Item 5. Market for Registrant’s Common Equity
Item
5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
Our Common Stock is listed
on NASDAQ under the symbol “PRPL”. As of March 7, 2025, there were approximately 83 holders of record of shares of our Common
Stock and 7 holders of record of shares of our Class B Stock. Our Class B Stock is not listed or quoted on any exchange and is not transferrable
by the holders, subject to certain limited exceptions, including the exchange of Class B Stock for shares of Common Stock. The number
of holders of record of our Common Stock does not include stockholders for which shares are held in “nominee” or “street”
name.
We
have not paid any cash dividends on our Common Stock to date. The payment of cash dividends in the future will be dependent upon our
revenues and earnings, if any, capital requirements, general financial condition, our compliance with restrictive covenants in the Amended
and Restated Credit Agreement and other future indebtedness that we may incur, opportunities to invest in future growth initiatives,
and the discretion of our Board of Directors at such time. Our Board of Directors is not currently contemplating and does not anticipate
declaring any cash dividends on our Common Stock in the foreseeable future.
Comparative
Stock Performance
The following graph illustrates
the cumulative total return over the last five years from December 31, 2019 through December 31, 2024, for (i) our Common Stock, (ii)
the Standard and Poor’s (S&P) 500 Home Furnishings Index, and (iii) the NASDAQ Stock Market (U.S.) Index. The graph assumes
$100 was invested on December 31, 2019 in each of our Common Stock, the S&P 500 Home Furnishings Index, and the NASDAQ Stock Market
(U.S.) Index, and that any dividends were reinvested. The comparisons reflected in the graph are not intended to forecast the future performance
of our Common Stock and may not be indicative of our future performance. The graph and related information shall not be deemed to be “soliciting
material” or to be “filed” with the SEC, nor shall such information be incorporated by reference into any future filing
with the SEC, except to the extent that the Company specifically incorporates it by reference into such filing.
12/31/19
12/31/20
12/31/21
12/31/22
12/31/23
12/31/24
Purple Innovation, Inc.
$ 100.00
$ 378.19
$ 152.35
$ 54.99
$ 11.83
$ 8.96
S&P 500 Home Furnishings Index
100.00
96.04
109.06
61.16
61.96
71.32
The NASDAQ Stock Market (U.S.) Index
100.00
143.64
174.36
116.65
167.30
215.22
29
Recent
Sales of Unregistered Securities
On January 23, 2024, in connection
with the Amended and Restated Credit Agreement, we issued Warrants to purchase 20.0 million shares of our Class A common stock to the
Lenders. On March 12, 2025, in connection with the 2025 Amendment, we issued Warrants to purchase 6.2 million shares of our Class A common
stock to the Lenders. The Warrants will expire on the 10-year anniversary of their issuance, or earlier upon redemption. The Holders do
not have the rights or privileges of holders of Class A common stock or any voting rights until they exercise their Warrants. After the
issuance of shares of Class A common stock upon exercise of the Warrants, each Holder will be entitled to one vote for each share of Class
A common stock held on all matters to be voted on by stockholders generally. A Holder of Warrants will not have the right to exercise
its Warrants, to the extent that after giving effect to such exercise, the Holder (together with its affiliates) would beneficially own
in excess of 49.9% of the shares of Class A common stock outstanding immediately after giving effect to such exercise
We believe that such issuances
were exempt from registration pursuant to Section 4(a)(2) of the Securities Act as privately negotiated, isolated, non-recurring transactions
not involving any public solicitation.
Issuer
Purchases of Equity Securities
None.
Item
6. [Reserved]