ultimate balance of soft, cool, and responsive no pressure support.

The Purple Pillow

utilizes the Purple Grid in a head-specific triangular grid-shape to protect against breaking down or losing shape.

The Purple Twin Cloud

Pillow is a hypoallergenic down-alternative that features our patented cover construction which includes two chambers filled with gel

fibers that double up for better sleep.

The Purple Cloud Pillow is filled with hypoallergenic, ultra-fine gel fibers that won’t

clump, trap heat, or flatten over time.

The result is plush cushioning that molds to support the head and neck.

The Kids Pillow is

smaller and softer than our original Purple pillow and adjusted to fit smaller sleepers.

We believe our pillows are unique, with no other

products in the market like them in appearance, design, functionality or comfort.

We also back up the quality and durability of our pillows

with a 100-night comfort guarantee and a one-year warranty.

Sheets— We sell two types of sheets and pillowcases.

Made from stretchy and breathable bamboo-based Viscose, our SoftStretch

sheets are designed to maximize the functionality of the Purple Grid in our mattresses and pillows.

We developed our own technology to

enable customers to experience the full performance potential of our mattress (or any other mattress).

We also sell more traditional cotton-based

Complete Comfort sheets designed to have cushion enhancing two-way stretch.

Our sheet sets include pillowcases that also maximize the

unique functionality of our pillows.

Protector —Like our sheets, our mattress protector is designed to optimize the functionality of the Purple Grid in our

Our mattress protector is stretchy and breathable.

Our protector is also stain-resistant and machine-washable, making it easy to clean.

Bed Frames —The Purple®

PowerBase, Purple®

Foundation, and the Purple Platform Bed have been designed to meet the needs of our customers.

Our Purple®

PowerBase complements our mattresses by adding electrically powered functions, such as adjustable head and foot positions, dual massagers with multiple wave patterns, under-bed lighting and a remote with cradle that provides additional USB ports and outlets for charging.

Our Purple®

Foundation is easy to ship and assemble, with no tools required.

The frame’s supports are made of high-density polyethylene, so they don’t creak or make noise like wood supports.

Plus, the joints of the Purple Foundation are reinforced with nylon buffers to help prevent squeaking.

Our Purple Platform Bed is designed specifically for all current Purple bed sizes and offers a high quality, simpler alternative to our more premium offerings.

Constructed from lightweight steel, we believe our Purple Platform Bed is more hygienic compared to box-spring foundations.

The Purple Platform Bed also provides optimal support and prevents the mattress from sagging.

Seat Cushions —The evolution of our portfolio of seat cushions has resulted from decades of in-house manufacturing experience including development of proprietary machines and trade secrets.

Extending the benefits of our Hyper-Elastic Polymer and Purple Grid technologies.

Purple currently sells six types of seat cushions and one back cushion, all in varying sizes and shapes to meet the needs of our customers.

Weighted Blanket and Duvets —Our Purple + Gravity weighted blanket is the world’s first weighted blanket with Purple’s dual-sided technology that allows you to choose the cool or warm side.

The weighted blanket fits a queen or king bed and evenly distributes 35 pounds of weight across the whole bed.

The Purple™ Duvet is a soft comforter filled with 100% polyester down alternative with a 100% cotton cover for soft, breathable comfort.

Technology is key to

our unique position within the comfort industry.

Our protector is also stain-resistant and machine-washable, making it

easy to clean.

Bases —The Purple ® Ascent™

Adjustable Base, Purple ® Foundation, and the Purple Platform Bed have been designed to meet the needs of our customers.

Our Purple ® Ascent™ Adjustable Base complements our mattresses by adding electrically powered functions, such

as adjustable head and foot positions, zero-gravity preset for a near weightless feel, a “sitting” preset, under-bed

lighting and a remote with cradle that provides additional USB ports for device charging.

Our Purple ® Foundation is

easy to ship and assemble, with no tools required.

The bases’ supports are made of high-density polyethylene, so they don’t

creak or make noise like wood supports.

Plus, the joints of the Purple Foundation are reinforced with nylon buffers to help prevent

Our Purple Platform Bed is designed specifically for all current Purple bed sizes and offers a high quality, simpler alternative

to our more premium offerings.

Constructed from lightweight steel, the Purple Platform Bed provides optimal support and prevents

the mattress from sagging.

Cushions —The evolution of our portfolio of seat cushions has resulted from decades of in-house manufacturing experience

including development of proprietary machines and trade secrets, extending the benefits of our Hyper-Elastic Polymer and Purple Grid

technologies.

Purple currently sells six types of seat cushions and one back cushion, all in varying sizes and shapes to meet the

needs of our customers.

is key to our unique position within the comfort industry.

With our proprietary Hyper-Elastic Polymer material used in the Purple Grid,

we have introduced the first major innovation to the mattress category in decades.

Mattresses from our competitors are typically

manufactured using one or more layers of springs, standard polyurethane foam, memory foam, air chambers or latex foam.

These technologies

have existed for decades and are undifferentiated from competitors within their product type.

Proprietary Technologies

The Purple innovation

team, through their scientific journey to get to the root causes of pressure sores, designed the Hyper-Elastic Polymer material,

Purple Grid structure, and other proprietary comfort technologies in order to improve the lives of “every body.” Each

different cushioning product line requires unique molding techniques.

Our Hyper-Elastic Polymer material

is non-toxic and hypoallergenic.

This proprietary material is also durable and will not develop body impressions (compression

set) from use over time.

It is elastic and can stretch up to 15 times its original size and return without losing its shape.

sleeps and sits temperature-neutral and has good ventilation to inhibit moisture build-up.

Our Purple Grid structure made with Hyper-Elastic Polymer material

is both soft and supportive.

While the columns in this structure provide support where it is needed, they also buckle where it

is needed to reduce pressure by allowing shoulders and hips to sink into the cushion with reduced force pushing back on those areas

of the body unlike other cushion technologies.

The soft and flexible columns also return to their original position as forces lessen

and are capable of immediately providing support.

Proprietary Machinery

Internally designed,

developed and built, our Mattress Max machines are the only machines able to mold our Hyper-Elastic Polymer material into

Mattresses from our competitors are typically manufactured

using one or more layers of springs, standard polyurethane foam, memory foam, air chambers or latex foam.

These technologies have existed

for decades and are undifferentiated from competitors within their product type.

Purple innovation team, through their scientific journey to get to the root causes of pressure sores, designed the Hyper-Elastic Polymer material,

Purple Grid structure, and other proprietary comfort technologies in order to improve the lives of “every body.” Each different

cushioning product line requires unique molding techniques.

Hyper-Elastic Polymer material is non-toxic and hypoallergenic.

This proprietary material is also durable and will not develop

body impressions (compression set) from use over time.

It is elastic and can stretch up to 15 times its original size and return without

losing its shape.

It sleeps and sits temperature-neutral and has good ventilation to inhibit moisture build-up.

Purple Grid structure made with Hyper-Elastic Polymer material is both soft and supportive.

While the columns in this structure provide

support where it is needed, they also buckle where it is needed to reduce pressure by allowing shoulders and hips to sink into the cushion

with reduced force pushing back on those areas of the body unlike other cushion technologies.

The soft and flexible columns also return

to their original position as forces lessen and are capable of immediately providing support.

designed, developed and built, our Mattress Max machines are the only machines able to mold our Hyper-Elastic Polymer material into

large-format king-sized mattresses at scale.

We have modified other molding machines to manufacture additional products containing

Hyper-Elastic Polymer material, such as pillows and seat cushions.

The process of molding our Hyper-Elastic Polymer material

using our Mattress Max machinery is proprietary, patent-protected and complex, requiring specific knowledge and expertise to successfully

execute manufacturing.

We have vertically integrated with our own machine shop with mechanics and engineers at each of our factories

to maintain our machines and other equipment.

Furthermore, we have extensive in-house fabrication capabilities, which enable us

to design, manufacture, install and maintain new equipment as well as optimize the performance and efficiency of our existing

machinery based on real-time insights gained from our vertically integrated operations.

We have developed a

brand that resonates with consumers.

Our marketing efforts are focused on attracting, acquiring and retaining customers, primarily

through digital campaigns and online advertising.

Our campaigns are unique and memorable featuring product demonstrations that

have been able to harness viral efficiencies associated with social media.

As a result, we have created a brand with a loyal audience

that frequently interacts with our content.

This enables us to increase interaction with customers to drive additional product

sales across our portfolio of offerings.

The success we have achieved through these social marketing campaigns has been key in

our branding and awareness.

Our digital marketing team has expertise across a broad range of marketing capabilities including audience

segmentation, video production, communication and targeting.

We also utilize television, radio and print mediums to create brand

and product awareness.

Our Sales Channels

Historically, the majority

of our sales have been through our DTC e-commerce platform;

however, our wholesale channel continues to grow rapidly.

We have relationships

with a growing number of brick-and-mortar retailers, and we are expanding our national footprint of wholesale partners.

also opened several Purple-owned showrooms across the U.S.

with plans to open more in 2021.

Direct-to-Consumer Channel

E-commerce is our primary

distribution channel.

We have benefitted from the rapid growth of the DTC mattress industry in addition to our differentiated product

offering and unique marketing campaigns.

We expect the DTC mattress industry to continue to grow as consumer confidence in online

shopping increases.

We sell directly to consumers through our website and our growing customer contact center.

We help customers

easily engage in relevant content, research our solutions, transact online and find support.

We believe our online experience expands

our brand and connections with consumers, enabling deeper awareness, engagement and brand loyalty.

We believe our 100-night trial

along with free shipping and free returns provides confidence to consumers in buying a mattress.

We operate nine Company

showrooms in cities across the U.S.

where consumers can experience our brand, learn and engage with our technology and purchase

our products.

We plan to continue expanding our showroom footprint across the United States with additional showrooms in 2021 and

Wholesale Channel

We sell our assortment

of products through brick-and-mortar wholesale partners.

We began selling mattresses and bedding products through our largest wholesale

partner, Mattress Firm, in November 2017.

We have expanded the number of retail doors to more than 2,200, where our mattresses

and bedding products are sold, and now sell mattresses through Bed Bath & Beyond, Big Sandy, Bloomingdale's, City Furniture,

Furniture Row, HOM Furniture, Macy's, Mathis Brothers, Mattress Firm, Raymour & Flanigan, Rooms To Go, Sleep County Canada

and Steinhafels.

We typically have three to four mattress offerings on the floor.

Sales associates have been trained and are effective

in educating consumers regarding our unique benefits as well as shifting the mix upward to our more premium and higher-margin mattresses.

We expect to continue expanding brick-and-mortar wholesale partners to give our customers the opportunity to feel the difference

of the Purple Grid for themselves.

Factories, Supply Chain and Manufacturing

We operate factories in Alpine, Utah, Grantsville, Utah and

McDonough, Georgia, which manufacture and distribute Purple products.

Our two factories in Utah have a total of 667,000 square-feet

(15 acres under roof), including approximately 574,000 square-feet at our Grantsville factory and another 93,000 square-feet at

our Alpine factory.

Our factory in McDonough, Georgia provides 520,000 square feet to service our customers on the east coast.

We began operations at the new facility on March 3, 2021 and for the remainder of 2021 will ramp up to planned capacity of four

Mattress Max machines.

At these factories we manufacture our proprietary Hyper-Elastic Polymer and Purple Grid cushioning used

in our mattress, pillow and seat cushion products.

We have modified other molding machines to manufacture additional products containing Hyper-Elastic

Polymer material, such as pillows and seat cushions.

The process of molding our Hyper-Elastic Polymer material using our Mattress

Max machinery is proprietary, patent-protected and complex, requiring specific knowledge and expertise to successfully execute manufacturing.

We have vertically integrated with our own machine shop with mechanics and engineers at each of our factories to maintain our machines

and other equipment.

Furthermore, we have extensive in-house fabrication capabilities, which enable us to design, manufacture, install

and maintain new equipment as well as optimize the performance and efficiency of our existing machinery based on real-time insights gained

from our vertically integrated operations.

We have developed a brand that resonates with consumers.

Our marketing

efforts are focused on building awareness of the Purple brand and illustrating the unique way our products deliver better sleep and comfort.

We leverage data-driven marketing across all communication channels to engage, acquire, and retain customers.

We also amplify the voices

of our evangelical product owners, whose word-of-mouth recommendation is one of our most powerful (and ownable) marketing vehicles.

engagement with current customers enables us to increase additional product sales across our portfolio of offerings.

The success we have

achieved through our marketing campaigns has been key to rapidly building our branding and awareness.

Sales Channels

Historically, the majority of our sales have been through our e-commerce

however, we are growing our Purple retail showrooms, and expanding our wholesale channel distribution.

Direct-to-Consumer

E-commerce is a primary distribution

channel and a critical hub for consumer engagement and education.

We have benefitted from the rapid growth of the direct-to-consumer mattress

industry in addition to our differentiated product offering and unique marketing campaigns.

Consumer willingness to buy sleep products

online continues to grow as consumer confidence in online shopping continues to increase.

We sell directly to consumers through our website

and our growing customer contact center.

We help customers easily engage in relevant content, research our solutions, transact online

and find support.

We believe our online experience expands our brand and connections with consumers, enabling deeper awareness, engagement

and brand loyalty.

We believe our 100-night trial along with free shipping and free returns provides confidence to consumers in buying

We operate 30 Purple retail showrooms in cities across the United States

where consumers can experience our brand, learn and engage with our technology and purchase our products.

We plan to continue expanding

our showroom footprint across the United States.

We sell our assortment of

products through brick-and-mortar wholesale partners.

We began selling mattresses and other sleep products through our largest wholesale

partner, Mattress Firm, in November 2017 and have continued to expand the number of wholesale partners where our mattresses and other

sleep products are sold.

We now sell mattresses through Ashley Furniture, Big Sandy, City Furniture, Furniture Row, HOM Furniture, Macy’s,

Mathis Brothers, Mattress Firm, Raymour& Flanigan, Rooms To Go, Sleep County Canada and Steinhafels, among others.

We typically have

three to four mattress models on the floor.

Sales associates have been trained and we believe are effective in educating consumers regarding

our unique benefits as well as shifting the mix upward to our more premium and higher-margin mattresses.

We expect to continue expanding

brick-and-mortar wholesale partners to give our customers the opportunity to feel the difference of the Purple Grid for themselves.

Supply Chain and Manufacturing

operate factories in Alpine, Utah, Grantsville, Utah and McDonough, Georgia, which manufacture and distribute Purple products.

two factories in Utah have a total of 667,000 square-feet, including approximately 574,000 square-feet at our Grantsville factory and

another 93,000 square-feet at our Alpine factory.

Our factory in McDonough, Georgia opened in March 2021 and provides 844,000 square-feet

to service our customers on the east coast.

At these factories we manufacture our proprietary Hyper-Elastic Polymer and Purple Grid cushioning

used in our mattress, pillow and seat cushion products.

We also assemble, package and ship our products from these facilities.

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improve our manufacturing processes and create efficiencies in production through new equipment and process designs and resources.

We believe these factories will provide ample room to accommodate our future growth and expansion plans for the near term.

We outsource and resell

other products, including adjustable bases, platform bases, sheets, mattress protectors, blankets and duvets.

These products are

either designed in-house or in partnership and are unique to Purple.

We have relationships

with multiple suppliers for our outsourced products and components.

These suppliers may be interchanged in order to maintain quality,

cost and delivery expectations.

Environmental and Governmental Regulation

We are subject to numerous

federal, state, local and foreign consumer protection and other laws regulating the bedding industry.

These regulations vary among

the states and countries in which we do and intend to do business.

In the United States, we are subject to regulations promulgated

Environmental Protection Agency, the Occupational Safety and Health Administration and other federal agencies that

have authority to regulate our operations.

Included in these regulations are laws restricting the generation, emission, treatment,

storage and disposal of materials, substances and waste.

We are subject to the Toxic Substances Control Act, the Resource Conservation

and Recovery Act, the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act and the Comprehensive Environmental Response,

Compensation and Liability Act.

Our mattress products are also subject to fire-retardant standards developed by the State of California,

believe these factories will provide ample room to accommodate our future growth and expansion plans for the near term.

outsource and resell other products, including adjustable bases, platform bases, sheets, mattress protectors, blankets and duvets.

products are either designed in-house or in partnership and are unique to Purple.

have relationships with multiple suppliers for our outsourced products and components.

These suppliers may be interchanged in order to

maintain quality, cost and delivery expectations.

Environmental

and Governmental Regulation

We are subject to numerous federal, state, local and foreign consumer

protection and other laws and regulations applicable to the sleep product industry.

These laws and regulations vary among the states and

countries in which we do and intend to do business.

For example, in the United States, we are subject to regulations promulgated by the

Environmental Protection Agency, the Occupational Safety and Health Administration and other federal agencies that restrict the generation,

emission, treatment, storage and disposal of materials, substances and waste.

We are also subject to laws such as the Toxic Substances

Control Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act and the Comprehensive

Environmental Response, Compensation and Liability Act.

Our mattress products are also subject to fire-retardant standards developed by

the State of California, U.S.

Consumer Product Safety Commission and other jurisdictions where we sell these products.

As a retailer of bedding

and cushioning products, we are also subject to laws and regulations applicable to retailers generally, including those regulations

governing the marketing and sale of our products and the operation of our e-commerce activities.

We are also subject to import

and export laws to the extent our products and their component parts cross international boundaries.

Many of these regulations

are consumer-focused and pertain to safety, truth-in-advertising, promotional offers, privacy, “do not call/mail” requirements,

warranty disclosure, delivery timing requirements and similar requirements.

It is our policy and

practice to comply with all applicable U.S.

and foreign laws.

We have made and will continue to make capital and other expenditures

necessary to comply with these laws.

As a retailer of sleep and cushioning products, we are also subject

to laws and regulations applicable to retailers generally, including those regulations governing the marketing and sale of our products

and the operation of our e-commerce activities.

We are also subject to import and export laws and regulations to the extent our products

and their component parts cross international boundaries.

Many of these laws and regulations are consumer-focused and pertain to safety,

truth-in-advertising, promotional offers, privacy, “do not call/mail” requirements, warranty disclosure, delivery timing requirements

and similar requirements.

It is our policy and practice to comply with all applicable domestic

and foreign laws and regulations.

We have made and will continue to make capital and other expenditures necessary to comply with these

laws and regulations.

These expenditures have been immaterial to our financial results.

We have not suffered a material

adverse effect from non-compliance with federal, state, local or foreign legislation, but there can be no assurance that material

costs or liabilities will not be incurred in connection with such legislation in the future.

Research and Development

Our research and development

teams are focused on developing new comfort technologies, manufacturing machines, and improving production processes, as well

as developing products.

We have not suffered a material adverse effect

from non-compliance with federal, state, local or foreign legislation, but there can be no assurance that material costs or liabilities

will not be incurred in connection with such legislation in the future.

and Development

research and development teams are focused on developing new comfort technologies, manufacturing machines, and improving production processes,

as well as developing products.

We have an extensive history of innovation that is core to our culture and key to our continued success.

Our inventions have culminated over years of persistent research and development.

We intend to continue to develop and introduce

new comfort technologies and products to improve how people live.

Our vertical integration is a key differentiator that enhances

the effectiveness of our research and development capabilities.

By gaining real-time feedback, we can integrate these insights

into our manufacturing process, digital marketing, products and equipment.

Intellectual Property

We rely on patent and

trademark protection laws to protect our intellectual property and maintain our competitive position in the marketplace.

and foreign patents, patent applications, trademarks and trademark applications regarding certain elements of the

design, manufacturing and function of our products.

We intend to continue to develop and introduce new

comfort technologies and products to improve how people live.

Our vertical integration is a key differentiator that enhances the effectiveness

of our research and development capabilities.

By gaining real-time feedback, we can integrate these insights into our manufacturing process,

digital marketing, products and equipment.

We rely on patent and trademark

protection laws to protect our intellectual property and maintain our competitive position in the marketplace.

We hold various domestic

and foreign patents, patent applications, trademarks and trademark applications regarding certain elements of the design, manufacturing

and function of our products.

We also maintain protections over proprietary trade secrets.

Our intellectual

property portfolio is integral to our continued success in this industry, with respect to our Hyper-Elastic Polymer and Purple

Grid material as well as our Mattress Max machines.

We own or have the

exclusive right to use over 190 granted or pending patents and over 250 patent filings on inventions and designs pertaining to

our machines, processes, mattresses, pillows, seat cushions, packaging techniques and other related existing and future products.

Our issued U.S.

patents that are significant to our operations are expected to expire at various dates up to 2038.

Our intellectual property portfolio is integral

to our continued success in this industry, with respect to our Hyper-Elastic Polymer and Purple Grid material as well as our Mattress

Max machines.

We own or have the exclusive

right to use hundreds of granted or pending patents and hundreds of patent filings on inventions and designs pertaining to our machines,

processes, mattresses, pillows, seat cushions, packaging techniques and other related existing and future products.

Our issued United

States patents that are significant to our operations are expected to expire at various dates up to 2041.

We have several trademarks

registered with the U.S.

Patent and Trademark Office, including EquaPressure®, WonderGel®

and EquaGel®

cushions), and Purple®, No Pressure®, Hyper-Elastic Polymer®, Somnigel®, and Gel Matrix®

(for plasticized

elastomeric gel and certain types of products including mattresses, seat cushions, bed linen, mattress foundation and others).

Additional registered trademarks include Purple Grid®, The Purple Mattress®, Purple Hybrid®, and Purple Hybrid Premier®.

Applications are pending for registration of additional trademarks and some of these listed trademarks for additional classes of

goods both in the U.S.

Patent and Trademark Office (USPTO), including EquaPressure ® , WonderGel ® and

EquaGel ® (for cushions), and Purple ® , No Pressure ® , Hyper-Elastic Polymer ® ,

Somnigel ® , and Gel Matrix ® (for plasticized elastomeric gel and certain types of products including

mattresses, seat cushions, bed linen, mattress foundation and others).

Additional registered trademarks include Purple Grid ® ,

The Purple Mattress ® , Purple Hybrid ® , and Purple Hybrid Premier ® .

Applications are pending

for registration of additional trademarks and some of these listed trademarks for additional classes of goods both in the U.S.

and internationally.

Our Purple, No Pressure and Hyper-Elastic Polymer trademarks are also registered and

have applications pending for various classes of goods in numerous foreign jurisdictions, some of which include Australia, Canada,

China, Europe, United Kingdom, Japan and Korea.

Certain international trademark applications previously resided with EdiZONE, LLC,

which is an entity owned by our founders, and were licensed to Purple LLC and we have taken the necessary steps to have those trademarks

assigned to Purple LLC upon registration.

We also have a number

of common law trademarks, including Harmony™, Purple Harmony Pillow™, Harmony Pillow™, Purple +™, Purple

Plus™, Find Comfort™, Dreams On Dreams™, Reinventing Comfort™, Gelflex™, Ascent™, Purple Ascent™,

Comfort Reinvented™, Softstretch™, Purple Powerbase™, Purple Powerbase Premier™, Purple Powerbase Plus™,

Purple Glove™, Eidertech™, Mattress Max™, WonderGel Original™, WonderGel Extreme™, DoubleGel™,

DoubleGel Plus™, DoubleGel Ultra™, Roll n’ Go™, Fold N’ Go™, Purple Bed™, Purple Top™,

Purple Pillow™, Portable Purple™, Everywhere Purple™, Simply Purple™, Lite Purple™, Royal Purple™,

Double Purple™, Deep Purple™, Ultimate Purple™, Purple Back™, EquaGel Straight Comfort™, EquaGel

General™, EquaGel Protector™, and EquaGel Adjustable™.

Many of the common law marks have registrations pending with

the USPTO and other international jurisdictions.

Solely for convenience, we may refer to our trademarks in this Annual Report without

the ™ or ®

symbol, but such references are not intended to indicate that we

will not assert, to the fullest extent under applicable law, our rights to our trademarks.

In addition, we maintain

copyrights, many registered, to past and present versions of purple.com, onpurple.com, equapressure.com, wondergel.com, marketing

content, blogs, logos, graphics, videos and other marketing and promotional materials promoting our products.

We protect and enforce our intellectual property rights, including

through litigation as necessary.

Human Capital

Our most valuable asset

at Purple is our people and their learned institutional knowledge.

We are mission-driven by our commitment to innovating real

comfort solutions that meaningfully help “every body” feel and live better.

We are a product innovation company at

As of March 8, 2021,

we have approximately 1,600 employees engaged in manufacturing, research and development, general corporate functions and in our

retail showrooms.

Due to the increased demand of our products throughout the COVID-19 pandemic, we increased our headcount by over

Our Purple, No Pressure and Hyper-Elastic Polymer trademarks are also registered and have applications pending for various classes of

goods in numerous foreign jurisdictions, some of which include Australia, Canada, China, Europe, United Kingdom, Japan and Korea.

international trademark applications previously resided with EdiZONE, LLC, which is an entity owned by our founders and were licensed

to Purple LLC, and we have taken the necessary steps to have those trademarks assigned to Purple LLC upon registration.

also have a number of common law trademarks, including Harmony™, Purple Harmony Pillow™, Harmony Pillow™, Purple +™,

Purple Plus™, Find Comfort™, Dreams On Dreams™, Reinventing Sleep™, Reinventing Comfort™, Gelflex™,

Ascent™, Purple Ascent™, Comfort Reinvented™, Softstretch™, Purple Powerbase™, Purple Powerbase Premier™,

Purple Powerbase Plus™, Purple Glove™, Eidertech™, Mattress Max™, WonderGel Original™, WonderGel Extreme™,

DoubleGel™, DoubleGel Plus™, DoubleGel Ultra™, Roll n’ Go™, Fold N’ Go™, Purple Bed™,

Purple Top™, Purple Pillow™, Portable Purple™, Everywhere Purple™, Simply Purple™, Lite Purple™,

Royal Purple™, Double Purple™, Deep Purple™, Ultimate Purple™, Purple Back™, EquaGel Straight Comfort™,

EquaGel General™, EquaGel Protector™, and EquaGel Adjustable™.

of the common law marks have registrations pending with the USPTO and other international jurisdictions.

Solely for convenience, we may

refer to our trademarks in this Annual Report without the ™ or ® symbol, but such

references are not intended to indicate that we will not assert, to the fullest extent under applicable law, our rights to our trademarks.

addition, we maintain copyrights, many registered, to past and present versions of purple.com, onpurple.com, equapressure.com, wondergel.com,

marketing content, blogs, logos, graphics, videos and other marketing and promotional materials promoting our products.

protect and enforce our intellectual property rights, including through litigation as necessary.

most valuable asset at Purple is our people and their learned institutional knowledge.

We are mission-driven by our commitment to innovating

real comfort solutions that meaningfully help “every body” feel and live better.

We are a product innovation company at our

In February 2022, we completed

a restructuring of our workforce that was necessitated by a realignment of our cost structure.

As a result of the realignment and restructuring,

we reduced employee headcount by approximately 15% and incurred a restructuring charge of $1.1 million in the first quarter of 2022.

of March 1, 2022, we have approximately 1,800 employees engaged in manufacturing, research and development, general corporate functions

and in Purple retail showrooms.

During 2021, the Company’s

top priority has been to take appropriate actions to protect the health and safety of our employees as a result of the COVID-19

Our current employee population works primarily within our two factories in Utah and at our new headquarters in Lehi,

However, throughout the COVID-19 pandemic, employees who were working in office settings began working from home.

identified new ways to work safely and effectively in our manufacturing areas by creating additional shifts, regularly cleaning

top priority has been to take appropriate actions to protect the health and safety of our employees as a result of the COVID-19 pandemic.

Our current employee population works primarily within our two factories in Utah, our one factory in Georgia and at our headquarters

in Lehi, Utah.

However, throughout the COVID-19 pandemic, employees who were working in office settings have been working from home.

We also identified new ways to work safely and effectively in our manufacturing areas by creating additional shifts, regularly cleaning

common areas, wearing face masks and ensuring employees were practicing safe social distancing.

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We have no collective bargaining agreements with our employees.

Diversity and Inclusion

Purple is committed

to fostering an environment that respects and encourages individual differences, diversity of thought, and talent.

create a workplace where employees feel that their contributions are welcomed and valued, allowing them to fully engage their talents

and training in their work, while generating personal satisfaction in their role within the Company.

In September 2020, we hired

our first Diversity and Inclusion Lead to help foster a more inclusive workplace.

In November 2020, we expanded the number of women

on our Board of Directors such that women now comprise 25% of our Board.

We have begun the creation of several employee resource

groups to offer insight into each department’s diversity growth and create allies that help us in talent development for

underrepresented populations.

In 2021, we will be establishing a comprehensive recruiting strategy that focuses on recruiting and

retaining diverse candidates.

In addition, we will be designing, training, and implementing programs focused on equity and belonging,

developing an internal mentorship program to develop women and minorities within Purple into senior leadership positions and creating

a brand strategy that raises brand awareness and customer acquisition in diverse markets.

Throughout the COVID-19

pandemic, we saw the need to do our part in helping those who are less fortunate.

We shifted our manufacturing processes to create

relief beds that could be used in homeless shelters.

This effort also proved to be beneficial for our manufacturing workers, giving

them additional work during a time that was uncertain.

Throughout the month of April 2020, we worked with Brands x Better—a

coalition of like-minded businesses who looked to give back to the communities they serve—and donated 10% of net proceeds

to this effort.

We also partnered with the Precious Dreams Foundation to provide comfort items to children in foster care.

Tuesday 2020 and on Random Acts of Kindness Day 2021, we donated 10% of net proceeds from our kid’s product collection to

support this foundation.

In addition, we sponsored Mattress Firm’s Give Back project in February 2021 for their Skate

Like a Girl campaign, donating hundreds of skateboards to foster care facilities across the nation.

For years, we also have

donated products and time teaching high school students about manufacturing in the communities around our Grantsville, Utah facility

in association with the Tooele Education Foundation, in addition to giving multiple scholarships to graduating seniors to attend

both local trade schools and universities of their choice.

Ethical Culture

our Code of Ethics promotes an environment of integrity by requiring honest, ethical and fair conduct with a focus on conflicts

of interest, compliance, deterrence and internal reporting.

It also requires full, fair and accurate disclosure in public filings

and communications.

and Inclusion

Purple is committed to fostering

an environment that respects and encourages individual differences, diversity of thought, and talent.

We strive to create a workplace

where employees feel that their contributions are welcomed and valued, allowing them to fully engage their talents and training in their

work, while generating personal satisfaction in their roles within the Company.

We hired a Chief People Officer in 2021, who will facilitate

the ways in which Purple can operationalize its commitment to expanding diversity, nurturing the power of difference, and recruiting and

retaining diverse talent.

Purple is driven to innovate

real comfort solutions that help “every body” sleep, feel and live better while we forge real relationships with our customers

and communities.

We believe in the importance of contributing to the communities that we serve, and we are growing the impact of our philanthropic

activities with a purposeful focus on protecting the power of sleep for children and families.

We expanded this year our support of the

Precious Dreams Foundation to help assure the comfort and sleep of children in foster care.

We made product donations to shelters in the

communities in which we live and work, and we supported the sleep of refugee families resettling in the United States.

We are proud to

celebrate student achievement and recognize teacher contributions and to support the local economies in communities that support our workplaces.

our Code of Ethics promotes an environment of integrity by requiring honest, ethical and fair conduct with a focus on conflicts of interest,

compliance, deterrence and internal reporting.

It also requires full, fair and accurate disclosure in public filings and communications.

All employees are required to complete Code of Ethics training periodically.

Overall, we believe

our culture, along with our internal tools and initiatives, enable us to effectively execute our human capital strategy.

For discussion

on the risks relating to our inability to attract and retain top-performing talent, please see section titled Risk Factors.

Purple was created

by two brothers that set out to revolutionize the comfort space.

One in manufacturing and design, and the other an advanced aerospace

scientist, the brothers embarked on a partnership in the early 1990s to put together a team to develop cushioning solutions for

wheelchairs and medical beds.

They later created what we call the Purple Grid—an elastomeric polymer that can stretch up

to 15x its resting size and never lose shape or function.

The Purple Grid has since been used in mattresses, seat cushions and

In August of 2020,

Purple announced that co-founders Terry and Tony Pearce chose to retire from their positions as Co-Directors of Research &

Development of Purple LLC and as directors on Purple Inc.’s Board.

we believe our culture, along with our internal tools and initiatives, enable us to effectively execute our human capital strategy.

discussion on the risks relating to our inability to attract and retain top-performing talent, please see section titled Risk Factors.

was created by two brothers that set out to revolutionize the comfort space.

One in manufacturing and design, and the other an advanced

aerospace scientist, the brothers embarked on a partnership in the early 1990s to put together a team to develop cushioning solutions

for wheelchairs and medical beds.

They later created what we call the Purple Grid—an elastomeric polymer that can stretch up to

15x its resting size and never lose shape or function.

The Purple Grid has since been used in mattresses, seat cushions and pillows.

In August of 2020, Purple announced

that co-founders Terry and Tony Pearce chose to retire from their positions as Co-Directors of Research & Development of Purple LLC

and as directors on Purple Inc.’s Board of Directors (“Board”).

Today, Purple’s research and development teams

are focused on creating innovative comfort solutions for all facets of life.

Available Information

Our website address

is www.purple.com.

We make available, free of charge on our Investor Relations website, investors.purple.com, our Annual Reports

on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant

to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file

such material with, or furnish it to, the U.S.

Our website address is www.purple.com.

We make available, free of charge on our Investor Relations website, investors.purple.com, our Annual Reports on Form 10-K, Quarterly

Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d)

of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such material with, or furnish it

Securities and Exchange Commission (“SEC”).

We also use our Investor

Relations website, investors.purple.com, as a channel of distribution of additional Purple information that may be deemed material.

Accordingly, investors should monitor this channel, in addition to following our press releases, SEC filings and public conference

calls and webcasts.

also use our Investor Relations website, investors.purple.com, as a channel of distribution of additional Purple information that may

be deemed material.

Accordingly, investors should monitor this channel, in addition to following our press releases, SEC filings and

public conference calls and webcasts.

The contents of our website shall not be deemed to be incorporated herein by reference.

Information About Our Executive Officers

As of the date of this

report, our directors and executive officers are as follows:

Director, Chief Executive Officer

About Our Executive Officers

of the date of this report, our directors and executive officers are as follows:

Chief Executive Officer

Chief Financial Officer and Treasurer

Chief Legal Officer and Secretary

Chief Operating Officer

Chief Retail Officer

Executive Officers

has served as Chief Executive Officer since October 2018.

Megibow most recently served as an independent consultant to

Advent International, a global private equity firm, consulting with its portfolio companies to develop digital capabilities, from

2017 to 2018.

Prior to that in 2016 he served as President of Joyus, Inc.

and between 2012 and 2015 he served as Senior Vice President

and Chief Digital Officer at American Eagle Outfitters, Inc.

where he oversaw the transformation and growth of American Eagle’s

$550+ million direct-to-consumer business.

In this role, he built out a global omni-channel strategy and infrastructure, and led

all digital marketing, customer operations, engineering and product management efforts.

Prior to that, Mr.

Megibow held several

senior roles with Expedia, Inc., the online travel business, including VP and General Manager of Expedia.com, Expedia’s US

Megibow has served as a Board member of Red Lion Hotels Corporation since April 2017.

Megibow earned an MBA from

the University of Chicago Booth School of Business and a Bachelor of Science in Electrical Engineering from Cornell University.

He is well-qualified to serve on our Board of Directors due to his extensive operational and management background, as well as

his knowledge of the Company.

has served as either our Interim Chief Financial Officer or our Chief Financial Officer since March 2019.

Prior to joining the

Phillips served as a Managing Director in FTI Consulting Inc.’s Corporate Finance, Office of the CFO Solutions

practice, a position he held since March 2015.

Prior to that, he worked as an independent financial consultant from January 2014

to March 2015.

From 2012 through 2013 he served as Chief Financial Officer of Latitude 360.

Prior to that, Mr.

Phillips served

as Chief Financial Officer of Blue Medical Supply Co.

Legal Officer and Secretary

Operating Officer

Retail Officer

Marketing Officer

People Officer

DeMartini has

served as Chief Executive Officer since January 2022.

Prior to joining the Company, Mr.

age 60, served as president and chief executive officer of USA Cycling, Inc., the official U.S.

Olympic & Paralympic Committee governing

body for all disciplines of competitive cycling in the United States, from 2019 until 2021.

He previously served as president and chief

executive officer of New Balance Athletic Shoes (U.K.) Ltd., from 2018 to 2019 and as president and chief executive officer of New Balance

Athletics, Inc.

from 2007 to 2018, each a business unit of New Balance, Inc.

a leading manufacturer and retailer of athletic footwear,

apparel and accessories.

From 1982 through 2007 Mr.

DeMartini held various leadership positions with Procter & Gamble, The Gillette

Company, and Tyson Foods, Inc.

He also currently serves on the boards of Welch’s Foods and Q30 Innovations/Q30 Sports Canada, and

formerly served on the boards of American Functional Fabrics of America, The American Apparel & Footwear Association, and Aloha.

DeMartini received a Bachelor of Science degree in Finance from San Diego State University.

He is well qualified to serve on our Board

due to his extensive operational and management background.

served as our Interim Chief Financial Officer (“CFO”) since August 2021.

Prior to joining

the Company, Mr.

Nussbaum served as the Interim Chief Financial Officer of American Megatrends, Inc.

from 2019 to 2020.

Phillips is a Certified Public Accountant, licensed

in the State of Florida.

He received a Bachelor of Business Administration from the University of Georgia.

has served as the Chief Legal Officer and General Counsel of Purple LLC since its inception in 2010 as WonderGel, LLC.

has served as Corporate Secretary of Purple Inc.

During that period

he also served as Operating Partner of HGGC, LLC from 2017 to 2020.

He also served as Interim CFO at 4over, Inc.

from 2017 to 2018.

2016 to 2017 he was the Chief Financial Officer of American Apparel, LLC.

He currently serves on the advisory board for the W.

Deming Center for Quality, Productivity, and Competitiveness at the Columbia University Graduate School of Business, a position he has

held since 2011.

Nussbaum previously served on the boards of directors of The Collected Group, LLC from 2018 to 2019, Charlotte Russe,

from 2018 to 2019, and BCBGMAXAZRIA, LLC during 2017.

Mr.Nussbaum has extensive leadership and stakeholder management expertise who

has led multibillion-dollar publicly traded and private equity-owned businesses through turnarounds, transitions and accelerated growth.

Nussbaum is a graduate from the Wharton School of Business of the University of Pennsylvania with a BS in Economics and holds an MBA

from Columbia University in New York, NY.

served as the Chief Legal Officer and General Counsel of Purple LLC since its inception in 2010 as WonderGel, LLC.

He also has served

as Corporate Secretary of Purple Inc.

since the Business Combination.

He From 2008 until the Business

Combination, he also has served as General Counsel of various technology companies owned by Terry and Tony Pearce, including EdiZONE,

LLC, focused on developing advanced cushioning technology.

McGarvey has a deep knowledge of the Company’s technologies

and intellectual property.

Prior to joining EdiZONE and Purple LLC, Mr.

McGarvey was a shareholder, partner or of counsel at several

law firms during which, among other things, he litigated and advised businesses on matters for the protection of their patents

and trademarks and other business matters.

McGarvey has the following degrees, each from the University of Utah, a Bachelor

of Arts and Honors Bachelor in political science with a Certificate in public administration, a Juris Doctor and an Executive Masters

of Business Administration ,

served as the Chief Operating Officer of the Company since January 2019.

Legg brings to the Company over 20 years of experience

in operations and supply chain management in the wholesale, retail and e-commerce/direct-to-consumer sectors.

From 2008 until the Business Combination, he also has served as

General Counsel of various technology companies owned by Terry and Tony Pearce, including EdiZONE, LLC, focused on developing advanced

cushioning technology.

McGarvey has a deep knowledge of the Company’s technologies and intellectual property.

Prior to joining

the Company, Mr.

Legg served as a partner in the consulting firm of Claris Retail Solutions Group (“Claris”) from September

2017 until he joined the Company in January 2019.

EdiZONE and Purple LLC, Mr.

McGarvey was a shareholder, partner or of counsel at several law firms during which, among other things, he

litigated and advised businesses on the protection of their patents and trademarks and other business matters.

McGarvey has the following

degrees, each from the University of Utah, a Bachelor of Arts and Honors Bachelor in political science with a Certificate in public administration,

a Juris Doctor and an Executive Masters of Business Administration.

Legg has served as the Chief Operating Officer of the Company since January 2019.

Legg brings to the Company over 20 years

of experience in operations and supply chain management in the wholesale, retail and e-commerce/direct-to-consumer sectors.

joining the Company, Mr.

Legg served as a partner in the consulting firm of Claris Retail Solutions Group (“Claris”) from

September 2017 until he joined the Company in January 2019.

Prior to that, he served as Senior Vice President Global Operations for Global

1 unchanged sentence

In addition, prior to joining Global Brands Group, Mr.

Legg was the Senior Vice President of Global Logistics and Supply Chain for the Zale Corporation.

From 2009 to 2010, he consulted

in Supply Chain Management for Tory Burch.

was the Senior Vice President of Global Logistics and Supply Chain for the Zale Corporation.

From 2009 to 2010, he consulted in

Supply Chain Management for Tory Burch.

From 2007 to 2008, Mr.

Legg served as Senior Vice President Global Distribution and

Logistics for Warnaco, Inc.

Finally, from 1999 to 2007, he worked for Liz Claiborne in the US and in Europe, serving as Vice President

International Distribution.

Legg is a graduate of Northeastern University, in Boston, MA, and holds a BS in Business Administration,

Transportation and Distribution Management.

has served as the Chief Retail Officer of the Company since March 2019.

Legg served as Senior Vice President Global Distribution and Logistics

for Warnaco, Inc.

Finally, from 1999 to 2007, he worked for Liz Claiborne in the US and in Europe, serving as Vice President International

Distribution.

Legg is a graduate of Northeastern University, in Boston, MA, and holds a BS in Business Administration, Transportation

and Distribution Management.

White III has served as the Chief Retail Officer of the Company since March 2019.

Prior to joining the Company, Mr.

White served as the

General Manager of Downeast Home since 2016.

as the General Manager of Downeast Home since 2016.

From 2014 to 2016, he served as Vice President of Real Estate and Construction for

1 unchanged sentence

In that role, Mr.

White oversaw all

expansion initiatives for the company including new stores, warehouses, and all construction and maintenance of existing facilities.

Prior to joining Hill County Holdings, Mr.

White was the Vice President of Real Estate and Strategy at the Larry Miller Group from

2011 to 2014 where he grew their Fanzz and Pro Stop retail business.

From 2007 to 2011, he managed design and construction projects

at Brookfield Properties, formerly General Growth Properties.

White oversaw all expansion

initiatives for the company including new stores, warehouses, and all construction and maintenance of existing facilities.

Prior to joining

Hill County Holdings, Mr.

White was the Vice President of Real Estate and Strategy at the Larry Miller Group from 2011 to 2014 where

he grew their Fanzz and Pro Stop retail business.

From 2007 to 2011, he managed design and construction projects at Brookfield Properties,

formerly General Growth Properties.

From 2001 to 2007, Mr.

White was the co-founder of LoveSac where

he conceived of, deployed, and operated LoveSac’s direct-to-consumer store strategy as well as new product development.

White holds an MBA from Brigham Young University’s Marriott School of Management.

White was the co-founder of LoveSac where he conceived of, deployed, and operated

LoveSac’s direct-to-consumer store strategy as well as new product development.

White holds an MBA from Brigham Young University’s

Marriott School of Management.

served as Chief Marketing Officer of the Company since June 2021.

Prior to joining Purple, Ms.

Varni was the President and Chief Marketing

Officer of Dermstore (a subsidiary of Target Corporation), the leading online retailer of professional skincare, from 2020 to joining

Purple in 2021.

Varni served as the Chief Customer Officer at Corelle Brands from 2017 to 2019 and as the Chief Customer Officer

at Arhaus an omni-channel national premium furniture retailer from 2015 to 2017.

Varni gained deep category experience as Senior

Vice President of Marketing at Tempur Sealy International from 2009 to 2015.

From 2001 to 2009 she served as the Vice President of Ecommerce

and relationship marketing for the Levi’s brand at Levi Strauss & Company.

Earlier in her career, from 1991 through 2001,

Ms.Varni built her marketing and e-commerce capability in various roles at what is now Digitas agency, The Walt Disney Company and Kenwood

Varni holds an MA in English and a BA in European Studies from Loyola Marymount University in Los Angeles.

Roddy IV has served as Chief People Officer of the Company since October 2021.

Roddy brings to the Company over 20 years

of experience in culture transformation, talent development, organization design and change leadership.

Prior to joining the Company,

Roddy served as the Chief People Officer for VASA Fitness since 2018.

Prior to that he was the Chief Human Resources Officer for

SeaWorld Parks and Entertainment from 2016 to 2018.

From 2012 to 2016, Mr.

Roddy was the Senior Vice President of Human Resources for

Luxottica Group.

Prior to joining Luxottica Group, he was the Vice President of Human Resources for Starbucks Corporation from 2004 to

Roddy holds a master’s degree from Columbia University on Organizational Psychology and a bachelor’s degree

in Organizational Behavior from Brigham Young University – Hawaii.

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.

What changed 10-K

Item 1. Business