Exhibit 99.1
a.k.a. Brands Holding Corp. Reports Fourth Quarter and Full Year 2022 Financial Results
Full Year 2022 Net Sales Grew 9% to $612 Million Dollars
Company Announces Omnichannel Initiatives for 2023
Ended the Quarter with an Improved Inventory Position; Up 9% Year over Year, Down 8% Sequentially
 
SAN FRANCISCO – March 9, 2023 – a.k.a. Brands Holding Corp. (NYSE: AKA), a brand accelerator of next generation fashion brands, today announced financial results for the fourth quarter and full year ended December 31, 2022.
Results for the Fourth Quarter
•Net sales decreased 18.3% to $149.1 million, compared to $182.4 million in the fourth quarter of 2021; a decrease of 13% in Constant Currency1.
•Net loss was $(173.9) million or $(1.35) per share in the fourth quarter of 2022, compared to net income of $0.0 million or $0.00 per share in the fourth quarter of 2021, and (28.9%) of net sales. Included in this loss was a non-cash impairment charge of $173.8 million.
•Net loss, as adjusted2 was $(3.4) million, or $(0.03) per share in the fourth quarter of 2022, compared to net income, as adjusted of $4.3 million or $0.03 per share in the fourth quarter of 2021.
•Adjusted EBITDA2 was $6.1 million, or 4.1% of net sales, compared to $16.1 million, or 8.8% of net sales in the fourth quarter of 2021.
Results for Fiscal 2022
•Net sales increased 8.8% to $611.7 million, compared to $562.2 million in 2021 or decreased 0.3% pro forma2 adjusting for the acquisition of Culture Kings.
•Net loss was $(176.7) million or $(1.37) per share in 2022, compared to net loss attributable to a.k.a. Brands Holding Corp. of $(6.0) million or $(0.06) per share in 2021, and (116.6%) of net sales.
•Net loss, as adjusted2 was $(5.7) million, or $(0.04) per share in 2022, compared to net income, as adjusted2 of $14.2 million or $0.15 per share in 2021.
•Adjusted EBITDA2 was $31.9 million, or 5.2% of net sales, compared to $62.4 million, or 11.1% of net sales in 2021.

“I want to recognize our brands and teams for their unwavering dedication in 2022 in the face of external pressures and a dynamic environment,” said Jill Ramsey. “As we went through the quarter, we saw lower marketing effectiveness given the highly promotional environment, and we made the strategic decision to reduce our spend compared to last year in an effort to balance growth and profit. Additionally, as we aggressively tightened our inventory in the second half of the year, there were fewer new styles in our women’s brands during the peak holiday selling period. These decisions, combined with the macroeconomic pressures, impacted our performance in the quarter but enabled us to protect the integrity and durability of our brands and business model for the long term.”
“As we look ahead, we remain laser focused on strengthening the foundation of our brands and business. The omnichannel initiatives we announced today, including the opening of our first Princess Polly store in Southern California in the back half of the year and testing wholesale, set the stage for continued growth and profitability. We remain firmly committed to building great next-generation brands for the long-term, and I am confident that we have tremendous runway ahead of us,” concluded Ramsey.
The Company also announced today that Jill Ramsey, chief executive officer, will be taking time to work through unforeseen medical issues. Jill will remain as active in the business as her health allows and will remain on the Board. During this time, Ciaran Long, chief financial officer, will serve as acting chief executive officer on an interim basis.
1 In order to provide a framework for assessing the performance of our underlying business, excluding the effects of foreign currency rate fluctuations, we compare the percent change in the results from one period to another period using a constant currency methodology wherein current and comparative prior period results for our operations reporting in currencies other than U.S. dollars are converted into U.S. dollars at constant exchange rates (i.e., the rates in effect on December 31, 2021, which was the last day of our prior fiscal year) rather than the actual exchange rates in effect during the respective periods.
2 See additional information at the end of this release regarding key operating and financial metrics and non-GAAP financial measures.


Recent Business Highlights
•Culture Kings store in Las Vegas has exceeded expectations in revenue and brand building activities since opening in November and pleased with the positive impact on U.S. online sales.
•Princess Polly continues to refine their TikTok strategy, which is now a top performing channel in terms of ROI, and saw a nearly 40% increase in followers in fiscal 2022.
•Petal & Pup continues to improve their marketing efficiency with the introduction of five new channels in the back half of the year, including CTV and TikTok.
•mnml is now a top ten performing brand on Culture Kings’ website and in the Las Vegas store.
•Subsequent to quarter end the company sold Rebdolls back to its founder in an effort to focus on brands with greater scale that can fully benefit from the a.k.a. business model.
Omnichannel Initiatives
As a.k.a. Brands builds durable, next-generation brands for the long term, the Company will be testing wholesale and brick and mortar initiatives in 2023. As part of these initiatives, the Company announced:
•Princess Polly has signed a wholesale agreement with PacSun to carry up to 50 styles online and in 15 stores beginning this month, with a broader rollout to follow.
•Princess Polly will pilot a store in California in the back half of the year.
•Petal & Pup is testing wholesale and omnichannel initiatives and recently launched on Target Marketplace.
•The Company is in active discussions with other wholesale partners within the U.S. and internationally for all of the brands in its portfolio.
Fourth Quarter Financial Details
•Net sales decreased 18.3% to $149.1 million, compared to $182.4 million in the fourth quarter of 2021. The decrease was driven by a 14% decrease in the number of orders processed and 8% decrease in the average order value during the quarter. The decrease in the number of orders and average order value were primarily driven by lower marketing spend and a lower mix of full priced items sold.
•Gross margin was 52.8% in the fourth quarter of 2022, versus 54.6% in the same period last year. The 180 basis point decline in gross margin rate was largely the result of a lower mix of full priced items sold partially offset by a $3.7 million non-cash purchase accounting charge in the prior year associated with the Culture Kings and mnml acquisitions.
•Selling expenses were $39.0 million, compared to $45.5 million in the fourth quarter of 2021. Selling expenses were 26.2% of net sales, compared to 24.9% of net sales in the fourth quarter of 2021. The increase was primarily due to fixed cost deleverage partially offset by improvements on outbound shipping and labor productivity.
•Marketing expenses were $15.4 million, compared to $21.5 million in the fourth quarter of 2021. Marketing expenses were 10.3% of net sales, compared to 11.8% of net sales in the fourth quarter of 2021. The lower marketing expense as a percentage of sales was due to a strategic decision to pull back on marketing spend given the marketing investment inefficiency in a highly promotional environment.
•General and administrative (“G&A”) expenses were $26.1 million, compared to $27.3 million in the fourth quarter of 2021. G&A expenses were 17.5% of net sales, compared to 14.9% of net sales in the fourth quarter of 2021. The increase in G&A expenses as a percent of net sales was primarily due to lower sales in the fourth quarter of 2022.
•Adjusted EBITDA2 was $6.1 million, or 4.1% of net sales, compared to $16.1 million, or 8.8% of net sales in the fourth quarter of 2021. 
Full year 2022 financial details are included in the Company’s Form 10-K for the twelve months ended December 31, 2022.
Balance Sheet and Cash Flow
•Cash and cash equivalents at the end of the fourth quarter totaled $46.3 million compared to $38.8 million at the end of the fourth quarter of 2021.
•Inventory at the end of the fourth quarter totaled $126.5 million, compared to $115.8 million at the end of the fourth quarter of 2021. Inventory decreased $10.4 million, or 8%, from the end of the third quarter of 2022.


•Debt at the end of the fourth quarter totaled $143.6 million, compared to $108.8 million at the end of the fourth quarter of 2021. The Company drew $25.0 million on its revolving credit facility in the first quarter of 2022 and drew $15.0 million on its revolving credit facility in October 2022.
•Cash flow from operations for the twelve months ended December 31, 2022 was $(0.3) million, compared to $24.0 million for the twelve months ended December 31, 2021.
Outlook
For the full year fiscal 2023, the Company expects:
•Net sales between $570 million and $600 million
•Adjusted EBITDA3 between $35 million and $37 million
•Weighted average diluted share count of 130 million
•Capital expenditures of approximately $8 million to $10 million
For the first quarter of 2023, the Company expects:
•Net sales between $113 million and $116 million
•Adjusted EBITDA3 between $1.5 million and $1.8 million
•Weighted average diluted share count of 130 million
The above outlook is based on several assumptions, including but not limited to, foreign exchange rates remaining at the current levels and a continued promotional environment. See “Forward-Looking Statements” for additional information.
Conference Call
A conference call to discuss the Company’s fourth quarter and full year 2022 results is scheduled for March 9, 2023, at 4:30 p.m. ET. Those who wish to participate in the call may do so by dialing (877) 858-5495 (or (201) 689-8853 for international callers). The conference call will also be webcast live at https://ir.aka-brands.com in the Events and Presentations section. A recording will be available shortly after the conclusion of the call. To access the replay, please dial (877) 660-6853 (or (201) 612-7415 for international callers), conference ID 13735655. An archive of the webcast will be available on a.k.a. Brands’ investor relations website.
Use of Non-GAAP Financial Measures and Other Operating Metrics
In addition to results determined in accordance with accounting principles generally accepted in the United States of America (GAAP), management utilizes certain non-GAAP performance measures such as net income (loss), as adjusted, net income (loss) per share, as adjusted, Adjusted EBITDA, Adjusted EBITDA margin and pro forma net sales for purposes of evaluating ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP operating measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance. See additional information at the end of this release regarding non-GAAP financial measures.
About a.k.a. Brands
a.k.a. Brands is a brand accelerator of next generation fashion brands. Each brand in the a.k.a. portfolio targets a distinct Gen Z and millennial audience, creates authentic and inspiring social content and offers quality exclusive merchandise. a.k.a. Brands leverages its next-generation retail platform to help each brand accelerate its growth, scale in new markets and enhance its profitability. Current brands in the a.k.a. Brands portfolio include Princess Polly, Culture Kings, mnml and Petal & Pup.
Certain statements made in this release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
3 The Company has not provided a quantitative reconciliation of its Adjusted EBITDA outlook to a GAAP net income outlook because it is unable, without making unreasonable efforts, to project certain reconciling items. These items include, but are not limited to, future equity-based compensation expense, income taxes, interest expense and transaction costs. These items are inherently variable and uncertain and depend on various factors, some of which are outside of the Company’s control or ability to predict. See additional information at the end of this release regarding non-GAAP financial measures.


These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results or outcomes include the effects of geopolitical, economic and market conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, higher interest rates, currency fluctuations, the impact of the COVID-19 pandemic, challenges in the supply chain and any disruptions in European economies as a result of the conflict in Ukraine on our operations, customer demand and our supplier's ability to meet our needs; risks related to doing business in China; our ability to anticipate rapidly-changing consumer preferences in the apparel, footwear and accessories industries; our ability to acquire new customers, retain existing customers or maintain average order value levels; the effectiveness of our marketing and our level of customer traffic; merchandise return rates; our ability to manage our inventory effectively; our success in identifying brands to acquire, integrate and manage on our platform; our ability to expand into new markets; the global nature of our business; interruptions in or increased costs of shipping and distribution, which could affect our ability to deliver our products to the market; our use of social media platforms and influencer sponsorship initiatives, which could adversely affect our reputation or subject us to fines or other penalties; fluctuating operating results; the inherent challenges in measuring certain of our key operating metrics, and the risk that real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business; the potential for tax liabilities that may increase the costs to our consumers; our ability to attract and retain highly qualified personnel, including key members of our leadership team; fluctuations in wage rates and the price, availability and quality of raw materials and finished goods, which could increase costs; foreign currency fluctuations; and other risks and uncertainties set forth in the sections entitled “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward-Looking Statements” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2023. a.k.a. Brands does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact
investors@aka-brands.com
Media Contact
media@aka-brands.com


a.k.a. BRANDS HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(unaudited)
 Three Months Ended December 31,Twelve Months Ended December 31,
 2022202120222021
Net sales$149,126 $182,423 $611,738 $562,191 
Cost of sales70,379 82,891 274,491 254,527 
Gross profit78,747 99,532 337,247 307,664 
Operating expenses:
Selling39,002 45,486 166,070 144,345 
Marketing15,429 21,525 66,730 58,120 
General and administrative26,086 27,266 102,700 88,816 
Goodwill impairment173,786 — 173,786 — 
Total operating expenses254,303 94,277 509,286 291,281 
Income (loss) from operations(175,556)5,255 (172,039)16,383 
Other expense, net:
Interest expense(2,556)(1,164)(7,043)(9,485)
Loss on extinguishment of debt— — — (10,924)
Other expense
503 (591)(1,532)(1,213)
Total other expense, net(2,053)(1,755)(8,575)(21,622)
Income (loss) before income taxes(177,609)3,500 (180,614)(5,239)
Benefit from (provision for) income tax3,713 (3,477)3,917 (852)
Net income (loss)(173,896)23 (176,697)(6,091)
Net loss attributable to noncontrolling interests— — — 123 
Net income (loss) attributable to a.k.a. Brands Holding Corp.$(173,896)$23 $(176,697)$(5,968)
Net income (loss) per share
Basic$(1.35)$0.00 $(1.37)$(0.06)
Diluted$(1.35)$0.00 $(1.37)$(0.06)
Weighted average shares outstanding
Basic128,873,269 128,334,709 128,716,710 93,231,377 
Diluted128,873,269 128,334,709 128,716,710 93,231,377 



a.k.a. BRANDS HOLDING CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
 
December 31,
2022		December 31,
2021
Assets  
Current assets:  
Cash and cash equivalents$46,319 $38,832 
Restricted cash2,054 2,186 
Accounts receivable3,231 2,663 
Inventory, net126,533 115,783 
Prepaid income taxes6,089 4,059 
Prepaid expenses and other current assets13,378 20,809 
Total current assets197,604 184,332 
Property and equipment, net28,958 14,657 
Operating lease right-of-use assets37,317 26,415 
Intangible assets, net76,105 98,287 
Goodwill167,731 363,305 
Deferred tax assets1,070 — 
Other assets853 850 
Total assets$509,638 $687,846 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$20,903 $25,088 
Accrued liabilities39,806 53,375 
Sales returns reserve3,968 6,887 
Deferred revenue11,421 11,344 
Operating lease liabilities, current6,643 5,721 
Current portion of long-term debt5,600 5,600 
Total current liabilities88,341 108,015 
Long-term debt138,049 103,182 
Operating lease liabilities34,404 21,370 
Other long-term liabilities1,483 1,333 
Deferred income taxes284 2,920 
Total liabilities262,561 236,820 
Stockholders’ equity:
Preferred stock— — 
Common stock129 129 
Additional paid-in capital460,660 453,807 
Accumulated other comprehensive loss(45,185)(11,080)
Retained earnings (accumulated deficit)(168,527)8,170 
Total stockholders’ equity247,077 451,026 
Total liabilities and stockholders’ equity$509,638 $687,846 



a.k.a. BRANDS HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Twelve Months Ended December 31,
20222021
Cash flows from operating activities:
Net loss$(176,697)$(6,091)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation expense6,156 2,694 
Amortization expense14,192 14,016 
Amortization of inventory fair value adjustment707 15,908 
Amortization of debt issuance costs647 596 
Non-cash interest expense— 11 
Loss on extinguishment of debt— 10,924 
Lease incentives1,722 361 
Non-cash operating lease expense9,779 6,246 
Equity-based compensation6,730 8,043 
Deferred income taxes, net(4,064)(11,951)
Goodwill impairment173,786 — 
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable(602)(858)
Inventory(16,257)(32,131)
Prepaid expenses and other current assets6,134 (11,543)
Accounts payable(1,888)6,038 
Income taxes payable(2,442)(9,329)
Accrued liabilities(7,419)26,678 
Returns reserve(2,678)3,091 
Deferred revenue267 7,197 
Lease liabilities(8,392)(5,932)
Net cash provided by (used in) operating activities(319)23,968 
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired
(5,321)(249,302)
Purchase of noncontrolling interest— (20,198)
Purchases of intangible assets
(247)(841)
Purchases of property and equipment(19,746)(7,734)
Net cash used in investing activities
(25,314)(278,075)
Cash flows from financing activities:
Proceeds from initial public offering, net of issuance costs— 96,863 
Payments of costs related to initial public offering(1,142)— 
Proceeds from line of credit, net of issuance costs
40,000 34,150 
Repayment of line of credit— (42,204)
Proceeds from issuance of debt, net of issuance costs
(121)254,134 
Repayment of debt(5,600)(155,762)
Taxes paid related to net share settlement of equity awards(104)— 
Proceeds from issuances under equity-based compensation plans227 — 
Proceeds from issuance of units
— 82,669 
Net cash provided by financing activities
33,260 269,850 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(272)(1,824)
Net increase in cash, cash equivalents and restricted cash
7,355 13,919 
Cash, cash equivalents and restricted cash at beginning of period
41,018 27,099 
Cash, cash equivalents and restricted cash at end of period
$48,373 $41,018 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents
$46,319 $38,832 
Restricted cash
2,054 2,186 
Total cash, cash equivalents and restricted cash$48,373 $41,018 



a.k.a. BRANDS HOLDING CORP.
KEY OPERATING AND FINANCIAL METRICS
(unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
Gross margin
53 %55 %55 %55 %
Net income (loss) (in thousands)
$(173,896)$23 $(176,697)$(6,091)
Net income (loss) margin
(117)%— %(29)%(1)%
Adjusted EBITDA2 (in thousands)
$6,093 $16,129 $31,872 $62,431 
Adjusted EBITDA2 margin
4 %9 %5 %11 %
Key Operational Metrics and Regional Sales
 Three Months Ended December 31,Twelve Months Ended December 31,
(metrics in millions, except AOV; sales in thousands)2022202120222021
Key Operational Metrics
Active customers4
3.8 3.7 3.8 3.7 
Active customers across a.k.a. Brands4,5
3.8 3.7 3.8 3.7 
Average order value
$77 $84 $82 $86 
Average order value across a.k.a. Brands5
$77 $84 $82 $87 
Number of orders
1.9 2.2 7.4 6.5 
Number of orders across a.k.a. Brands5
1.9 2.2 7.4 7.0 
Sales by Region (actual)
U.S.$70,860 $79,558 $312,977 $270,028 
Australia60,552 76,400 226,929 218,563 
Rest of world17,714 26,465 71,832 73,600 
Total$149,126 $182,423 $611,738 $562,191 
Year-over-year growth(18.3)%8.8 %
Year-over-year growth on a constant currency basis1
(13.0)%13.3 %
Active Customers
We view the number of active customers as a key indicator of our growth, the value proposition and consumer awareness of our brand, and their desire to purchase our products. In any particular period, we determine our number of active customers by counting the total number of unique customer accounts who have made at least one purchase in the preceding 12-month period, measured from the last date of such period.
Average Order Value
We define average order value (“AOV”) as net sales in a given period divided by the total orders placed in that period. AOV may fluctuate as we expand into new categories or geographies or as our assortment changes.
4 Trailing twelve months.
5 Metrics “across a.k.a. Brands” assume we owned Culture Kings for all periods presented.


a.k.a. BRANDS HOLDING CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA margin are key performance measures that management uses to assess our operating performance. Because adjusted EBITDA and Adjusted EBITDA margin facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.
We also believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business. We expect Adjusted EBITDA margin to increase over the long-term as we continue to scale our business and achieve greater leverage in our operating expenses.
We calculate Adjusted EBITDA as net income (loss) adjusted to exclude: interest and other expense; provision for income taxes; depreciation and amortization expense; equity-based compensation expense; costs to establish or relocate distribution centers; transaction costs; costs related to severance from headcount reductions; goodwill and intangible asset impairment; sales tax penalties; and one-time or non-recurring items, and Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net income (loss). Adjusted EBITDA is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain amounts included in net income (loss), the most directly comparable financial measure calculated in accordance with GAAP.
A reconciliation of non-GAAP Adjusted EBITDA to net income (loss) for the three and twelve months ended December 31, 2022 and 2021 is as follows:
 Three Months Ended December 31,Twelve Months Ended December 31,
 2022202120222021
Net income (loss)$(173,896)$23 $(176,697)$(6,091)
Add (deduct):
Total other expense, net
2,053 1,755 8,575 21,622 
Provision for (benefit from) income tax(3,713)3,477 (3,917)852 
Depreciation and amortization expense4,975 5,374 20,348 16,710 
Equity-based compensation expense2,282 1,329 6,730 8,043 
Inventory step-up amortization expense— 3,657 707 15,908 
Distribution relocation costs— — 1,302 — 
Transaction costs— 514 140 5,387 
Severance15 — 306 — 
Goodwill impairment173,786 — 173,786 — 
Sales tax penalties591 — 592 — 
Adjusted EBITDA$6,093 $16,129 $31,872 $62,431 
Net income (loss) margin(116.6)%— %(28.9)%(1.1)%
Adjusted EBITDA margin4.1 %8.8 %5.2 %11.1 %


Net Income Attributable to a.k.a. Brands Holding Corp., As Adjusted (or Net Loss, As Adjusted) and Net Income (Loss) Per Share, As Adjusted
Net income attributable to a.k.a. Brands Holding Corp., as adjusted (or net loss, as adjusted) and net income (loss) per share, as adjusted are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in net income (loss) attributable to a.k.a. Brands Holding Corp. (or net loss) and net income (loss) per share calculated in accordance with GAAP, the most directly comparable financial measures calculated in accordance with GAAP. Management believes that net income attributable to a.k.a. Brands Holding Corp., as adjusted (or net loss, as adjusted) and net income (loss) per share, as adjusted are meaningful measures to share with investors because they better enable comparison of the performance with that of the comparable period. In addition, net income attributable to a.k.a. Brands Holding Corp., as adjusted (or net loss, as adjusted) and net income (loss) per share, as adjusted afford investors a view of what management considers a.k.a.’s core earnings performance and the ability to make a more informed assessment of such core earnings performance with that of the prior year.
We have calculated net loss, as adjusted and net loss per share, as adjusted for the three and twelve months ended December 31, 2022 by adjusting net loss and net loss per share for the following:
1.Inventory step-up amortization expense resulting from the acquisition of mnml;
2.Impairment recognized on the goodwill recorded from the acquisitions of the Culture Kings and Rebdolls reporting units, which is a result of the worsening economic trends, including continued inflation and rising interest rates, as well as unfavorable demand due to a gradual customer shift from primarily online shopping to a mix of online and physical store shopping; and
3.The tax benefit related to the finalization of Australia tax basis allocation pertaining to the inventory and intangibles included in the purchase of the Culture Kings non-controlling interest, as well as an intra-entity transfer of intellectual property rights.
A reconciliation of non-GAAP net loss, as adjusted to net loss, as well as the resulting calculation of net loss per share, as adjusted for the three and twelve months ended December 31, 2022 are as follows:
 Three Months Ended December 31, 2022Twelve Months Ended December 31, 2022
Net loss$(173,896)$(176,697)
Adjustments:
Inventory step-up amortization expense— 707 
Goodwill impairment173,786 173,786 
Tax benefit - Culture Kings change in tax basis of inventory and intangibles; intra-entity transfer of intellectual property rights(3,263)(3,263)
Tax effects of adjustments— (212)
Net loss, as adjusted$(3,373)$(5,679)
Net loss per share, as adjusted$(0.03)$(0.04)
Weighted-average shares, diluted128,873,269 128,716,710 


We have calculated net income attributable to a.k.a. Brands Holding Corp, as adjusted and net income per share, as adjusted for the three and twelve months ended December 31, 2021 by adjusting net income (loss), net loss per share and net loss attributable to noncontrolling interests, as applicable, for the following:
1.Inventory step-up amortization expense resulting from the acquisition of Culture Kings;
2.Equity-based compensation expense related to performance-based awards that vested upon IPO;
3.Loss on extinguishment of debt; and
4.Removal of the tax effect of non-deductible incentive units.
A reconciliation of non-GAAP net income, as adjusted to net income (loss) attributable to a.k.a. Brands Holding Corp., as well as the resulting calculation of net income per share, as adjusted for the three and twelve months ended December 31, 2021 are as follows:
 Three Months Ended December 31, 2021Twelve Months Ended December 31, 2021
Net income (loss) attributable to a.k.a. Brands Holding Corp.$23 $(5,968)
Adjustments:
Inventory step-up amortization expense3,657 15,908 
Equity-based compensation expense related to performance-based awards— 4,903 
Loss on extinguishment of debt— 10,924 
Tax expense - removal of the tax effect of non-deductible incentive units1,689 1,689 
Tax effects of adjustments(1,097)(9,521)
Net income, as adjusted$4,272 $17,935 
Net loss attributable to noncontrolling interests$— $123 
Adjustments:
Inventory step-up amortization expense— (5,513)
Tax effects of adjustment— 1,654 
Net income attributable to noncontrolling interests, as adjusted$— $(3,736)
Net income, as adjusted$4,272 $17,935 
Net loss attributable to noncontrolling interests, as adjusted— (3,736)
Net income attributable to a.k.a. Brands Holding Corp., as adjusted$4,272 $14,199 
Net income per share, as adjusted$0.03 $0.15 
Weighted-average shares, diluted128,334,709 93,231,377 


Pro Forma Net Sales
Pro forma net sales is considered a non-GAAP financial measure under the SEC’s rules. We believe that pro forma net sales is useful information for investors as it provides a better understanding of sales performance, and relative changes therein, on a comparable basis. We calculate pro forma net sales as net sales including the historical net sales relating to the pre-acquisition periods of Culture Kings, assuming that the Company acquired Culture Kings at the beginning of the period presented. Pro forma net sales is not necessarily indicative of what the actual results would have been if the acquisition had in fact occurred on the date or for the periods indicated nor does it purport to project net sales for any future periods or as of any date. A reconciliation of non-GAAP pro forma net sales to net sales, which is the most directly comparable financial measure calculated in accordance with GAAP, for certain periods is as follows:
 Twelve Months Ended December 31, 2022Twelve Months Ended December 31, 2021Growth Rate
 ActualActualCulture KingsPro FormaActualPro Forma
U.S.$312,977 $270,028 $7,735 $277,763 15.9 %12.7 %
Australia226,929 218,563 36,000 254,563 3.8 %(10.9)%
Rest of world71,832 73,600 7,464 81,064 (2.4)%(11.4)%
Total$611,738 $562,191 $51,199 $613,390 8.8 %(0.3)%
 Three Months Ended December 31, 2021Three Months Ended December 31, 2020Growth Rate
 ActualActualCulture KingsPro FormaActualPro Forma
U.S.$79,558 $42,098 $3,563 $45,661 89.0 %74.2 %
Australia76,400 22,070 45,940 68,010 246.2 %12.3 %
Rest of world26,465 6,613 7,150 13,763 300.2 %92.3 %
Total$182,423 $70,781 $56,653 $127,434 157.7 %43.2 %
Three Months Ended December 31, 2022Three Months Ended December 31, 2020Two-year Growth Rate
ActualActualCulture KingsPro FormaActualPro Forma
U.S.$70,860 $42,098 $3,563 $45,661 68.3 %55.2 %
Australia60,552 22,070 45,940 68,010 174.4 %(11.0)%
Rest of world17,714 6,613 7,150 13,763 167.9 %28.7 %
Total$149,126 $70,781 $56,653 $127,434 110.7 %17.0 %
 Twelve Months Ended
December 31, 2021		Twelve Months Ended December 31, 2020Growth Rate
 Pro FormaActualCulture KingsPro FormaActualPro Forma
U.S.$277,763 $125,179 $12,968 $138,147 115.7 %101.1 %
Australia254,563 67,850 134,318 202,168 222.1 %25.9 %
Rest of world81,064 22,887 21,846 44,733 221.6 %81.2 %
Total$613,390 $215,916 $169,132 $385,048 160.4 %59.3 %