Subsequent Events |
12 Months Ended |
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Dec. 31, 2024 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events The Company has evaluated subsequent events occurring through the date that these financial statements were issued, and determined the following subsequent event occurred that would require disclosure in these financial statements.
Draws on Revolving Line of Credit
In January 2025, the Company borrowed $21.5 million under the revolving line of credit, which is part of the Company’s senior secured credit facility. The initial weighted average applicable interest rate for the borrowings is 7.68% and final payoff is due on September 24, 2026.
CEO Employment Agreement
On January 7, 2025, the board of directors of the Company appointed Ciaran Long, the Interim Chief Executive Officer and Chief Financial Officer of the Company (“Chief Financial Officer”), to the position of Chief Executive Officer of the Company and removed him from the position of Chief Financial Officer, in each case effective January 13, 2025.
In connection with Mr. Long’s appointment, on January 13, 2025, a.k.a. Brands, Inc., an indirectly wholly-owned subsidiary of the Company, entered into an employment agreement with Mr. Long (the “CEO Employment Agreement”), which supersedes the employment agreement between Mr. Long and a.k.a. Brands, Inc. dated March 23, 2021. The CEO Employment Agreement has an initial term of four years, subject to automatic renewals for additional one-year periods.
In connection with Mr. Long’s appointment, on January 7, 2025, the board of directors, upon the recommendation of the Compensation Committee of the board, approved a grant, effective January 13, 2025, of performance-based stock options (the “Options”) to Mr. Long under the 2021 Plan, representing a contingent right to purchase 100,000 shares of the Company’s common stock at a specified price, upon the vesting of the Options. The Options expire after ten years, or upon the termination of Mr. Long’s service to the Company, and include four tranches that will each vest and become exercisable based upon the achievement of various common stock price targets. The weighted average exercise price for the Options is $120.00. The total unrecognized compensation cost related to the Options is $1.0 million, which is expected to be recognized over 4.2 years.
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