EXHIBIT NO. | DESCRIPTION | |||||||
99.1 |
Waldencast plc | |||||||||||
(Registrant) | |||||||||||
Date: August 27, 2024 | By: | /s/ Manuel Manfredi | |||||||||
Name: | Manuel Manfredi | ||||||||||
Title: | Chief Financial Officer and Principal Financial Officer |
F-14 | |||||
(In thousands of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Net revenue (including related party net revenue of $1,074 and $3,385 in the six months ended June 30, 2024 and six months ended June 30, 2023, respectively) | $ | 131,582 | $ | 109,338 | |||||||
Cost of goods sold (including related party costs of $270 and $1,121 in the six months ended June 30, 2024 and six months ended June 30, 2023, respectively) | 37,404 | 41,158 | |||||||||
Gross profit | $ | 94,178 | $ | 68,180 | |||||||
Selling, general and administrative | 119,879 | 100,687 | |||||||||
Research and development | 1,805 | 2,720 | |||||||||
Total operating expenses | $ | 121,684 | $ | 103,407 | |||||||
Operating loss | $ | (27,506) | $ | (35,227) | |||||||
Interest expense, net | 8,711 | 8,850 | |||||||||
Change in fair value of derivative warrant liabilities | (20,673) | (1,122) | |||||||||
Other income, net | (285) | (1,666) | |||||||||
Total other (income) expenses, net | $ | (12,247) | $ | 6,062 | |||||||
Loss before income taxes | (15,259) | (41,289) | |||||||||
Income tax benefit | (2,353) | (4,509) | |||||||||
Net loss | $ | (12,906) | $ | (36,780) |
(In thousands of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Revenue by Sales Channel | |||||||||||
Direct sales | $ | 107,233 | $ | 84,853 | |||||||
Distributors | 21,948 | 22,134 | |||||||||
Net product sales | $ | 129,181 | $ | 106,987 | |||||||
Royalties | 2,401 | 2,351 | |||||||||
Net revenue | $ | 131,582 | $ | 109,338 |
(In thousands of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Revenue by Geographic Region | |||||||||||
North America | $ | 95,469 | $ | 75,326 | |||||||
Rest of the World | 33,712 | 31,661 | |||||||||
Net product sales | $ | 129,181 | $ | 106,987 | |||||||
Royalties | 2,401 | 2,351 | |||||||||
Net revenue | $ | 131,582 | $ | 109,338 |
(In thousands of U.S. dollars, except percentages) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Cost of goods sold (including related party costs of $0.3 and $1.1 million in the six months ended June 30, 2024 and six months ended June 30, 2023, respectively) | $ | 37,404 | $ | 41,158 | |||||||
as a percentage of net revenue | 28.4 | % | 37.6 | % |
(In thousands of U.S. dollars, except percentages) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Selling, general and administrative | $ | 119,879 | $ | 100,687 | |||||||
as a percentage of net revenue | 91.1 | % | 92.1 | % |
(In thousands of U.S. dollars, except percentages) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Research and development | $ | 1,805 | $ | 2,720 | |||||||
as a percentage of net revenue | 1.4 | % | 2.5 | % |
(In thousands of U.S. dollars, except percentages) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Interest expense, net | $ | 8,711 | $ | 8,850 | |||||||
as a percentage of net revenue | 6.6 | % | 8.1 | % |
(In thousands of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Change in fair value of derivative warrant liabilities | $ | (20,673) | $ | (1,122) |
(In thousands of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Other income, net | $ | (285) | $ | (1,666) |
(In thousands of U.S. dollars, except percentages) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Income tax benefit | $ | (2,353) | $ | (4,509) | |||||||
Effective tax rate | 15.4 | % | 10.9 | % |
(In thousands of U.S. Dollars, except for percentages) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||||
Net Revenue | $ | 131,582 | $ | 109,338 | ||||||||||
Obagi Medical China Business | 1,074 | 3,363 | ||||||||||||
Comparable Net Revenue | $ | 130,508 | $ | 105,976 | ||||||||||
Comparable Growth | 23.1 | % |
Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
(In thousands of U.S. dollars, except for percentages) | Obagi Medical | Milk Makeup | Waldencast (Total) | Obagi Medical | Milk Makeup | Waldencast (Total) | |||||||||||||||||||||||||||||
Net revenue (including related party net revenue of $1,074 and $3,385 for the six months ended June 30, 2024 and six months ended June 30, 2023, respectively) | $ | 68,364 | $ | 63,218 | $ | 131,582 | $ | 57,014 | $ | 52,324 | $ | 109,338 | |||||||||||||||||||||||
Gross Profit | 49,570 | 44,608 | 94,178 | 35,340 | 32,840 | 68,180 | |||||||||||||||||||||||||||||
Gross Margin % | 72.5 | % | 70.6 | % | 71.6 | % | 62.0 | % | 62.8 | % | 62.4 | % | |||||||||||||||||||||||
Gross Margin Adjustments: | |||||||||||||||||||||||||||||||||||
Amortization of the fair value of the related party liability(1) | (778) | — | (778) | (2,371) | — | (2,371) | |||||||||||||||||||||||||||||
Amortization of the inventory fair value adjustment(2) | — | — | — | — | 1,691 | 1,691 | |||||||||||||||||||||||||||||
Discontinued product write-off(3) | 526 | — | 526 | — | — | — | |||||||||||||||||||||||||||||
Amortization impact of intangible assets(4) | 5,603 | — | 5,603 | 5,483 | — | 5,483 | |||||||||||||||||||||||||||||
Adjusted Gross Profit | $ | 54,921 | $ | 44,608 | $ | 99,529 | $ | 38,452 | $ | 34,531 | $ | 72,983 | |||||||||||||||||||||||
Adjusted Gross Margin % | 80.3 | % | 70.6 | % | 75.6 | % | 67.4 | % | 66.0 | % | 66.7 | % | |||||||||||||||||||||||
Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
(In thousands of U.S. dollars, except for percentages) | Obagi Medical | Milk Makeup | Central costs | Waldencast (Total) | Obagi Medical | Milk Makeup | Central costs | Waldencast (Total) | |||||||||||||||||||||||||||||||||||||||
Net (Loss) Income | $ | (11,435) | $ | 4,926 | $ | (6,397) | $ | (12,906) | $ | (12,237) | $ | (676) | $ | (23,867) | $ | (36,780) | |||||||||||||||||||||||||||||||
Adjusted For: | |||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 20,790 | 9,224 | — | 30,014 | 20,725 | 9,536 | — | 30,261 | |||||||||||||||||||||||||||||||||||||||
Interest expense, net | 6,322 | 5 | 2,384 | 8,711 | 5,978 | 424 | 3,209 | 9,611 | |||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | (2,357) | — | 4 | (2,353) | (4,510) | 1 | — | (4,509) | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | (985) | 1,549 | 3,962 | 4,526 | 990 | 1,428 | 3,058 | 5,476 | |||||||||||||||||||||||||||||||||||||||
Legal and advisory non-recurring costs(1) | 755 | — | 9,684 | 10,439 | — | — | 10,624 | 10,624 | |||||||||||||||||||||||||||||||||||||||
Change in fair value of warrants and interest rate collar | — | — | (20,732) | (20,732) | — | — | (1,467) | (1,467) | |||||||||||||||||||||||||||||||||||||||
Amortization of related party liability(2) | (778) | — | — | (778) | (2,371) | — | — | (2,371) | |||||||||||||||||||||||||||||||||||||||
Other costs(3) | 882 | 20 | (139) | 763 | 1,070 | 2,006 | (17) | 3,059 | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 13,194 | $ | 15,724 | $ | (11,234) | $ | 17,684 | $ | 9,645 | $ | 12,719 | $ | (8,460) | $ | 13,904 | |||||||||||||||||||||||||||||||
Net Revenue | $ | 68,364 | $ | 63,218 | $ | — | $ | 131,582 | $ | 57,014 | $ | 52,324 | $ | — | $ | 109,338 | |||||||||||||||||||||||||||||||
Net (Loss) Income % of Net Revenue | (16.7) | % | 7.8 | % | N/A | (9.8) | % | (21.5) | % | (1.3) | % | N/A | (33.6) | % | |||||||||||||||||||||||||||||||||
Adjusted EBITDA Margin | 19.3 | % | 24.9 | % | N/A | 13.4 | % | 16.9 | % | 24.3 | % | N/A | 12.7 | % |
(In thousands of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Net cash used in operating activities | $ | (11,382) | $ | (16,365) | |||||||
Net cash used in investing activities | $ | (1,396) | $ | (1,384) | |||||||
Net cash provided by financing activities | $ | 11,314 | $ | 29,282 |
June 30, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Related party accounts receivable (Note 14) | |||||||||||
Inventories | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Right-of-use asset, net | |||||||||||
Other non-current assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | $ | |||||||||
Related party accounts payable (Note 14) | |||||||||||
Current portion of lease liabilities | |||||||||||
Current portion of long-term debt | |||||||||||
Other current liabilities (including related party liability of $ | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Derivative warrant liabilities | |||||||||||
Long-term lease liabilities | |||||||||||
Deferred income tax liabilities | |||||||||||
Other non-current liabilities | |||||||||||
TOTAL LIABILITIES | |||||||||||
COMMITMENTS AND CONTINGENCIES (NOTE 15) | |||||||||||
SHAREHOLDERS’ EQUITY: | |||||||||||
Preferred shares, | |||||||||||
Class A ordinary shares, $ | |||||||||||
Class B ordinary shares, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
TOTAL CONTROLLING SHAREHOLDERS’ EQUITY | |||||||||||
Noncontrolling interest | |||||||||||
TOTAL SHAREHOLDERS' EQUITY | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | $ | |||||||||
Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | ||||||||||
Net revenue (including related party net revenue of $ | $ | $ | |||||||||
Cost of goods sold (including related party costs of $ | |||||||||||
Gross profit | |||||||||||
Selling, general and administrative | |||||||||||
Research and development | |||||||||||
Total operating expenses | |||||||||||
Operating loss | ( | ( | |||||||||
Interest expense, net | |||||||||||
Change in fair value of derivative warrant liabilities (Note 7) | ( | ( | |||||||||
Other income, net | ( | ( | |||||||||
Total other (income) expenses, net | ( | ||||||||||
Loss before income taxes | ( | ( | |||||||||
Income tax benefit | ( | ( | |||||||||
Net loss | ( | ( | |||||||||
Net loss attributable to noncontrolling interests | ( | ( | |||||||||
Net loss attributable to Class A shareholders | $ | ( | $ | ( | |||||||
Net loss per share attributable to Class A shareholders (Note 12): | |||||||||||
Basic and Diluted | $ | ( | $ | ( | |||||||
Shares used in computing net loss per share (Note 12): | |||||||||||
Basic and Diluted | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Other comprehensive income (loss) — foreign currency translation adjustments, net of tax | ( | ||||||||||
Comprehensive loss | ( | ( | |||||||||
Comprehensive loss attributable to noncontrolling interests | ( | ( | |||||||||
Comprehensive loss attributable to Class A shareholders | $ | ( | $ | ( | |||||||
WALDENCAST PLC | ||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY | ||
(In thousands of U.S. dollars, except share data) |
Shareholders' Equity Waldencast plc | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Class B to Class A shares | — | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
RSU taxes paid on behalf of employees | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE—June 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE—December 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Class B to Class A shares | ( | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
RSU taxes paid on behalf of employees | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—June 30, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||
Stock-based compensation | |||||||||||
Depreciation and amortization | |||||||||||
Non-cash lease expense | |||||||||||
Allowance for doubtful accounts | ( | ||||||||||
Change in fair value of derivative warrant liabilities | ( | ( | |||||||||
Non-cash loss from change in fair value on interest rate collar | ( | ||||||||||
Amortization of debt issuance costs | |||||||||||
Amortization of related party liability | ( | ( | |||||||||
Deferred income taxes | ( | ( | |||||||||
(Gain) loss on disposal of equipment | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Related party accounts receivable | ( | ||||||||||
Inventories | ( | ||||||||||
Prepaid expenses | |||||||||||
Other current assets and other assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Related party accounts payable | ( | ||||||||||
Operating lease liabilities | ( | ( | |||||||||
Other current liabilities and other liabilities | ( | ||||||||||
Net cash used in operating activities | ( | ( | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Capital expenditure on intangible assets | ( | ( | |||||||||
Capital expenditure on property and equipment | ( | ( | |||||||||
Cash paid for interest rate collar premium | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from revolving credit facility | |||||||||||
Payment of note payable | ( | ||||||||||
Repayment of term loan | ( | ( | |||||||||
RSU taxes paid on behalf of employees | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ( | ||||||||||
Effect of foreign exchange rates on cash and cash equivalents | ( | ||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | |||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | $ | $ | |||||||||
SUPPLEMENTAL CASH FLOW DATA – CASH PAID: | |||||||||||
Income taxes | $ | $ | |||||||||
Interest paid | $ | ||||||||||
Waldencast plc NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) |
Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
(In thousands of U.S. dollars) | Obagi Medical | Milk Makeup | Total | Obagi Medical | Milk Makeup | Total | |||||||||||||||||||||||||||||
Revenue by Sales Channel | |||||||||||||||||||||||||||||||||||
Direct sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Distributors | |||||||||||||||||||||||||||||||||||
Net product sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Royalties | |||||||||||||||||||||||||||||||||||
Net revenue | $ | $ | $ | $ | $ | $ |
(In thousands of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Revenue by Geographic Region | |||||||||||
North America | $ | $ | |||||||||
Rest of the World | |||||||||||
Net product sales | $ | $ | |||||||||
Royalties | |||||||||||
Total | $ | $ |
(In thousands of U.S. dollars) | Weighted Average Useful Lives (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Trademark and trade name | $ | $ | ( | $ | |||||||||||||||||||
Customer relationships | ( | ||||||||||||||||||||||
Supply agreement | ( | ||||||||||||||||||||||
Formulations | ( | ||||||||||||||||||||||
Patents | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ |
(In thousands of U.S. dollars) | Weighted Average Useful Lives (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Trademark and trade name | $ | $ | ( | $ | |||||||||||||||||||
Customer relationships | ( | ||||||||||||||||||||||
Supply agreement | ( | ||||||||||||||||||||||
Formulations | ( | ||||||||||||||||||||||
Patents | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ |
(In thousands of U.S. dollars) | Maturity Date | As of June 30, 2024 | As of December 31, 2023 | ||||||||||||||
2022 Term Loan | July 2026 | $ | $ | ||||||||||||||
Note Payable | May 2024 | ||||||||||||||||
2022 Revolving Credit Facility | July 2026 | ||||||||||||||||
Unamortized debt issuance costs | ( | ( | |||||||||||||||
Net carrying amount | $ | $ | |||||||||||||||
Less: Current portion of long-term debt | ( | ( | |||||||||||||||
Total long-term portion | $ | $ |
(In thousands of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities: | $ | $ | ||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities: | $ | $ |
As of June 30, 2024 | |||||||||||||||||||||||
(In thousands of U.S. dollars) | Total | Quoted Prices in Active Market | Significant Other Observable Inputs | Significant Other Unobservable Inputs | |||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest rate collar | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative warrant liabilities - Public | $ | $ | $ | $ | |||||||||||||||||||
Derivative warrant liabilities - Private | $ | $ | $ | $ |
As of December 31, 2023 | |||||||||||||||||||||||
(In thousands of U.S. dollars) | Total | Quoted Prices in Active Market | Significant Other Observable Inputs | Significant Other Unobservable Inputs | |||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest rate collar | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative warrant liabilities - Public | $ | $ | $ | $ | |||||||||||||||||||
Derivative warrant liabilities - Private | $ | $ | $ | $ |
(In thousands of U.S. dollars) | Six months ended June 30, 2024 | Year ended December 31, 2023 | ||||||||||||
Balance at beginning of period | $ | $ | ||||||||||||
Allowance for doubtful accounts | ( | |||||||||||||
Write-off of uncollectible accounts, net | ( | |||||||||||||
Balance at end of period | $ | $ |
(In thousands of U.S. dollars) | As of June 30, 2024 | As of December 31, 2023 | ||||||||||||
Work in process | $ | $ | ||||||||||||
Finished goods | ||||||||||||||
Total inventories | $ | $ |
(In thousands of U.S. dollars) | As of June 30, 2024 | As of December 31, 2023 | ||||||||||||
Computer hardware, software and equipment | $ | $ | ||||||||||||
Furniture and fixture | ||||||||||||||
Machinery and equipment | ||||||||||||||
Internally developed software | ||||||||||||||
Gondolas | ||||||||||||||
Construction in process | ||||||||||||||
Leasehold improvements | ||||||||||||||
Total property and equipment | $ | $ | ||||||||||||
Less accumulated depreciation | ( | ( | ||||||||||||
Property and equipment, net | $ | $ |
(In thousands of U.S. dollars) | As of June 30, 2024 | As of December 31, 2023 | ||||||||||||
Accrued salaries and related expenses | $ | $ | ||||||||||||
Accrued sales returns and damages | ||||||||||||||
Accrued interest | ||||||||||||||
Accrued distribution fees | ||||||||||||||
Related party liability | ||||||||||||||
Accrued professional services | ||||||||||||||
Other | ||||||||||||||
Total | $ | $ |
Number of Common Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate intrinsic Value (in thousands) | ||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | |||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||
Forfeited | ( | — | — | ||||||||||||||||||||
Balance as of June 30, 2024 | |||||||||||||||||||||||
Exercisable as of June 30, 2024 | |||||||||||||||||||||||
Vested and expected to vest as of June 30, 2024 | $ | $ |
Number of Common Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate intrinsic Value (in thousands) | ||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | |||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||
Forfeited | ( | — | — | ||||||||||||||||||||
Balance as of June 30, 2023 | |||||||||||||||||||||||
Exercisable as of June 30, 2023 | |||||||||||||||||||||||
Vested and expected to vest as of June 30, 2023 | $ | $ |
Shares | Weighted Average Grant Date Fair Value per Share | ||||||||||
Outstanding as of December 31, 2023 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Outstanding as of June 30, 2024 | $ | ||||||||||
(In thousands of U.S. dollars, except for share and per share amounts) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Numerator: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Net loss attributable to noncontrolling interest | ( | ( | |||||||||
Net loss attributed to Class A shareholders - basic and diluted EPS | ( | ( | |||||||||
Denominator: | |||||||||||
Weighted-average basic shares outstanding | |||||||||||
Effect of dilutive securities | |||||||||||
Weighted-average diluted shares | |||||||||||
Basic and diluted net loss per share | $ | ( | $ | ( | |||||||
Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||
Warrants | |||||||||||
Stock options | |||||||||||
Restricted stock | |||||||||||
Total |
Six months ended June 30, | Change | ||||||||||||||||
(In thousands of U.S. dollars, except percentage) | 2024 | 2023 | |||||||||||||||
Income tax benefit | ( | ( | |||||||||||||||
Effective tax rate | % | % | % |
Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||
(In thousands of U.S. dollars) | Obagi Medical | Milk Makeup | Total | Obagi Medical | Milk Makeup | Total | |||||||||||||||||||||||||||||
Net revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||||||||||||||
Gross profit | $ | $ | $ | $ | $ | $ |
(In thousands of U.S. dollars) | Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||||
Gross profit | $ | $ | |||||||||
Selling, general and administrative | |||||||||||
Research and development | |||||||||||
Interest expense, net | |||||||||||
Change in fair value of derivative warrant liabilities | ( | ( | |||||||||
Other income, net | ( | ( | |||||||||
Loss before income taxes | $ | ( | $ | ( | |||||||
Income tax (benefit) expense | ( | ( | |||||||||
Net loss | $ | ( | $ | ( |
WALDENCAST PLC (PARENT COMPANY ONLY) UNAUDITED CONDENSED BALANCE SHEET | |||||||||||
(In thousands of U.S. dollars, except share and per share data) | |||||||||||
As of June 30, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Intercompany receivable | |||||||||||
Total current assets | |||||||||||
Investment in subsidiary | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Derivative warrant liabilities | |||||||||||
TOTAL LIABILITIES | |||||||||||
SHAREHOLDERS’ EQUITY: | |||||||||||
Class A ordinary shares, $ | |||||||||||
Class B ordinary shares, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
TOTAL CONTROLLING SHAREHOLDERS’ EQUITY | |||||||||||
Noncontrolling Interest | |||||||||||
TOTAL SHAREHOLDERS’ EQUITY | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | $ |
WALDENCAST PLC (PARENT COMPANY ONLY) UNAUDITED CONDENSED STATEMENT OF OPERATIONS | |||||||||||
(In thousands of U.S. dollars, except share and per share data) | |||||||||||
Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||
Net revenue | $ | $ | |||||||||
Selling, general and administrative | |||||||||||
Total operating loss | ( | ( | |||||||||
Other income: | |||||||||||
Interest income, net | ( | ( | |||||||||
Change in fair value of derivative warrant liabilities | ( | ( | |||||||||
Income before income taxes | |||||||||||
Income tax benefit | |||||||||||
Income before equity in undistributed earnings of subsidiaries | |||||||||||
Equity in undistributed earnings of subsidiaries | ( | ( | |||||||||
Net loss | ( | ( | |||||||||
Other comprehensive income (loss) — foreign currency translation adjustments, net of tax | ( | ||||||||||
Comprehensive loss | $ | ( | $ | ( | |||||||
WALDENCAST PLC (PARENT COMPANY ONLY) UNAUDITED CONDENSED STATEMENT OF CASH FLOW | |||||||||||
(In thousands of U.S. dollars) | |||||||||||
Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash | |||||||||||
Cash used in operating activities: | |||||||||||
Equity in income of subsidiaries | |||||||||||
Change in fair value of derivative warrant liabilities | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from net settlement of RSUs | |||||||||||
Transfers from subsidiaries | |||||||||||
Transfers to subsidiaries | ( | ||||||||||
Expenses paid on behalf of subsidiaries | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ( | ||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Beginning of period | |||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - end of period | $ | $ | |||||||||
WALDENCAST PLC | ||||||||
August 27, 2024 | By: | /s/ Manuel Manfredi | ||||||
Name: Manuel Manfredi | ||||||||
Title: Chief Financial Officer and Principal Financial Officer |
COVER |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity Registrant Name | Waldencast plc |
Entity Central Index Key | 0001840199 |
Document Period End Date | Jun. 30, 2024 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Related party liability | $ 23,829 | $ 23,698 |
Preferred shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred shares issued (in shares) | 0 | 0 |
Preferred shares outstanding (in shares) | 0 | 0 |
Related Party | ||
Related party liability | $ 4,901 | $ 5,856 |
Class A Ordinary Shares | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Ordinary shares outstanding (in shares) | 110,451,097 | 101,228,857 |
Class B Ordinary Shares | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares authorized (in shares) | 100,000,000 | 100,000,000 |
Ordinary shares outstanding (in shares) | 12,053,331 | 20,847,553 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Net revenue | $ 131,582 | $ 109,338 |
Cost of goods sold | 37,404 | 41,158 |
Related Party | Supply Commitment | ||
Net revenue | 1,074 | 3,385 |
Cost of goods sold | $ 270 | $ 1,121 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands |
Total |
Class A Ordinary Shares |
Class B Ordinary Shares |
Ordinary Shares
Class A Ordinary Shares
|
Ordinary Shares
Class B Ordinary Shares
|
Additional Paid-In Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Noncontrolling Interest |
---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2022 | 86,460,560 | 21,104,225 | |||||||
Beginning balance at Dec. 31, 2022 | $ 799,898 | $ 8 | $ 2 | $ 796,038 | $ (156,780) | $ (29) | $ 160,659 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Class B to Class A shares (in shares) | 120,672 | 120,672 | |||||||
Net loss | (36,780) | (29,414) | (7,366) | ||||||
Stock-based compensation (in shares) | 451,327 | ||||||||
Stock-based compensation | 5,478 | 5,478 | |||||||
RSU taxes paid on behalf of employees | (1,316) | (1,316) | |||||||
Foreign currency translation adjustment | (29) | (23) | (6) | ||||||
Ending balance (in shares) at Jun. 30, 2023 | 87,032,559 | 20,983,553 | |||||||
Ending balance at Jun. 30, 2023 | 767,251 | $ 8 | $ 2 | 800,200 | (186,194) | (52) | 153,287 | ||
Beginning balance (in shares) at Dec. 31, 2023 | 101,228,857 | 20,847,553 | 101,228,857 | 20,847,553 | |||||
Beginning balance at Dec. 31, 2023 | 769,273 | $ 9 | $ 2 | 871,527 | (246,761) | (151) | 144,647 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Class B to Class A shares (in shares) | 8,794,222 | 8,794,222 | |||||||
Class B to Class A shares | $ 1 | $ (1) | |||||||
Net loss | (12,906) | (10,075) | (2,831) | ||||||
Stock-based compensation (in shares) | 428,018 | ||||||||
Stock-based compensation | 4,526 | $ 1 | 4,525 | ||||||
RSU taxes paid on behalf of employees | (530) | (530) | |||||||
Foreign currency translation adjustment | 71 | 61 | 10 | ||||||
Ending balance (in shares) at Jun. 30, 2024 | 110,451,097 | 12,053,331 | 110,451,097 | 12,053,331 | |||||
Ending balance at Jun. 30, 2024 | $ 760,434 | $ 11 | $ 1 | $ 875,522 | $ (256,836) | $ (90) | $ 141,826 |
ORGANIZATION AND DESCRIPTION OF BUSINESS |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ORGANIZATION AND DESCRIPTION OF BUSINESS Basis of Presentation Waldencast and its consolidated subsidiaries (the “Company”) has prepared the accompanying condensed consolidated financial statements pursuant to generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). In the Company's opinion, all adjustments considered necessary for a fair presentation have been included. These statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2023. Results of operations for the period ended June 30, 2024 are not necessarily indicative of the expected results for the remainder of the fiscal year. Unless the context requires otherwise, the “Company” refers to Waldencast together with its consolidated subsidiaries.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation—The accompanying condensed consolidated financial statements include the accounts of Waldencast and its consolidated subsidiaries. The Company consolidates entities in which the Company has a majority voting interest. The Company eliminates intercompany transactions and accounts in consolidation. The Company separately presents within equity on the condensed consolidated balance sheets the ownership interests attributable to parties with noncontrolling interests in the Company's consolidated subsidiaries, and separately presents net income attributable to such parties on the condensed consolidated statements of operations and comprehensive loss. Emerging Growth Company—Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (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 registration statement declared effective under the Securities Act of 1933, as amended (the “Securities Act”), or do not have a class of securities registered under the Exchange Act of 1934, as amended) are required to comply with the 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 to opt out 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 condensed consolidated financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates—The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, revenue recognition, stock-based compensation, goodwill valuation, inventory valuation, and valuation allowance for deferred tax assets. The Company bases its estimates on historical experience and assumptions that it believes are reasonable at the time. Due to the inherent uncertainty involved in making assumptions and estimates, changes in circumstances could result in actual results differing from those estimates, and such differences could be material to the Company’s condensed consolidated balance sheets and condensed consolidated statements of operations and comprehensive loss. Concentrations of Credit Risk—Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash balances in accounts held by major banks and financial institutions located primarily in the U.S. and considers such risk to be minimal. Such bank deposits from time to time may be exposed to credit risk in excess of the Federal Deposit Insurance Corporation insurance limit. The Company’s accounts receivable primarily represent amounts due from distributors, and third-party logistics companies, directly and indirectly from major retailers, and from group purchasing organizations located both inside and outside the U.S. The Company mitigates its credit risks by performing ongoing credit evaluations of its customers’ financial conditions, requiring customer advance payments in certain circumstances. The Company generally does not require collateral. As of June 30, 2024, two U.S. customers accounted for 22% and 11% of accounts receivable, respectively. As of December 31, 2023, one U.S. customer accounted for 27% of accounts receivable. During the six months ended June 30, 2024, two vendors exceeded 10% of inventory purchases. During the six months ended June 30, 2023, one vendor exceeded 10% of inventory purchases. During the six months ended June 30, 2024, the Company purchased approximately 13% and 12% of inventory from two vendors. During the six months ended June 30, 2023, the Company purchased approximately 16% and 10% of inventory, respectively, from two vendors. As of June 30, 2024, one vendor accounted for 23% of accounts payable. As of December 31, 2023, one vendor accounted for 18% of accounts payable. Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The guidance requires an acquirer to, at the date of acquisition, recognize and measure the acquired contract assets and contract liabilities acquired in the same manner that they were recognized and measured in the acquiree’s financial statements before the acquisition. This guidance is effective for interim and annual periods beginning after December 15, 2023 for an EGC company, with early adoption permitted. The amendments in this update should be applied prospectively to business combinations occurring on or after the effective date. The Company adopted this standard as of January 1, 2024 and will apply the standard to any business combination prospectively. The adoption of this new standard has no effect on the Company’s condensed consolidated financial statements. Recently Issued Accounting Standards, Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively however, retrospective application is also permitted. The Company is in the process of assessing the impact of this ASU on its future condensed consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The guidance expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly reviewed by the Company’s chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The guidance also allows, in addition to the measure that is most consistent with U.S. GAAP, the disclosure of additional measures of segment profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources. This guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The amendments in this update should be applied retrospectively to all periods presented in the financial statements. The Company is in the process of assessing the impact of this ASU on its future condensed consolidated financial statements, but does not expect it to have a material impact.
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REVENUE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE The Company disaggregates its revenue from customers by sales channel, as well as by revenue source and geographic region, based on the location of the end customer, as it believes it best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. Revenue by Sales Channel The Company’s revenue is primarily generated from product sales. Direct sales revenue listed in the table below includes (i) sales to physicians through the Physician Channel Provider, (ii) DTC sales via the Company’s e-commerce platforms, and (iii) sales directly to retailers. Distributors revenue includes products sold through distributors other than the Physician Channel Provider. Total revenue by sales channel was as follows for the periods indicated:
For the six months ended June 30, 2024, two customers accounted for 22% and 20% of the Company’s revenue, respectively. For the six months ended June 30, 2023, two customers accounted for 26% and 22% of the Company’s revenue. The Physician Channel Provider is an authorized wholesale distributor and service provider for the Company in the U.S. Revenue from sales to physicians and e-commerce customers made through this provider are considered direct sales revenue. The Physician Channel Provider is also a distributor of the Company’s products to other channels, such as the spa channel, and the related sales are considered distributor revenue (in which instances it is referred to as the “Spa Channel Distributor”). Revenue by Geographic Region Total revenue by geographic region, based on the location of the end customer, was as follows for the periods indicated:
During the six months ended June 30, 2024, the one country that accounted for more than 10% of the Company’s total revenues were the United States, with net product sales amounting to $90.0 million. During the six months ended June 30, 2023, the one country that accounted for more than 10% of the Company’s total revenues were the United States, with net product sales amounting to $71.2 million.
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INTANGIBLE ASSETS—NET |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS—NET | INTANGIBLE ASSETS—NET Intangible assets, net consisted of the following as of June 30, 2024:
Intangible assets, net consisted of the following as of December 31, 2023:
Amortization expense was $28.3 million and $28.0 million for the six months ended June 30, 2024 and six months ended June 30, 2023, respectively.
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DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT
Note Payable — Directors and Officers (“D&O”) Insurance In August 2023, the Company entered into an agreement with a financing company for $2.4 million to finance its D&O insurance policy. The terms of the agreement stipulated equal monthly payments of principal and interest payments of $0.2 million over a ten-month period, ending in May 2024, which had been fully repaid as of June 30, 2024. Interest is accrued on this loan at an annual rate of 8.2%. 2022 Credit Agreement In June 2022, the Borrower, a wholly-owned subsidiary of the Company, together with Waldencast Partners LP and certain of its subsidiaries as guarantors, entered into the 2022 Credit Agreement with the Lenders and JPMorgan, as administrative agent for the Lenders. The 2022 Credit Agreement provides the Company with access to a term loan of $175.0 million (the “2022 Term Loan”) and a revolving credit capacity with a current borrowing capacity of up to $45.0 million (the “2022 Revolving Credit Facility”), of which up to $7.5 million may be available, at Borrower’s option, to be drawn in form of letters of credit (“2022 Letter of Credit”). The 2022 Credit Agreement is secured by the assets of the Company. The 2022 Credit Agreement restricts the Company’s ability to make certain distributions or dividends, subject to a number of enumerated exceptions. The 2022 Credit Agreement matures on July 27, 2026, four years following the funding date. The Company may elect to borrow either alternate base rate borrowings or term benchmark borrowings. Each draw that is an alternate base rate borrowing bears interest at an Alternate Base Rate (as defined in the 2022 Credit Agreement) plus the applicable rate of 2.5% per annum. Each draw that is a term benchmark borrowing bears interest at the Term SOFR Rate (as defined in the 2022 Credit Agreement), which resets periodically, plus 0.1% and the applicable rate of 3.5% per annum. As of June 30, 2024, borrowings under the 2022 Credit Agreement consisted entirely of term benchmark borrowings at a borrowing rate of 7.9%. The carrying amount of debt approximates fair value due to the adjusting interest rates of the term loan, which approximate current market rates. In connection with the issuance of the 2022 Credit Agreement, the Company incurred $6.3 million of debt issuance costs. As of June 30, 2024, the Company had unpaid principal of $159.7 million and $15.0 million on the 2022 Term Loan and the 2022 Revolving Credit Facility, respectively. The 2022 Term Loan and the 2022 Revolving Credit Facility had total unamortized debt issuance costs of $3.2 million as of June 30, 2024. As of June 30, 2024, the weighted average interest rate was 8.5% for the 2022 Term Loan and 8.9% for the 2022 Revolving Credit Facility. The current liability portion of the 2022 Term Loan and the 2022 Revolving Credit Facility was $13.1 million and $15.0 million, respectively. The current portion of the unamortized debt issuance costs on the 2022 Term Loan and the 2022 Revolving Credit Facility was $1.2 million and $0.7 million, respectively. The accrued interest was $1.5 million as of June 30, 2024. Unamortized debt issuance costs on the 2022 Letter of Credit is $0.1 million, which is recorded in other current assets in the condensed consolidated balance sheets. Waiver and Consent and Amendment to the 2022 Credit Agreement In May 2023, the Borrower entered into a waiver and consent agreement with JPMorgan and the required Lenders to, among other things, waive certain defaults or events of default that had or would have resulted from the failure to deliver certain financial information and related reports. In June 2023, the Borrower entered into a subsequent waiver and consent agreement with JPMorgan and the required Lenders, pursuant to which they agreed to, among other things, (a) continue to waive certain defaults or events of default that had or would have resulted from the failure to deliver certain financial information and (b) suspend the testing of certain financial covenants in the 2022 Credit Agreement. In August 2023, the Borrower entered into a subsequent waiver and consent agreement with JPMorgan and the required Lenders, pursuant to which they agreed to, among other things, (i) waive any default or event of default that has or would result from the failure to deliver certain financial information and related reports with respect to the fiscal year of the Borrower ended December 31, 2022 and the fiscal quarters of the Borrower ended March 31, 2023 and June 30, 2023, respectively and (ii) suspend the testing of certain financial covenants set forth in the 2022 Credit Agreement. Such waiver would remain in effect until September 15, 2023. In September 2023, the Borrower and Waldencast Partners LP entered into the second amendment and waiver to the 2022 Credit Agreement (the “Second Amendment”) with JPMorgan and the required Lenders, pursuant to which they agreed to (i) waive any default or event of default that has or would result from (a) the failure to deliver certain financial information and related reports, (b) any inaccuracy or misrepresentation in certain historical financial statements previously delivered to JPMorgan and (c) certain historical breaches of the financial covenants and (ii) amend the 2022 Credit Agreement to, among other things, modify the existing financial covenant tests. The Borrower subsequently delivered all of the outstanding financial information and related reports referred to above. The Second Amendment also (i) included additional restrictions on the Borrower’s, Waldencast Partners LP's and certain of their subsidiaries’ ability to incur certain types of additional indebtedness, make certain acquisitions and investments, create certain liens, dispose of certain assets and make certain types of restricted payments, (ii) established a minimum liquidity covenant of $15.0 million, which is certified on a monthly basis, and (iii) introduced additional financial reporting obligations, in each case until the earlier of September 30, 2024 or such earlier time that the Borrower elects to test the financial covenants in the same manner as prior to giving effect to the Amendment. On April 26, 2024, the Borrower, Waldencast Partners LP, JPMorgan and the required lenders entered into an amendment (the “Third Amendment”) to the 2022 Credit Agreement. Among other things, the Third Amendment: (i) waived certain historical breaches of the financial covenant, (ii) modified the existing financial covenants, (iii) reduced the revolving commitments of the lenders by $5 million in the aggregate to $45 million, (iv) lowered the existing minimum liquidity covenant to $10.0 million and (v) extended the Covenant Relief Period until the earlier of December 31, 2024, or such earlier time that the Borrower elects to test the financial covenants in the same manner as prior to giving effect to the Second Amendment.
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LEASES |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company has operating leases for real estate properties for office and warehouse space with initial terms of approximately 8 and 11 years, respectively. Some of the Company’s lease contracts include options to extend the leases for up to 5 years. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants. The Company determines if a contract contains a lease at inception of the arrangement based on whether the Company has the right to obtain substantially all of the economic benefits from the use of an identified asset and whether the Company has the right to direct the use of an identified asset in exchange for consideration, which relates to an asset that the Company does not own. Right of use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company includes options that are reasonably certain to be exercised as part of the lease term. The Company may negotiate termination clauses in anticipation of any changes in market conditions but generally, these termination options are not exercised and not considered in the determination of the lease term. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. ROU assets are recognized on the balance sheet based on the lease liability adjusted for any initial direct costs, lease incentives received, and prepaid rent. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate (“IBR”), because the interest rate implicit in most of the Company’s leases is not readily determinable. The IBR is a hypothetical rate based on the Company’s understanding of what its credit rating would be, and resulting interest the Company would pay, to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis. Lease payments may be fixed or variable, however, only fixed payments or in-substance fixed payments are included in the Company’s lease liability calculation. Variable lease payments may include costs such as common area maintenance, utilities, or other costs. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments is incurred. The Company has elected not to separate non-lease components from lease components and accounts for them as a single lease component. The Company has also elected the short-term lease recognition exemption for all leases that qualify. The Company’s lease expenses of $1.8 million during both of the six months ended June 30, 2024 and six months ended June 30, 2023 were composed of operating lease costs. The Company does not have any finance leases, short-term lease costs or variable lease costs. Supplemental cash flow information related to the Company’s operating leases was as follows:
Texas Leases In December 2021 and July 2022, Obagi entered into a lease for a warehouse and office space, respectively, in Texas as part of their plans to relocate headquarters from California. The warehouse space was never made operational and the Company permanently decided not to use the warehouse with no intention to occupy or utilize the space in the future, and actively began marketing the space for sublease. The Company entered into a sublease for the warehouse space that will run through February 2032 with annual rent of $0.3 million. The sublease does not contain a provision for early termination or extension at the end of the lease. As a result, the Company recorded an impairment charge of $0.8 million during the year ended December 31, 2023 which was the excess of the carrying value of the associated lease right-of-use asset over its fair value. In September 2023, Obagi vacated the Texas office space and relocated its headquarters back to California, permanently deciding to not use the office with no intention to occupy or utilize the space in the future, and actively began marketing the space for sublease. The Company has entered into a sublease for the office space that will run through December 2025 with annual rent of $0.4 million. The sublease does not contain a provision for early termination or extension at the end of the lease. As a result, the Company recorded an impairment charge of $2.7 million during the year ended December 31, 2023 which was the excess of the carrying value of the associated office lease right-of-use asset over its fair value. The Company estimated the fair values using discounted cash flows from the estimated net sublease rental income as of the date the decision to sublease was made. The impairment charges are included in general, administrative, and other expenses in the condensed consolidated statements of operations.
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FINANCIAL INSTRUMENTS |
6 Months Ended |
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Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Interest Rate Collar To mitigate interest rate risk in connection with the variable rate loans under the 2022 Credit Agreement, the Company entered into an interest rate collar with Wells Fargo Bank, N,A. (“Wells Fargo”) in October 2022 for a notional value of $160.0 million and a fixed cash payment of $0.8 million. Under the terms of the interest rate collar, the Company is required to pay Wells Fargo if the monthly SOFR-based interest falls below the defined interest rate floor of 2.55%; conversely, the Company is entitled to receive payment from Wells Fargo if the monthly SOFR-based interest rate rises above the defined interest rate cap of 5.25%. Settlement in cash occurs monthly, if contractually required, until termination of the agreement in October 2024, and the variable interest rate is reset on the last day of each month. This derivative instrument has not been designated for hedge accounting, therefore the change in fair value is recognized in current period earnings. The fair value of these contracts, included in other non-current assets was $0.2 million and $0.1 million as of June 30, 2024 and December 31, 2023, respectively. The non-cash gain from change in fair value was $0.1 million during the six months ended June 30, 2024, recognized in other income, net. The non-cash gain from change in fair value was $0.3 million during the six months ended June 30, 2023, recognized in other income, net. Receipts of less than $0.1 million were exchanged on the interest rate collar contract during the six months ended June 30, 2024. No receipts were exchanged on the interest rate collar contract during the six months ended June 30, 2023. Warrant Liabilities Pursuant to Waldencast’s IPO, the Company issued 11,499,950 Public Warrants to third-party investors. Simultaneously with the closing of the IPO, Waldencast completed the private sale of 5,933,333 warrants (the “Sponsor Warrants”) to the Sponsor. Also, in connection with the IPO, on February 22, 2021, Waldencast, the Sponsor and Zeno Investment Master Fund (f/k/a Dynamo Master Fund, a member of the Sponsor (“Zeno”), entered into a Forward Purchase Agreement (the “Sponsor FPA”), which was subsequently amended by the assignment and assumption agreement entered into by and between the Sponsor and Burwell Mountain Trust (“Burwell”) on December 20, 2021. Under the assignment and assumption agreement, Sponsor assigned, and Burwell assumed, all of the Sponsor’s rights and benefits under the Sponsor FPA, pursuant to which, Burwell and Zeno committed to subscribe for and purchase 16,000,000 Waldencast Class A ordinary shares and 5,333,333 warrants (the “Sponsor FPA Warrants”) in connection with the closing of the Business Combination. In addition, Waldencast and Beauty Ventures LLC (“Beauty Ventures”) entered into a Forward Purchase Agreement on March 1, 2021 (the “Third-Party FPA”, and together with the Sponsor FPA, the “FPAs”), pursuant to which Beauty Ventures committed to subscribe for and purchase up to 17,300,000 Class A ordinary shares and 5,766,666 warrants (the “Third-Party FPA Warrants” and together with the Sponsor FPA Warrants, the “FPA Warrants”) for an aggregate commitment amount of $173.0 million, in connection with the closing of Waldencast’s initial business combination. Finally, in connection with the Business Combination, Waldencast issued 1,000,000 warrants to settle $1.5 million working capital loans with its Sponsor, the terms of which are identical to the Sponsor FPA Warrants (the “Sponsor Loan Warrants”). The Sponsor Loan Warrants and Third-Party FPA Warrants are collectively referred to as the “Private Placement Warrants”. As of June 30, 2024, all of the above-noted warrants, totaling 29,533,282, remained issued and outstanding. The Company recognized a gain of $20.7 million and a gain of $1.1 million from the change in fair value of the Public Warrants and Private Placement Warrants in the Company’s condensed consolidated statements of operations and comprehensive loss during the six months ended June 30, 2024 and six months ended June 30, 2023, respectively. Following the change in jurisdiction of incorporation from the Cayman Islands to Jersey (the “Domestication”), Public Warrants and Private Placement Warrants each entitle the holder to purchase one share of the Company’s Class A ordinary shares at an exercise price of $11.50 per share. Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued and only whole warrants can trade. The Public Warrants became exercisable 30 days after the completion of the Business Combination. The Public Warrants will expire June 27, 2027 or earlier upon redemption or liquidation. The Company may redeem the Public Warrants: –in whole and not in part; –upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption, based on the redemption date and the “fair market value” of the Class A ordinary shares; –at a price of $0.01 per warrant if, and only if, the reported last sale price of the Class A ordinary shares for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption the warrant holders (the “Reference Value”) equals or exceeds $18.00 per share (as adjusted). –At a price of $0.01 per warrant if, and only if, the Reference Value equals or exceeds $10.00 per share (as adjusted); and –if the Reference Value is less than $18.00 per share (as adjusted), the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above. The exercise price and number of Class A ordinary shares issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described below, the Public Warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. The terms of the Third-Party FPA Warrants are identical to the Public Warrants. The Sponsor Loan Warrants and Sponsor FPA Warrants are also identical to the Public Warrants, except that they and the Class A ordinary shares issuable upon the exercise of such warrants were not transferable, assignable or salable until 30 days after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the Sponsor Loan Warrants and Sponsor FPA Warrants will be exercisable on a cashless basis and be non-redeemable, except as described above, so long as they are held by the initial purchasers or their permitted transferees, thereafter they will be redeemable by the Company and exercisable by such holders on the same basis as Public Warrants.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis by level within the fair value hierarchy:
Private derivative warrants are classified as Level 2 financial instruments. The fair value of the Level 2 Private Placement Warrant liabilities has been measured based on the fair value of Public Warrant liabilities. The interest rate collar has been measured at net present value by projecting future cash flows and discounting the future amounts to a present value using market-based observable inputs including interest rate curves and credit spreads.
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SUPPLEMENTAL BALANCE SHEET DISCLOSURES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL BALANCE SHEET DISCLOSURES | SUPPLEMENTAL BALANCE SHEET DISCLOSURES Accounts Receivable, Net As of June 30, 2024, accounts receivable, net consisted of accounts receivable of $29.5 million, less allowance for doubtful accounts of $0.3 million. As of December 31, 2023, accounts receivable, net consisted of accounts receivable of $22.9 million, less allowance for doubtful accounts of $1.6 million. The change in the allowance for doubtful accounts were as follows:
Inventories The components of inventories were as follows:
Property and Equipment, Net Property and equipment, net consisted of the following:
Depreciation expense for property and equipment for the six months ended June 30, 2024 and six months ended June 30, 2023 was $1.7 million and $2.3 million, respectively. Depreciation expense pertains to property and equipment utilized as part of the Company’s SG&A activities and therefore has not been allocated to cost of goods sold. Other Current Liabilities The major components of other current liabilities consisted of the following (in thousands):
The accrued distribution fees related to service charges such as e-commerce shipping and handling costs. The related party liability of $4.9 million and $5.9 million as of June 30, 2024 and December 31, 2023, respectively, reflects the remaining unamortized fair value of the related party inventory contract executed on the acquisition date between Obagi and the Obagi China Business. This related party liability will be amortized into related party revenue upon the sale of products to the Obagi China Business in subsequent periods.
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STOCK-BASED COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Incentive Award Plan The Company’s 2022 Incentive Award Plan (the “Plan”) provides for incentives to be provided to selected officers, employees, non-employee directors and consultants of the Company in the form of options, stock appreciation rights, restricted stock, restricted stock units, stock bonuses or other stock-based awards granted under the Plan. The Plan was adopted by Waldencast’s Board of Directors in June 2022, was approved by its shareholders in July, 2022, and became effective on July 27, 2022 in connection with the closing of the Business Combination. The notional maximum number of ordinary shares authorized under the Plan as of June 30, 2024 is 23,023,952 (the “Share Reserve”). The Share Reserve automatically increases on January 1st of each calendar year (each, an “Evergreen Date”), prior to the tenth anniversary of the effective date of the Plan in an amount equal to the lesser of (i) 3% of the total number of ordinary shares issued and outstanding on the December 31st immediately preceding the applicable Evergreen Date and (ii) a number of ordinary shares determined by the Board. All and up to the number of ordinary shares reserved for issuance under the Plan as of the effective date of the Plan (subject to an equitable adjustment in the event of a change in capitalization or change in control event) may be granted as incentive stock options. As of June 30, 2024, taking into account previous grants and forfeitures, the Company had 7,795,605 ordinary shares remaining available for future issuances under the Plan. In April 2024, the Company granted 48,880 restricted stock units to non-employees of which 15,040 vested immediately and 33,840 will vest on March 10, 2025. In May 2024, the Company granted a total of 662,634 restricted stock units to employees of Waldencast, Milk and Obagi. One third of the awards vested immediately with the remaining two-thirds to vest each year beginning on March 10, 2025, subject to continued service through such dates. Following approval by the Board, the Company also granted 312,830 restricted stock units to its Founders, one third of the which vested immediately with the remaining two-thirds to vest each year beginning on March 10, 2025, subject to continued service through such dates, Strategic Growth Incentive In January 2023, the Company granted an aggregate of 2,290,000 strategic growth incentive 2025 awards (the “SGI 2025 Awards”) in performance vested share units to certain Company employees, in an amount up to 200% of the target share units allocated to the program, which are based on meeting the Company’s net revenue and EBITDA targets for the year ended December 31, 2025. The SGI Awards had a grant date fair value per share of $8.88 and require a one-year post vesting holding period once the shares have been awarded. In April 2024, the Company granted an 166,667 strategic growth incentive 2027 awards (the “SGI 2027 Awards”) in performance vested share units in an amount up to 200% of the target share units allocated to the program, which are based on meeting the respective Company’s net revenue and EBITDA targets for the year ended December 31, 2027. The SGI 2027 Awards had a grant date fair value of $6.48. Stock option activity for the six months ended June 30, 2024 was as follows:
Stock option activity for the six months ended June 30, 2023 was as follows:
Restricted stock activity for the six months ended June 30, 2024 was as follows:
The unrecognized compensation cost as of June 30, 2024 for stock options and restricted stock was $18.6 million and $6.3 million, respectively. These costs are expected to be recognized over a weighted-average service period of 4.0 and 1.6 years for stock options and restricted stock, respectively.
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SHAREHOLDERS’ EQUITY |
6 Months Ended |
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Jun. 30, 2024 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY Successor’s Share Capital Under the Company’s Memorandum of Association (the “Constitutional Document”), its authorized share capital consists of 1,000,000,000 Class A ordinary shares, 100,000,000 Class B ordinary shares and 25,000,000 Preferred Shares, each having a par value of $0.0001. As of June 30, 2024, there were 110,451,097 and 12,053,331 Class A and Class B ordinary shares, respectively, issued and outstanding. The Company did not have any Preferred Shares issued and outstanding as of June 30, 2024. Each Class A ordinary share is entitled to one vote per share. The Company can, at the discretion of its Board of Directors, declare dividends and distributions out of the funds of the Company lawfully available therefor. In the event of a voluntary or involuntary liquidation or wind-up, assets available for distribution among the holders of Class A ordinary shares will be distributed on a pro rata basis. Each Class B ordinary share is entitled to one vote per share and will vote together with holders of Class A ordinary shares as a single class. Class B ordinary shares are non-economic shares that are not entitled to dividends. Upon a liquidation, dissolution or winding up the Company, the holders of Class B ordinary shares will not be entitled to receive any assets of the Company, except to the extent of the par value of their shares, pro rata with the distributions that the Class A ordinary shares. Class B ordinary shares were issued by the Company to the Milk Members in connection with the Business Combination, giving rise to noncontrolling interest in the Company’s controlled subsidiary, Waldencast Partners LP. As such, the Constitutional Document prohibits issuances of additional shares of Class B ordinary shares, unless issued to a noncontrolling interest in connection with the Company’s Up-C structure. Class B ordinary shares are convertible into Class A ordinary shares on a one-to-one basis at the option of the holder. If such option is exercised, the exchanged Class B ordinary shares will automatically be surrendered and retired for no consideration. If the Company issues or redeems Class B ordinary shares, Waldencast Partners LP is obligated to issue or redeem a corresponding number of Waldencast LP partnership units, such that the number of issued and outstanding partnership units at any time will correspond and be equivalent to the then number of issued and outstanding Class B ordinary shares.
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NET LOSS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET LOSS PER SHARE | NET LOSS PER SHARE The Company uses the weighted average ownership percentages during the period to calculate the net loss per share attributable to public shareholders and the noncontrolling interest holders. The following table sets forth the computation of basic and diluted net loss using the treasury stock method:
The following table represents potential ordinary shares outstanding that were excluded from the computation of diluted net loss per share of common share because their effect would have been anti-dilutive:
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INCOME TAX BENEFIT |
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAX BENEFIT | INCOME TAX BENEFIT In determining the quarterly provisions for income taxes, the Company uses the estimated annual effective tax rate applied to the actual year-to-date income tax benefit, adjusted for discrete items arising in that quarter. In addition, the effect of changes in enacted tax laws or rates and tax status is recognized in the interim period in which the change occurs. The table below sets forth information related to our income tax expense:
The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. The change in the effective tax rate for the six months ended June 30, 2024, when compared to the six months ended June 30, 2023, is primarily attributable to the change in pre-tax earnings during the comparable periods and the change in valuation allowance. Our future effective tax rate may vary from the statutory tax rate due to the mix of earnings in tax jurisdictions with different statutory tax rates, items permanently nondeductible, or to changes in valuation allowance.
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RELATED PARTY TRANSACTIONS |
6 Months Ended |
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Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Subscription Agreement with PIPE Investors In September 2023, the Company entered into subscription agreements (the “Subscription Agreements”) with certain investors (collectively, the “2023 PIPE Investors”), pursuant to, and on the terms and subject to the conditions of which, the 2023 PIPE Investors collectively subscribed for 14,000,000 Class A ordinary shares (the “PIPE Shares”), in a private placement at a purchase price of $5.00 each per share, for aggregate gross proceeds of $70.0 million (the “2023 PIPE Investment”). The Subscription Agreements relating to approximately $68.0 million of proceeds were consummated in September 2023, with the remaining approximately $2.0 million of proceeds related to the closing of the Subscription Agreements in November 2023, following receipt of regulatory approvals (the “2023 PIPE Closings” and the date on which such Closing occurred, the “PIPE Closing Date”).” No Class B ordinary shares, warrants or other securities of the Company were issued in connection with the 2023 PIPE Investment. Indemnification Agreements The Company has entered into indemnification agreements with each of its directors and executive officers. The indemnification agreements provide, to the fullest extent permitted under law, indemnification against all expenses, judgments, fines and amounts paid in settlement relating to, arising out of or resulting from an indemnitee’s status as a director, officer, employee, fiduciary or agent of the Company or any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other entity which such person is or was serving at the Company’s request as a director, officer, employee or agent. In addition, the indemnification agreements provide that the Company will advance, to the extent not prohibited by law, the expenses incurred by the indemnitee in connection with any proceeding, and such advancement will be made within thirty (30) days after the receipt by the Company of a statement requesting such advances from time to time, whether prior to or after final disposition of any proceeding. Transactions with Cedarwalk in connection with the Business Combination In connection with the Obagi China Distribution, the Company entered into an Intellectual Property License Agreement (the “IP License Agreement”), a Global Supply Services Agreement (the “Supply Agreement”), and a Transition Services Agreement (the “Transition Services Agreement”) with Obagi Hong Kong, which is owned by Cedarwalk, the former owner of Obagi and a beneficial holder of 24.5% of the Company’s fully diluted Class A ordinary shares as of the closing of the Business Combination. Under the IP License Agreement, the Company exclusively licenses intellectual property relating to the Obagi brand to the Obagi China Business, and the Company retains the rights to such intellectual property to conduct the Obagi-branded business worldwide except for the China Region. The Obagi China Business pays the Company a royalty on gross sales of licensed products. During the six months ended June 30, 2024 net revenue generated from related party royalties was $0.1 million. During the six months ended June 30, 2023 net revenue generated from related party royalties was less than $0.1 million. Under the Supply Agreement, the Company supplies or causes to be supplied through certain Obagi CMOs products for distribution and sale in the China Region by the Obagi China Business. The term of the Supply Agreement is perpetual, subject to termination for material breach and failure to cure or termination in the event that the IP License Agreement is terminated. During the six months ended June 30, 2024 net revenue generated from supplying products to the Obagi China Business was $1.1 million and the related cost of goods sold was $0.3 million. During the six months ended June 30, 2023 net revenue generated from supplying products to the Obagi China Business was $3.4 million and the related cost of goods sold was $1.1 million. As of June 30, 2024, the Company had $0.5 million in related party accounts receivable from the Obagi China Business in the condensed consolidated balance sheet. As of December 31, 2023, the Company had $1.1 million in related party accounts receivable from the Obagi China Business in the condensed consolidated balance sheet. Under the Transition Services Agreement, the Company provided Obagi Hong Kong and its affiliates certain transition services to enable them to conduct the Obagi China Business as a going concern in the China Region. The transition services were provided for an initial term of up to (12) months, with an option for Obagi China Business to extend the service period for up to an additional (12) months solely as to certain R&D services. Obagi Hong Kong did not elect to extend the services and as a result the Transition Services Agreement expired on July 27, 2023. Services under the agreement were to be charged at the reasonable, fully-loaded costs of providing the services, but such services were to be provided at no charge for a certain period of time or up to a specified dollar value of services (the “Threshold Amount”). The Company determined that the Threshold Amount may be applied towards a combination of the Company’s services or inventory purchases made by the Obagi China Business under the Supply Agreement. Due to the fact that the Threshold Amount had not been reached at the time of expiration, the Company received no fees from the Obagi China Business. Transactions with Waldencast Ventures LP Waldencast Ventures LP is a shareholder of the Company and is controlled by Michel Brousset. The Company reimbursed Waldencast Ventures LP with respect to salary and other costs relating to Michel Brousset and Hind Sebti incurred by Waldencast Ventures LP in 2022 following the Business Combination as well as a portion of rent related to the Company’s London offices. During the six months ended June 30, 2024, there were no reimbursements. During the six months ended June 30, 2023, the total amount reimbursed was $0.3 million. Milk Milk subleases from Milk Studios Los Angeles LLC certain space in Los Angeles, CA on a month-to-month basis. Milk primarily uses these facilities for corporate offices and as an in-house studio. Milk also receives certain services from an employee of Milk Studios. During the six months ended June 30, 2024, the Company incurred administrative fees of $0.2 million, which is recorded in SG&A expenses in condensed consolidated statements of operations and comprehensive loss. During the six months ended June 30, 2023, the Company incurred administrative fees of $0.2 million, which is recorded in SG&A expenses in condensed consolidated statements of operations and comprehensive loss. One of the cofounders of Milk Makeup and a shareholder of the Company is party to an influencer agreement with Milk Makeup pursuant to which she provides certain brand services to Milk Makeup. Milk paid $0.1 million in fees pursuant to this agreement during both the six months ended June 30, 2024 and the six months ended June 30, 2023.
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Purchase Commitments Purchase commitments represent unconditional purchase obligations to purchase goods or services, primarily inventory, that are enforceable and legally binding on the Company and specify all significant terms, including fixed or minimum quantities to be purchased, price provisions, and the approximate timing of the transaction. The Company has entered into a certain development and production agreement with a third-party vendor in which the Company is committed to purchase from the vendor certain units of Skintrinsiq devices totaling $5.7 million. As of June 30, 2024, the Company’s associated future minimum payment was $0.7 million over the next 12-18 months. Legal Proceedings The Company is not involved in any material litigation nor, to management’s knowledge, was any material litigation threatened against the Company, which if adversely determined could have a material adverse impact on the Company. SEC Investigation The audit committee of the Board, engaged in a review of certain accounting practices applied to the Company’s financial statements for the Predecessor Period and Successor Period through December 31, 2022. The Company proactively and voluntarily self-reported the review to the SEC. In connection with this matter, the Company received a document subpoena from the SEC in September 2023. Although the Company is fully cooperating with the SEC’s investigation and continues to voluntarily respond to requests related to this matter, it cannot predict when the SEC will complete its investigation or its outcome and potential impact such outcome may have on the Company’s business or whether any other inquiries or investigations arise as a result of this matter. Any remedial measures, sanctions, fines or penalties, including, but not limited to, financial penalties and awards, injunctive relief and compliance conditions, imposed on the Company could have a material adverse effect on its business, financial condition and results of operations.
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SEGMENT REPORTING |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING The Company reports segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. The Company determined that it has two operating and reportable segments: Obagi Medical and Milk Makeup. Obagi Medical - this segment consists of the business of Obagi. Obagi’s business activities include developing, marketing, and selling skin health products. These assets and activities are conducted by Obagi Global Holdings Limited and its wholly-owned subsidiaries. Milk Makeup - this segment consists of the business of Milk. Milk’s business activities include developing, marketing, and selling cosmetics, skincare, and other beauty products. Milk generates revenue from the sale of cosmetics to retailers, including off-price retailers, and sales DTC via its website. Central costs include operating expenses related to corporate overhead expenses such as personnel-related costs, professional fees, interest expense related to the 2022 Credit Agreement, and the change in the fair value of derivatives. These costs are not used in evaluating the results of, or in allocating resources to, the Company’s segments. The following is a reconciliation of financial measures of the Company’s segments to the condensed consolidated totals:
The Company evaluates the performance of its reportable segments based on segment gross profit. Segment gross profit is segment revenue less segment cost of goods sold. The following table reconciles segment gross profit to net loss before income taxes for the six months ended June 30, 2024 and six months ended June 30, 2023:
The Company does not evaluate performance or allocate resources based on segment asset data, and therefore such information is not presented. All of the Company’s long-lived assets are located in the U.S.
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SUBSEQUENT EVENTS |
6 Months Ended |
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Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In March 2023, we acquired a majority interest in Obagi Vietnam Import Export Trading MTV Company Limited, a company incorporated in accordance with the laws of Vietnam and formed by Obagi’s Southeast Asia Distributor SA Distributor to conduct its business in Vietnam (“Obagi Vietnam”). In August 2024, certain of Obagi’s subsidiaries entered into and consummated a purchase agreement (the “Vietnam Purchase Agreement”) with the SA Distributor effective June 2024, pursuant to which the SA Distributor (i) forfeited any rights to the earnout payment as well as any compensation related claims and (ii) agreed to the retirement of its minority stake in Obagi Blue Sea Holding, LLC, as a result of which Obagi Vietnam became a 100% owned subsidiary of Waldencast. In consideration for the above, the Company agreed to waive any right to the remaining outstanding payment obligations due by the SA Distributor to Obagi pursuant to the Vietnam Purchase Agreement. The agreement has no material impact on the financial statements.
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CONDENSED FINANCIAL INFORMATION OF WALDENCAST PLC (PARENT COMPANY ONLY) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF WALDENCAST PLC (PARENT COMPANY ONLY) | CONDENSED FINANCIAL INFORMATION OF WALDENCAST PLC (PARENT COMPANY ONLY) The parent company financial statements for Waldencast Plc should be read in conjunction with the Company’s Condensed Consolidated Financial Statements and the accompanying notes thereto. For purposes of this condensed financial information, the Company’s wholly owned and majority owned subsidiaries are recorded based upon its proportionate share of its subsidiaries’ net assets (similar to presenting them on the equity method). Waldencast plc has no material operations of its own and conducts substantially all of its activities through its wholly owned subsidiaries. Waldencast plc has no significant assets or liabilities other than derivative warrant liabilities and cash, most expenditures paid by Waldencast plc are allocated to its subsidiaries. Waldencast Finco Limited, a wholly-owned indirect subsidiary of Waldencast plc, is the borrower under the 2022 Credit Agreement. The terms and conditions of the 2022 Credit Agreement (see Note 5 for definition) limit the ability of Waldencast plc’s wholly owned subsidiaries to make certain distributions or dividends, subject to a number of enumerated exceptions. Due to the aforementioned restrictions, substantially all of the Successor period net assets of Waldencast Plc’s subsidiaries are restricted. Since the restricted net assets of consolidated subsidiaries exceed 25% of the consolidated net assets of the Company and its subsidiaries, the accompanying condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule 1 of Regulation S-X. This information should be read in conjunction with the accompanying Condensed Consolidated Financial Statements. The following condensed financial statements have been presented on a “parent-only” basis. Under a parent-only presentation, Waldencast plc’s investment in its subsidiaries is presented under the equity method of accounting.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Waldencast and its consolidated subsidiaries (the “Company”) has prepared the accompanying condensed consolidated financial statements pursuant to generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). In the Company's opinion, all adjustments considered necessary for a fair presentation have been included. These statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2023. Results of operations for the period ended June 30, 2024 are not necessarily indicative of the expected results for the remainder of the fiscal year. Unless the context requires otherwise, the “Company” refers to Waldencast together with its consolidated subsidiaries.
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Principles of Consolidation | Principles of Consolidation—The accompanying condensed consolidated financial statements include the accounts of Waldencast and its consolidated subsidiaries. The Company consolidates entities in which the Company has a majority voting interest. The Company eliminates intercompany transactions and accounts in consolidation. The Company separately presents within equity on the condensed consolidated balance sheets the ownership interests attributable to parties with noncontrolling interests in the Company's consolidated subsidiaries, and separately presents net income attributable to such parties on the condensed consolidated statements of operations and comprehensive loss.
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Use of Estimates | Use of Estimates—The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates and assumptions reflected in the financial statements include, but are not limited to, revenue recognition, stock-based compensation, goodwill valuation, inventory valuation, and valuation allowance for deferred tax assets. The Company bases its estimates on historical experience and assumptions that it believes are reasonable at the time. Due to the inherent uncertainty involved in making assumptions and estimates, changes in circumstances could result in actual results differing from those estimates, and such differences could be material to the Company’s condensed consolidated balance sheets and condensed consolidated statements of operations and comprehensive loss.
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Concentrations of Credit Risk | Concentrations of Credit Risk—Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash balances in accounts held by major banks and financial institutions located primarily in the U.S. and considers such risk to be minimal. Such bank deposits from time to time may be exposed to credit risk in excess of the Federal Deposit Insurance Corporation insurance limit. The Company’s accounts receivable primarily represent amounts due from distributors, and third-party logistics companies, directly and indirectly from major retailers, and from group purchasing organizations located both inside and outside the U.S. The Company mitigates its credit risks by performing ongoing credit evaluations of its customers’ financial conditions, requiring customer advance payments in certain circumstances. The Company generally does not require collateral. As of June 30, 2024, two U.S. customers accounted for 22% and 11% of accounts receivable, respectively. As of December 31, 2023, one U.S. customer accounted for 27% of accounts receivable. During the six months ended June 30, 2024, two vendors exceeded 10% of inventory purchases. During the six months ended June 30, 2023, one vendor exceeded 10% of inventory purchases. During the six months ended June 30, 2024, the Company purchased approximately 13% and 12% of inventory from two vendors. During the six months ended June 30, 2023, the Company purchased approximately 16% and 10% of inventory, respectively, from two vendors. As of June 30, 2024, one vendor accounted for 23% of accounts payable. As of December 31, 2023, one vendor accounted for 18% of accounts payable.
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Recently Adopted Accounting Pronouncements and Recently Issued Accounting Standards, Not Yet Adopted | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The guidance requires an acquirer to, at the date of acquisition, recognize and measure the acquired contract assets and contract liabilities acquired in the same manner that they were recognized and measured in the acquiree’s financial statements before the acquisition. This guidance is effective for interim and annual periods beginning after December 15, 2023 for an EGC company, with early adoption permitted. The amendments in this update should be applied prospectively to business combinations occurring on or after the effective date. The Company adopted this standard as of January 1, 2024 and will apply the standard to any business combination prospectively. The adoption of this new standard has no effect on the Company’s condensed consolidated financial statements. Recently Issued Accounting Standards, Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively however, retrospective application is also permitted. The Company is in the process of assessing the impact of this ASU on its future condensed consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The guidance expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly reviewed by the Company’s chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The guidance also allows, in addition to the measure that is most consistent with U.S. GAAP, the disclosure of additional measures of segment profit or loss that are used by the CODM in assessing segment performance and deciding how to allocate resources. This guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The amendments in this update should be applied retrospectively to all periods presented in the financial statements. The Company is in the process of assessing the impact of this ASU on its future condensed consolidated financial statements, but does not expect it to have a material impact.
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REVENUE (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Sales Channel | Total revenue by sales channel was as follows for the periods indicated:
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Revenue by Geographic Region | Total revenue by geographic region, based on the location of the end customer, was as follows for the periods indicated:
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INTANGIBLE ASSETS—NET (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets, net consisted of the following as of June 30, 2024:
Intangible assets, net consisted of the following as of December 31, 2023:
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DEBT (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt |
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LEASES (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow and Other Information Related to Leases | Supplemental cash flow information related to the Company’s operating leases was as follows:
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FAIR VALUE MEASUREMENTS (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis by level within the fair value hierarchy:
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SUPPLEMENTAL BALANCE SHEET DISCLOSURES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Change in Allowance for Doubtful Accounts | The change in the allowance for doubtful accounts were as follows:
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Schedule of Inventory | The components of inventories were as follows:
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Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following:
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Schedule of Other Current Liabilities | The major components of other current liabilities consisted of the following (in thousands):
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STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | Stock option activity for the six months ended June 30, 2024 was as follows:
Stock option activity for the six months ended June 30, 2023 was as follows:
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Schedule of Restricted Stock Activity | Restricted stock activity for the six months ended June 30, 2024 was as follows:
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NET LOSS PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Loss Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss using the treasury stock method:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table represents potential ordinary shares outstanding that were excluded from the computation of diluted net loss per share of common share because their effect would have been anti-dilutive:
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INCOME TAX BENEFIT (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income Tax Expense | The table below sets forth information related to our income tax expense:
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SEGMENT REPORTING (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Financial Measures of Company's Segments | The following is a reconciliation of financial measures of the Company’s segments to the condensed consolidated totals:
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Schedule of Reconciliation of Segment Gross Profit to Net Loss Before Income Taxes | The following table reconciles segment gross profit to net loss before income taxes for the six months ended June 30, 2024 and six months ended June 30, 2023:
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CONDENSED FINANCIAL INFORMATION OF WALDENCAST PLC (PARENT COMPANY ONLY) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unaudited Condensed Balance Sheet | The following condensed financial statements have been presented on a “parent-only” basis. Under a parent-only presentation, Waldencast plc’s investment in its subsidiaries is presented under the equity method of accounting.
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Schedule of Unaudited Condensed Statement of Operations |
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Schedule of Unaudited Condensed Statement of Cash Flow |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Inventory Purchases | Supplier Concentration Risk | Vendor One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 13.00% | 16.00% | |
Inventory Purchases | Supplier Concentration Risk | Vendor Two | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 10.00% | |
Accounts Payable | Lender Concentration Risk | Vendor One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 23.00% | 18.00% | |
Customer One | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 22.00% | 27.00% | |
Customer Two | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% |
REVENUE - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 131,582 | $ 109,338 |
Net product sales | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 129,181 | 106,987 |
UNITED STATES | Net product sales | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 90,000 | $ 71,200 |
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | Customer One | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 22.00% | 26.00% |
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | Customer Two | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 20.00% | 22.00% |
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
REVENUE - Revenue by Geographic Region (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 131,582 | $ 109,338 |
Net product sales | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 129,181 | 106,987 |
Net product sales | North America | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 95,469 | 75,326 |
Net product sales | Rest of the World | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 33,712 | 31,661 |
Royalties | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 2,401 | $ 2,351 |
INTANGIBLE ASSETS—NET - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 28.3 | $ 28.0 |
LEASES - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Lessee, Lease, Description [Line Items] | |||
Operating lease extension term (in years) | 5 years | ||
Operating lease expenses | $ 1.8 | $ 1.8 | |
TEXAS | Warehouse | |||
Lessee, Lease, Description [Line Items] | |||
Annual sublease rent | 0.3 | ||
Impairment charge | $ 0.8 | ||
TEXAS | Office | |||
Lessee, Lease, Description [Line Items] | |||
Annual sublease rent | $ 0.4 | ||
Impairment charge | $ 2.7 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term (in years) | 8 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term (in years) | 11 years |
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities: | $ 1,882 | $ 1,686 |
Right-of-use assets obtained in exchange for new operating lease liabilities: | $ 131 | $ 199 |
SUPPLEMENTAL BALANCE SHEET DISCLOSURES - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Related Party Transaction [Line Items] | ||||
Accounts receivable, before allowance for doubtful accounts | $ 29,500 | $ 22,900 | ||
Allowance for doubtful accounts | 280 | 1,552 | $ 994 | |
Depreciation expense | 1,700 | $ 2,300 | ||
Related Party | ||||
Related Party Transaction [Line Items] | ||||
Related party liability | $ 4,901 | $ 5,856 |
SUPPLEMENTAL BALANCE SHEET DISCLOSURES - Change in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 1,552 | $ 994 | $ 994 |
Allowance for doubtful accounts | (826) | $ 73 | 558 |
Write-off of uncollectible accounts, net | (446) | 0 | |
Balance at end of period | $ 280 | $ 1,552 |
SUPPLEMENTAL BALANCE SHEET DISCLOSURES - Inventory (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Work in process | $ 8,242 | $ 10,336 |
Finished goods | 42,454 | 45,348 |
Total inventories | $ 50,696 | $ 55,684 |
SUPPLEMENTAL BALANCE SHEET DISCLOSURES - Other Current Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Related Party Transaction [Line Items] | ||
Accrued salaries and related expenses | $ 9,191 | $ 8,702 |
Accrued sales returns and damages | 1,751 | 2,527 |
Accrued interest | 1,453 | 1,357 |
Accrued distribution fees | 690 | 590 |
Accrued professional services | 4,035 | 2,901 |
Total | 23,829 | 23,698 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Related party liability and other | 4,901 | 5,856 |
Total | 4,901 | 5,856 |
Nonrelated Party | ||
Related Party Transaction [Line Items] | ||
Related party liability and other | $ 1,808 | $ 1,765 |
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Number of Common Stock Options | ||||
Beginning balance (in shares) | 18,915,358 | 20,452,155 | 20,452,155 | |
Granted (in shares) | 0 | 0 | ||
Exercised (in shares) | 150,000 | 0 | ||
Forfeited (in shares) | (439,085) | (987,941) | ||
Ending balance (in shares) | 18,626,273 | 19,464,214 | 18,915,358 | 20,452,155 |
Exercisable (in shares) | 7,394,683 | 5,220,895 | ||
Vested and expected to vest (in shares) | 18,626,273 | 19,464,214 | ||
Weighted Average Exercise Price | ||||
Beginning balance (in dollars per share) | $ 9.10 | $ 9.50 | $ 9.50 | |
Granted (in dollars per share) | 0 | 0 | ||
Exercised (in dollars per share) | 0.68 | 0 | ||
Forfeited (in dollars per share) | 5.39 | 5.39 | ||
Ending balance (in dollars per share) | 9.22 | 9.24 | $ 9.10 | $ 9.50 |
Exercisable (in dollars per share) | 6.08 | 4.44 | ||
Vested and expected to vest (in dollars per share) | $ 9.22 | $ 9.24 | ||
Weighted Average Remaining Contractual Life (in years) | ||||
Outstanding (in years) | 6 years 9 months 18 days | 7 years 9 months 18 days | 7 years 3 months 18 days | 8 years 3 months 18 days |
Exercisable (in years) | 5 years 8 months 12 days | 7 years 2 months 12 days | ||
Vested and expected to vest (in years) | 6 years 9 months 18 days | 7 years 9 months 18 days | ||
Aggregate intrinsic Value (in thousands) | ||||
Outstanding | $ 2,054 | $ 24,812 | $ 47,792 | $ 39,118 |
Exercisable | 2,054 | 17,187 | ||
Vested and expected to vest | $ 2,054 | $ 24,812 |
STOCK-BASED COMPENSATION - Restricted Stock Activity (Details) - Restricted stock |
6 Months Ended |
---|---|
Jun. 30, 2024
$ / shares
shares
| |
Shares | |
Outstanding, beginning balance (in shares) | shares | 2,296,831 |
Granted (in shares) | shares | 1,191,011 |
Vested (in shares) | shares | (741,789) |
Forfeited (in shares) | shares | (594,607) |
Outstanding, ending balance (in shares) | shares | 2,151,446 |
Weighted Average Grant Date Fair Value per Share | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 9.16 |
Granted (in dollars per share) | $ / shares | 5.34 |
Vested (in dollars per share) | $ / shares | 9.28 |
Forfeited (in dollars per share) | $ / shares | 7.15 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 7.36 |
NET LOSS PER SHARE - Schedule of Net Loss Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Numerator: | ||
Net loss | $ (12,906) | $ (36,780) |
Net loss attributable to noncontrolling interest | (2,831) | (7,366) |
Net loss attributed to Class A shareholders - basic EPS | (10,075) | (29,414) |
Net loss attributed to Class A shareholders - diluted EPS | $ (10,075) | $ (29,414) |
Denominator: | ||
Weighted-average basic shares outstanding (in shares) | 107,366,433 | 86,876,187 |
Effect of dilutive securities (in shares) | 0 | 0 |
Weighted-average diluted shares (in shares) | 107,366,433 | 86,876,187 |
Basic net loss per share (in dollars per share) | $ (0.09) | $ (0.34) |
Diluted net loss per share (in dollars per share) | $ (0.09) | $ (0.34) |
NET LOSS PER SHARE - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 50,311,001 | 52,031,267 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 18,626,273 | 19,464,214 | 18,915,358 | 20,452,155 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 29,533,282 | 29,533,282 | ||
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 18,626,273 | 19,464,214 | ||
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 2,151,446 | 3,033,771 |
INCOME TAX BENEFIT (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Income tax benefit | $ (2,353) | $ (4,509) |
Changes in income tax benefit | $ 2,156 | |
Effective tax rate (as percent) | 15.40% | 10.90% |
Change in effective tax rate (as percent) | 4.50% |
COMMITMENTS AND CONTINGENCIES (Details) - Skintrinsiq Devices $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Long-Term Purchase Commitment [Line Items] | |
Initial commitment amount of purchase commitments | $ 5.7 |
Future minimum payment | $ 0.7 |
Minimum | |
Long-Term Purchase Commitment [Line Items] | |
Purchase commitment period | 12 months |
Maximum | |
Long-Term Purchase Commitment [Line Items] | |
Purchase commitment period | 18 months |
SEGMENT REPORTING - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2024
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
SEGMENT REPORTING - Reconciliation of Financial Measures of Segments to Consolidated Totals (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Segment Reporting Information [Line Items] | ||
Net revenue | $ 131,582 | $ 109,338 |
Cost of goods sold | 37,404 | 41,158 |
Gross profit | 94,178 | 68,180 |
Obagi Medical | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 68,364 | 57,014 |
Cost of goods sold | 18,794 | 21,674 |
Gross profit | 49,570 | 35,340 |
Milk Makeup | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 63,218 | 52,324 |
Cost of goods sold | 18,610 | 19,484 |
Gross profit | $ 44,608 | $ 32,840 |
SEGMENT REPORTING - Reconciliation of Segment Gross Profit to Net Loss Before Income Taxes (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Segment Reporting [Abstract] | ||
Gross profit | $ 94,178 | $ 68,180 |
Selling, general and administrative | 119,879 | 100,687 |
Research and development | 1,805 | 2,720 |
Interest expense, net | 8,711 | 8,850 |
Change in fair value of derivative warrant liabilities | (20,673) | (1,122) |
Other income, net | (285) | (1,666) |
Income (loss) before income taxes | (15,259) | (41,289) |
Income tax (benefit) expense | (2,353) | (4,509) |
Net loss | $ (12,906) | $ (36,780) |
SUBSEQUENT EVENTS (Details) |
Aug. 31, 2024 |
---|---|
Subsequent Event | Obagi Vietnam | |
Subsequent Event [Line Items] | |
Parent ownership percentage of subsidiary | 100.00% |