BUSINESS COMBINATIONS (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Obagi and Milk Purchase Price Allocation:


(In thousands)	Obagi		Milk		Total
Total Purchase Price:
Cash consideration	$	345,398	$	121,629	$	467,027
Equity consideration	277,824		200,087		477,911
Cash repayment of debt	136,112		3,935		140,047
Related party liability	22,100		—		22,100
Total purchase consideration	$	781,434	$	325,651	$	1,107,085
Fair value of assets acquired:
Cash and cash equivalents	$	15,850	$	2,092	$	17,942
Restricted cash	650		819		1,469
Account receivable, net	15,214		3,866		19,080
Related party receivable	327		199		526
Inventories	31,026		30,945		61,971
Prepaid expenses	4,307		520		4,827
Other current assets	359		-		359
Property and equipment	1,245		8,436		9,681
Intangible assets	505,300		157,500		662,800
Right-of-use assets	4,811		8,232		13,043
Other assets	227		-		227
Total identifiable assets acquired	$	579,316	$	212,609	$	791,925
Liabilities assumed:
Accounts payable and accrued expenses	18,699		6,442		25,141
Other current liabilities	12,912		5,483		18,395
Lease liabilities	6,461		10,105		16,566
Deferred income tax liabilities	28,073		-		28,073
Total liabilities assumed:	$	66,145	$	22,030	$	88,175
Net assets acquired	513,171		190,579		703,750
Purchase consideration	781,434		325,651		1,107,085
Goodwill	$	268,263	$	135,072	$	403,335

Schedule of Intangible Assets Acquired in Business Combination

Intangible Assets


	Fair Value
	Obagi		Milk		Total		Weighted- Average Useful Life
(In thousands)
Trademarks and Trade Name	$	414,000	$	145,000	$	559,000	14 years
Customer/distributor relationships	25,000		11,000		36,000		11 years
Tretinoin distribution and supply agreement	38,900		—		38,900		5 years
Formulations	27,400		1,500		28,900		8 years
Total Intangible Assets	$	505,300	$	157,500	$	662,800

Unaudited Pro Forma Consolidated Financial Information

The following unaudited pro forma combined financial information presents the Company’s results as though the Business Combination had occurred on January 1, 2021, for the years ended December 31, 2021 and 2022. The unaudited pro forma consolidated financial information has been prepared using the acquisition method of accounting in accordance with U.S. GAAP.


	Year ended December 31, 2022		Year ended December 31, 2021
(In thousands)	(Unaudited)		(Unaudited)
Pro forma net revenue	$	200,547	$	162,583
Pro forma net income (loss)	(86,930)		(145,152)
Less: Pro forma net income (loss) attributable to noncontrolling interest	(25,140)		(26,519)
Pro forma net income (loss) attributable to Waldencast plc	$	(61,790)	$	(118,633)