10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the three months ended March 31, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-38843

OneSpaWorld Holdings Limited

(Exact name of Registrant as Specified in its Charter)

Commonwealth of The Bahamas	Not Applicable
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Shirley House 253 Shirley Street P.O. Box N-624 Nassau, The Bahamas	Not Applicable
(Address of principal executive offices)	(Zip Code)

(242) 356-0006

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value (U.S.) $0.0001 per share	OSW	The Nasdaq Capital Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer	☐	Accelerated filer	☐
Non-Accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of May 14, 2019, 61,118,298 common shares were outstanding.

EXPLANATORY NOTE

OneSpaWorld Holdings Limited (the “Company”) is filing this Amendment No. 1 (this “Amendment No. 1”) to its Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, which was originally filed on May 15, 2019 (the “Original Filing”) for the sole purpose of furnishing Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this Amendment No. 1 provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

Other than the addition of Exhibit 101, no other changes have been made to the Original Filing.

This Amendment No. 1 does not reflect events that may have occurred subsequent to the filing date of the Original Filing and does not modify or update in any way disclosures made in the Form 10-Q for the quarter ended March 31, 2019.

Item 6. Exhibits

No.	Exhibit
31.1*	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Section 1350 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Section 1350 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document.
101.SCH**	XBRL Taxonomy Extension Schema Document.
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document.

* Furnished herewith (such certification shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, except to the extent that the Company specifically incorporates it by reference).

** Filed herewith

36

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: May 16, 2019

ONESPAWORLD HOLDINGS LIMITED
By:	/s/ GLENN J. FUSFIELD
	Glenn J. Fusfield
	President, Chief Executive Officer and Director
	Principal Executive Officer
By:	/s/ STEPHEN B. LAZARUS
	Stephen B. Lazarus
	Chief Operating Officer and Chief Financial Officer
	Principal Financial and Accounting Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 14, 2019
Document and Entity Information [Abstract]
Document Type	10-Q/A
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	ONESPAWORLD HOLDINGS Ltd
Entity Central Index Key	0001758488
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	OSW
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		61,118,298

XML

CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 16,269
Accounts receivable, net	25,546
Inventories	35,430
Prepaid expenses	7,877
Other current assets	1,255
Total current assets	86,377
Property and equipment, net	25,981
Intangible assets, net	632,718
Goodwill	199,379
OTHER ASSETS:
Deferred tax assets	8,407
Other non-current assets	530
Total other assets	8,937
Total assets	953,392
LIABILITIES:
Accounts payable	15,114
Accounts payable - related parties
Accrued expenses	24,712
Income taxes payable	1,883
Current portion of long-term debt	2,085
Other current liabilities	887
Total current liabilities	44,681
Deferred rent	702
Income tax contingency	3,900
Long-term debt, net	237,352
Total liabilities	286,635
Commitments and contingencies
EQUITY (DEFICIT):
Common stock, $0.0001 par value, 250,000,000 shares authorized, 61,118,298 shares issued and outstanding at March 31, 2019	6
Additional paid-in capital	684,531
Accumulated deficit	(22,683)
Net Parent investment
Accumulated other comprehensive loss	(825)
Total OneSpaWorld stockholders' equity and Parent's deficit	661,029
Noncontrolling interest	5,728
Total equity and (deficit)	666,757
Total liabilities and equity and (deficit)	$ 953,392
Predecessor [Member]
CURRENT ASSETS:
Cash and cash equivalents		$ 15,302
Accounts receivable, net		25,352
Inventories		32,265
Prepaid expenses		6,617
Other current assets		1,424
Total current assets		80,960
Property and equipment, net		16,239
Intangible assets, net		131,517
Goodwill		33,864
OTHER ASSETS:
Deferred tax assets		4,265
Other non-current assets		5,814
Total other assets		10,079
Total assets		272,659
LIABILITIES:
Accounts payable		7,595
Accounts payable - related parties		6,553
Accrued expenses		27,211
Income taxes payable		670
Other current liabilities		1,210
Total current liabilities		43,239
Deferred rent		645
Income tax contingency		3,918
Long-term debt, net		352,440
Total liabilities		400,242
Commitments and contingencies
EQUITY (DEFICIT):
Common stock, $0.0001 par value, 250,000,000 shares authorized, 61,118,298 shares issued and outstanding at March 31, 2019
Additional paid-in capital
Accumulated deficit
Net Parent investment		(130,520)
Accumulated other comprehensive loss		(649)
Total OneSpaWorld stockholders' equity and Parent's deficit		(131,169)
Noncontrolling interest		3,586
Total equity and (deficit)		(127,583)
Total liabilities and equity and (deficit)		$ 272,659

XML

CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS (Parenthetical)	Mar. 31, 2019 $ / shares shares
Common stock, par value | $ / shares	$ 0.0001
Common stock, shares authorized	250,000,000
Common stock, shares issued	61,118,298
Common stock, shares outstanding	61,118,298

XML

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands		3 Months Ended
	Mar. 31, 2019	Mar. 19, 2019	Mar. 31, 2018
REVENUES:
REVENUES	$ 19,014
COST OF REVENUES AND OPERATING EXPENSES:
Administrative	2,517
Salary and payroll taxes	21,215
Amortization of intangible assets	582
Total cost of revenues and operating expenses	40,290
(Loss) income from operations	(21,276)
OTHER INCOME (EXPENSE), NET:
Interest expense	(557)
Loss on extinguishment of debt
Other income (expense)
Total other income (expense), net	(557)
(Loss) income before provision for income taxes	(21,833)
PROVISION FOR INCOME TAXES	746
Net (loss) income	(22,579)
Net income attributable to noncontrolling interest	104
Net (loss) income attributable to common shareholders and Parent, respectively	$ (22,683)
Loss per share (Note 2):
Basic and diluted loss per share	$ (0.37)
Basic and diluted weighted average shares outstanding	61,118,298
Predecessor [Member]
REVENUES:
REVENUES		$ 118,452	$ 128,894
COST OF REVENUES AND OPERATING EXPENSES:
Administrative		2,498	2,285
Salary and payroll taxes		29,349	3,827
Amortization of intangible assets		755	867
Total cost of revenues and operating expenses		133,395	117,223
(Loss) income from operations		(14,943)	11,671
OTHER INCOME (EXPENSE), NET:
Interest expense		(6,316)	(7,359)
Loss on extinguishment of debt		(3,413)
Other income (expense)			(31)
Total other income (expense), net		(9,729)	(7,390)
(Loss) income before provision for income taxes		(24,672)	4,281
PROVISION FOR INCOME TAXES		109	498
Net (loss) income		(24,781)	3,783
Net income attributable to noncontrolling interest		678	900
Net (loss) income attributable to common shareholders and Parent, respectively		(25,459)	2,883
Service [Member]
REVENUES:
REVENUES	$ 14,713
COST OF REVENUES AND OPERATING EXPENSES:
Cost of Revenue	12,386
Service [Member] | Predecessor [Member]
REVENUES:
REVENUES		91,280	98,046
COST OF REVENUES AND OPERATING EXPENSES:
Cost of Revenue		76,836	83,178
Product [Member]
REVENUES:
REVENUES	4,301
COST OF REVENUES AND OPERATING EXPENSES:
Cost of Revenue	$ 3,590
Product [Member] | Predecessor [Member]
REVENUES:
REVENUES		27,172	30,848
COST OF REVENUES AND OPERATING EXPENSES:
Cost of Revenue		$ 23,957	$ 27,066

XML

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands		3 Months Ended
	Mar. 31, 2019	Mar. 31, 2019	Mar. 19, 2019	Mar. 31, 2018
Net (loss) income	$ (22,579)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(825)
Total other comprehensive income (loss) net of tax	(825)
Comprehensive (loss) income	(23,404)
Comprehensive (loss) income attributable to noncontrolling interest	104
Comprehensive (loss) income attributable to common shareholders and Parent, respectively	$ (23,508)
Predecessor [Member]
Net (loss) income			$ (24,781)	$ 3,783
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments			(165)	189
Total other comprehensive income (loss) net of tax			(165)	$ 189
Comprehensive (loss) income		$ 3,973	(24,946)
Comprehensive (loss) income attributable to noncontrolling interest		900	678
Comprehensive (loss) income attributable to common shareholders and Parent, respectively		$ 3,073	$ (25,624)

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CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY AND (DEFICIT) - USD ($) $ in Thousands		Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Net Parent Investment [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]	Parent [Member]	Non -Controlling Interest [Member]
BALANCE (Predecessor [Member]) at Dec. 31, 2017		$ 225,281			$ 221,041	$ (356)		$ 220,685	$ 4,596
Net (loss) income | Predecessor [Member]		3,783			2,883			2,883	900
Net distributions to Parent and affiliates | Predecessor [Member]		(9,088)			(9,088)			(9,088)
Foreign currency translation adjustment | Predecessor [Member]		189				189		189
BALANCE (Predecessor [Member]) at Mar. 31, 2018		220,165			214,836	(167)		214,669	5,496
BALANCE (Predecessor [Member]) at Dec. 31, 2018		(127,583)			(130,520)	(649)		(131,169)	3,586
Net (loss) income | Predecessor [Member]		(24,781)			(25,459)			(25,459)	678
Distributions to noncontrolling interest | Predecessor [Member]		(267)							(267)
Net contributions from the Parent and affiliates | Predecessor [Member]		351,802			351,802			351,802
Foreign currency translation adjustment | Predecessor [Member]		(165)				(165)		(165)
BALANCE (Predecessor [Member]) at Mar. 19, 2019		199,006			$ 195,823	(814)		195,009	3,997
BALANCE at Mar. 19, 2019	[1]	669,790	$ 6	$ 664,160				664,166	5,624
BALANCE (In Shares) at Mar. 19, 2019	[1]		61,118,298
Net (loss) income		(22,579)					$ (22,683)	(22,683)	104
Stock-based compensation		20,371		20,371				20,371
Foreign currency translation adjustment		(825)				(825)		(825)
BALANCE at Mar. 31, 2019		$ 666,757	$ 6	$ 684,531		$ (825)	$ (22,683)	$ 661,029	$ 5,728
BALANCE (In Shares) at Mar. 31, 2019			61,118,298

[1] Initial equity balances of the Successor reflect the equity of the accounting acquirer, Haymaker, and the issuance of common stock, warrants and cash contributed by Haymaker in connection with the acquisition of OSW Predecessor.

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CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		3 Months Ended
	Mar. 31, 2019	Mar. 19, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (22,579)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	854
Amortization of deferred financing costs	29
Stock-based compensation	20,371
Provision for doubtful accounts
Loss on extinguishment of debt
Allocation of Parent corporate overhead
Deferred income taxes
Changes in:
Accounts receivable, net	(1,873)
Inventories	(1,280)
Prepaid expenses	(2,333)
Other current assets
Other noncurrent assets	6,245
Accounts payable	(794)
Accounts payable - related parties
Accrued expenses	(22,293)
Other current liabilities	(16)
Income taxes payable	1,171
Deferred rent
Net cash (used in) provided by operating activities	(22,498)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
Acquisition of OSW Predecessor	(711,292)
Net cash used in investing activities	(711,292)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of common shares	122,499
Cash contribution from Haymaker	374,358
Proceeds from the term loan facilities	245,900
Payment of deferred financing costs	(6,492)
Net distributions to Parent and its affiliates
Distributions to noncontrolling interest
Net cash provided by (used in) financing activities	736,265
Effect of exchange rate changes on cash	(844)
Net (decrease) increase in cash and cash equivalents	1,631
Cash and cash equivalents, Beginning of period	14,638
Cash and cash equivalents, End of period	16,269	$ 14,638
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for: Income taxes
Cash paid during the period for: Interest
Non-cash transactions:
Equity consideration paid in connection with the Business Combination	167,300
Allocation of Parent corporate overhead
Assignment and assumption of long-term debt
Repayment of long-term debt by Parent on behalf of the Company
Write-off income tax payable for separate return provision
Predecessor [Member]
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income		(24,781)	$ 3,783
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization		1,989	2,444
Amortization of deferred financing costs		213	284
Stock-based compensation
Provision for doubtful accounts		8	21
Loss on extinguishment of debt		3,413
Allocation of Parent corporate overhead			2,787
Deferred income taxes			82
Changes in:
Accounts receivable, net		1,671	(2,254)
Inventories		(406)	1,822
Prepaid expenses		1,073	(143)
Other current assets		213	221
Other noncurrent assets		(1,003)	(190)
Accounts payable		8,313	5,275
Accounts payable - related parties		(6,553)	(10,203)
Accrued expenses		19,792	10,248
Other current liabilities		(288)	(6)
Income taxes payable		42	475
Deferred rent		37	21
Net cash (used in) provided by operating activities		3,733	14,667
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(517)	(1,355)
Acquisition of OSW Predecessor
Net cash used in investing activities		(517)	(1,355)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of common shares
Cash contribution from Haymaker
Proceeds from the term loan facilities
Payment of deferred financing costs
Net distributions to Parent and its affiliates		(4,262)	(9,988)
Distributions to noncontrolling interest		(267)
Net cash provided by (used in) financing activities		(4,529)	(9,988)
Effect of exchange rate changes on cash		649	(145)
Net (decrease) increase in cash and cash equivalents		(664)	3,179
Cash and cash equivalents, Beginning of period	$ 14,638	15,302	8,671
Cash and cash equivalents, End of period		14,638	11,850
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for: Income taxes		73	51
Cash paid during the period for: Interest
Non-cash transactions:
Allocation of Parent corporate overhead			2,787
Assignment and assumption of long-term debt			351,197
Repayment of long-term debt by Parent on behalf of the Company		351,482
Write-off income tax payable for separate return provision			$ 148

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ORGANIZATION

3 Months Ended

Mar. 31, 2019

ORGANIZATION

1. ORGANIZATION

OneSpaWorld Holdings Limited (“OneSpaWorld” or the “Company”) is an international business company incorporated under the laws of the Commonwealth of The Bahamas. OneSpaWorld is a global provider and innovator in the fields of beauty and wellness. In facilities on cruise ships and in land-based spas, the Company strives to create a relaxing and therapeutic environment where guests can receive beauty and body treatments of the highest quality. The Company’s services include traditional and alternative massage, body and skin treatment options, fitness, acupuncture, and medispa treatments. The Company also sells premium quality beauty products at its facilities and through its timetospa.com website. The predominant business, based on revenues, is sales of services and products on cruise ships and at land-based spas, followed by sales of products through the timetospa.com website.

On March 19, 2019 (the “Business Combination Date”), OneSpaWorld consummated a business combination pursuant to that certain Business Combination Agreement, dated as of November 1, 2018 (as amended on January 7, 2019, by Amendment No. 1 to the Business Combination Agreement), by and among Steiner Leisure Limited (“Steiner Leisure”), or Parent, Steiner U.S. Holdings, Inc., Nemo (UK) Holdco, Ltd., Steiner UK Limited, Steiner Management Services, LLC, Haymaker Acquisition Corp. (“Haymaker”), OneSpaWorld, Dory US Merger Sub, LLC, Dory Acquisition Sub, Limited, Dory Intermediate LLC, and Dory Acquisition Sub, Inc. (the “Business Combination”). Prior to the consummation of the Business Combination, OneSpaWorld was a wholly-owned subsidiary of Steiner Leisure. On the Business Combination Date, OneSpaWorld became the ultimate parent company of Haymaker and OSW Predecessor (“OSW”).

Haymaker was organized as a blank check company incorporated in Delaware on April 27, 2017 and was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. On October 27, 2017, Haymaker consummated an initial public offering (“IPO”) of its Class A common shares (the “Haymaker Class A Shares”), generating gross proceeds of approximately $300,000,000. The net proceeds from the IPO were subsequently placed in a trust account for the intended purpose of being applied toward consummating a business combination.

OSW is comprised of the net assets and operations of (i) the following wholly-owned subsidiaries of Steiner Leisure: OneSpaWorld LLC, Steiner Spa Asia Limited, Steiner Spa Limited, and Steiner Marks Limited, (ii) the following respective indirect subsidiaries of Steiner Leisure: Mandara PSLV, LLC, Mandara Spa (Hawaii), LLC, Florida Luxury Spa Group, LLC, Steiner Transocean U.S., Inc., Steiner Spa Resorts (Nevada), Inc., Steiner Spa Resorts (Connecticut), Inc., Steiner Resort Spas (California), Inc., Steiner Resort Spas (North Carolina), Inc., OSW SoHo LLC, OSW Distribution LLC, Steiner Training Limited, STO Italy S.r.l., One Spa World LLC, Mandara Spa Services LLC, OneSpaWorld Limited, OneSpaWorld (Bahamas) Limited (formerly known as Steiner Transocean Limited), OneSpaWorld Medispa LLC, OneSpaWorld Medispa Limited, OneSpaWorld Medispa (Bahamas) 

Limited, Mandara Spa (Cruise I), LLC, Mandara Spa (Cruise II), LLC, Steiner Transocean (II) Limited, The Onboard Spa by Steiner (Shanghai) Co., Ltd., Mandara Spa LLC, Mandara Spa Puerto Rico, Inc., Mandara Spa (Guam), L.L.C., Mandara Spa (Bahamas) Limited, Mandara Spa Aruba N.V., Mandara Spa Polynesia Sarl, Mandara Spa (Saipan), Inc., Mandara Spa Asia Limited, PT Mandara Spa Indonesia, Spa Services Asia Limited, Mandara Spa Palau, Mandara Spa (Malaysia) Sdn. Bhd., Mandara Spa Ventures International Sdn. Bhd., Spa Partners (South Asia) Limited, Mandara Spa (Maldives) PVT LTD, and Mandara Spa (Fiji) Limited, (iii) Medispa Limited, a majority-owned subsidiary of Steiner Leisure, and (iv) the timetospa website owned by Elemis USA, Inc. (formerly known as Steiner Beauty Products, Inc.).

The Business Combination was accounted for using the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”). Haymaker was deemed to be the accounting acquirer and OSW the accounting acquiree. As a result, the post-Business Combination financial statements of OneSpaWorld reflect the new basis of accounting for OSW.

Transaction costs, consisting primarily of debt issuance costs of $6,492,000 are recorded as deferred financing costs in the accompanying consolidated balance sheet. Under ASC 805, acquisition-related transaction costs are not included as a component of consideration transferred but are accounted for as expenses in the period in which such costs are incurred, or, if related to the issuance of debt or equity, capitalized as debt issuance costs or recorded as a reduction in proceeds to additional paid-in capital, respectively. Acquisition-related transaction costs incurred as part of a business combination include estimated fees related to the issuance of long-term debt, underwriting fees, as well as advisory, legal and accounting fees.    

Upon completion of the Business Combination, the Haymaker selling stockholders received an aggregate 31,713,387 common shares, par value $0.0001, of OneSpaWorld (the “OneSpaWorld Shares”), with each Haymaker stockholder receiving one OneSpaWorld Share in exchange for each Haymaker Class A Common Share. In addition, each warrant to purchase a Haymaker Class A Common Share (the “Haymaker Warrants”) became exercisable for one OneSpaWorld Share, on the same terms and conditions as those applicable to the warrants to purchase the Haymaker Class A Shares. Also, 3,000,000 OneSpaWorld Shares, and the right to receive 1,600,000 OneSpaWorld Shares upon the occurrence of certain events, were issued to Haymaker Sponsor and the other former holders of Haymaker Class B common shares (the “Founder Shares”) in exchange for such shares, and the Haymaker Warrants held by Haymaker Sponsor became exercisable for 3,408,186 OneSpaWorld Shares.

The consideration paid to Steiner Leisure in connection with the Business Combination consisted of (i) 14,155,274 OneSpaWorld Shares (ii) warrants to purchase 1,486,520 OneSpaWorld Shares, (iii) $711,292 in cash and (iv) the right to receive an additional 5,000,000 OneSpaWorld Shares upon the occurrence of certain events.

The OSW acquisition is recorded on our condensed consolidated balance sheet as of March 19, 2019 based upon estimated fair values as of such date.

The preliminary computations of consideration and the allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed is presented in the table below (in thousands):

Cash consideration	$	711,292
Equity consideration		167,300
Total consideration transferred	$	878,592
Cash and cash equivalents	$	14,638
Accounts receivable		23,673
Inventories		34,150
Other current assets		6,756
Property and equipment		26,253
Intangible assets		633,300
Other noncurrent assets		6,818
Deferred tax asset		8,407
Current liabilities		(64,517	)
Deferred tax liabilities		(77	)
Other long-term liabilities		(4,563	)
Non-controlling interest		(5,625	)
Net assets acquired	$	679,213
Excess purchase price attributable to goodwill	$	199,379

Identifiable intangible assets consist of retail concession agreements, favorable lease agreements, a trade name and a licensing agreement.

	Fair Value		Useful Life (years)
Retail concession agreements	$	604,800		39
Lease agreements		21,100
Trade names		5,900		Indefinite
Licensing agreement		1,500		License agreement expiration
	$	633,300

The valuation of the assets acquired and liabilities assumed was based on fair values at the Business Combination Date. The preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed reflect various preliminary fair value estimates and analyses, including preliminary work performed by third-party valuation specialists, which are subject to change within the measurement period as valuations are finalized. The primary areas of the preliminary purchase price allocations that are not yet finalized relate to the fair values of certain tangible assets acquired and liabilities assumed, the valuation of intangible assets acquired, income and non-income based taxes and goodwill. The Company expects to continue to obtain information to assist in determining the fair value of the net assets acquired at the Business Combination Date during the measurement period.

Measurement period adjustments that the Company determines to be material will be applied retrospectively to the Business Combination Date. However, given the circumstances of this acquisition which closed during the first quarter of fiscal 2019, as well as the size and complexity of the transaction, the entire purchase price allocation disclosed herein is considered provisional at this time and subject to adjustment to reflect new information obtained about factors and circumstances that existed as of the Business Combination Date that if known would have affected the measurement of the amounts recognized as of that date, while the measurement period remains open.

We recorded identifiable intangible assets of $633.3 million related to retail concession agreements, lease agreements, trade names and a licensing agreement. Retail concession agreements and lease agreements (collectively, “agreements”) were valued through application of the multi-period excess earnings method. Under this method, revenues, operating expenses and other costs associated with these agreements were estimated in order to derive cash flows attributable to the existing agreements. The resulting cash flows were then discounted to present value at rates reflective of the risk and return expectations of the agreements to arrive at the fair value of the agreements as of the Business Combination Date. The Company has determined the estimated useful lives of the retail concession agreements and lease agreements based on the projected economic benefits associated with these interests. The trade names and licensing agreement were valued through application of the relief from royalty method. Under this method a royalty rate is applied to the revenues associated with the trade name to capture value associated with use of the name as if licensed. The resulting royalty savings are then discounted to present value at rates reflective of the risk and return expectations of the interests to derive their respective fair values as of the Business Combination Date. The Company has determined that the trade name is preliminarily estimated to have an indefinite useful life while the licensing agreement life is estimated based on the projected economic benefits associated with this interest.

The preliminary allocation of the purchase consideration to property and equipment was based on the fair value of such assets determined using the trending method of the cost approach. The fair value of the inventory was determined through use of the replacement cost approach.

Goodwill represents the excess of the total purchase consideration over the fair value of the underlying net assets, largely arising from the workforce and extensive distribution network that has been established by OSW. Goodwill is assigned to the Maritime and Destination Resorts reporting units expected to benefit from the combination as of the Business Combination Date.

Noncontrolling interest was based on the fair value using a discounted cash flow method of the income approach.

The following information represents the unaudited supplemental pro forma results of the Company’s condensed consolidated statement of operations as if the Business Combination occurred on January 1, 2018, after giving effect to certain adjustments, including depreciation and amortization of the assets acquired and liabilities assumed based on their estimated fair values and changes in interest expense resulting from changes in debt (in thousands):

	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Revenues	$	137,466		$	128,894
Net (loss) income	$	(46,506	)	$	1,122

The pro forma information does not purport to be indicative of what the Company’s results of operations would have been if the Business Combination had in fact occurred at the beginning of the period presented and is not intended to be a projection of the Company’s future results of operations.

Financial information prior to the Business Combination Date is referred to as “Predecessor” company information, which reflects the combined financial statements of OSW prepared using OSW’s previous combined basis of accounting. The financial information beginning March 20, 2019 is referred to as “Successor” company information and reflects the consolidated financial statements of OneSpaWorld, including the financial statement effects of recording fair value adjustments and the capital structure resulting from the Business Combination. Black lines have been drawn to separate the Successor’s financial information from that of the Predecessor since their financial statements are not comparable as a result of the application of acquisition accounting and the Company’s capital structure resulting from the Business Combination.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

a) Basis of Presentation, Principles of Consolidation and Principles of Combination

Successor:

The accompanying unaudited condensed consolidated financial statements as of and for the period March 20, 2019, to March 31, 2019, includes the condensed consolidated balance sheet, and statement of operations, comprehensive (loss) income, changes in equity, and cash flows of OneSpaWorld. All significant intercompany items and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been omitted pursuant to the SEC’s rules and regulations. However, management believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments (which are of a normal recurring nature) necessary to present fairly our unaudited financial position, results of operations and cash flows. The unaudited results of operations and cash flows for the period from March 20, 2019 to March 31, 2019 are not necessarily indicative of the results of operations or cash flows that may be expected for the remainder of 2019. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Predecessor:

The condensed combined OSW financial statements (the “OSW financial statements”) include the accounts of the wholly-owned and indirect subsidiaries of Steiner Leisure listed in Note 1 and include the accounts of a company majority-owned by OneSpaWorld Medispa (Bahamas) Limited, in which OneSpaWorld (Bahamas) Limited  (100% owner of OneSpaWorld Medispa (Bahamas) Limited) had a controlling interest. The OSW condensed combined financial statements also include the accounts and results of operations associated with the timetospa.com website owned by Elemis USA, Inc. The OSW condensed financial statements do not represent the financial position and results of operations of a legal entity but rather a combination of entities under common control of Steiner Leisure that have been “carved out” of the Steiner Leisure consolidated financial statements and reflect significant assumptions and allocations. All significant intercompany transactions and balances have been eliminated in combination. The accompanying condensed combined OSW financial statements may not be indicative of what they would have been had OSW actually been a separate stand-alone entity.

The accompanying condensed combined OSW financial statements include the assets, liabilities, revenues and expenses specifically related OSW’s operations. OSW receives services and support from various functions performed by Steiner Leisure and costs associated with these functions have been allocated to OSW. These allocations are necessary to reflect all of the costs of doing business and include costs related to certain Steiner Leisure corporate functions, including, but not limited to, senior management, legal, human resources, finance, IT and other shared services that have been allocated to OSW based on direct usage or benefit where identifiable, with the remainder allocated on a pro rata basis determined by an estimate of the percentage of time Steiner Leisure employees devoted to OSW, as compared to total time available or by the headcount of employees at Steiner Leisure corporate headquarters that are fully dedicated to the OSW entities in relation to the total employee headcount. These allocated costs are reflected in salary and payroll taxes and administrative expenses in the accompanying condensed combined OSW statements of operations. Management considers these allocations to be a reasonable reflection of the utilization of services by or benefit provided to OSW. However, the allocations may not be indicative of the actual expenses that would have been incurred had OSW operated as an independent, stand-alone entity.

Net Parent investment represents the Steiner Leisure controlling interest in the recorded net assets of OSW, specifically, the cumulative net investment by Steiner Leisure in OSW and cumulative operating results through the date presented. The net effect of the settlement of transactions between OSW, Steiner Leisure, and other affiliates of Steiner Leisure are reflected in the accompanying condensed combined statements of cash flows as a financing activity and in the condensed combined balance sheet as Net Parent investment.

Certain expenses and operating costs were paid by Steiner Leisure on behalf of OSW. The Parent has paid on behalf of OSW expenses associated with the allocation of Steiner Leisure corporate overhead and costs associated with the purchase of products from related parties. The operating cash flows for the year ended December 31, 2018 exclude OSW expenses and operating costs paid by Steiner Leisure on behalf of OSW. Consequently, OSW’s historical cash flows may not be indicative of cash flows had OSW actually been a separate stand-alone entity or future cash flows of OSW.

As of December 31, 2018, OSW had assumed long-term debt of the Parent. Such debt was paid-off by the Parent on behalf of OSW during the Predecessor period from January 1, 2019 to March 19, 2019.

Refer to Note 4 for more information on long-term debt.

Management believes the assumptions and allocations underlying the accompanying condensed combined OSW financial statements and notes to the OSW condensed combined financial statements are reasonable, appropriate and consistently applied for the periods presented. Management believes the accompanying condensed combined OSW financial statements reflect all costs of doing business.

The accompanying OSW condensed combined financial statements have been prepared in conformity with U.S. GAAP.

b) Emerging Growth Company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”). As modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), the Company may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemption from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, section 102(b) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Act) are required to comply with new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt-out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election is irrevocable. The Company has elected not to opt-out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company, which is neither an emerging growth company nor an emerging growth company, which has opted-out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used.

c) 2019 Equity Incentive Plan

The Company’s board of directors approved the 2019 Equity Incentive Plan (the “2019 Plan”) on March 18, 2019 and our shareholders approved the 2019 Plan on March 18, 2019. The purpose of the 2019 Plan is to make available incentives that will assist the Company to attract, retain, and motivate employees, including officers, consultants and directors. The Company may provide these incentives through the grant of share options, share appreciation rights, restricted shares, restricted share units, performance shares and units and other cash-based or share-based awards. Awards may be granted under the 2019 Plan to OneSpaWorld employees, including officers, directors or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. A total of 7,000,000 OneSpaWorld Shares have been authorized and reserved for issuance under the 2019 Plan.

On March 26, 2019 (the “Grant Date”), a total of 4,547,076 options were granted by the Company under the 2019 Plan to executive officers of the Company. The options have an exercise price of $12.99 and expire on the sixth anniversary of the Grant Date. The options were 100% vested on the Grant Date. The options become exercisable upon the five day volume weighted average price of OneSpaWorld common shares reaching $20.00 per share. The aggregate Grant Date fair value of the options was estimated to be $20,370,900, resulting in stock-based compensation of $20,370,900 being recognized by the Company in the period from March 20, 2019 to March 31, 2019 (Successor) in accordance with FASB Accounting Standards Codification (ASC) Topic 718, Compensation – Stock Compensation. The Grant Date fair value of the options was estimated by a third party valuation specialist using a Monte Carlo simulation in a risk-neutral framework assuming Geometric Motion, 2,500,000 trials, and using the following assumptions:

Hurdle price per share	$	20.00
Strike price per share	$	12.00
Average period for hurdle price, in days		5
End of simulation term		3/19/2025
Term of simulation		6.00 years
Stock price as of the Measurement Date	$	11.85
Volatility		37.5	%
Risk-free rate (continuous)		2.4	%
Dividend yield (quarterly after 3 years)		3.0	%
Suboptimal exercise multiple		2.8x

d) Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs, which do not add to the value of the related assets or materially extend their original lives, are expensed as incurred. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized in a straight-line basis over the shorter of the terms of the respective leases and the estimated useful lives of the respective assets. Depreciation and amortization expense for the periods from March 20, 2019 to March 31, 2019 (Successor), January 1, 2019 to March 19, 2019 (Predecessor) and the three months ended March 31, 2018 (Predecessor) was $0.3 million, $1.2 million and $1.5 million, respectively.

e) Income Taxes

Successor:

As part of the process of preparing the condensed consolidated financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. This process involves estimating the Company’s actual current income tax exposure together with an assessment of temporary differences resulting from differing treatment of items for tax purposes and accounting purposes, respectively. These differences result in deferred income tax assets and liabilities which are included in the accompanying condensed consolidated balance sheet. The Company must then assess the likelihood that its deferred income tax assets will be recovered from future taxable income and, to the extent that the Company believes that recovery is not likely, the Company must establish a valuation allowance.

Predecessor:

OSW accounts for income taxes under the separate return method of accounting. This method requires the allocation of current and deferred taxes to OSW as if it were a separate taxpayer. Under this method, the resulting portion of current income taxes payable that is not actually owed to the tax authorities is written-off through net Parent investment. Accordingly, income taxes payable in the accompanying condensed combined balance sheet as of December 31, 2018 (Predecessor) reflects current income tax amounts actually owed to the tax authorities as of those dates, as well as the accrual for uncertain tax positions. The write-off of current income taxes payable not actually owed to the tax authorities is included in net Parent investment in the accompanying condensed combined balance sheet as of December 31, 2018 (Predecessor).

f) Loss Per Share

Basic earning (loss) per share is computed by dividing net (loss) income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of diluted shares, as calculated under the treasury stock method, which includes the potential effect of dilutive common stock equivalents, such as options and warrants to purchase common shares. If the entity reports a net loss, rather than net income for the period, the computation of diluted loss per share excludes the effect of dilutive common stock equivalents, as their effect would be anti-dilutive.

The following table provides details underlying OneSpaWorld’s loss per basic and diluted share calculation for the period from March 20, 2019 to March 31, 2019 (Successor) (in thousands):

	March 20, 2019 to March 31, 2019
Net loss attributable to common shareholders – basic and diluted (a)	$	(22,683	)
Weighted average shares outstanding – basic and diluted		61,118
Loss per share:
Basic and diluted	$	(0.37	)

(a) Calculated as total net loss less amounts attributable to noncontrolling interest.

 For the period from March 20, 2019 to March 31, 2019, potential common shares under the treasury stock method and the if-converted method were antidilutive because the Company reported a net loss in this period. Consequently, the Company did not have any adjustments in these periods between basic and diluted loss per share related to stock options and warrants.

The table below presents the weighted-average number of antidilutive potential common shares that are not considered in the calculation of diluted loss per share (in thousands):

	Successor
	March 20, 2019 to March 31, 2019
Common stock warrants		27,605
Employee stock options		4,547
		32,152

g) Subsequent Events

The Company has evaluated all subsequent events for potential recognition and disclosure after March 31, 2019, the date of the condensed consolidated balance sheet, and there are none.

h) Intangible Assets and Goodwill

As a result of the Business Combination on March 19, 2019, and the related application of acquisition accounting, the Company completed a preliminary valuation of the identifiable intangible assets as of that date. As of March 31, 2019 (Successor), the trade name intangible assets, the Company’s only identified intangible asset with an indefinite life, and goodwill had carrying values of $5.9 million and $199.4 million, respectively. As of March 31, 2019, the definite-lived intangible assets had a carrying value of $626.8 million.

Prior to the Business Combination and application of acquisition accounting, the trade name intangible asset, goodwill, and the definite-lived intangible assets had carrying values of $5.0 million, $33.9 million, and $126.5 million, respectively, as of December 31, 2018 (Predecessor).

The Company amortizes intangible assets with definite lives on a straight-line basis over their estimated useful lives. Amortization expense related to intangible assets for the periods from March 20, 2019 to March 31, 2019 (Successor), January 1, 2019 to March 19, 2019 (Predecessor) and the three months ended March 31, 2018 (Predecessor) was $0.6 million, $0.8 million and $0.9 million, respectively. Amortization expense is estimated to be $17.8 million in each of the next five years beginning in 2019.

Contracts with cruise lines are generally renewed every five years. The Company has the intent and ability to renew such contracts over the estimated useful lives of the assets. Costs incurred to renew contracts are capitalized and amortized to cost of revenues and operating expenses over the term of the contract.

At March 31, 2019 (Successor), the cost, accumulated amortization, and net balance of the definite-lived intangible assets were as follows (in thousands):

Successor:	Cost		Accumulated Amortization			Net Balance		Weighted Average Remaining Useful Life (yrs.)
Contract installments	$	604,800	$	(518	)	$	604,282	39
Lease agreements		22,600		(64	)		22,536	10
	$	627,400	$	(582	)	$	626,818

At December 31, 2018 (Predecessor), the cost, accumulated amortization, and net balance of the definite-lived intangible assets were as follows (in thousands):

Predecessor:	Cost		Accumulated Amortization			Net Balance		Weighted Average Remaining Useful Life (yrs.)
Contract installments	$	130,000	$	(10,210	)	$	119,790	36
Lease agreements		7,300		(573	)		6,727	36
	$	137,300	$	(10,783	)	$	126,517

i) Recent Accounting Pronouncements

With the exception of those discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2018 that are of significance, or potential significance, to the Company based on its current operations. The following summary of recent accounting pronouncements is not intended to be an exhaustive description of the respective pronouncement.

In May 2014, the FASB issued ASU 2014-09. The core principle of the guidance in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry specific guidance throughout the Industry Topics of the ASC. Additionally, ASU 2014-09 supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts.

In periods subsequent to the initial issuance of this ASU, the FASB has issued additional ASU’s clarifying items within Topic 606, as follows:

• In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations” (“ASU 2016-08”). The amendments in ASU 2016-08 serve to clarify the implementation guidance on principal versus agent considerations.

• In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (“ASU 2016-10”). The purpose of ASU 2016-10 is to clarify two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance (while retaining the related principles for those areas).

• In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2016-12”). The purpose of ASU 2016-12 is to address certain issues identified to improve Topic 606 by enhancing guidance on assessing collectability, presentation of sales taxes and other similar taxes collected from customers, non-cash consideration and completed contracts and contract modifications at transition.

The FASB issued updates ASU 2016-08, ASU 2016-10 and ASU 2016-12 to provide guidance to improve the operability and understandability of the implementation guidance included in ASU 2014-09. ASU 2016-08, ASU 2016-10 and ASU 2016-12 have the same effective date and transition requirements of ASU 2015-14, which defers the effective date and transition of ASU 2014-09 annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt this standard, other related revenue standard clarifications and technical guidance effective for the annual period ending December 31, 2019 and quarterly periods beginning January 1, 2020. The Company has elected the modified retrospective transition approach. Under this method, the standard will be applied only to the most current period presented and the cumulative effect of applying the standard will be recognized at the date of initial application. The Company is progressing through its implementation plan and is continuing to evaluate the impact of the standard on its processes, accounting systems, controls and financial disclosures. The Company is not able to determine at this time if the adoption of this guidance will have a material impact on the Company’s consolidated and combined financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) to increase transparency and comparability among organizations by recognizing rights and obligations resulting from leases as lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The update requires lessees to recognize for all leases with a term of 12 months or more at the commencement date: (a) a lease liability or a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset or a lessee’s right to use or control the use of a specified asset for the lease term. Under the update, lessor accounting remains largely unchanged. The update requires a modified retrospective transition approach for leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements and do not require any transition accounting for leases that expire before the earliest comparative period presented. The update is effective retrospectively for annual periods beginning after December 15, 2019, and interim periods beginning after December 15, 2020, with early adoption permitted. The Company is not able to determine at this time if the adoption of this guidance will have a material impact on the Company’s consolidated and combined financial statements.

j) Accounting for Business Combinations

In accordance with ASC Topic 805, “Business Combinations,” when accounting for business combinations we are required to recognize the assets acquired, liabilities assumed, contractual contingencies, noncontrolling interests and contingent consideration at their fair value as of the acquisition date.

The purchase price allocation process requires management to make significant estimates and assumptions with respect to intangible assets and/or pre-acquisition contingencies, all of which ultimately affect the fair value of goodwill established as of the acquisition date. Goodwill acquired in business combinations is assigned to the reporting unit(s) expected to benefit from the combination as of the acquisition date and is then subsequently tested for impairment at least annually.

As part of our accounting for business combinations we are required to determine the useful lives of identifiable intangible assets recognized separately from goodwill. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to the future cash flows of the acquired business. An intangible asset with a finite useful life shall be amortized; an intangible asset with an indefinite useful life shall not be amortized. We base the estimate of the useful life of an intangible asset on an analysis of all pertinent factors, including but not limited to the expected use of the asset, the expected useful life of another asset or a group of assets to which the useful life of the intangible asset may relate, any legal, regulatory, or contractual provisions that may limit the useful life, our own historical experience in renewing or extending similar arrangements, consistent with our intended use of the asset, regardless of whether those arrangements have explicit renewal or extension provisions, the effects of obsolescence, demand, competition, and other economic factors, and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. If no legal, regulatory, contractual, competitive, economic, or other factors limit the useful life of an intangible asset to the reporting entity, the useful life of the asset shall be considered to be indefinite. The term indefinite does not mean the same as infinite or indeterminate. The useful life of an intangible asset is indefinite if that life extends beyond the foreseeable horizon—that is, there is no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the acquired business.

Although we believe the assumptions and estimates we have made have been reasonable and appropriate, they are based in part on historical experience and information obtained from the management of the acquired entity and are inherently uncertain. Examples of critical estimates in accounting for acquisitions include but are not limited to the future expected cash flows from sales of products and services and related contracts and agreements; and discount and long-term growth rates. Unanticipated events and circumstances may occur which could affect the accuracy or validity of our assumptions, estimates or actual results.

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ACCRUED EXPENSES

3 Months Ended

Mar. 31, 2019

Accrued Expenses

3. ACCRUED EXPENSES

Accrued expenses consisted of the following (in thousands):

	Successor		Predecessor
	As of		As of
	March 31,		December 31,
	2019		2018
Operative commissions	$	4,505	$	4,663
Minimum cruise line commissions		5,449		5,648
Payroll and bonuses		2,913		5,037
Interest		533		2,513
Other		11,312		9,350
	$	24,712	$	27,211

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LONG-TERM DEBT

3 Months Ended

Mar. 31, 2019

LONG-TERM DEBT

4. LONG-TERM DEBT

Successor:

On March 19, 2019, the Company entered into (i) senior secured first lien credit facilities (the “First Lien Credit Facilities”) with Goldman Sachs Lending Partners LLC, as administrative agent, and certain lenders, consisting of (x) a term loan facility of $208.5 million (of which $20 million was borrowed by a subsidiary of the Company) (the “First Lien Term Loan Facility”), (y) a revolving loan facility of up to $20 million (the “First Lien Revolving Facility”) and (z) a delayed draw term loan facility of $5 million (the “First Lien Delayed Draw Facility”), and (ii) a senior secured second lien term loan facility of $25 million (the “Second Lien Term Loan Facility” and, together with the First Lien Term Loan Facility, the “Term Loan Facilities”; the New Term Loan Facilities, together with the First Lien Revolving Facility and the First Lien Delayed Draw Facility, are referred to as the “New Credit Facilities”) with Cortland Capital Market Services LLC, as administrative agent, and Neuberger Berman Alternative Funds, Neuberger Berman Long Short Fund, as lender. The New First Lien Revolving Facility included borrowing capacity available for letters of credit up to $5 million. Any issuance of letters of credit reduces the amount available under the New First Lien Revolving Facility. The New First Lien Term Loan Facility matures seven years after March 19, 2019, the New First Lien Revolving Facility matures five years after March 19, 2019 and the New Second Lien Term Loan Facility matures eight years after March 19, 2019.

Loans outstanding under the First Lien Credit Facilities will accrue interest at a rate per annum equal to LIBOR plus a margin of 4.00%, with one step down to 3.75% upon achievement of a certain leverage ratio, and undrawn amounts under the First Lien Revolving Facility will accrue a commitment fee at a rate per annum of 0.50% on the average daily undrawn portion of the commitments thereunder, with one step down to 0.325% upon achievement of a certain leverage ratio. Loans outstanding under the Second Lien Term Loan Facility will accrue interest at a rate per annum equal to LIBOR plus 7.50%.

The obligations under the Credit Facilities are guaranteed by the Company and each of its direct or indirect wholly-owned subsidiaries organized under the laws of the United States and the Commonwealth of The Bahamas, in each case, other than certain excluded subsidiaries, including, but not

limited to, immaterial subsidiaries, non-profit subsidiaries, and any other subsidiary with respect to which the burden or cost of providing a guarantee is excessive in view of the benefits to be obtained by the lenders therefrom.

The Term Loan Facilities require the Company to make certain mandatory prepayments, with (i) 100% of net cash proceeds of all non-ordinary course asset sales or other dispositions of property, subject to the ability to reinvest such proceeds and certain other exceptions, and subject to step downs if certain leverage ratios are met and (ii) 100% of the net cash proceeds of any debt incurrence, other than debt permitted under the definitive agreements (but excluding debt incurred to refinance the Credit Facilities). The Company also is required to make quarterly amortization payments equal to 0.25% of the original principal amount of the First Lien Term Loan Facility commencing after the first full fiscal quarter after the closing date of the Credit Facilities (subject to reductions by optional and mandatory prepayments of the loans). The Company may prepay (i) the First Lien Credit Facilities at any time without premium or penalty, subject to payment of customary breakage costs and a customary “soft call,” and (ii) the Second Lien Term Loan Facility at any time without premium or penalty, subject to a customary make-whole premium for any voluntary prepayment prior to the date that is 30 months following the closing date of the Credit Facilities (the “Callable Date”), following by a call premium of (x) 4.0% on or prior to the first anniversary of the Callable Date, (y) 2.50% after the first anniversary but on or prior to the second anniversary of the Callable Date, and (z) 1.50% after the second anniversary but on or prior to the third anniversary of the Callable Date.

The First Lien Revolving Facility contains a financial covenant and the Credit Facilities contain a number of traditional negative covenants including negative covenants related to the following subjects: consolidations, mergers, and sales of assets; limitations on the incurrence of certain liens; limitations on certain indebtedness; limitations on the ability to pay dividends; and certain affiliate transaction.

The Credit Facilities also contain certain customary representations and warranties, affirmative covenants and events of default. If an event of default occurs, the lenders under the Credit Facilities are entitled to take various actions, including the acceleration of amounts due under the Credit Facilities and all actions permitted to be taken by a secured creditor, subject to customary intercreditor provisions among the first and second lien secured parties.

Predecessor:

On January 11, 2018, the Company entered into an assignment and assumption of third-party debt (the “Term Credit Agreement”) of $356.2 million from the Parent with a maturity date on December 9, 2021. Long-term debt is presented net of related unamortized deferred financing costs of $3.7 million on the condensed combined balance sheet as of December 31, 2018. The interest rate on the Term Credit Agreement was based on (at the Parent’s election) either LIBOR plus a predetermined margin that ranged from 7.00% to 7.50%, or the base rate as defined in the Term Credit Agreement plus a predetermined margin that ranged from 6.00% to 6.50%, in each case based on the Parent’s consolidated total leverage ratio. At December 31, 2018, the Parent elected the LIBOR rate and the applicable margin was 7.25% per annum.

On March 1, 2019, all amounts due under the Term Credit Agreement were paid off in full by the Parent on behalf of OSW. This resulted in a loss on extinguishment of debt to OSW of $3,413,000, representing the write-off of unamortized deferred financing costs, which is recorded in other income (expense) in the accompanying condensed combined statements of operations for the period from January 1, 2019 to March 19, 2019 (Predecessor).

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PRIVATE PLACEMENT

3 Months Ended

Mar. 31, 2019

PRIVATE PLACEMENT

5. PRIVATE PLACEMENTS

On November 1, 2018, the Company entered into certain subscription agreements (the “Subscription Agreements”) with the certain investors pursuant to which, among other things, such investors agreed to subscribe for and purchase, and OneSpaWorld agreed to issue and sell to such investors newly issued 17,856,781 OneSpaWorld Shares and 3,105,294 OneSpaWorld Warrants for gross proceeds of approximately $122,496,370 (the “Private Placements”).

On March 19, 2019, OneSpaWorld completed the sales of 17,856,781 OneSpaWorld Shares and 3,105,294 OneSpaWorld Warrants to such investors as contemplated by the Subscription Agreements. The proceeds from the Private Placements were used to fund a portion of the cash payment payable in connection with the consummation of the Business Combination.

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EQUITY

3 Months Ended

Mar. 31, 2019

EQUITY

6. EQUITY

Common Shares

The Company is authorized to issue 250,000,000 common shares with a par value of $0.0001 per share. Holders of the Company’s common stock are entitled to one vote for each share. At March 31, 2019, there were 61,118,298 shares of OneSpaWorld common stock issued and outstanding.

Public Warrants

Each whole Public Warrant is exercisable to purchase one share of common stock and only whole warrants are exercisable. The Public Warrants will become exercisable on the later of 30 days after the completion of the Business Combination. Each whole Public Warrant entitles the holder to purchase one share of OneSpaWorld common stock at an exercise price of $11.50.

Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of shares of OneSpaWorld common stock. This means that only a whole warrant may be exercised at any given time by a warrant holder. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Accordingly, unless the holder purchases at least two units, the holder will not be able to receive or trade a whole warrant. The warrants will expire five years after the date of the Business Combination or earlier upon redemption or liquidation.

If the shares issuable upon exercise of the warrants are not registered under the Securities Act within 60 business days following the Business Combination, the Company will be required to permit holders to exercise their warrants on a cashless basis. However, no warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, unless an exemption is available. In the event that the conditions in the immediately preceding sentence are not satisfied with respect to a warrant, the holder of such warrant will not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In no event will the Company be required to net cash settle any warrant. In the event that a registration statement is not effective for the exercised warrants, the purchaser of a unit containing such warrant will have paid the full purchase price for the unit solely for the share of OneSpaWorld common stock underlying such unit.

The Company filed with the SEC a registration statement for the registration, under the Securities Act, of the shares of OneSpaWorld common stock issuable upon exercise of the warrants. This registration statement has since been declared effective by the SEC. The Company will use its reasonable efforts to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the warrants in accordance with the provisions of the warrant agreement. Notwithstanding the above, if the Company’s common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may,

at its option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but the Company will be required to use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

Once the warrants become exercisable, the Company may call the warrants for redemption:

• in whole and not in part;

• at a price of $0.01 per warrant;

• upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and

• if, and only if, the reported last sale price of the Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders.

Private Placement Warrants

Certain investors (the “Investors’) purchased an aggregate of 3,105,294 Private Placement Warrants at a price of $1.00 per whole warrant in a private placement that occurred simultaneously with the closing of the Business Combination. Each whole Private Placement Warrant is exercisable for one whole share of OneSpaWorld common stock at a price of $11.50 per share. The proceeds from the purchase of the Private Placement Warrants was used to fund a portion of the cash payment payable in connection with the consummation of the Business Combination. The Private Placement Warrants will be non-redeemable and exercisable on a cashless basis so long as they are held by the Investors or their permitted transferees.

The Private Placement Warrants (including the OneSpaWorld common stock issuable upon exercise of the Private Placement Warrants) will not be transferable, assignable or saleable until 30 days after the Business Combination and they will not be redeemable so long as they are held by the Investors or their permitted transferees. Otherwise, the Private Placement Warrants have terms and provisions that are identical to those of the Redeemable Warrants, including as to exercise price, exercisability and exercise period. If the Private Placement Warrants are held by holders other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by the holders on the same basis the Redeemable Warrants. If holders of the Private Placement Warrants elect to exercise them on a cashless basis, they would pay the exercise price by surrendering their warrants for that number of shares of OneSpaWorld common stock equal to the quotient obtained by dividing (x) the product of the number of shares of OneSpaWorld common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below) by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the Class A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent. The Company’s Sponsor has agreed not to transfer, assign or sell any of the Private Placement Warrants (including the OneSpaWorld common stock issuable upon exercise of any of these warrants) until the date that is 30 days after the date the Company completes its Business Combination.

Registration Rights Agreement

On March 19, 2019, in connection with the closing of the Business Combination (the “Closing”), OneSpaWorld, Steiner Leisure and Haymaker Sponsor, LLC (“Haymaker Sponsor”), entered into a Registration Rights Agreement (the “Registration Rights Agreement”). The Registration Rights Agreement provides for customary registration rights, including demand and piggyback rights subject to cut-back provisions. In addition, OneSpaWorld has agreed to use its commercially reasonable efforts to file a shelf registration statement to register Steiner Leisure’s and Haymaker Sponsor’s shares within 45 days of the Closing. At any time, and from time to time, after the shelf registration statement has been declared effective by the Securities and Exchange Commission (“SEC”), Steiner Leisure will be entitled to make up to three demands per year, and Haymaker Sponsor will be entitled to make up to three demands per year, that a resale of shares of OneSpaWorld reasonably expected to exceed $10,000,000 in gross offering price pursuant to such shelf registration statement be made pursuant to an underwritten offering. Pursuant to the Registration Rights Agreement, Steiner Leisure and Haymaker Sponsor will agree not to sell, transfer, pledge or otherwise dispose of their OneSpaWorld Shares (as defined in the Registration Rights Agreement) during the seven days before and 90 days after the pricing of any underwritten offering of OneSpaWorld, subject to certain exceptions, and Steiner Leisure and Haymaker Sponsor will enter into a customary lock-up agreement to such effect. Steiner Leisure and Haymaker Sponsor will agree not to assign or delegate their rights, duties or obligations under the Registration Rights Agreement for a period of six months following the Closing, subject to certain exceptions.

Operating Leases

The Company leases office and warehouse space, as well as office equipment and automobiles, under operating leases. The Company also makes certain payments to the owners of the venues where destination resort health and wellness centers are located. Destination resort health and wellness centers generally require rent based on a percentage of revenues. In addition, as part of the rental arrangements for some of the destination resort health and wellness centers, the Company is required to pay a minimum annual rental regardless of whether such amount would be required to be paid under the percentage rent arrangement. Substantially all of these arrangements include renewal options ranging from three to five years. 

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NONCONTROLLING INTEREST

3 Months Ended

Mar. 31, 2019

NONCONTROLLING INTEREST

7. NONCONTROLLING INTEREST

The Company has a 60% controlling interest and a third party has a 40% noncontrolling interest of Medispa Limited, a Bahamian entity that is a subsidiary of the Company. The operations of MediSpa Limited relate to the delivery of non-invasive aesthetic services, provision of related services, and the sale of related products onboard passenger cruise ships and at hotel and resort spas outside the tax jurisdiction of the U.S. As of March 31, 2019 (Successor) and December 31, 2018 (Predecessor), the noncontrolling interest was $5.7 million and $3.6 million, respectively.

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2019

RELATED PARTY TRANSACTIONS

8. RELATED PARTY TRANSACTIONS

Predecessor:

The Company purchased beauty products from wholly-owned subsidiaries of Steiner Leisure for resale to its customers. Inventories on hand related to these purchases and accounts payable owed to the supplier entities related to the purchases were as follows (in thousands):

	Predecessor
	As of
	December 31,
	2018
Inventories	$	17,268
Accounts payable - related parties	$	6,553

The Company entered into a loan agreement with a wholly-owned subsidiary of the Parent (the “Borrower”), for €5.0 million on February 25, 2016. The note receivable is due in full by January 3, 2021 and bears an annual interest rate of 7.50%. The note receivable is accounted for on an amortized cost basis, and interest is recognized using the effective interest rate method. On July 27, 2018, the Parent settled the outstanding principal amount and all accrued interest under this loan agreement.

The Company receives services and support from various functions performed by the Parent. These expenses relate to allocations of Parent corporate overhead. 

Successor:

One Spa World LLC, a subsidiary of OneSpaWorld, entered into a transition services agreement, concurrent with the closing of the Business Combination, with Steiner Management Services, LLC (“SMS”), which became effective at the time of the closing. This agreement provides for the provision by SMS and its affiliates and third-party providers of certain services, including accounting, information technology and legal services, to certain subsidiaries of OneSpaWorld until December 31, 2019 in exchange for approximately $360,000.

OSW Predecessor entered into an Executive Services Agreement, concurrent with the closing of the Business Combination, with Nemo, the ultimate parent of OneSpaWorld, which became effective at the time of the closing. The agreement provides that after the closing of the Business Combination, Leonard Fluxman and Stephen Lazarus are to be made available to provide certain transition services to Nemo Investor Aggregator, Limited, the parent company of Steiner Leisure, until December 31, 2019 in exchange for $850,000.

Predecessor and Successor:

OSW Predecessor entered into a Management Agreement, dated May 25, 2018 and amended and restated October 25, 2018, with Bliss World LLC, an indirect subsidiary of Steiner Leisure, which became effective at the time of the closing of the Business Combination. The agreement provides that OSW Predecessor will manage the operation of nine U.S. health and wellness centers on behalf of Bliss World LLC in exchange for approximately $1.25 million in the aggregate for the year ended December 31, 2019. Subject to certain customary early termination rights, the agreement terminates, with respect to each health and wellness center, upon expiration or termination of the respective lease for each such health and wellness center.

On August 3, 2018, the Company entered into a lease of office space in Coral Gables, Florida (the “Coral Gables Lease”) with an initial lease term of twelve years and options to renew for two periods of five years each. Additionally, on August 3, 2018, the Company entered into a sublease of the Coral Gables Lease with SMS, with an initial term of five years with an annual rent amount of approximately $480,000.

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SEGMENT AND GEOGRAPHICAL INFORMATION

3 Months Ended

Mar. 31, 2019

SEGMENT AND GEOGRAPHICAL INFORMATION

9. SEGMENT AND GEOGRAPHICAL INFORMATION

The Company operates facilities on cruise ships and in destination resort health and wellness centers, which provide health and wellness services and sell beauty products onboard cruise ships and destination resort health and wellness centers. The Company’s Maritime and Destination Resorts operating segments are aggregated into a single reportable segment based upon similar economic characteristics, products, services, customers and delivery methods. Additionally, the Company’s operating segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the chief executive officer, who is the Company’s chief operating decision maker (CODM), in determining how to allocate the Company’s resources and evaluate performance.

The basis for determining the geographic information below is based on the countries in which the Company operates. The Company is not able to identify the country of origin for the customers to which revenues from cruise ship operations relate. Geographic information is as follows (in thousands):

	Successor		Predecessor
	March 20, 2019 to		January 1, 2019		Three Months Ended
	March 31, 2019		March 19, 2019		March 31, 2018
Revenues:
U.S.	$	707	$	6,008	$	6,820
Not connected to a country		17,012		106,886		115,927
Other		1,295		5,558		6,147
Total	$	19,014	$	118,452	$	128,894

	Successor		Predecessor
	As of March 31,		As of December 31,
	2019		2018
Property and equipment, net:
U.S.	$	10,109	$	6,838
Not connected to a country		6,656		2,188
Other		9,216		7,213
Total	$	25,981	$	16,239

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2019

Basis of Presentation, Principles of Consolidation and Principles of Combination

a) Basis of Presentation, Principles of Consolidation and Principles of Combination

Successor:

The accompanying unaudited condensed consolidated financial statements as of and for the period March 20, 2019, to March 31, 2019, includes the condensed consolidated balance sheet, and statement of operations, comprehensive (loss) income, changes in equity, and cash flows of OneSpaWorld. All significant intercompany items and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been omitted pursuant to the SEC’s rules and regulations. However, management believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments (which are of a normal recurring nature) necessary to present fairly our unaudited financial position, results of operations and cash flows. The unaudited results of operations and cash flows for the period from March 20, 2019 to March 31, 2019 are not necessarily indicative of the results of operations or cash flows that may be expected for the remainder of 2019. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Predecessor:

The condensed combined OSW financial statements (the “OSW financial statements”) include the accounts of the wholly-owned and indirect subsidiaries of Steiner Leisure listed in Note 1 and include the accounts of a company majority-owned by OneSpaWorld Medispa (Bahamas) Limited, in which OneSpaWorld (Bahamas) Limited  (100% owner of OneSpaWorld Medispa (Bahamas) Limited) had a controlling interest. The OSW condensed combined financial statements also include the accounts and results of operations associated with the timetospa.com website owned by Elemis USA, Inc. The OSW condensed financial statements do not represent the financial position and results of operations of a legal entity but rather a combination of entities under common control of Steiner Leisure that have been “carved out” of the Steiner Leisure consolidated financial statements and reflect significant assumptions and allocations. All significant intercompany transactions and balances have been eliminated in combination. The accompanying condensed combined OSW financial statements may not be indicative of what they would have been had OSW actually been a separate stand-alone entity.

The accompanying condensed combined OSW financial statements include the assets, liabilities, revenues and expenses specifically related OSW’s operations. OSW receives services and support from various functions performed by Steiner Leisure and costs associated with these functions have been allocated to OSW. These allocations are necessary to reflect all of the costs of doing business and include costs related to certain Steiner Leisure corporate functions, including, but not limited to, senior management, legal, human resources, finance, IT and other shared services that have been allocated to OSW based on direct usage or benefit where identifiable, with the remainder allocated on a pro rata basis determined by an estimate of the percentage of time Steiner Leisure employees devoted to OSW, as compared to total time available or by the headcount of employees at Steiner Leisure corporate headquarters that are fully dedicated to the OSW entities in relation to the total employee headcount. These allocated costs are reflected in salary and payroll taxes and administrative expenses in the accompanying condensed combined OSW statements of operations. Management considers these allocations to be a reasonable reflection of the utilization of services by or benefit provided to OSW. However, the allocations may not be indicative of the actual expenses that would have been incurred had OSW operated as an independent, stand-alone entity.

Net Parent investment represents the Steiner Leisure controlling interest in the recorded net assets of OSW, specifically, the cumulative net investment by Steiner Leisure in OSW and cumulative operating results through the date presented. The net effect of the settlement of transactions between OSW, Steiner Leisure, and other affiliates of Steiner Leisure are reflected in the accompanying condensed combined statements of cash flows as a financing activity and in the condensed combined balance sheet as Net Parent investment.

Certain expenses and operating costs were paid by Steiner Leisure on behalf of OSW. The Parent has paid on behalf of OSW expenses associated with the allocation of Steiner Leisure corporate overhead and costs associated with the purchase of products from related parties. The operating cash flows for the year ended December 31, 2018 exclude OSW expenses and operating costs paid by Steiner Leisure on behalf of OSW. Consequently, OSW’s historical cash flows may not be indicative of cash flows had OSW actually been a separate stand-alone entity or future cash flows of OSW.

As of December 31, 2018, OSW had assumed long-term debt of the Parent. Such debt was paid-off by the Parent on behalf of OSW during the Predecessor period from January 1, 2019 to March 19, 2019.

Refer to Note 4 for more information on long-term debt.

Management believes the assumptions and allocations underlying the accompanying condensed combined OSW financial statements and notes to the OSW condensed combined financial statements are reasonable, appropriate and consistently applied for the periods presented. Management believes the accompanying condensed combined OSW financial statements reflect all costs of doing business.

The accompanying OSW condensed combined financial statements have been prepared in conformity with U.S. GAAP.

Emerging Growth Company

b) Emerging Growth Company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”). As modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), the Company may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemption from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, section 102(b) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Act) are required to comply with new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt-out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election is irrevocable. The Company has elected not to opt-out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company, which is neither an emerging growth company nor an emerging growth company, which has opted-out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used.

2019 Equity Incentive Plan

c) 2019 Equity Incentive Plan

The Company’s board of directors approved the 2019 Equity Incentive Plan (the “2019 Plan”) on March 18, 2019 and our shareholders approved the 2019 Plan on March 18, 2019. The purpose of the 2019 Plan is to make available incentives that will assist the Company to attract, retain, and motivate employees, including officers, consultants and directors. The Company may provide these incentives through the grant of share options, share appreciation rights, restricted shares, restricted share units, performance shares and units and other cash-based or share-based awards. Awards may be granted under the 2019 Plan to OneSpaWorld employees, including officers, directors or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. A total of 7,000,000 OneSpaWorld Shares have been authorized and reserved for issuance under the 2019 Plan.

On March 26, 2019 (the “Grant Date”), a total of 4,547,076 options were granted by the Company under the 2019 Plan to executive officers of the Company. The options have an exercise price of $12.99 and expire on the sixth anniversary of the Grant Date. The options were 100% vested on the Grant Date. The options become exercisable upon the five day volume weighted average price of OneSpaWorld common shares reaching $20.00 per share. The aggregate Grant Date fair value of the options was estimated to be $20,370,900, resulting in stock-based compensation of $20,370,900 being recognized by the Company in the period from March 20, 2019 to March 31, 2019 (Successor) in accordance with FASB Accounting Standards Codification (ASC) Topic 718, Compensation – Stock Compensation. The Grant Date fair value of the options was estimated by a third party valuation specialist using a Monte Carlo simulation in a risk-neutral framework assuming Geometric Motion, 2,500,000 trials, and using the following assumptions:

Hurdle price per share	$	20.00
Strike price per share	$	12.00
Average period for hurdle price, in days		5
End of simulation term		3/19/2025
Term of simulation		6.00 years
Stock price as of the Measurement Date	$	11.85
Volatility		37.5	%
Risk-free rate (continuous)		2.4	%
Dividend yield (quarterly after 3 years)		3.0	%
Suboptimal exercise multiple		2.8x

Property and Equipment

d) Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs, which do not add to the value of the related assets or materially extend their original lives, are expensed as incurred. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized in a straight-line basis over the shorter of the terms of the respective leases and the estimated useful lives of the respective assets. Depreciation and amortization expense for the periods from March 20, 2019 to March 31, 2019 (Successor), January 1, 2019 to March 19, 2019 (Predecessor) and the three months ended March 31, 2018 (Predecessor) was $0.3 million, $1.2 million and $1.5 million, respectively.

Income Taxes

e) Income Taxes

Successor:

As part of the process of preparing the condensed consolidated financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. This process involves estimating the Company’s actual current income tax exposure together with an assessment of temporary differences resulting from differing treatment of items for tax purposes and accounting purposes, respectively. These differences result in deferred income tax assets and liabilities which are included in the accompanying condensed consolidated balance sheet. The Company must then assess the likelihood that its deferred income tax assets will be recovered from future taxable income and, to the extent that the Company believes that recovery is not likely, the Company must establish a valuation allowance.

Predecessor:

OSW accounts for income taxes under the separate return method of accounting. This method requires the allocation of current and deferred taxes to OSW as if it were a separate taxpayer. Under this method, the resulting portion of current income taxes payable that is not actually owed to the tax authorities is written-off through net Parent investment. Accordingly, income taxes payable in the accompanying condensed combined balance sheet as of December 31, 2018 (Predecessor) reflects current income tax amounts actually owed to the tax authorities as of those dates, as well as the accrual for uncertain tax positions. The write-off of current income taxes payable not actually owed to the tax authorities is included in net Parent investment in the accompanying condensed combined balance sheet as of December 31, 2018 (Predecessor).

Loss Per Share

f) Loss Per Share

Basic earning (loss) per share is computed by dividing net (loss) income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of diluted shares, as calculated under the treasury stock method, which includes the potential effect of dilutive common stock equivalents, such as options and warrants to purchase common shares. If the entity reports a net loss, rather than net income for the period, the computation of diluted loss per share excludes the effect of dilutive common stock equivalents, as their effect would be anti-dilutive.

The following table provides details underlying OneSpaWorld’s loss per basic and diluted share calculation for the period from March 20, 2019 to March 31, 2019 (Successor) (in thousands):

	March 20, 2019 to March 31, 2019
Net loss attributable to common shareholders – basic and diluted (a)	$	(22,683	)
Weighted average shares outstanding – basic and diluted		61,118
Loss per share:
Basic and diluted	$	(0.37	)

(a) Calculated as total net loss less amounts attributable to noncontrolling interest.

 For the period from March 20, 2019 to March 31, 2019, potential common shares under the treasury stock method and the if-converted method were antidilutive because the Company reported a net loss in this period. Consequently, the Company did not have any adjustments in these periods between basic and diluted loss per share related to stock options and warrants.

The table below presents the weighted-average number of antidilutive potential common shares that are not considered in the calculation of diluted loss per share (in thousands):

	Successor
	March 20, 2019 to March 31, 2019
Common stock warrants		27,605
Employee stock options		4,547
		32,152

Subsequent Events

g) Subsequent Events

The Company has evaluated all subsequent events for potential recognition and disclosure after March 31, 2019, the date of the condensed consolidated balance sheet, and there are none.

Intangible Assets and Goodwill

h) Intangible Assets and Goodwill

As a result of the Business Combination on March 19, 2019, and the related application of acquisition accounting, the Company completed a preliminary valuation of the identifiable intangible assets as of that date. As of March 31, 2019 (Successor), the trade name intangible assets, the Company’s only identified intangible asset with an indefinite life, and goodwill had carrying values of $5.9 million and $199.4 million, respectively. As of March 31, 2019, the definite-lived intangible assets had a carrying value of $626.8 million.

Prior to the Business Combination and application of acquisition accounting, the trade name intangible asset, goodwill, and the definite-lived intangible assets had carrying values of $5.0 million, $33.9 million, and $126.5 million, respectively, as of December 31, 2018 (Predecessor).

The Company amortizes intangible assets with definite lives on a straight-line basis over their estimated useful lives. Amortization expense related to intangible assets for the periods from March 20, 2019 to March 31, 2019 (Successor), January 1, 2019 to March 19, 2019 (Predecessor) and the three months ended March 31, 2018 (Predecessor) was $0.6 million, $0.8 million and $0.9 million, respectively. Amortization expense is estimated to be $17.8 million in each of the next five years beginning in 2019.

Contracts with cruise lines are generally renewed every five years. The Company has the intent and ability to renew such contracts over the estimated useful lives of the assets. Costs incurred to renew contracts are capitalized and amortized to cost of revenues and operating expenses over the term of the contract.

At March 31, 2019 (Successor), the cost, accumulated amortization, and net balance of the definite-lived intangible assets were as follows (in thousands):

Successor:	Cost		Accumulated Amortization			Net Balance		Weighted Average Remaining Useful Life (yrs.)
Contract installments	$	604,800	$	(518	)	$	604,282	39
Lease agreements		22,600		(64	)		22,536	10
	$	627,400	$	(582	)	$	626,818

At December 31, 2018 (Predecessor), the cost, accumulated amortization, and net balance of the definite-lived intangible assets were as follows (in thousands):

Predecessor:	Cost		Accumulated Amortization			Net Balance		Weighted Average Remaining Useful Life (yrs.)
Contract installments	$	130,000	$	(10,210	)	$	119,790	36
Lease agreements		7,300		(573	)		6,727	36
	$	137,300	$	(10,783	)	$	126,517

Recent Accounting Pronouncements

i) Recent Accounting Pronouncements

With the exception of those discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2018 that are of significance, or potential significance, to the Company based on its current operations. The following summary of recent accounting pronouncements is not intended to be an exhaustive description of the respective pronouncement.

In May 2014, the FASB issued ASU 2014-09. The core principle of the guidance in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance in this ASU supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry specific guidance throughout the Industry Topics of the ASC. Additionally, ASU 2014-09 supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts.

In periods subsequent to the initial issuance of this ASU, the FASB has issued additional ASU’s clarifying items within Topic 606, as follows:

• In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations” (“ASU 2016-08”). The amendments in ASU 2016-08 serve to clarify the implementation guidance on principal versus agent considerations.

• In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (“ASU 2016-10”). The purpose of ASU 2016-10 is to clarify two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance (while retaining the related principles for those areas).

• In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2016-12”). The purpose of ASU 2016-12 is to address certain issues identified to improve Topic 606 by enhancing guidance on assessing collectability, presentation of sales taxes and other similar taxes collected from customers, non-cash consideration and completed contracts and contract modifications at transition.

The FASB issued updates ASU 2016-08, ASU 2016-10 and ASU 2016-12 to provide guidance to improve the operability and understandability of the implementation guidance included in ASU 2014-09. ASU 2016-08, ASU 2016-10 and ASU 2016-12 have the same effective date and transition requirements of ASU 2015-14, which defers the effective date and transition of ASU 2014-09 annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt this standard, other related revenue standard clarifications and technical guidance effective for the annual period ending December 31, 2019 and quarterly periods beginning January 1, 2020. The Company has elected the modified retrospective transition approach. Under this method, the standard will be applied only to the most current period presented and the cumulative effect of applying the standard will be recognized at the date of initial application. The Company is progressing through its implementation plan and is continuing to evaluate the impact of the standard on its processes, accounting systems, controls and financial disclosures. The Company is not able to determine at this time if the adoption of this guidance will have a material impact on the Company’s consolidated and combined financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) to increase transparency and comparability among organizations by recognizing rights and obligations resulting from leases as lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The update requires lessees to recognize for all leases with a term of 12 months or more at the commencement date: (a) a lease liability or a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset or a lessee’s right to use or control the use of a specified asset for the lease term. Under the update, lessor accounting remains largely unchanged. The update requires a modified retrospective transition approach for leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements and do not require any transition accounting for leases that expire before the earliest comparative period presented. The update is effective retrospectively for annual periods beginning after December 15, 2019, and interim periods beginning after December 15, 2020, with early adoption permitted. The Company is not able to determine at this time if the adoption of this guidance will have a material impact on the Company’s consolidated and combined financial statements.

Accounting for Business Combinations

j) Accounting for Business Combinations

In accordance with ASC Topic 805, “Business Combinations,” when accounting for business combinations we are required to recognize the assets acquired, liabilities assumed, contractual contingencies, noncontrolling interests and contingent consideration at their fair value as of the acquisition date.

The purchase price allocation process requires management to make significant estimates and assumptions with respect to intangible assets and/or pre-acquisition contingencies, all of which ultimately affect the fair value of goodwill established as of the acquisition date. Goodwill acquired in business combinations is assigned to the reporting unit(s) expected to benefit from the combination as of the acquisition date and is then subsequently tested for impairment at least annually.

As part of our accounting for business combinations we are required to determine the useful lives of identifiable intangible assets recognized separately from goodwill. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to the future cash flows of the acquired business. An intangible asset with a finite useful life shall be amortized; an intangible asset with an indefinite useful life shall not be amortized. We base the estimate of the useful life of an intangible asset on an analysis of all pertinent factors, including but not limited to the expected use of the asset, the expected useful life of another asset or a group of assets to which the useful life of the intangible asset may relate, any legal, regulatory, or contractual provisions that may limit the useful life, our own historical experience in renewing or extending similar arrangements, consistent with our intended use of the asset, regardless of whether those arrangements have explicit renewal or extension provisions, the effects of obsolescence, demand, competition, and other economic factors, and the level of maintenance expenditures required to obtain the expected future cash flows from the asset. If no legal, regulatory, contractual, competitive, economic, or other factors limit the useful life of an intangible asset to the reporting entity, the useful life of the asset shall be considered to be indefinite. The term indefinite does not mean the same as infinite or indeterminate. The useful life of an intangible asset is indefinite if that life extends beyond the foreseeable horizon—that is, there is no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the acquired business.

Although we believe the assumptions and estimates we have made have been reasonable and appropriate, they are based in part on historical experience and information obtained from the management of the acquired entity and are inherently uncertain. Examples of critical estimates in accounting for acquisitions include but are not limited to the future expected cash flows from sales of products and services and related contracts and agreements; and discount and long-term growth rates. Unanticipated events and circumstances may occur which could affect the accuracy or validity of our assumptions, estimates or actual results.

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ORGANIZATION (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of allocation of consideration to the net tangible and intangible assets acquired and liabilities

The preliminary computations of consideration and the allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed is presented in the table below (in thousands):

Cash consideration	$	711,292
Equity consideration		167,300
Total consideration transferred	$	878,592
Cash and cash equivalents	$	14,638
Accounts receivable		23,673
Inventories		34,150
Other current assets		6,756
Property and equipment		26,253
Intangible assets		633,300
Other noncurrent assets		6,818
Deferred tax asset		8,407
Current liabilities		(64,517	)
Deferred tax liabilities		(77	)
Other long-term liabilities		(4,563	)
Non-controlling interest		(5,625	)
Net assets acquired	$	679,213
Excess purchase price attributable to goodwill	$	199,379

Schedule of lease agreements, trade name and licensing agreement

Identifiable intangible assets consist of retail concession agreements, favorable lease agreements, a trade name and a licensing agreement.

	Fair Value		Useful Life (years)
Retail concession agreements	$	604,800		39
Lease agreements		21,100
Trade names		5,900		Indefinite
Licensing agreement		1,500		License agreement expiration
	$	633,300

Schedule of unaudited supplemental pro forma

The following information represents the unaudited supplemental pro forma results of the Company’s condensed consolidated statement of operations as if the Business Combination occurred on January 1, 2018, after giving effect to certain adjustments, including depreciation and amortization of the assets acquired and liabilities assumed based on their estimated fair values and changes in interest expense resulting from changes in debt (in thousands):

	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Revenues	$	137,466		$	128,894
Net (loss) income	$	(46,506	)	$	1,122

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of grant date fair value of the options

The Grant Date fair value of the options was estimated by a third party valuation specialist using a Monte Carlo simulation in a risk-neutral framework assuming Geometric Motion, 2,500,000 trials, and using the following assumptions:

Hurdle price per share	$	20.00
Strike price per share	$	12.00
Average period for hurdle price, in days		5
End of simulation term		3/19/2025
Term of simulation		6.00 years
Stock price as of the Measurement Date	$	11.85
Volatility		37.5	%
Risk-free rate (continuous)		2.4	%
Dividend yield (quarterly after 3 years)		3.0	%
Suboptimal exercise multiple		2.8x

Summary of loss per basic and diluted share calculation

The following table provides details underlying OneSpaWorld’s loss per basic and diluted share calculation for the period from March 20, 2019 to March 31, 2019 (Successor) (in thousands):

	March 20, 2019 to March 31, 2019
Net loss attributable to common shareholders – basic and diluted (a)	$	(22,683	)
Weighted average shares outstanding – basic and diluted		61,118
Loss per share:
Basic and diluted	$	(0.37	)

(a) Calculated as total net loss less amounts attributable to noncontrolling interest.

Schedule of weighted-average number of antidilutive potential common shares

The table below presents the weighted-average number of antidilutive potential common shares that are not considered in the calculation of diluted loss per share (in thousands):

	Successor
	March 20, 2019 to March 31, 2019
Common stock warrants		27,605
Employee stock options		4,547
		32,152

Summary of cost, accumulated amortization, and net balance of the definite-lived intangible assets

Contracts with cruise lines are generally renewed every five years. The Company has the intent and ability to renew such contracts over the estimated useful lives of the assets. Costs incurred to renew contracts are capitalized and amortized to cost of revenues and operating expenses over the term of the contract.

At March 31, 2019 (Successor), the cost, accumulated amortization, and net balance of the definite-lived intangible assets were as follows (in thousands):

Successor:	Cost		Accumulated Amortization			Net Balance		Weighted Average Remaining Useful Life (yrs.)
Contract installments	$	604,800	$	(518	)	$	604,282	39
Lease agreements		22,600		(64	)		22,536	10
	$	627,400	$	(582	)	$	626,818

At December 31, 2018 (Predecessor), the cost, accumulated amortization, and net balance of the definite-lived intangible assets were as follows (in thousands):

Predecessor:	Cost		Accumulated Amortization			Net Balance		Weighted Average Remaining Useful Life (yrs.)
Contract installments	$	130,000	$	(10,210	)	$	119,790	36
Lease agreements		7,300		(573	)		6,727	36
	$	137,300	$	(10,783	)	$	126,517

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ACCRUED EXPENSES (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Accrued expenses

Accrued expenses consisted of the following (in thousands):

	Successor		Predecessor
	As of		As of
	March 31,		December 31,
	2019		2018
Operative commissions	$	4,505	$	4,663
Minimum cruise line commissions		5,449		5,648
Payroll and bonuses		2,913		5,037
Interest		533		2,513
Other		11,312		9,350
	$	24,712	$	27,211

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RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2019

Inventories on hand related to these purchases and accounts payable

Inventories on hand related to these purchases and accounts payable owed to the supplier entities related to the purchases were as follows (in thousands):

	Predecessor
	As of
	December 31,
	2018
Inventories	$	17,268
Accounts payable - related parties	$	6,553

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SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)

3 Months Ended

Mar. 31, 2019

Summary of geographic information

The Company is not able to identify the country of origin for the customers to which revenues from cruise ship operations relate. Geographic information is as follows (in thousands):

	Successor		Predecessor
	March 20, 2019 to		January 1, 2019		Three Months Ended
	March 31, 2019		March 19, 2019		March 31, 2018
Revenues:
U.S.	$	707	$	6,008	$	6,820
Not connected to a country		17,012		106,886		115,927
Other		1,295		5,558		6,147
Total	$	19,014	$	118,452	$	128,894

	Successor		Predecessor
	As of March 31,		As of December 31,
	2019		2018
Property and equipment, net:
U.S.	$	10,109	$	6,838
Not connected to a country		6,656		2,188
Other		9,216		7,213
Total	$	25,981	$	16,239

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ORGANIZATION - Schedule of allocation of consideration to the net tangible and intangible assets acquired and liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 19, 2019
Equity consideration	$ 167,300
Intangible assets	633,300	$ 633,300
Excess purchase price attributable to goodwill	$ 199,379
Haymaker Acquisition Corp [Member]
Cash consideration		711,292
Equity consideration		167,300
Total consideration transferred		878,592
Cash and cash equivalents		14,638
Accounts receivable		23,673
Inventories		34,150
Other current assets		6,756
Property and equipment		26,253
Intangible assets		633,300
Other noncurrent assets		6,818
Deferred tax asset		8,407
Current liabilities		(64,517)
Deferred tax liabilities		(77)
Other long-term liabilities		(4,563)
Non-controlling interest		(5,625)
Net assets acquired		679,213
Excess purchase price attributable to goodwill		$ 199,379

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ORGANIZATION - Schedule of intangible assets consist of retail concession agreements (Detail) - USD ($) $ in Thousands	Mar. 19, 2019	Mar. 31, 2019
Fair Value	$ 633,300	$ 633,300
Trade names [Member]
Fair Value	$ 5,900
Useful Life (years)	Indefinite
Licensing agreement [Member]
Fair Value	$ 1,500
Useful Life (years)	License agreement expiration
Retail Concession Agreements [Member]
Fair Value	$ 604,800
Useful Life (years)	39 years
Lease agreements [Member]
Fair Value	$ 21,100

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ORGANIZATION - Schedule of unaudited supplemental pro forma (Detail) - Haymaker Acquisition Corp [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Revenues	$ 137,466	$ 128,894
Net income	$ (46,506)	$ 1,122

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ORGANIZATION - Additional Information (Detail) - USD ($)	Mar. 31, 2019	Oct. 27, 2017	Mar. 19, 2019
Gross Proceeds	$ 122,499,000
Business Acquisition, Share Price	$ 0.0001
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 633,300,000		$ 633,300,000
Haymaker Acquisition Corp [Member]
Gross Proceeds		$ 300,000,000
Transaction costs	$ 6,492,000
Aggregate Stockholders Shares	31,713,387
Business Acquisition, Equity Interest Issued or Issuable, Description	each warrant to purchase a Haymaker Class A Common Share (the "Haymaker Warrants") became exercisable for one OneSpaWorld Share, on the same terms and conditions as those applicable to the warrants to purchase the Haymaker Class A Shares. Also, 3,000,000 OneSpaWorld Shares, and the right to receive 1,600,000 OneSpaWorld Shares upon the occurrence of certain events, were issued to Haymaker Sponsor and the other former holders of Haymaker Class B common shares (the "Founder Shares") in exchange for such shares, and the Haymaker Warrants held by Haymaker Sponsor became exercisable for 3,408,186 OneSpaWorld Shares.
Business Combination, Separately Recognized Transactions, Description	(i) 14,155,274 OneSpaWorld Shares (ii) warrants to purchase 1,486,520 OneSpaWorld Shares, (iii) $663,674,000 in cash and (iv) the right to receive an additional 5,000,000 OneSpaWorld Shares upon the occurrence of certain events.
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill			$ 633,300,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Grant date fair value of options (Detail)	3 Months Ended
	Mar. 31, 2019 $ / shares
Hurdle price per share	$ 20.00
Strike price per share	$ 12.00
Average period for hurdle price, in days	5 days
End of simulation term	Mar. 19, 2025
Term of simulation	6 years
Stock price as of the Measurement Date	$ 11.85
Volatility	37.50%
Risk-free rate (continuous)	2.40%
Dividend yield (quarterly after 3 years)	3.00%
Suboptimal exercise multiple	2.8

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of loss per basic and diluted share calculation (Detail) $ / shares in Units, $ in Thousands	Mar. 31, 2019 USD ($) $ / shares shares
Net loss attributable to common shareholders – basic and diluted | $	$ (22,683)
Weighted average shares outstanding - basic and diluted | shares	61,118,298
Loss per share:
Basic and diluted | $ / shares	$ (0.37)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of weighted-average number of antidilutive potential common shares (Detail) shares in Thousands	Mar. 31, 2019 shares
Antidilutive securities excluded from computation of earnings per share, amount	32,152
Warrant [Member]
Antidilutive securities excluded from computation of earnings per share, amount	27,605
Employee Stock Option [Member]
Antidilutive securities excluded from computation of earnings per share, amount	4,547

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of cost, accumulated amortization, and net balance of the definite-lived intangible assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Cost	$ 627,400
Accumulated Amortization	(582)
Net Balance	626,818
Predecessor [Member]
Cost		$ 137,300
Accumulated Amortization		(10,783)
Net Balance		126,517
Lease agreements [Member]
Cost	22,600
Accumulated Amortization	(64)
Net Balance	$ 22,536
Weighted Average Remaining Useful Life (Yrs.)	10 years
Lease agreements [Member] | Predecessor [Member]
Cost		7,300
Accumulated Amortization		(573)
Net Balance		$ 6,727
Weighted Average Remaining Useful Life (Yrs.)		36 years
Contract installments [Member]
Cost	$ 604,800
Accumulated Amortization	(518)
Net Balance	$ 604,282
Weighted Average Remaining Useful Life (Yrs.)	39 years
Contract installments [Member] | Predecessor [Member]
Cost		$ 130,000
Accumulated Amortization		(10,210)
Net Balance		$ 119,790
Weighted Average Remaining Useful Life (Yrs.)		36 years

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($)			3 Months Ended
	Mar. 31, 2019	Mar. 26, 2019	Mar. 19, 2019	Mar. 31, 2018	Mar. 18, 2019	Dec. 31, 2018
Goodwill	$ 199,379,000
Amortization of intangible assets	582,000
Depreciation and amortization expense	300,000
Amortization expense beginning in 2019	17,800,000
2019 Equity Incentive Plan [Member]
Share based compensation initially authorized					7,000,000
Share based compensation grant		4,547,076
Options fully vested resulting in stock based compensation		$ 20,370,900
Share based compensation fair value		$ 20,370,900
Exercise price		$ 12.99
Vesting Rights, Percentage		100.00%
Stock based Compensation		$ 20,370,900
Common shares reaching		$ 20.00
Adjustments for New Accounting Pronouncement [Member]
Goodwill	199,400,000
Intangible asset tradename	5,900,000
Indefinite-lived intangible assets	$ 626,800,000
Predecessor [Member]
Goodwill						$ 33,864,000
Amortization of intangible assets			$ 755,000	$ 867,000
Depreciation and amortization expense			$ 1,200,000	$ 1,500,000
Predecessor [Member] | Previously Reported [Member]
Goodwill						33,900,000
Indefinite-lived intangible assets						126,500,000
Predecessor [Member] | Previously Reported [Member] | Trade Names [Member]
Intangible asset tradename						$ 5,000,000
Owner Of One Spa World Medi spa Bahamas Limited [Member]
Ownership percentage	100.00%

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ACCRUED EXPENSES - Summary of Accrued expenses (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Operative commissions	$ 4,505
Minimum cruise line commissions	5,449
Payroll and bonuses	2,913
Interest	533
Other	11,312
Total	$ 24,712
Predecessor [Member]
Operative commissions		$ 4,663
Minimum cruise line commissions		5,648
Payroll and bonuses		5,037
Interest		2,513
Other		9,350
Total		$ 27,211

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LONG-TERM DEBT - Additional Information (Detail) - USD ($) $ in Thousands				3 Months Ended			12 Months Ended
	Mar. 31, 2019	Mar. 01, 2019	Jan. 11, 2019	Mar. 31, 2019	Mar. 19, 2019	Mar. 31, 2018	Dec. 31, 2018
Commitment Fee Rate					0.50%
Commitment Fee Rate On Achievement Of Leverage Ratio					0.325%
Quarterly amortization payments				0.25%
Loss on extinguishment of debt
Term Credit Agreement [Member]
Loss on extinguishment of debt		$ 3,413
First Lien Credit Facilities [Member]
Debt instrument variable rate basis					LIBOR plus a margin of 4.00%
Debt instrument variable rate basis					4.00%
Maximum borrowing capacity					$ 208,500
Debt instrument variable rate basis					3.75%
First Lien Term Loan Facility [Member]
Debt instrument face amount					$ 20,000
First Lien Revolving Facility [Member]
Maximum borrowing capacity					20,000
First Lien Delayed Draw Facility [Member]
Debt instrument face amount					$ 5,000
Second Lien Term Loan Facility [Member]
Debt instrument variable rate basis					LIBOR plus 7.50%
Debt instrument variable rate basis					7.50%
Maximum borrowing capacity					$ 25,000
Letter of Credit [Member] | First Lien Revolving Facility [Member]
Maximum borrowing capacity					5,000
Prior to the first anniversary [Member]
call premium				4.00%
After the first anniversary [Member]
call premium				2.50%
After the second anniversary [Member]
call premium				1.50%
Predecessor [Member]
Loss on extinguishment of debt					$ (3,413)
Predecessor [Member] | Term Credit Agreement [Member]
Maturity date			Dec. 09, 2021
Debt instrument variable rate basis				The interest rate on the Term Credit Agreement was based on (at the Parent’s election) either LIBOR plus a predetermined margin that ranged from 7.00% to 7.50%, or the base rate as defined in the Term Credit Agreement plus a predetermined margin that ranged from 6.00% to 6.50%, in each case based on the Parent’s consolidated total leverage ratio.
Debt instrument variable rate basis							7.25%
Unamortized deferred financing costs							$ 3,700
Debt instrument face amount			$ 356,200

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PRIVATE PLACEMENT - Additional Information (Detail) - Private Placement [Member] - USD ($)		3 Months Ended
	Nov. 01, 2018	Mar. 31, 2019
Stock Issued During Period, Shares, New Issues	17,856,781	17,856,781
Class Of Warrant Or Rights issued	3,105,294	3,105,294
Proceeds from Issuance or Sale of Equity	$ 122,496,370

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EQUITY - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 19, 2019
Common stock, shares authorized	250,000,000
Common stock, par value	$ 0.0001
Common stock, shares issued	61,118,298
Common stock, shares outstanding	61,118,298
Warrant exercise price	$ 11.50
Redemption price of warrant	$ 0.01
Warrants agreement expire date	5 years
Minimum [Member]
Operating lease, renewal term	3 years
Maximum [Member]
Operating lease, renewal term	5 years
Steiner Leisure And Haymaker Sponsor [Member]
Resale of shares expected minimum value		$ 10,000,000
Private Placement [Member]
Warrant exercise price	$ 11.50
Warrants purchased by investors	3,105,294
Warrants purchased by investors price per warrant	$ 1.00
Common Class A [Member]
Common stock, shares authorized	250,000,000
Common stock, par value	$ 0.0001
Common stock, shares issued	61,118,298
Common stock, shares outstanding	61,118,298
Share price minimum for redemption	$ 18.00

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NONCONTROLLING INTEREST - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Stockholders' Equity Attributable to Noncontrolling Interest	$ 5,728
Medispa Limited [Member]
Noncontrolling Interest	40.00%
Bahamian [Member]
Noncontrolling Interest	60.00%
Predecessor [Member]
Stockholders' Equity Attributable to Noncontrolling Interest		$ 3,586

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RELATED PARTY TRANSACTIONS - Summary of Inventories on hand related to these purchases and accounts payable (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventories	$ 35,430
Predecessor [Member]
Inventories		$ 32,265
Predecessor [Member] | Steiner Leisure [Member]
Inventories		17,268
Accounts payable - related parties		$ 6,553

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RELATED PARTY TRANSACTIONS - Additional Information (Detail) € in Millions		1 Months Ended
	Aug. 03, 2018 USD ($)	Dec. 31, 2019 USD ($)	Feb. 25, 2016 EUR (€)
Predecessor [Member] | Coral Gables Lease [Member]
Lessee, operating lease, term of contract	12 years
Lessee, operating lease, option to extend	two periods of five years each
Operating leases, rent expense, net	$ 480,000
Lessee operating sub lease term of contract	5 years
Scenario, Forecast [Member] | Bliss World LLC [Member]
Business combination, consideration transferred		$ 1,250,000
Scenario, Forecast [Member] | Steiner Management Services LLC [Member]
Related party transaction, amounts of transaction		360,000
Scenario, Forecast [Member] | Nemo Investor Aggregator Limited [Member]
Related party transaction, amounts of transaction		$ 850,000
Loan Agreement [Member] | Predecessor [Member]
Loan agreement wholly owned subsidiary | €			€ 5.0
Debt instrument, interest rate, basis for effective rate			7.50
Maturity date			Jan. 03, 2021

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SEGMENT AND GEOGRAPHICAL INFORMATION - Summary of Geographic information (Detail) - USD ($) $ in Thousands		3 Months Ended
	Mar. 31, 2019	Mar. 19, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenues:
Revenues	$ 19,014
Property and equipment, net:
Property and equipment, net	25,981
U.S. [Member]
Revenues:
Revenues	707
Property and equipment, net:
Property and equipment, net	10,109
Not connected to a country [Member]
Revenues:
Revenues	17,012
Property and equipment, net:
Property and equipment, net	6,656
Other [Member]
Revenues:
Revenues	1,295
Property and equipment, net:
Property and equipment, net	$ 9,216
Predecessor [Member]
Revenues:
Revenues		$ 118,452	$ 128,894
Property and equipment, net:
Property and equipment, net				$ 16,239
Predecessor [Member] | U.S. [Member]
Revenues:
Revenues		6,008	6,820
Property and equipment, net:
Property and equipment, net				6,838
Predecessor [Member] | Not connected to a country [Member]
Revenues:
Revenues		106,886	115,927
Property and equipment, net:
Property and equipment, net				2,188
Predecessor [Member] | Other [Member]
Revenues:
Revenues		$ 5,558	$ 6,147
Property and equipment, net:
Property and equipment, net				$ 7,213