|9 Months Ended|
Sep. 30, 2021
|Subsequent Events [Abstract]|
|Subsequent Events||Subsequent Events
The Company has evaluated subsequent events occurring through November 9, 2021, the date that these financial statements were originally available to be issued, and determined the following subsequent events occurred that would require disclosure in these financial statements.
Draw on Revolving Line of Credit
On October 13, 2021, the Company borrowed $15.0 million under the revolving line of credit established as part of the new senior secured credit facility effective September 24, 2021. The applicable interest rate for the borrowings is 3.37% and final payoff is due on September 24, 2026.
Acquisition of mnml
On October 14, 2021, the Company acquired all of the equity interests of Third Estate LLC (“mnml”) for total consideration of $44.9 million, including cash consideration of $27.6 million, net of cash acquired, and subject to working capital adjustments. The remaining consideration of $17.3 million was paid in the form of 2,057,695 shares of a.k.a. common stock. mnml is an LA-based streetwear brand that offers competitively priced on-trend wardrobe staples. This acquisition will help the Company continue its growth into the US market and provide opportunities for customer cross-sell.The Company has not finalized its accounting for the mnml acquisition as this transaction occurred on October 14, 2021 and therefore, is unable to disclose preliminary accounting. However, the acquisition will be accounted for as a business combination, with value assigned to certain identifiable intangible assets. Additionally, the assets and liabilities acquired or that will result from the acquisitions, include: cash, fixed assets, accounts receivable, inventory, technology, intangible assets, and goodwill. All areas of the purchase accounting are not yet finalized, including the valuation of i) receivables, ii) intangible assets, iii) deferred purchase consideration, iv) inventory and v) fixed assets. Additionally, the purchase price allocation is provisional for income tax-related matters. The Company anticipates reporting the preliminary purchase accounting associated with the acquisition in connection with the filing of its annual financial statements for 2021 on Form 10-K.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef