Related Party Transactions

9 Months Ended

Dec. 31, 2021

The Company engages in transactions with its equity method investees primarily for the procuring and processing of inventory. The following summarizes sales and purchases transactions with related parties:



	Three months ended December 31, 2021		Three months ended December 31, 2020
Sales	$	1,955	$	207
Purchases	39,447		28,815


	Successor				Predecessor
	Nine months ended December 31, 2021		Four months ended December 31, 2020		Five months ended August 31, 2020
Sales	$	20,768	$	746	$	13,483
Purchases	87,120		47,734		38,655

The Company included the following related party balances in its condensed consolidated balances sheets:



	December 31, 2021		December 31, 2020		March 31, 2021		Location in the Condensed Consolidated Balance Sheets
Accounts receivable, related parties	$	1,283	$	3,344	$	3,585	Other receivables
Notes receivable, related parties	2,579		—		11,890		Other receivables
Long-term notes receivable, related parties	—		149		21		Other non-current assets
Accounts payable, related parties	12,232		28,417		22,376		Accounts payable
Advances from related parties	13,804		—		—		Advances from customers

Transactions with the Glendon Investor and the Monarch Investor

On August 24, 2020, the Company entered into an Exit Term Loan Credit Agreement and issued Senior Secured First Lien Notes with certain lenders, including the Glendon Investor and the Monarch Investor (see “Note 3. Emergence from Voluntary Reorganization under Chapter 11” for additional information).

On April 23, 2021, the Company and certain of its subsidiaries with certain funds managed by the Glendon Investor and the Monarch Investor, as lenders, and related matters entered into a $120,000 delayed-draw credit facility agreement (see "Note 15. Debt Arrangements" for additional information). On December 30, 2021, the Company repaid $15,375 of the DDTL facility.

Accrued expenses and other current liabilities as presented in the condensed consolidated balance sheets as of December 31, 2021 and 2020, and March 31, 2021, includes $6,039, $4,099, and $2,309, respectively, of interest payable to the Glendon Investor and the Monarch Investor. Interest expense as presented in the condensed consolidated statements of operations includes $8,530 and $24,566 for the three and nine months ended December 31, 2021, respectively, and $5,317 and $7,509 for the three and nine months ended December 31, 2020, respectively, that relates to the Glendon Investor and the Monarch Investor.

Transactions with the Deconsolidated Canadian Cannabis Subsidiaries

In connection with the CCAA Proceeding, the DIP Lender, another non-U.S. subsidiary of the Company, provided Figr Brands with secured debtor-in-possession financing to fund the working capital needs of the Canadian Cannabis Subsidiaries in accordance with the cash flow projections approved by the Monitor and the DIP Lender. These payments also funded fees and expenses paid to the DIP Lender, professional fees and expenses incurred by the Canadian Cannabis Subsidiaries and the Monitor in respect of the CCAA Proceeding, and such other costs and expenses of the Canadian Cannabis Subsidiaries as agreed to by the DIP Lender.

As of December 31, 2021 and 2020, and March 31, 2021, the outstanding loan balance under the Canadian DIP Facility was $0, $0, and $5,790, respectively, and is included in other receivables within the condensed consolidated balance sheets. On July 8, 2021, the loans under the Canadian DIP Facility were fully repaid to the DIP Lender.

As of December 31, 2021, the Company's adjusted related party note receivable was $2,579, which resulted in a loss on the deconsolidation of the Canadian Cannabis Subsidiaries recorded within the condensed consolidated statements of operations of $900 and $3,356 for the three and nine months ended December 31, 2021, respectively . See "Note 5. CCAA Proceeding and Deconsolidation of Subsidiaries" for additional information.