Management Liquidity Plans

As of June 30, 2021, the Company’s cash on hand was $24.5 million, and the Company had working capital of ($17.7) million. The Company recorded net losses of $60.5 million and $36.0 million for the six months ended June 30, 2021 and 2020, respectively. Net losses include non-cash debt fees expensed as part of the repayment of Prior Financing (see Note 4) of $14.4 million and $0.0 million for the six months ended June 30, 2021 and 2020, respectively, non-cash changes in fair value of warrant liability of $13.5 million loss and $5.9 million income for the six months ended June 30, 2021 and 2020, respectively, excess depreciation and amortization over capital expenditure of $12.8 million and $10.4 million for the six months ended June 30, 2021, and 2020, respectively, and non-cash stock-based compensation of $4.8 million and $2.0 million for the six months ended June 30, 2021 and 2020, respectively. Historically, the Company has generally had positive cash flows from operating activities and has relied on a combination of cash flows provided by operations and the incurrence of debt and/or the refinancing of existing debt to fund its obligations. Cash flows used in operations amounted to $12.8 million and $10.2 million provided by operations for the six months ended June 30, 2021 and 2020, respectively with the change year on year due to higher debt interest payments made in the six months ended June 30, 2021, as there was an agreement in place to defer and capitalize such payments in the six months ended June 30, 2020. Working capital of ($17.7) million includes a non-cash settled item of $9.7 million of deferred income, and an item not expected to be cash settled of $26.5 million comprising a warrant liability. Management currently believes that, absent any unanticipated COVID-19 impact (see below), the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through August 2022.

Governments in all of the major jurisdictions in which our land-based customers operate have now reopened land-based venues. No restrictions remain in the United Kingdom. There remains an element of social distancing in venues in Greece and in Italy, there are restrictions in place that state only fully vaccinated people can enter our venues. It remains uncertain as to whether and when further restrictions or closures could happen in each jurisdiction and how long they may last. We continue to protect our existing available liquidity by pro-actively managing capital expenditures and working capital as well as identifying both immediate and longer-term opportunities for cost savings.

Restatement of Previously Reported Information

Restatement of Previously Reported Information

On May 7, 2021, after consultation with Marcum LLP, the Company’s independent registered public accounting firm, the Company’s management and the audit committee of the Company’s Board of Directors concluded that it was appropriate to restate the Company’s previously issued audited financial statements as of December 31, 2020, and December 31, 2019, and for the years ended December 31, 2020, and December 31, 2019, which were included in the Original 10-K.

The restatement related to the SEC’s public statement released on April 12, 2021, informing market participants that warrants issued by special purpose acquisition companies may require classification as a liability of the entity measured at fair value, with changes in fair value each period reported in earnings.

The effect of the restatement on previously reported information for the three months ended June 30, 2020 is as follows:

Schedule of Restatement

	As Previously Reported			Adjustments			As Restated
	(in millions, except per share data)
Consolidated Statements of Stockholders’ Deficit as of April 1, 2020
Additional paid in capital	$	347.6		$	(26.0	)	$	321.6
Accumulated deficit		(458.6	)		23.8			(434.8	)

Consolidated Statement of Operations and Comprehensive Loss for the three months ended June 30, 2020
Change in fair value of warrant liability	$	—		$	(1.7	)	$	(1.7	)
Net loss		(24.5	)		(1.7	)		(26.2	)
Comprehensive loss		(33.3	)		(1.7	)		(35.0	)

Net loss per common share – basic and diluted	$	(1.09	)	$	(0.06	)	$	(1.15	)

Consolidated Statements of Stockholders’ Deficit as of June 30, 2020
Additional paid in capital	$	348.6		$	(26.0	)	$	322.6
Accumulated deficit		(483.1	)		22.1			(461.0	)

The effect of the restatement on previously reported information for the six months ended June 30, 2020 is as follows:

	As Previously Reported			Adjustments			As Restated
	(in millions, except per share data)
Consolidated Statements of Stockholders’ Deficit as of January 1, 2020
Additional paid in capital	$	346.6		$	(26.0	)	$	320.6
Accumulated deficit		(441.2	)		16.2			(425.0	)

Consolidated Statement of Operations and Comprehensive Loss for the six months ended June 30, 2020
Change in fair value of warrant liability	$	—		$	5.9		$	5.9
Net loss		(41.9	)		5.9			(36.0	)
Comprehensive loss		(44.3	)		5.9			(38.4	)

Net loss per common share – basic and diluted	$	(1.87	)	$	0.26		$	(1.61	)

Consolidated Statements of Stockholders’ Deficit as of June 30, 2020
Additional paid in capital	$	348.6		$	(26.0	)	$	322.6
Accumulated deficit		(483.1	)		22.1			(461.0	)