| , 2018 | | | Sincerely, | | | | |
| | | |
Tilman J. Fertitta Co-Chairman and Chief Executive Officer |
| |
Richard Handler Co-Chairman and President |
|
| , 2018 | | | By Order of the Board of Directors, | | | | |
| | | |
Tilman J. Fertitta Co-Chairman and Chief Executive Officer |
| |
Richard Handler Co-Chairman and President |
|
| | |
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| | | | F-1 | |
| | | | A-1 | |
| | | | B-1 | |
| | | | C-1 | |
| | | | D-1 | |
| | | | E-1 |
| | |
Six Months ended
June 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||||||||
(in thousands)
|
| |
2018
|
| |
2017
|
| |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||
Statement of Operations Data: | | | | | | | |||||||||||||||||||||||||
General and administrative expenses
|
| | | $ | 414 | | | | | $ | 290 | | | | | $ | 480 | | | | | $ | 261 | | | | | $ | 12 | | |
Net Income (loss)
|
| | | | 942 | | | | | | 230 | | | | | | 870 | | | | | | (5 ) | | | | | | (12 ) | | |
(Loss) per share – basic and diluted
|
| | | $ | (0.04 ) | | | | | | (0.03 ) | | | | | | (0.05 ) | | | | | | (0.03 ) | | | | | | (0.00 ) | | |
Statement of Cash Flows: | | | | | | | |||||||||||||||||||||||||
Net cash used in operating activities
|
| | | $ | (787 ) | | | | | $ | (294 ) | | | | | $ | (492 ) | | | | | $ | (298 ) | | | | | $ | (0 ) | | |
Net cash provided by (used in) investing activities
|
| | | | 17,863 | | | | | | — | | | | | | — | | | | | | (250,000 ) | | | | | | — | | |
Net cash provided by (used in) financing activities
|
| | | | (17,420 ) | | | | | | — | | | | | | — | | | | | | 251,350 | | | | | | 11 | | |
Balance Sheet Data: | | | | | | | |||||||||||||||||||||||||
Total cash
|
| | | $ | 228 | | | | | $ | 769 | | | | | $ | 572 | | | | | $ | 1,063 | | | | | $ | 11 | | |
Total assets
|
| | | | 236,055 | | | | | | 251,769 | | | | | | 252,670 | | | | | | 251,474 | | | | | | 334 | | |
Total liabilities
|
| | | | 9,074 | | | | | | 8,949 | | | | | | 9,211 | | | | | | 8,884 | | | | | | 335 | | |
Total stockholders’ equity (deficit)
|
| | | | 5,000 | | | | | | 5,000 | | | | | | 5,000 | | | | | | 5,000 | | | | | | (1 ) | | |
| | |
Six Months ended
June 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||||||||
(in thousands)
|
| |
2018
|
| |
2017
|
| |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||
Statement of Operations Data: | | | | | | | |||||||||||||||||||||||||
Total revenue
|
| | | $ | 28,569 | | | | | $ | 8,448 | | | | | $ | 22,911 | | | | | $ | 5,650 | | | | | $ | 340 | | |
Net (Loss)
|
| | | | (10,826 ) | | | | | | (7,258 ) | | | | | | (26,907 ) | | | | | | (8,722 ) | | | | | | (818 ) | | |
(Loss) per share – basic and diluted
|
| | | | (0.97 ) | | | | | | (0.65 ) | | | | | | (2.42 ) | | | | | | (0.91 ) | | | | | | (0.09 ) | | |
Statement of Cash Flows: | | | | | | | |||||||||||||||||||||||||
Net cash used in operating activities
|
| | | $ | (4,398 ) | | | | | $ | (5,748 ) | | | | | $ | (12,411 ) | | | | | $ | (4,497 ) | | | | | $ | (663 ) | | |
Net cash used in investing activities
|
| | | | (1,124 ) | | | | | | (860 ) | | | | | | (1,874 ) | | | | | | (826 ) | | | | | | (203 ) | | |
Net cash provided by financing activities
|
| | | | 3,377 | | | | | | 7,467 | | | | | | 14,947 | | | | | | 8,334 | | | | | | 1,115 | | |
Balance Sheet Data: | | | | | | | |||||||||||||||||||||||||
Total cash
|
| | | $ | 1,802 | | | | | | N/A | | | | | $ | 3,947 | | | | | $ | 3,285 | | | | | | N/A | | |
Total assets
|
| | | | 14,617 | | | | | | N/A | | | | | | 11,407 | | | | | | 7,815 | | | | | | N/A | | |
Total liabilities
|
| | | | 23,058 | | | | | | N/A | | | | | | 12,917 | | | | | | 1,432 | | | | | | N/A | | |
Total stockholders’ equity (deficit)
|
| | | | (8,441 ) | | | | | | N/A | | | | | | (1,510 ) | | | | | | 6,383 | | | | | | N/A | | |
| | |
Assuming
Minimum Redemptions |
| |
Assuming
Maximum Redemptions |
| ||||||
Selected Unaudited Pro Forma Condensed Combined Statement
of Operations Data |
| | | | | | | | | | | | |
Six Months Ended June 30, 2018 (in thousands, except share and per share information)
|
| | | | | | | | | | | | |
Revenues
|
| | | $ | 28,569 | | | | | $ | 28,569 | | |
Net loss per share – basic and diluted
|
| | | $ | (0.24 ) | | | | | $ | (0.32 ) | | |
Weighted-average shares outstanding – basic and diluted
|
| | | | 53,703,841 | | | | | | 39,264,721 | | |
Selected Unaudited Pro Forma Condensed Combined Statement
of Operations Data |
| | | | | | | | | | | | |
Year Ended December 31, 2017 (in thousands, except share and per share information)
|
| | | | | | | | | | | | |
Revenues
|
| | | $ | 22,911 | | | | | $ | 22,911 | | |
Net loss per share – basic and diluted
|
| | | $ | (0.56 ) | | | | | $ | (0.77 ) | | |
Weighted-average shares outstanding – basic and diluted
|
| | | | 53,703,841 | | | | | | 39,264,721 | | |
Selected Unaudited Pro Forma Condensed Combined Balance Sheet Data as of June 30, 2018 (in thousands)
|
| | | | | | | | | | | | |
Total assets
|
| | | $ | 235,672 | | | | | $ | 89,079 | | |
Total liabilities
|
| | | $ | 96,219 | | | | | $ | 96,219 | | |
Total stockholders’ equity
|
| | | $ | 139,453 | | | | | $ | (7,140 ) | | |
| | |
Assuming
Minimum Redemptions |
| |
Assuming
Maximum Redemptions |
| ||||||
(in thousands)
|
| |
Six Months
ended June 30, 2018 |
| |
Six Months
ended June 30, 2018 |
| ||||||
Shares transferred at Closing
(1)
|
| | | | 22,500 | | | | | | 25,000 | | |
Value per share
(1)
|
| | | $ | 10.00 | | | | | $ | 10.00 | | |
Total Share Consideration
|
| | | $ | 225,000 | | | | | $ | 250,000 | | |
Plus: Cash Transferred
(1)
|
| | | | 75,000 | | | | | | 50,000 | | |
Total Cash and Share Consideration – at Closing
|
| | | $ | 300,000 | | | | | $ | 300,000 | | |
Plus: Potential consideration for outstanding incentive stock options
(2)
|
| | | $ | 8,000 | | | | | $ | 8,000 | | |
Total Potential Consideration
|
| | | $ | 308,000 | | | | | $ | 308,000 | | |
|
| | |
Assuming
Minimum Redemptions (Shares) |
| |
%
|
| |
Assuming
Maximum Redemptions (Shares) |
| |
%
|
| ||||||||||||
LCA Merger Consideration shares
(1)
|
| | | | 22,500,000 | | | | | | | | | | | | 25,000,000 | | | | | | | | |
Total Waitr shares
|
| | | | 22,500,000 | | | | | | 42 % | | | | | | 25,000,000 | | | | | | 64 % | | |
Shares issued to Founders in connection with the Debt Financings
|
| | | | 1,675,000 | | | | | | | | | | | | 1,675,000 | | | | | | | | |
Common shares held by current LCA stockholders
|
| | | | 23,278,841 | | | | | | | | | | | | 23,278,841 | | | | | | | | |
Less: public shares redeemed
(2)
|
| | | | — | | | | | | | | | | | | (16,939,120 ) | | | | | | | | |
Total LCA shares
|
| | | | 24,953,841 | | | | | | 46 % | | | | | | 8,014,721 | | | | | | 20 % | | |
Founder shares
|
| | | | 6,250,000 | | | | | | 12 % | | | | | | 6,250,000 | | | | | | 16 % | | |
Pro Forma Common Stock at June 30, 2018
|
| | | | 53,703,841 | | | | | | 100 % | | | | | | 39,264,721 | | | | | | 100 % | | |
|
| | |
As of
June 30, 2018 |
| |
Pro Forma
Adjustments (Assuming Minimum Redemptions) |
| |
Debt
Financings Adjustments |
| |
As of
June 30, 2018 |
| |
Additional Pro
Forma Adjustments (Assuming Maximum Redemptions) |
| |
As of
June 30, 2018 |
| ||||||||||||||||||||||||
| | |
Waitr
(Historical) |
| |
Landcadia
(Historical) |
| |
Pro Forma
Combined Assuming Minimum Redemptions |
| |
Pro Forma
Combined (Assuming Maximum Redemptions) |
| ||||||||||||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 1,802 | | | | | $ | 228 | | | | | $ | 235,813 (A) | | | | | $ | 82,050 (K) | | | | | $ | 221,593 | | | | | $ | (171,593 ) (I) | | | | | $ | 75,000 | | |
| | | | | | | | | | | | | | | | | (75,000 ) (B) | | | | | | | | | | | | | | | | | | 25,000 (J) | | | | | | | | |
| | | | | | | | | | | | | | | | | (8,750 ) (D) | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (14,550 ) (E) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restricted Cash
|
| | | | | | | | | | | | | | | | | | | | | | 1,250 (K) | | | | | | 1,250 | | | | | | | | | | | | 1,250 | | |
Accounts receivable, net
|
| | | | 2,777 | | | | | | — | | | | | | — | | | | | | | | | | | | 2,777 | | | | | | | | | | | | 2,777 | | |
Capitalized contract costs, current
|
| | | | 1,364 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,364 | | | | | | | | | | | | 1,364 | | |
Services receivable
|
| | | | 813 | | | | | | — | | | | | | — | | | | | | | | | | | | 813 | | | | | | | | | | | | 813 | | |
Other current assets
|
| | | | 2,845 | | | | | | 14 | | | | | | — | | | | | | | | | | | | 2,859 | | | | | | | | | | | | 2,859 | | |
Total current assets
|
| | | | 9,601 | | | | | | 242 | | | | | | 137,513 | | | | | | 83,300 | | | | | | 230,656 | | | | | | (146,593 ) | | | | | | 84,063 | | |
Cash and cash equivalents held in trust
|
| | | | — | | | | | | 235,813 | | | | | | (235,813 ) (A) | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Property and equipment, net
|
| | | | 2,602 | | | | | | — | | | | | | — | | | | | | | | | | | | 2,602 | | | | | | | | | | | | 2,602 | | |
Capitalized contract costs, current
|
| | | | 643 | | | | | | — | | | | | | — | | | | | | | | | | | | 643 | | | | | | | | | | | | 643 | | |
Goodwill
|
| | | | 1,408 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,408 | | | | | | | | | | | | 1,408 | | |
Intangible assets, net
|
| | | | 327 | | | | | | — | | | | | | — | | | | | | | | | | | | 327 | | | | | | | | | | | | 327 | | |
Other noncurrent assets
|
| | | | 36 | | | | | | — | | | | | | — | | | | | | | | | | | | 36 | | | | | | | | | | | | 36 | | |
Total assets
|
| | | | 14,617 | | | | | | 236,055 | | | | | | (98,300 ) | | | | | | 83,300 | | | | | | 235,672 | | | | | | (146,593 ) | | | | | | 89,079 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | | 1,076 | | | | | | 53 | | | | | | — | | | | | | | | | | | | 1,129 | | | | | | | | | | | | 1,129 | | |
Gratuities payable
|
| | | | 612 | | | | | | — | | | | | | — | | | | | | | | | | | | 612 | | | | | | | | | | | | 612 | | |
Deferred revenue, current
|
| | | | 2,536 | | | | | | — | | | | | | — | | | | | | | | | | | | 2,536 | | | | | | | | | | | | 2,536 | | |
Income tax payable
|
| | | | 9 | | | | | | 271 | | | | | | — | | | | | | | | | | | | 280 | | | | | | | | | | | | 280 | | |
Accrued payroll
|
| | | | 1,077 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,077 | | | | | | | | | | | | 1,077 | | |
Accrued interest
|
| | | | 475 | | | | | | — | | | | | | (475 ) (G) | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Accrued professional fees
|
| | | | 3,054 | | | | | | — | | | | | | — | | | | | | | | | | | | 3,054 | | | | | | | | | | | | 3,054 | | |
Short-term loan
|
| | | | 1,957 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,957 | | | | | | | | | | | | 1,957 | | |
Other current liabilities
|
| | | | 1,275 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,275 | | | | | | | | | | | | 1,275 | | |
Total current liabilities
|
| | | | 12,071 | | | | | | 324 | | | | | | (475 ) | | | | | | — | | | | | | 11,920 | | | | | | — | | | | | | 11,920 | | |
Long-term liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Term loan
|
| | | | | | | | | | | | | | | | | | | | | | 24,066 (K) | | | | | | 24,066 | | | | | | | | | | | | 24,066 | | |
Convertible notes, net
|
| | | | 8,504 | | | | | | — | | | | | | (8,504 ) (G) | | | | | | 57,760 (K) | | | | | | 57,760 | | | | | | | | | | | | 57,760 | | |
Bifurcated embedded derivative on convertible notes
|
| | | | 10 | | | | | | — | | | | | | (10 ) (G) | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Accrued workers’ compensation liability
|
| | | | 1,250 | | | | | | — | | | | | | | | | | | | | | | | | | 1,250 | | | | | | | | | | | | 1,250 | | |
Deferred revenue, noncurrent
|
| | | | 1,184 | | | | | | — | | | | | | | | | | | | | | | | | | 1,184 | | | | | | | | | | | | 1,184 | | |
Other noncurrent liabilities
|
| | | | 39 | | | | | | 8,750 | | | | | | (8,750 ) (D) | | | | | | | | | | | | 39 | | | | | | | | | | | | 39 | | |
Total liabilities
|
| | | | 23,058 | | | | | | 9,074 | | | | | | (17,739 ) | | | | | | 81,826 | | | | | | 96,219 | | | | | | — | | | | | | 96,219 | | |
Common stock subject to possible conversion (21,913,368 shares at conversion value as of June, 2018)
|
| | | | — | | | | | | 221,981 | | | | | | (221,981 ) (C) | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Stockholders’ equity (deficit)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A common stock, $0.0001 par value
|
| | | | — | | | | | | — | | | | | | 2 (C) | | | | | | | | | | | | 5 | | | | | | (2 ) (I) | | | | | | 3 | | |
| | | | | | | | | | | | | | | | | 2 (B) | | | | | | | | | | | | | | | | | | 0 (J) | | | | | | | | |
| | | | | | | | | | | | | | | | | 1 (H) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class F common stock, $0.0001 par value
|
| | | | — | | | | | | 1 | | | | | | (1 ) (H) | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Convertible Voting Preferred Stock: Seed I, Par Value of $0.00001
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Convertible Voting Preferred Stock: Seed II, Par Value of $0.00001
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Convertible Voting Preferred Stock: Seed AA, Par Value of $0.00001
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Common Stock, Par Value of $0.00001
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | |
Additional paid-in capital
|
| | | | 39,005 | | | | | | 3,204 | | | | | | 221,979 (C) | | | | | | 1,474 (K) | | | | | | 201,454 | | | | | | (171,591 ) (I) | | | | | | 54,863 | | |
| | | | | | | | | | | | | | | | | (75,000 ) (B) | | | | | | | | | | | | | | | | | | 25,000 (J) | | | | | | | | |
| | | | | | | | | | | | | | | | | (2 ) (B) | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,795 (F) | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 8,999 (G) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accumulated deficit
|
| | | | (47,446 ) | | | | | | 1,795 | | | | | | (1,795 ) (F) | | | | | | | | | | | | (62,006 ) | | | | | | | | | | | | (62,006 ) | | |
| | | | | | | | | | | | | | | | | (14,550 ) (E) | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (10 ) (G) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity (deficit)
|
| | | | (8,441 ) | | | | | | 5,000 | | | | | | 141,420 | | | | | | 1,474 | | | | | | 139,453 | | | | | | (146,593 ) | | | | | | (7,140 ) | | |
Total liabilities and stockholders’ equity (deficit)
|
| | | $ | 14,617 | | | | | $ | 236,055 | | | | | $ | (98,300 ) | | | | | $ | 83,300 | | | | | $ | 235,672 | | | | | $ | (146,593 ) | | | | | $ | 89,079 | | |
|
| | |
Six Months Ended
June 30, 2018 |
| |
Pro Forma
Adjustments (Assuming Minimum & Maximum Redemptions) |
| |
Debt
Financings Adjustments |
| |
Six Months
Ended June 30, 2018 |
| ||||||||||||||||||
| | |
Waitr
(Historical) |
| |
Landcadia
(Historical) |
| |
Pro Forma
Combined (Assuming Minimum & Maximum Redemptions) |
| |||||||||||||||||||||
Revenue
|
| | | $ | 28,569 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 28,569 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operations and support
|
| | | | 18,414 | | | | | | — | | | | | | — | | | | | | | | | | | | 18,414 | | |
Sales and marketing
|
| | | | 5,139 | | | | | | — | | | | | | — | | | | | | | | | | | | 5,139 | | |
Research and development
|
| | | | 1,197 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,197 | | |
General and administrative
|
| | | | 13,957 | | | | | | 414 | | | | | | — | | | | | | | | | | | | 14,371 | | |
Depreciation and amortization
|
| | | | 502 | | | | | | — | | | | | | — | | | | | | | | | | | | 502 | | |
Related party expenses
|
| | | | 48 | | | | | | — | | | | | | — | | | | | | | | | | | | 48 | | |
Loss on disposal of assets
|
| | | | 8 | | | | | | — | | | | | | — | | | | | | | | | | | | 8 | | |
Total operating expenses
|
| | | | 39,265 | | | | | | 414 | | | | | | — | | | | | | — | | | | | | 39,679 | | |
(Loss) from operations
|
| | | | (10,696 ) | | | | | | (414 ) | | | | | | — | | | | | | — | | | | | | (11,110 ) | | |
Other expenses and losses, net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense (income), net
|
| | | | 461 | | | | | | (1,622 ) | | | | | | 1,622 (AA) | | | | | | 1,553 (EE) | | | | | | 1,558 | | |
| | | | | | | | | | | | | | | | | (456 ) (BB) | | | | | | | | | | | | | | |
Gain on derivative
|
| | | | (327 ) | | | | | | — | | | | | | 327 (CC) | | | | | | | | | | | | 0 | | |
Other expenses
|
| | | | (38 ) | | | | | | — | | | | | | — | | | | | | | | | | | | (38 ) | | |
Net (loss) before income taxes
|
| | | | (10,792 ) | | | | | | 1,208 | | | | | | (1,493 ) | | | | | | (1,553 ) | | | | | | (12,630 ) | | |
Income tax expense
|
| | | | 34 | | | | | | 266 | | | | | | — (DD) | | | | | | — (EE) | | | | | | 34 | | |
| | | | | | | | | | | | | | | | | (266 ) (AA) | | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (10,826 ) | | | | | $ | 942 | | | | | $ | (1,227 ) | | | | | $ | (1,553 ) | | | | | $ | (12,664 ) | | |
Earnings per Share – Minimum Redemption Scenario
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (Loss) per shares of common stock – basic and diluted
|
| | | $ | (0.97 ) | | | | | $ | (0.04 ) | | | | | | | | | | | | | | | | | $ | (0.24 ) | | |
Weighted average shares of common stock outstanding – basic and diluted
|
| | | | 11,172,929 | | | | | | 7,616,014 | | | | | | | | | | | | | | | | | | 53,703,841 | | |
Earnings per Share – Maximum Redemption Scenario
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (Loss) per shares of common stock – basic and diluted
|
| | | $ | (0.97 ) | | | | | $ | (0.04 ) | | | | | | | | | | | | | | | | | $ | (0.32 ) | | |
Weighted average shares of common stock outstanding – basic and diluted
|
| | | | 11,172,929 | | | | | | 7,616,014 | | | | | | | | | | | | | | | | | | 39,264,721 | | |
| | |
Twelve Months Ended
December 31, 2017 |
| | | | |
Twelve Months
Ended December 31, 2017 |
| |||||||||||||||||||||
| | |
Waitr
(Historical) |
| |
Landcadia
(Historical) |
| |
Pro Forma
Adjustments (Assuming Minimum & Maximum Redemptions) |
| |
Debt
Financings Adjustments |
| |
Pro Forma
Combined (Assuming Minimum & Maximum Redemptions) |
| |||||||||||||||
Revenues
|
| | | $ | 22,911 | | | | | $ | — | | | | | | | | | | | | | | | | | $ | 22,911 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operations and support
|
| | | | 17,668 | | | | | | — | | | | | | — | | | | | | | | | | | | 17,668 | | |
Sales and marketing
|
| | | | 5,617 | | | | | | — | | | | | | | | | | | | | | | | | | 5,617 | | |
Research and development
|
| | | | 1,586 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,586 | | |
General and administrative
|
| | | | 12,601 | | | | | | 480 | | | | | | — | | | | | | | | | | | | 13,081 | | |
Depreciation and amortization
|
| | | | 723 | | | | | | — | | | | | | — | | | | | | | | | | | | 723 | | |
Related party expenses
|
| | | | 182 | | | | | | — | | | | | | — | | | | | | | | | | | | 182 | | |
Impairment of intangible assets
|
| | | | 584 | | | | | | — | | | | | | — | | | | | | | | | | | | 584 | | |
Loss on disposal of assets
|
| | | | 33 | | | | | | — | | | | | | — | | | | | | | | | | | | 33 | | |
Total operating expenses
|
| | | | 38,994 | | | | | | 480 | | | | | | — | | | | | | — | | | | | | 39,474 | | |
Operating (loss)
|
| | | | (16,083 ) | | | | | | (480 ) | | | | | | — | | | | | | — | | | | | | (16,563 ) | | |
Other expenses and losses, net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense (income), net
|
| | | | 281 | | | | | | (1,798 ) | | | | | | 1,798 (AA) | | | | | | 3,093 (EE) | | | | | | 3,091 | | |
| | | | | | | | | | | | | | | | | (283 ) (BB) | | | | | | | | | | | | | | |
(Gain) Loss on derivative
|
| | | | 52 | | | | | | — | | | | | | (52 ) (CC) | | | | | | | | | | | | (0 ) | | |
(Gain) Loss on debt extinguishment
|
| | | | 10,537 | | | | | | — | | | | | | — | | | | | | | | | | | | 10,537 | | |
Other expenses
|
| | | | (52 ) | | | | | | — | | | | | | — | | | | | | | | | | | | (52 ) | | |
Net (Loss) before income taxes
|
| | | | (26,901 ) | | | | | | 1,318 | | | | | | (1,463 ) | | | | | | (3,093 ) | | | | | | (30,139 ) | | |
Income tax expense
|
| | | | 6 | | | | | | 448 | | | | | | — (DD) | | | | | | — (EE) | | | | | | 6 | | |
| | | | | | | | | | | | | | | | | (448 ) (AA) | | | | | | | | | | | | | | |
Net (Loss)
|
| | | $ | (26,907 ) | | | | | $ | 870 | | | | | $ | (1,015 ) | | | | | $ | (3,093 ) | | | | | $ | (30,145 ) | | |
Earnings per Share – Minimum Redemption Scenario
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (Loss) per shares of common stock – basic and diluted
|
| | | $ | (2.42 ) | | | | | $ | (0.05 ) | | | | | | | | | | | | | | | | | $ | (0.56 ) | | |
Weighted average shares of common stock outstanding – basic and diluted
|
| | | | 11,141,548 | | | | | | 7,553,650 | | | | | | | | | | | | | | | | | | 53,703,841 | | |
Earnings per Share – Maximum Redemption Scenario
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (Loss) per shares of common stock – basic and diluted
|
| | | $ | (2.42 ) | | | | | $ | (0.05 ) | | | | | | | | | | | | | | | | | $ | (0.77 ) | | |
Weighted average shares of common stock outstanding – basic and diluted
|
| | | | 11,141,548 | | | | | | 7,553,650 | | | | | | | | | | | | | | | | | | 39,264,721 | | |
| | |
Conversion to Equity
|
| |
Cash settlement of Debt
|
| ||||||||||||||||||
| | |
Minimum
Redemptions |
| |
Maximum
Redemptions |
| |
Minimum
Redemptions |
| |
Maximum
Redemptions |
| ||||||||||||
Cash Consideration: | | | | | | ||||||||||||||||||||
To Waitr Equity Holders
|
| | | | 68,501,038 | | | | | | 43,501,038 | | | | | | 59,356,413 | | | | | | 34,356,413 | | |
To settle outstanding Waitr
Convertible Notes |
| | | | 6,498,962 | | | | | | 6,498,962 | | | | | | 15,643,587 | | | | | | 15,643,587 | | |
Total Cash Consideration
|
| | | $ | 75,000,000 | | | | | $ | 50,000,000 | | | | | $ | 75,000,000 | | | | | $ | 50,000,000 | | |
Share consideration: | | | | | | ||||||||||||||||||||
To Waitr Equity Holders
|
| | | | 205,503,590 | | | | | | 230,503,590 | | | | | | 225,000,000 | | | | | | 250,000,000 | | |
To holders of Convertible Notes
|
| | | | 19,496,410 | | | | | | 19,496,410 | | | | | | — | | | | | | — | | |
Total Share Consideration
|
| | | $ | 225,000,000 | | | | | $ | 250,000,000 | | | | | $ | 225,000,000 | | | | | $ | 250,000,000 | | |
Aggregate consideration
|
| | | $ | 300,000,000 | | | | | $ | 300,000,000 | | | | | $ | 300,000,000 | | | | | $ | 300,000,000 | | |
| | |
Six Months ended June 30, 2018
|
| |||||||||
| | |
Assuming
Minimum Redemption (Shares) |
| |
Assuming
Maximum Redemption (Shares) |
| ||||||
Pro Forma Basic & Diluted Loss Per Share | | | | | | | | | | | | | |
Pro Forma Net Income Attributable to Common stockholders
|
| | | $ | (12,664 ) | | | | | $ | (12,664 ) | | |
Basic & Diluted Shares Outstanding
|
| | | | 53,703,841 | | | | | | 39,264,721 | | |
Pro Forma Basic & Diluted Loss Per Share
|
| | | $ | (0.24 ) | | | | | $ | (0.32 ) | | |
Pro Forma Shares Outstanding – Basic & Diluted | | | | | | | | | | | | | |
LCA Merger Consideration shares
|
| | | | 22,500,000 | | | | | | 25,000,000 | | |
Shares issued to Founders in connection with the Debt Financings
|
| | | | 1,675,000 | | | | | | 1,675,000 | | |
Common shares held by current LCA stockholders
|
| | | | 23,278,841 | | | | | | 6,339,721 | | |
Founder shares
|
| | | | 6,250,000 | | | | | | 6,250,000 | | |
Pro Forma Shares Outstanding – Basic & Diluted
|
| | | | 53,703,841 | | | | | | 39,264,721 | | |
| | |
Waitr Historical
|
| |
Landcadia
Historical |
| |
Pro Forma
Combined (Assuming Minimum Redemptions) |
| |
Pro Forma
Combined (Assuming Maximum Redemptions) |
| ||||||||||||
As of and for the Six Months Ended June 30,
2018 |
| | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share
|
| | | $ | (0.76 ) | | | | | $ | 0.66 | | | | | $ | 2.60 | | | | | $ | (0.18 ) | | |
Net loss per share – basic and diluted
|
| | | $ | (0.97 ) | | | | | $ | (0.04 ) | | | | | $ | (0.24 ) | | | | | $ | (0.32 ) | | |
Weighted average shares outstanding – basic and diluted
|
| | | | 11,172,929 | | | | | | 7,616,014 | | | | | | 53,703,841 | | | | | | 39,264,721 | | |
As of and for the Twelve Months Ended December 31, 2017
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share
|
| | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Net loss per share – basic and diluted
|
| | | $ | (2.42 ) | | | | | $ | (0.05 ) | | | | | $ | (0.56 ) | | | | | $ | (0.77 ) | | |
Weighted average shares outstanding – basic and diluted
|
| | | | 11,141,548 | | | | | | 7,553,650 | | | | | | 53,703,841 | | | | | | 39,264,721 | | |
Sources
|
| | | | | | |
Cash in Trust Account
(1)
|
| | | $ | 235.8 | | |
Waitr Rollover Equity
|
| | | | 225.0 | | |
Debt Financings
(3)
|
| | | | 85.0 | | |
| | | | | | | |
| | | | | | | |
Total Sources
|
| | | $ | 545.8 (2) | | |
Uses
|
| | | | | | |
Cash to Waitr Securityholders
(1)
|
| | | $ | 75.0 | | |
Fund Balance Sheet
|
| | | | 219.5 | | |
Waitr Rollover Equity
|
| | | | 225.0 | | |
Estimated Fees & Expenses
|
| | | | 25.0 | | |
Repayment of Working Capital Loan
|
| | | | 1.3 | | |
Total Uses
|
| | | $ | 545.8 (2) | | |
Sources
|
| | | | | | |
Cash in Trust Account
(1)
|
| | | $ | 65.0 | | |
Waitr Rollover Equity
|
| | | | 225.0 | | |
Debt Financingss
(3)
|
| | | | 85.0 | | |
| | | | | | | |
| | | | | | | |
Total Sources
|
| | | $ | 375.0 (2) | | |
Uses
|
| | | | | | |
Cash to Waitr Securityholders
(1)
|
| | | $ | 50.0 | | |
Fund Balance Sheet
|
| | | | 73.7 | | |
Waitr Rollover Equity
|
| | | | 225.0 | | |
Estimated Fees & Expenses
|
| | | | 25.0 | | |
Repayment of Working Capital Loan
|
| | | | 1.3 | | |
Total Uses
|
| | | $ | 375.0 (2) | | |
Sources
|
| |
Uses
|
| ||||||||||||
Cash in Trust Account
(1)
|
| | | $ | 235.8 | | | |
Cash to Waitr Securityholders
(1)
|
| | | $ | 75.0 | | |
Waitr Rollover Equity
|
| | | | 225.0 | | | |
Fund Balance Sheet
|
| | | | 219.5 | | |
Debt Financings
(3)
|
| | | | 85.0 | | | |
Waitr Rollover Equity
|
| | | | 225.0 | | |
| | | | | | | | |
Estimated Fees & Expenses
|
| | | | 25.0 | | |
| | | | | | | | |
Repayment of Working Capital Loan
|
| | | | 1.3 | | |
Total Sources
|
| | | $ | 545.8 (2) | | | |
Total Uses
|
| | | $ | 545.8 (2) | | |
|
Sources
|
| |
Uses
|
| ||||||||||||
Cash in Trust Account
(1)
|
| | | $ | 65.0 | | | |
Cash to Waitr Securityholders
(1)
|
| | | $ | 50.0 | | |
Waitr Rollover Equity
|
| | | | 225.0 | | | |
Fund Balance Sheet
|
| | | | 73.7 | | |
Debt Financings
(3)
|
| | | | 85.0 | | | |
Waitr Rollover Equity
|
| | | | 225.0 | | |
| | | | | | | | |
Estimated Fees & Expenses
|
| | | | 25.0 | | |
| | | | | | | | |
Repayment of Working Capital Loan
|
| | | | 1.3 | | |
Total Sources
|
| | | $ | 375.0 (2) | | | |
Total Uses
|
| | | $ | 375.0 (2) | | |
|
Name and Position
|
| |
Number of Shares
Underlying Non-Contingent Options |
| |
Number of Shares
Underlying Contingent Options |
| |
Exercise Price
per Share |
| |||||||||
Executive 1
|
| | | | — | | | | | | — | | | | | $ | — | | |
President and Chief Executive Officer
|
| | | | | | | | | | | | | | | | | | |
Executive 2
|
| | | | — | | | | | | — | | | | | $ | — | | |
Chief Financial Officer
|
| | | | | | | | | | | | | | | | | | |
Executive 3
|
| | | | — | | | | | | — | | | | | $ | — | | |
Senior Vice President
|
| | | | | | | | | | | | | | | | | | |
Executive 4
|
| | | | — | | | | | | — | | | | | $ | — | | |
Senior Vice President | | | | | | | | | | | | | | | | | | | |
All current executive officers as a group
|
| | | | — | | | | | | — | | | | | $ | — | | |
All current non-employee directors as a group
|
| | | | — | | | | | | — | | | | | $ | — | | |
All current non-executive officer employees as a group
|
| | | | — | | | | | | — | | | | | $ | — | | |
| | |
Number of securities to
be issued upon exercise of outstanding options, warrants and rights (a) (#) |
| |
Weighted average
exercise price of outstanding options, warrants and rights (b) ($) |
| |
Number of securities
remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) (#) |
| |||||||||
Equity compensation plans approved by security
holders |
| | | | — | | | | | | — | | | | | | — | | |
Equity compensation plans not approved by security holders
|
| | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
Age
|
| |
Position
|
|
Tilman J. Fertitta | | |
61
|
| | Co-Chairman and Chief Executive Officer | |
Richard Handler | | |
56
|
| | Co-Chairman and President | |
Richard H. Liem | | |
64
|
| | Vice President and Chief Financial Officer | |
Steven L. Scheinthal | | |
57
|
| | Vice President, General Counsel and Secretary | |
Nicholas Daraviras | | |
44
|
| | Vice President, Acquisitions | |
Mark Kelly | | |
54
|
| | Director | |
G. Michael Stevens | | |
58
|
| | Director | |
Michael S. Chadwick | | |
66
|
| | Director | |
Individual
|
| |
Entity
|
| |
Entity’s Business
|
| |
Affiliation
|
|
Tilman J. Fertitta (1) | | | Fertitta Entertainment, Inc. and its affiliates and wholly owned subsidiaries (2) | | | Dining, hospitality, NBA Team, entertainment and gaming company | | | Sole Shareholder, Chairman and Chief Executive Officer | |
| | | Fertitta Hospitality, LLC and its affiliates and wholly owned subsidiaries (3) | | | Dining and hospitality company | | | Member and President | |
Richard Handler (1) | | | Jefferies Financial Group Inc. (f/k/a Leucadia National Corporation) and its affiliates and wholly owned subsidiaries (2) | | | Diversified holding company | | | Director and Chief Executive Officer | |
Richard H. Liem (1) | | | Fertitta Entertainment, Inc. and its affiliates and wholly owned subsidiaries (2) | | | Dining, hospitality, NBA Team, entertainment and gaming company | | | Director, Executive Vice President and Principal Accounting Officer | |
Individual
|
| |
Entity
|
| |
Entity’s Business
|
| |
Affiliation
|
|
Steven L. Scheinthal
(1)
|
| | Fertitta Entertainment, Inc. and its affiliates and wholly owned subsidiaries (2) | | | Dining, hospitality, NBA Team, entertainment and gaming company | | | Director, Executive Vice President and General Counsel | |
| | | Fertitta Hospitality, LLC and its wholly owned subsidiaries (3) | | | Dining and hospitality company | | | Secretary | |
Nicholas Daraviras (1) | | | Jefferies Financial Group Inc. (f/k/a Leucadia National Corporation) and its affiliates and wholly owned subsidiaries (2) | | | Diversified holding company | | | Managing Director | |
| | |
Fiesta Restaurant Group
(2)
|
| | Restaurant operator and franchisor | | | Director | |
G. Michael Stevens (1) | | | New York Giants (2) | | | NFL Team | | | Senior Vice President and Chief Marking Officer | |
Michael S. Chadwick
(1)
|
| | SLCA Capital, LLC (2) | | |
Investment banking services
|
| | Managing Director | |
| | |
For the Year ended
December 31, 2017 |
| |
For the Year ended
December 31, 2016 |
| ||||||
Audit Fees
(1)
|
| | | $ | 52,015 | | | | | $ | 18,025 | | |
Audit-Related Fees
(2)
|
| | | $ | — | | | | | $ | 55,246 | | |
Tax Fees
(3)
|
| | | $ | — | | | | | $ | — | | |
All Other Fees
(4)
|
| | | $ | — | | | | | $ | — | | |
Total
|
| | | $ | 52,015 | | | | | $ | 73,271 | | |
|
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| |
Year Ended
December 31, |
| |||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||
Active Diners (as of period end)
|
| | | | 678,818 | | | | | | 243,236 | | | | | | 678,818 | | | | | | 243,326 | | | | | | 419,430 | | | | | | 117,887 | | | | | | 10,046 | | |
Orders
|
| | | | 1,865,165 | | | | | | 780,670 | | | | | | 3,394,384 | | | | | | 1,358,286 | | | | | | 3,400,052 | | | | | | 874,142 | | | | | | 52,303 | | |
Average Daily Orders
|
| | | | 20,724 | | | | | | 8,674 | | | | | | 18,858 | | | | | | 7,546 | | | | | | 9,315 | | | | | | 2,395 | | | | | | 143 | | |
Restaurant Partners (as of period
end) |
| | | | 6,264 | | | | | | 2,087 | | | | | | 6,264 | | | | | | 2,087 | | | | | | 3,617 | | | | | | 1,029 | | | | | | 105 | | |
Gross Food Sales (dollars in thousands)
|
| | | $ | 65,687 | | | | | $ | 27,810 | | | | | $ | 119,813 | | | | | $ | 48,400 | | | | | $ | 121,081 | | | | | $ | 31,430 | | | | | $ | 1,846 | | |
Average Order Size
|
| | | $ | 35.22 | | | | | $ | 35.62 | | | | | $ | 35.30 | | | | | $ | 35.63 | | | | | $ | 35.61 | | | | | $ | 35.96 | | | | | $ | 35.29 | | |
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| |
Year Ended
December 31, |
| |||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||||||||
Active Diners (as of period
end) |
| | | | 678,818 | | | | | | 243,236 | | | | | | 678,818 | | | | | | 243,326 | | | | | | 419,430 | | | | | | 117,887 | | | | | | 10,046 | | |
Orders
|
| | | | 1,865,165 | | | | | | 780,670 | | | | | | 3,394,384 | | | | | | 1,358,286 | | | | | | 3,400,052 | | | | | | 874,142 | | | | | | 52,303 | | |
Average Daily Orders
|
| | | | 20,724 | | | | | | 8,674 | | | | | | 18,858 | | | | | | 7,546 | | | | | | 9,315 | | | | | | 2,395 | | | | | | 143 | | |
Restaurant Partners (as of period end)
|
| | | | 6,264 | | | | | | 2,087 | | | | | | 6,264 | | | | | | 2,087 | | | | | | 3,617 | | | | | | 1,029 | | | | | | 105 | | |
Gross Food Sales (dollars in thousands)
|
| | | $ | 65,687 | | | | | $ | 27,810 | | | | | $ | 119,813 | | | | | $ | 48,400 | | | | | $ | 121,081 | | | | | $ | 31,430 | | | | | $ | 1,846 | | |
Average Order Size
|
| | | $ | 35.22 | | | | | $ | 35.62 | | | | | $ | 35.30 | | | | | $ | 35.63 | | | | | $ | 35.61 | | | | | $ | 35.96 | | | | | $ | 35.29 | | |
| | |
Three months ended June 30,
|
| |
Six months ended June 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages
(1)
)
|
| |
2018
|
| |
% of
Revenue |
| |
2017
|
| |
% of
Revenue |
| |
2018
|
| |
% of
Revenue |
| |
2017
|
| |
% of
Revenue |
| ||||||||||||||||||||||||
Revenue | | | | $ | 16,160 | | | | | | 100 % | | | | | $ | 4,824 | | | | | | 100 % | | | | | $ | 28,569 | | | | | | 100 % | | | | | $ | 8,448 | | | | | | 100 % | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operations and support
|
| | | | 10,498 | | | | | | 65 | | | | | | 4,042 | | | | | | 84 | | | | | | 18,414 | | | | | | 64 | | | | | | 6,862 | | | | | | 81 | | |
Sales and marketing
|
| | | | 2,786 | | | | | | 17 | | | | | | 1,319 | | | | | | 27 | | | | | | 5,139 | | | | | | 18 | | | | | | 2,434 | | | | | | 29 | | |
Research and development
|
| | | | 609 | | | | | | 4 | | | | | | 397 | | | | | | 8 | | | | | | 1,197 | | | | | | 4 | | | | | | 743 | | | | | | 9 | | |
General and
administrative |
| | | | 9,256 | | | | | | 57 | | | | | | 2,763 | | | | | | 57 | | | | | | 13,957 | | | | | | 49 | | | | | | 4,724 | | | | | | 56 | | |
Depreciation and amortization
|
| | | | 276 | | | | | | 2 | | | | | | 172 | | | | | | 4 | | | | | | 502 | | | | | | 2 | | | | | | 376 | | | | | | 4 | | |
Related party expenses
|
| | | | 25 | | | | | | — | | | | | | 15 | | | | | | — | | | | | | 48 | | | | | | — | | | | | | 23 | | | | | | — | | |
Loss on disposal of assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8 | | | | | | — | | | | | | — | | | | | | — | | |
Impairment of intangible assets
|
| | | | — | | | | | | — | | | | | | 551 | | | | | | 11 | | | | | | — | | | | | | — | | | | | | 576 | | | | | | 7 | | |
Total costs and expenses
|
| | | | 23,450 | | | | | | 145 | | | | | | 9,259 | | | | | | 192 | | | | | | 39,265 | | | | | | 137 | | | | | | 15,738 | | | | | | 186 | | |
Income (loss) from operations
|
| | | | (7,290 ) | | | | | | (45 ) | | | | | | (4,435 ) | | | | | | (92 ) | | | | | | (10,696 ) | | | | | | (37 ) | | | | | | (7,290 ) | | | | | | (86 ) | | |
Other expenses (income) and losses, net
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense (income), net
|
| | | | 290 | | | | | | 2 | | | | | | — | | | | | | — | | | | | | 461 | | | | | | 2 | | | | | | (1 ) | | | | | | — | | |
(Gain) loss on derivative
|
| | | | (165 ) | | | | | | (1 ) | | | | | | — | | | | | | — | | | | | | (327 ) | | | | | | (1 ) | | | | | | — | | | | | | — | | |
Other expenses (income)
|
| | | | (39 ) | | | | | | — | | | | | | (37 ) | | | | | | (1 ) | | | | | | (38 ) | | | | | | — | | | | | | (33 ) | | | | | | — | | |
Net loss before income
taxes |
| | | | (7,376 ) | | | | | | (46 ) | | | | | | (4,398 ) | | | | | | (91 ) | | | | | | (10,792 ) | | | | | | (38 ) | | | | | | (7,256 ) | | | | | | (86 ) | | |
Income tax (benefit) expense
|
| | | | 23 | | | | | | — | | | | | | — | | | | | | — | | | | | | 34 | | | | | | — | | | | | | 2 | | | | | | — | | |
Net loss
|
| | | $ | (7,399 ) | | | | | | (46 ) | | | | | $ | (4,398 ) | | | | | | (91 ) | | | | | $ | (10,826 ) | | | | | | (38 ) | | | | | $ | (7,258 ) | | | | | | (86 ) | | |
|
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
(in thousands, except percentages
(1)
)
|
| |
2017
|
| |
% of
Revenue |
| |
2016
|
| |
% of
Revenue |
| |
2015
|
| |
% of
Revenue |
| ||||||||||||||||||
Revenue | | | | $ | 22,911 | | | | | | 100 % | | | | | $ | 5,650 | | | | | | 100 % | | | | | $ | 340 | | | | | | 100 % | | |
Costs and expenses:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operations and support
|
| | | | 17,668 | | | | | | 77 | | | | | | 4,785 | | | | | | 85 | | | | | | 186 | | | | | | 55 | | |
Sales and marketing
|
| | | | 5,617 | | | | | | 25 | | | | | | 1,359 | | | | | | 24 | | | | | | 137 | | | | | | 40 | | |
Research and development
|
| | | | 1,586 | | | | | | 7 | | | | | | 395 | | | | | | 7 | | | | | | 180 | | | | | | 53 | | |
General and administrative
|
| | | | 12,601 | | | | | | 55 | | | | | | 4,161 | | | | | | 74 | | | | | | 674 | | | | | | 198 | | |
Depreciation and amortization
|
| | | | 723 | | | | | | 3 | | | | | | 267 | | | | | | 5 | | | | | | 26 | | | | | | 8 | | |
Related party expenses
|
| | | | 182 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 3 | | | | | | 1 | | |
Impairment of intangible assets
|
| | | | 584 | | | | | | 3 | | | | | | 5 | | | | | | — | | | | | | — | | | | | | — | | |
Loss on disposal of assets
|
| | | | 33 | | | | | | — | | | | | | 3 | | | | | | — | | | | | | — | | | | | | — | | |
Total costs and expenses
|
| | | | 38,994 | | | | | | 170 | | | | | | 10,975 | | | | | | 194 | | | | | | 1,206 | | | | | | 355 | | |
Income (loss) from operations
|
| | | | (16,083 ) | | | | | | (70 ) | | | | | | (5,325 ) | | | | | | (94 ) | | | | | | (866 ) | | | | | | (255 ) | | |
Other expenses (income) and losses (gain), net
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net
|
| | | | 281 | | | | | | 1 | | | | | | 4,467 | | | | | | 79 | | | | | | 91 | | | | | | 27 | | |
(Gain) loss on derivative
|
| | | | 52 | | | | | | — | | | | | | (484 ) | | | | | | (9 ) | | | | | | (144 ) | | | | | | (42 ) | | |
(Gain) loss on debt extinguishment
|
| | | | 10,537 | | | | | | 46 | | | | | | (599 ) | | | | | | (11 ) | | | | | | — | | | | | | — | | |
Other expenses (income)
|
| | | | (52 ) | | | | | | — | | | | | | 8 | | | | | | — | | | | | | 5 | | | | | | 1 | | |
Net loss before income taxes
|
| | | | (26,901 ) | | | | | | (117 ) | | | | | | (8,717 ) | | | | | | (154 ) | | | | | | (818 ) | | | | | | (241 ) | | |
Income tax (benefit) expense
|
| | | | 6 | | | | | | — | | | | | | 5 | | | | | | — | | | | | | — | | | | | | — | | |
Net loss
|
| | | $ | (26,907 ) | | | | | | (117 ) | | | | | $ | (8,722 ) | | | | | | (154 ) | | | | | $ | (818 ) | | | | | | (241 ) | | |
|
| | |
Six months ended
June 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||||||||
(in thousands)
|
| |
2018
|
| |
2017
|
| |
2017
|
| |
2016
|
| |
2015
|
| |||||||||||||||
| | |
(unaudited)
|
| | | | ||||||||||||||||||||||||
Net cash used in operating activities
|
| | | $ | (4,398 ) | | | | | $ | (5,748 ) | | | | | $ | (12,411 ) | | | | | $ | (4,497 ) | | | | | $ | (663 ) | | |
Net cash used in investing activities
|
| | | | (1,124 ) | | | | | | (860 ) | | | | | | (1,874 ) | | | | | | (826 ) | | | | | | (203 ) | | |
Net cash provided by financing activities
|
| | | | 3,377 | | | | | | 7,467 | | | | | | 14,947 | | | | | | 8,334 | | | | | | 1,115 | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Less than
1 Year |
| |
1 to 3
Years |
| |
3 to 5
Years |
| |
Thereafter
|
| |
Total
|
| |||||||||||||||
Operating lease obligations
|
| | | $ | 639 | | | | | $ | 1,794 | | | | | $ | 1,542 | | | | | $ | 1,600 | | | | | $ | 5,575 | | |
Workers’ compensation liability
(1)
|
| | | | 31 | | | | | | 63 | | | | | | 63 | | | | | | 1,093 | | | | | | 1,250 | | |
Loan agreement
(2)
|
| | | | 1,985 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,985 | | |
Total | | | | $ | 2,655 | | | | | $ | 1,857 | | | | | $ | 1,605 | | | | | $ | 2,693 | | | | | $ | 8,810 | | |
|
| | |
Six Months Ended June 30,
|
| |
Year Ended December 31,
|
| ||||||||||||
| | |
2018
|
| |
2017
|
| |
2017
|
| |
2016
|
| |
2015
|
| |||
Weighted average fair value options granted
|
| |
$4.80
|
| |
$2.92
|
| |
$3.69
|
| |
$0.67
|
| | | $ | 0.02 | | |
Risk-free interest rates
|
| |
1.64 – 2.13%
|
| |
1.07 – 1.44%
|
| |
1.1 – 1.8%
|
| |
1.0 – 1.4%
|
| | | | 1.50 % | | |
Expected volatility
|
| |
40.3 – 44.6%
|
| |
48.9%
|
| |
40.3 – 48.9%
|
| |
51.2 – 64.4%
|
| | | | 68.5 % | | |
Expected option life
|
| |
0.75 – 1.5
|
| |
0.5 – 3.0
|
| |
0.5 – 3.0
|
| |
4.0 – 5.0
|
| | | | 5.0 | | |
Name
|
| |
Age
|
| |
Position(s) Held
|
|
Christopher Meaux | | |
50
|
| | Chief Executive Officer, President, Secretary | |
David Pringle | | |
53
|
| | Chief Financial Officer | |
Joseph Stough | | |
50
|
| | Chief Strategy Officer | |
Travis Boudreaux | | |
37
|
| | Director of Engineering | |
Manuel Rivero | | |
28
|
| | Chief Architect | |
Name
|
| |
Age
|
| |
Position(s) Held
|
|
Christopher Meaux | | |
50
|
| | Chief Executive Officer and Chairman | |
David Pringle | | |
53
|
| | Chief Financial Officer | |
Joseph Stough | | |
50
|
| | Chief Strategy Officer | |
Travis Boudreaux | | |
37
|
| | Director of Engineering | |
Manuel Rivero | | |
28
|
| | Chief Architect | |
Tilman J. Fertitta | | |
61
|
| | Director | |
Scott Fletcher | | |
37
|
| | Director | |
Jonathan Green | | |
41
|
| | Director | |
Joseph LeBlanc | | |
50
|
| | Director | |
Steven L. Scheinthal | | |
57
|
| | Director | |
William Gray Stream | | |
39
|
| | Director | |
Name and Principal Position
|
| |
Year
|
| |
Base
Salary ($) |
| |
Option
Awards ($) (a) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| ||||||||||||
Christopher Meaux
Chief Executive Officer |
| |
2017
|
| | | $ | 120,000 | | | | | $ | 233,068 | | | | | $ | 71,523 | | | | | $ | 424,591 | | |
|
2016
|
| | | | 103,077 | | | | | | — | | | | | | 11,680 | | | | | | 114,757 | | | ||
David Pringle
Chief Financial Officer |
| |
2017
|
| | | | 75,000 | | | | | | 224,899 | | | | | | — | | | | | | 299,899 | | |
|
2016
|
| | | | 25,000 | | | | | | — | | | | | | — | | | | | | 25,000 | | | ||
Joseph Stough
Chief Strategy Officer |
| |
2017
|
| | | | 146,800 | | | | | | 1,254,960 | | | | | | — | | | | | | 1,401,760 | | |
|
2016
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | ||
Richard Tyson Queen
National Sales Director |
| |
2017
|
| | | | 138,431 | | | | | | 744,937 | | | | | | — | | | | | | 883,368 | | |
|
2016
|
| | | | 50,007 | | | | | | — | | | | | | — | | | | | | 50,007 | | | ||
Manuel Rivero
Chief Architect |
| |
2017
|
| | | | 96,923 | | | | | | 457,695 | | | | | | — | | | | | | 554,619 | | |
|
2016
|
| | | | 73,846 | | | | | | 195,448 | | | | | | — | | | | | | 269,294 | | |
| | |
Option awards
|
| |||||||||||||||||||||||||||
Name
|
| |
Number of
securities underlying unexercised options (#) exercisable |
| |
Number of
securities underlying unexercised options (#) unexercisable |
| |
Equity incentive
plan awards: Number of securities underlying unexercised unearned options (#) (a) |
| |
Option
exercise price ($) |
| |
Option
expiration date |
| |||||||||||||||
Christopher Meaux
|
| | | | 60,000 | | | | | | — | | | | | | — | | | | | $ | 0.0001 | | | | | | 5/19/2024 | | |
| | | | | 26,091 | | | | | | — | | | | | | 24,831 | | | | | | 0.8620 | | | | | | 12/13/2027 | | |
David Pringle
|
| | | | 14,375 | | | | | | — | | | | | | 15,625 | | | | | | 0.8620 | | | | | | 6/5/2027 | | |
| | | | | — | | | | | | — | | | | | | 30,000 | | | | | | 0.8620 | | | | | | 12/13/2027 | | |
Joseph Stough
|
| | | | 60,000 | | | | | | — | | | | | | — | | | | | | 0.0001 | | | | | | 5/24/2024 | | |
| | | | | 145,833 | | | | | | — | | | | | | 204,167 | | | | | | 0.8620 | | | | | | 6/5/2027 | | |
| | | | | 26,091 | | | | | | — | | | | | | 24,831 | | | | | | 0.8620 | | | | | | 12/13/2027 | | |
Richard Tyson Queen
|
| | | | 6,041 | | | | | | — | | | | | | 3,959 | | | | | | 0.8620 | | | | | | 6/5/2027 | | |
| | | | | 3,333 | | | | | | — | | | | | | 6,667 | | | | | | 0.8620 | | | | | | 6/5/2027 | | |
| | | | | — | | | | | | — | | | | | | 150,000 | | | | | | 0.8620 | | | | | | 12/13/2027 | | |
| | |
Option awards
|
| |||||||||||||||||||||||||||
Name
|
| |
Number of
securities underlying unexercised options (#) exercisable |
| |
Number of
securities underlying unexercised options (#) unexercisable |
| |
Equity incentive
plan awards: Number of securities underlying unexercised unearned options (#) (a) |
| |
Option
exercise price ($) |
| |
Option
expiration date |
| |||||||||||||||
Manuel Rivero
|
| | | | 50,000 | | | | | | — | | | | | | — | | | | | | 0.0001 | | | | | | 5/19/2024 | | |
| | | | | 20,833 | | | | | | — | | | | | | 4,167 | | | | | | 0.0300 | | | | | | 1/5/2026 | | |
| | | | | 94,791 | | | | | | — | | | | | | 55,209 | | | | | | 0.1830 | | | | | | 8/4/2026 | | |
| | | | | — | | | | | | — | | | | | | 100,000 | | | | | | 0.8620 | | | | | | 12/13/2027 | | |
Name
|
| |
Fees earned or
paid in cash ($) |
| |
Stock
awards ($) |
| |
Option
awards ($) |
| |
All other
compensation ($) |
| |
Total
($) |
| |||||||||||||||
James Dorris
|
| | | $ | — | | | | | $ | — | | | | | $ | 233,068 | | | | | $ | — | | | | | $ | 233,068 | | |
Joseph LeBlanc
|
| | | | — | | | | | | — | | | | | | 233,068 | | | | | | — | | | | | | 233,068 | | |
Christopher Meaux
|
| | | | — | | | | | | — | | | | | | 233,068 | | | | | | — | | | | | | 233,068 | | |
Catherine Parrino
|
| | | | — | | | | | | — | | | | | | 233,068 | | | | | | — | | | | | | 233,068 | | |
William Gray Stream
|
| | | | — | | | | | | — | | | | | | 233,068 | | | | | | — | | | | | | 233,068 | | |
Joseph Stough
|
| | | | — | | | | | | — | | | | | | 233,068 | | | | | | — | | | | | | 233,068 | | |
Russell J. Stutes, Jr.
|
| | | | — | | | | | | — | | | | | | 233,068 | | | | | | — | | | | | | 233,068 | | |
| | | | | | | | | | | | | | |
After Business Combination
and Related Transactions |
| |||||||||||||||||||||
| | |
Prior to Business Combination
and Related Transactions (1) |
| |
Assuming No
Redemption |
| |
Assuming Maximum
Redemption |
| |||||||||||||||||||||||||||
Directors and Executive Officers
|
| |
Number of
Shares Beneficially Owned (2) |
| |
Percentage of
Outstanding Shares |
| |
Number of
Shares Beneficially Owned |
| |
Percentage of
Outstanding Shares |
| |
Number of
Shares Beneficially Owned |
| |
Percentage of
Outstanding Shares |
| ||||||||||||||||||
Tilman J. Fertitta
(3)
(4)
|
| | | | 6,625,000 | | | | | | 20.1 % | | | | | | 4,000,000 | | | | | | 7.4 % | | | | | | 4,000,000 | | | | | | 10.2 % | | |
Richard Handler
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Richard H. Liem
|
| | | | — | | | | | | — | | | | | | 150,000 | | | | | | * | | | | | | 150,000 | | | | | | * | | |
Steven L. Scheinthal
|
| | | | — | | | | | | — | | | | | | 150,000 | | | | | | * | | | | | | 150,000 | | | | | | * | | |
Nicholas Daraviras
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Mark Kelly
|
| | | | — | | | | | | — | | | | | | 10,000 (11) | | | | | | * | | | | | | 10,000 | | | | | | * | | |
Michael S. Chadwick
|
| | | | — | | | | | | — | | | | | | 10,000 (11) | | | | | | * | | | | | | 10,000 | | | | | | * | | |
G. Michael Stevens
|
| | | | — | | | | | | — | | | | | | 10,000 (11) | | | | | | * | | | | | | 10,000 | | | | | | * | | |
Christopher Meaux
(12)(14)
|
| | | | — | | | | | | — | | | | | | 4,622,780 | | | | | | 8.6 % | | | | | | 4,685,651 | | | | | | 11.9 % | | |
David Pringle
(14)
|
| | | | — | | | | | | — | | | | | | 335,043 | | | | | | * | | | | | | 381,147 | | | | | | * | | |
Joseph Stough
(14)
|
| | | | — | | | | | | — | | | | | | 773,461 | | | | | | 1.4 % | | | | | | 879,029 | | | | | | 2.2 % | | |
Travis Boudreaux
(14)
|
| | | | — | | | | | | — | | | | | | 214,771 | | | | | | * | | | | | | 244,020 | | | | | | * | | |
Manuel Rivero
(14)
|
| | | | — | | | | | | — | | | | | | 616,899 | | | | | | 1.1 % | | | | | | 700,809 | | | | | | 1.8 % | | |
William Gray Stream
(13)(14)
|
| | | | — | | | | | | — | | | | | | 1,236,940 | | | | | | 2.3 % | | | | | | 1,407,348 | | | | | | 3.6 % | | |
Scott Fletcher
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Joseph LeBlanc
(14)
|
| | | | — | | | | | | — | | | | | | 117,185 | | | | | | * | | | | | | 133,323 | | | | | | * | | |
Jonathan Green
(15)
|
| | | | — | | | | | | — | | | | | | 4,999,999 | | | | | | 8.5 % | | | | | | 4,999,999 | | | | | | 11.3 % | | |
| | | | | | | | | | | | | | |
After Business Combination
and Related Transactions |
| |||||||||||||||||||||
| | |
Prior to Business Combination
and Related Transactions (1) |
| |
Assuming No
Redemption |
| |
Assuming Maximum
Redemption |
| |||||||||||||||||||||||||||
Directors and Executive Officers
|
| |
Number of
Shares Beneficially Owned (2) |
| |
Percentage of
Outstanding Shares |
| |
Number of
Shares Beneficially Owned |
| |
Percentage of
Outstanding Shares |
| |
Number of
Shares Beneficially Owned |
| |
Percentage of
Outstanding Shares |
| ||||||||||||||||||
All officers and directors as a group (pre-business combination; eight individuals)
|
| | | | 6,625,000 | | | | | | 20.1 % | | | | | | 4,330,000 | | | | | | 8.1 % | | | | | | 4,330,000 | | | | | | 11.0 % | | |
All officers and directors as a group (post-business combination; 11 individuals)
|
| | | | 6,625,000 | | | | | | 20.1 % | | | | | | [_] | | | | | | [_] | | | | | | [_] | | | | | | [_] | | |
Greater than 5% Stockholders | | | | | | | | ||||||||||||||||||||||||||||||
Fertitta Entertainment, Inc. (FEI Sponsor)
(3)
(4)
|
| | | | 6,625,000 | | | | | | 20.1 % | | | | | | 4,000,000 | | | | | | 7.4 % | | | | | | 4,000,000 | | | | | | 10.2 % | | |
Jefferies Financial Group Inc. (JFG
Sponsor) (5) |
| | | | 7,263,561 | | | | | | 22 % | | | | | | 4,533,561 (11) | | | | | | 8.4 % | | | | | | 4,533,561 | | | | | | 11.5 % | | |
Meaux Enterprises, LLC
(12)(14)
|
| | | | — | | | | | | — | | | | | | 4,622,780 | | | | | | 8.6 % | | | | | | 4,685,651 | | | | | | 11.9 % | | |
Hudson Bay Capital Management, L.P.
|
| | | | 2,000,000 (6) | | | | | | 6.8 % | | | | | | 2,000,000 (6) | | | | | | 3.7 % | | | | | | 2,000,000 (6) | | | | | | 5.1 % | | |
Arrowgrass Capital Partners (US) LP
|
| | | | 2,000,000 (7) | | | | | | 6.8 % | | | | | | 2,000,000 (7) | | | | | | 3.7 % | | | | | | 2,000,000 (7) | | | | | | 5.1 % | | |
Alyeska Investment Group, L.P.
|
| | | | 2,000,000 (8) | | | | | | 6.8 % | | | | | | 2,000,000 (8) | | | | | | 3.7 % | | | | | | 2,000,000 (8) | | | | | | 5.1 % | | |
Advent Capital Corporation
|
| | | | 2,000,000 (9) | | | | | | 6.8 % | | | | | | 2,000,000 (9) | | | | | | 3.7 % | | | | | | 2,000,000 (9) | | | | | | 5.1 % | | |
Polar Asset Management Partners Inc.
|
| | | | 2,427,821 (10) | | | | | | 8.2 % | | | | | | 2,427,821 (10) | | | | | | 4.5 % | | | | | | 2,427,821 (10) | | | | | | 6.2 % | | |
Luxor Capital Group, LP
(15)
|
| | | | — | | | | | | — | | | | | | 4,999,999 | | | | | | 8.5 % | | | | | | 4,999,999 | | | | | | 11.3 % | | |
Director Name
|
| |
Number of Shares
|
| |
Exercise Price
|
| ||||||
James Dorris
|
| | | | 50,922 | | | | | $ | 0.862 | | |
Joseph LeBlanc
|
| | | | 50,922 | | | | | $ | 0.862 | | |
Catherine Parrino
|
| | | | 50,922 | | | | | $ | 0.862 | | |
Christopher Meaux
|
| | | | 50,922 | | | | | $ | 0.862 | | |
Joseph Stough
|
| | | | 50,922 | | | | | $ | 0.862 | | |
William Gray Stream
|
| | | | 50,922 | | | | | $ | 0.862 | | |
Russell J. Stutes, Jr.
|
| | | | 50,922 | | | | | $ | 0.862 | | |
Date of Note
|
| |
Note Holder
|
| |
Principal Amount
|
| |
Interest
As of 8/31/18 |
| |
Relationship to Waitr
|
| ||||||
9/14/2017
|
| | Sierra Pelican, LLC | | | | $ | 486,300.00 (a ) | | | | | $ | 37,416 | | | | Gray Stream Affiliate | |
9/6/2017
|
| | DOS Investors, LLC | | | | $ | 50,000.00 (b ) | | | | | $ | 3,934 | | | | Russell J. Stutes Affiliate | |
9/6/2017
|
| | Russell J. Stutes, Jr. | | | | $ | 50,000.00 (b ) | | | | | $ | 3,934 | | | | Director | |
8/25/2017
|
| | Sharon B. Stutes | | | | $ | 35,000.00 (b ) | | | | | $ | 2,846 | | | | Wife of Russell J. Stutes, Jr. | |
8/25/2017
|
| |
Evelyn Elizabeth Bernard
Inter Vivos Trust |
| | | $ | 17,500.00 (b ) | | | | | $ | 1,423 | | | |
Russell J. Stutes, Jr. is Trustee
of Entity |
|
10/11/2017
|
| |
PENSCO Trust, Custodian,
FBO Christina Clark, IRA |
| | | $ | 20,000.00 (b ) | | | | | $ | 20,000 | | | |
Russell J. Stutes, Jr. is Trustee
of Entity |
|
8/25/2017
|
| |
Malcolm Kenith Williams
Testamentary Trust |
| | | $ | 35,000.00 (b ) | | | | | $ | 2,846 | | | |
Russell J. Stutes, Jr. is Trustee
of Entity |
|
Lender
|
| |
Total
Principal Funded as of 8/31/18 ($) |
| |
Commitment
Fee Payable ($) (d) |
| |
Interest
as of 8/31/2018 ($) |
| |
Warrants
(# Waitr Common Shares) |
| ||||||||||||
Stream Financial Services, LLC
(a)
|
| | | | 1,280,000 | | | | | | 160,000 | | | | | | 15,111.10 | | | | | | 10,770 | | |
Tres Investors, LLC
(b)
|
| | | | 1,000,000 | | | | | | 125,000 | | | | | | 11,805.60 | | | | | | 8,414 | | |
Joseph LeBlanc
|
| | | | 80,000 | | | | | | 10000 | | | | | | 944.44 | | | | | | 673 | | |
Michael LeBlanc
(c)
|
| | | | 320,000 | | | | | | 40,000 | | | | | | 3,777.78 | | | | | | 2,692 | | |
Total
|
| | | | 4,000,000 | | | | | | 500,000 | | | | | | 31,638.92 | | | | | | 33,657 | | |
|
| | |
Units (LCAHU)
|
| |
Class A common
stock (LCA) |
| |
Warrants (LCAHW)
|
| |||||||||||||||||||||||||||
| | |
High
|
| |
Low
|
| |
High
|
| |
Low
|
| |
High
|
| |
Low
|
| ||||||||||||||||||
Fiscal 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Quarter ended 3/31/2018
|
| | | $ | 10.99 | | | | | $ | 10.47 | | | | | $ | 10.25 | | | | | $ | 9.94 | | | | | $ | 0.75 | | | | | $ | 0.55 | | |
Quarter ended 6/30/2018
|
| | | $ | 13.08 | | | | | $ | 9.66 | | | | | $ | 10.39 | | | | | $ | 10.03 | | | | | $ | 0.90 | | | | | $ | 0.50 | | |
Quarter ended 9/30/2018
(1)
|
| | | $ | 12.00 | | | | | $ | 9.65 | | | | | $ | 10.20 | | | | | $ | 10.10 | | | | | $ | 1.10 | | | | | $ | 0.75 | | |
Fiscal 2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Quarter ended 3/31/2017
|
| | | $ | 10.95 | | | | | $ | 10.25 | | | | | $ | 10.56 | | | | | $ | 9.78 | | | | | $ | 0.74 | | | | | $ | 0.60 | | |
Quarter ended 6/30/2017
|
| | | $ | 10.93 | | | | | $ | 10.38 | | | | | $ | 10.58 | | | | | $ | 9.9 | | | | | $ | 1.02 | | | | | $ | 0.66 | | |
Quarter ended 9/30/2017
|
| | | $ | 10.96 | | | | | $ | 10.40 | | | | | $ | 11.00 | | | | | $ | 9.99 | | | | | $ | 0.80 | | | | | $ | 0.68 | | |
Quarter ended 12/31/17
|
| | | $ | 10.90 | | | | | $ | 10.52 | | | | | $ | 10.20 | | | | | $ | 9.89 | | | | | $ | 0.78 | | | | | $ | 0.59 | | |
Fiscal 2016: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Quarter ended 3/31/2016
|
| | | $ | N/A | | | | | $ | N/A | | | | | $ | N/A | | | | | $ | N/A | | | | | $ | N/A | | | | | $ | N/A | | |
Quarter ended 6/30/2016
(2)
|
| | | $ | 10.29 | | | | | $ | 9.95 | | | | | $ | N/A | | | | | $ | N/A | | | | | $ | N/A | | | | | $ | N/A | | |
Quarter ended 9/30/2016
(3)(4)
|
| | | $ | 11.01 | | | | | $ | 9.96 | | | | | $ | 9.85 | | | | | $ | 9.65 | | | | | $ | 0.59 | | | | | $ | 0.50 | | |
Quarter ended 12/31/2016
|
| | | $ | 10.89 | | | | | $ | 10.10 | | | | | $ | 9.82 | | | | | $ | 9.73 | | | | | $ | 0.75 | | | | | $ | 0.55 | | |
| | |
Page
|
| |||
Three and Six Months Ended June 30, 2018 and 2017 | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
Years Ended December 31, 2017, 2016 and 2015 | | | | | | | |
| | | | F-15 | | | |
| | | | F-16 | | | |
| | | | F-17 | | | |
| | | | F-18 | | | |
| | | | F-19 | | | |
| | | | F-20 | | | |
Waitr Incorporated
|
| ||||||
Three and Six Months Ended June 30, 2018 and 2017 | | | | | | | |
| | | | F-30 | | | |
| | | | F-31 | | | |
| | | | F-32 | | | |
| | | | F-33 | | | |
| | | | F-34 | | | |
Years Ended December 31, 2017, 2016 and 2015 | | | | | | | |
| | | | F-49 | | | |
| | | | F-50 | | | |
| | | | F-51 | | | |
| | | | F-52 | | | |
| | | | F-53 | | | |
| | | | F-54 | | |
| | |
June 30,
2018 |
| |
December 31,
2017 |
| | ||||||||
| | |
(unaudited)
|
| | | | | | | | |||||
ASSETS
|
| | | | | | | | | | ||||||
Current assets: | | | | | | | | | | | | | | | ||
Cash
|
| | | $ | 227,941 | | | | | $ | 571,748 | | | | ||
Prepaid expenses
|
| | | | 13,514 | | | | | | 43,698 | | | | ||
Total current assets
|
| | | | 241,455 | | | | | | 615,446 | | | | ||
Cash, cash equivalents, and accrued interest held in trust account
|
| | | | 235,813,316 | | | | | | 252,054,977 | | | | ||
Total assets
|
| | | $ | 236,054,771 | | | | | $ | 252,670,423 | | | | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | ||||||
Current liabilities: | | | | | | | | | | | | | | | ||
Accounts payable and accrued liabilities
|
| | | $ | 52,643 | | | | | $ | 12,747 | | | | ||
Income tax payable
|
| | | | 270,962 | | | | | | 448,099 | | | | ||
Total current liabilities
|
| | | | 323,605 | | | | | | 460,846 | | | | ||
Deferred underwriting commissions
|
| | | | 8,750,000 | | | | | | 8,750,000 | | | | ||
Total liabilities
|
| | | | 9,073,605 | | | | | | 9,210,846 | | | | ||
Class A common stock subject to possible redemption, 21,913,368 and 23,651,543 shares at redemption value of approximately $10.13 and $10.08, respectively
|
| | | | 221,981,156 | | | | | | 238,459,567 | | | | ||
Stockholders’ equity: | | | | | | | | | | | | | | | ||
Preferred stock, $0.0001 par value, 1,000,000 authorized, no shares issued or outstanding
|
| | | | — | | | | | | — | | | | ||
Common stock:
|
| | | | | | | | | | | | | | ||
Class A common stock, $0.0001 par value, 200,000,000 shares
authorized, 1,365,473 and 1,348,457 shares issued and outstanding (excluding 21,913,368 and 23,651,543 shares subject to possible redemption), respectively |
| | | | 137 | | | | | | 135 | | | | ||
Class F common stock, $0.0001 par value, 20,000,000 shares authorized, 6,250,000 issued and outstanding
|
| | | | 625 | | | | | | 625 | | | | ||
Additional paid-in capital
|
| | | | 3,203,818 | | | | | | 4,145,833 | | | | ||
Retained earnings
|
| | | | 1,795,430 | | | | | | 853,417 | | | | ||
Total stockholders’ equity
|
| | | | 5,000,010 | | | | | | 5,000,010 | | | | ||
Total liabilities and stockholders’ equity
|
| | | $ | 236,054,771 | | | | | $ | 252,670,423 | | | | ||
|
| | |
Three months ended
June 30, |
| |
Six months ended
June 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||||||||
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative expenses
|
| | | $ | 183,348 | | | | | $ | 33,704 | | | | | $ | 413,888 | | | | | $ | 290,118 | | |
Loss from operations
|
| | | | (183,348 ) | | | | | | (33,704 ) | | | | | | (413,888 ) | | | | | | (290,118 ) | | |
Other income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | 831,511 | | | | | | 379,562 | | | | | | 1,621,597 | | | | | | 643,790 | | |
Income before taxes
|
| | | | 648,163 | | | | | | 345,858 | | | | | | 1,207,709 | | | | | | 353,672 | | |
Tax provision
|
| | | | (159,053 ) | | | | | | (124,006 ) | | | | | | (265,696 ) | | | | | | (124,006 ) | | |
Net income
|
| | | $ | 489,110 | | | | | $ | 221,852 | | | | | $ | 942,013 | | | | | $ | 229,666 | | |
Basic and diluted loss per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss per share available to common shares
|
| | | $ | (0.02 ) | | | | | | (0.00 ) | | | | | $ | (0.04 ) | | | | | $ | (0.03 ) | | |
Basic and diluted weighted average number of shares
|
| | | | 7,623,457 | | | | | | 7,544,192 | | | | | | 7,616,014 | | | | | | 7,534,030 | | |
| | |
Six months ended June 30,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
(unaudited)
|
| |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 942,013 | | | | | $ | 229,666 | | |
Adjustments to reconcile net income to net cash used in operating activities:
|
| | | | | | | | | | | | |
Trust account interest income
|
| | | | (1,621,597 ) | | | | | | (643,790 ) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Decrease (increase) in prepaid expenses
|
| | | | 30,184 | | | | | | 54,549 | | |
Increase (decrease) in accounts payable and accrued liabilities
|
| | | | 39,897 | | | | | | 65,373 | | |
Increase (decrease) in income taxes payable
|
| | | | (177,137 ) | | | | | | — | | |
Net cash used in operating activities
|
| | | | (786,640 ) | | | | | | (294,202 ) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Cash provided by trust for redeemed shares and tax payments
|
| | | | 17,863,258 | | | | | | — | | |
Net cash from investing activities
|
| | | | 17,863,258 | | | | | | — | | |
Cash flows used in financing activities: | | | | | | | | | | | | | |
Payment for redeemed shares
|
| | | | (17,420,425 ) | | | | | | — | | |
Net cash used in financing activities
|
| | | | (17,420,425 ) | | | | | | — | | |
Net decrease in cash and cash equivalents
|
| | | | (343,807 ) | | | | | | (294,202 ) | | |
Cash and cash equivalents at beginning of period
|
| | | | 571,748 | | | | | | 1,063,350 | | |
Cash and cash equivalents at end of period.
|
| | | $ | 227,941 | | | | | $ | 769,148 | | |
Supplemental information: | | | | | | | | | | | | | |
Cash paid for taxes
|
| | | $ | 442,833 | | | | | | — | | |
Supplemental schedule of non-cash financing activities: | | | | | | | | | | | | | |
Change in value of common shares subject to possible conversion
|
| | | $ | 942,013 | | | | | $ | 229,666 | | |
| | |
Three months ended,
June 30, |
| |
Six months ended,
June 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
Net income
|
| | | $ | 489,110 | | | | | $ | 221,852 | | | | | $ | 942,013 | | | | | $ | 229,666 | | |
Less: Income attributable to common stock subject to possible redemption
|
| | | | (633,013 ) | | | | | | (242,232 ) | | | | | | (1,276,368 ) | | | | | | (492,684 ) | | |
Net loss available to common shares
|
| | | $ | (143,903 ) | | | | | $ | (20,380 ) | | | | | $ | (334,355 ) | | | | | $ | (263,018 ) | | |
Basic and diluted weighted average number of shares
|
| | | | 7,623,457 | | | | | | 7,544,192 | | | | | | 7,616,014 | | | | | | 7,534,030 | | |
Basic and diluted loss available to common shares
|
| | | $ | (0.02 ) | | | | | $ | (0.00 ) | | | | | $ | (0.04 ) | | | | | $ | (0.03 ) | | |
| | |
December 31,
2017 |
| |
December 31,
2016 |
| | | ||||||||||
ASSETS
|
| | | | | | | ||||||||||||
Current assets: | | | | | | | | | | | | | | | | ||||
Cash
|
| | | $ | 571,748 | | | | | $ | 1,063,350 | | | | | ||||
Prepaid expenses
|
| | | | 43,698 | | | | | | 153,699 | | | | | ||||
Total current assets
|
| | | | 615,446 | | | | | | 1,217,049 | | | | | ||||
Cash, cash equivalents, and accrued interest held in trust account
|
| | | | 252,054,977 | | | | | | 250,256,735 | | | | | ||||
Total assets
|
| | | $ | 252,670,423 | | | | | $ | 251,473,784 | | | | | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | | ||||||||||||
Current liabilities: | | | | | | | | | | | | | | | | ||||
Accounts payable and accrued liabilities
|
| | | $ | 460,846 | | | | | $ | 134,047 | | | | | ||||
Total current liabilities
|
| | | | 460,846 | | | | | | 134,047 | | | | | ||||
Deferred underwriting commissions
|
| | | | 8,750,000 | | | | | | 8,750,000 | | | | | ||||
Total liabilities
|
| | | | 9,210,846 | | | | | | 8,884,047 | | | | | ||||
Class A common stock subject to possible redemption, 23,651,543 and 23,734,599 shares at redemption value of approximately $10.08 and $10.01, respectively
|
| | | | 238,459,567 | | | | | | 237,589,727 | | | | | ||||
Stockholders’ equity: | | | | | | | | | | | | | | | | ||||
Preferred stock, $0.0001 par value, 1,000,000 authorized, no shares issued or outstanding
|
| | | | — | | | | | | — | | | | | ||||
Common stock:
|
| | | | | | | | | | | | | | | ||||
Class A common stock, $0.0001 par value, 200,000,000 shares
authorized, 1,348,457 and 1,265,401 shares issued and outstanding (excluding 23,651,543 and 23,734,599 shares subject to possible redemption), respectively |
| | | | 135 | | | | | | 127 | | | | | ||||
Class F common stock, $0.0001 par value, 20,000,000 shares authorized, 6,250,000 issued and outstanding
|
| | | | 625 | | | | | | 625 | | | | | ||||
Additional paid-in capital
|
| | | | 4,145,833 | | | | | | 5,015,681 | | | | | ||||
Retained earnings (accumulated deficit)
|
| | | | 853,417 | | | | | | (16,423 ) | | | | | ||||
Total stockholders’ equity
|
| | | | 5,000,010 | | | | | | 5,000,010 | | | | | ||||
Total liabilities and stockholders’ equity
|
| | | $ | 252,670,423 | | | | | $ | 251,473,784 | | | | | ||||
|
| | |
Year ended December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Expenses: | | | | | | | | | | | | | | | | | | | |
General and administrative expenses
|
| | | $ | 480,303 | | | | | $ | 261,253 | | | | | $ | 11,905 | | |
Loss from operations
|
| | | | (480,303 ) | | | | | | (261,253 ) | | | | | | (11,905 ) | | |
Other income: | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | 1,798,242 | | | | | | 256,735 | | | | | | — | | |
Income (loss) before taxes
|
| | | | 1,317,939 | | | | | | (4,518 ) | | | | | | (11,905 ) | | |
Tax provision
|
| | | | (448,099 ) | | | | | | — | | | | | | — | | |
Net income (loss)
|
| | | $ | 869,840 | | | | | $ | (4,518 ) | | | | | $ | (11,905 ) | | |
Basic and diluted loss per share: | | | | | | | | | | | | | | | | | | | |
Loss per share available to common shares
|
| | | $ | (0.05 ) | | | | | $ | (0.03 ) | | | | | $ | (0.00 ) | | |
Basic and diluted weighted average number of shares
|
| | | | 7,553,650 | | | | | | 7,500,028 | | | | | | 4,852,335 | | |
| | |
Class A Common
Stock |
| |
Class F Common
Stock |
| |
Additional
Paid-in Capital |
| |
Retained
earnings (Accumulated deficit) |
| |
Note
receivable, affiliates |
| |
Total
|
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2014
|
| | | | — | | | | | $ | — | | | | | | 4,312,500 | | | | | $ | 431 | | | | | $ | 569 | | | | | $ | — | | | | | $ | (1,000 ) | | | | | $ | — | | |
Class F shares issued
|
| | | | — | | | | | | — | | | | | | 4,312,500 | | | | | | 432 | | | | | | 9,568 | | | | | | — | | | | | | — | | | | | | 10,000 | | |
Payment of affiliate note receivable
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,000 | | | | | | 1,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (11,905 ) | | | | | | — | | | | | | (11,905 ) | | |
Balance, December 31, 2015
|
| | | | — | | | | | $ | — | | | | | | 8,625,000 | | | | | $ | 863 | | | | | $ | 10,137 | | | | | $ | (11,905 ) | | | | | $ | — | | | | | $ | (905 ) | | |
Sponsors warrants issued
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,000,000 | | | | | | — | | | | | | — | | | | | | 7,000,000 | | |
Class A shares issued
|
| | | | 25,000,000 | | | | | | 2,500 | | | | | | — | | | | | | — | | | | | | 249,997,500 | | | | | | — | | | | | | — | | | | | | 250,000,000 | | |
Underwriters commissions and offering costs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (14,404,840 ) | | | | | | — | | | | | | — | | | | | | (14,404,840 ) | | |
Shares returned
|
| | | | — | | | | | | — | | | | | | (2,375,000 ) | | | | | | (238 ) | | | | | | 238 | | | | | | — | | | | | | — | | | | | | — | | |
Class A shares subject to redemption
|
| | | | (23,734,599 ) | | | | | | (2,373 ) | | | | | | — | | | | | | — | | | | | | (237,587,354 ) | | | | | | — | | | | | | — | | | | | | (237,589,727 ) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,518 ) | | | | | | — | | | | | | (4,518 ) | | |
Balance, December 31, 2016
|
| | | | 1,265,401 | | | | | $ | 127 | | | | | | 6,250,000 | | | | | $ | 625 | | | | | $ | 5,015,681 | | | | | $ | (16,423 ) | | | | | $ | — | | | | | $ | 5,000,010 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 869,840 | | | | | | — | | | | | | 869,840 | | |
Change in class A shares subject to redemption
|
| | | | 83,056 | | | | | | 8 | | | | | | — | | | | | | — | | | | | | (869,848 ) | | | | | | — | | | | | | — | | | | | | (869,840 ) | | |
Balance, December 31, 2017
|
| | | | 1,348,457 | | | | | $ | 135 | | | | | | 6,250,000 | | | | | $ | 625 | | | | | $ | 4,145,833 | | | | | $ | 853,417 | | | | | $ | — | | | | | $ | 5,000,010 | | |
|
| | |
Year ended December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 869,840 | | | | | $ | (4,518 ) | | | | | $ | (11,905 ) | | |
Adjustments to reconcile net income (loss) to net cash used
in operating activities: |
| | | | | | | | | | | | | | | | | | |
Trust account interest income
|
| | | | (1,798,242 ) | | | | | | (256,735 ) | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | | | | | | | |
Decrease (increase) in prepaid expenses
|
| | | | 110,001 | | | | | | (153,699 ) | | | | | | — | | |
Increase (decrease) in accounts payable and accrued liabilities
|
| | | | 326,799 | | | | | | 124,790 | | | | | | 4,350 | | |
Increase (decrease) in receivable/payable to affiliates
|
| | | | — | | | | | | (7,400 ) | | | | | | 7,400 | | |
Net cash used in operating activities
|
| | | | (491,602 ) | | | | | | (297,562 ) | | | | | | (155 ) | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Trust account deposit
|
| | | | — | | | | | | (250,000,000 ) | | | | | | — | | |
Net cash from investing activities
|
| | | | — | | | | | | (250,000,000 ) | | | | | | — | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from public offering
|
| | | | — | | | | | | 250,000,000 | | | | | | — | | |
Proceeds from sale of private placement warrants
|
| | | | — | | | | | | 7,000,000 | | | | | | — | | |
Proceeds from sale of common stock to sponsor
|
| | | | — | | | | | | — | | | | | | 10,000 | | |
Payment of underwriting discounts
|
| | | | — | | | | | | (5,000,000 ) | | | | | | — | | |
Payment of offering costs
|
| | | | — | | | | | | (622,183 ) | | | | | | — | | |
Payment of affiliate notes payable
|
| | | | — | | | | | | (27,750 ) | | | | | | 1,000 | | |
Net cash from financing activities
|
| | | | — | | | | | | 251,350,067 | | | | | | 11,000 | | |
Net (decrease) increase in cash and cash equivalents
|
| | | | (491,602 ) | | | | | | 1,052,505 | | | | | | 10,845 | | |
Cash and cash equivalents at beginning of period
|
| | | | 1,063,350 | | | | | | 10,845 | | | | | | — | | |
Cash and cash equivalents at end of period
|
| | | $ | 571,748 | | | | | $ | 1,063,350 | | | | | $ | 10,845 | | |
Non-cash financing activities: | | | | | | | | | | | | | | | | | | | |
Change in value of common shares subject to possible conversion
|
| | | $ | 869,840 | | | | | $ | 9,437 | | | | | $ | — | | |
Initial classification of common shares subject to possible conversion
|
| | | $ | — | | | | | $ | 237,580,290 | | | | | $ | — | | |
Deferred undrwriting commissions
|
| | | $ | — | | | | | $ | 8,750,000 | | | | | $ | — | | |
Accrued offering costs
|
| | | $ | — | | | | | $ | 4,907 | | | | | $ | 322,750 | | |
| | |
Year ended December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Numerator: | | | | | | | | | | | | | | | | | | | |
Net income (loss) – basic and diluted
|
| | | $ | 869,840 | | | | | $ | (4,518 ) | | | | | $ | (11,905 ) | | |
Less: Income attributable to common stock subject to possible redemption
|
| | | | (1,277,241 ) | | | | | | (243,740 ) | | | | | | — | | |
Net loss available to common shares
|
| | | $ | (407,401 ) | | | | | $ | (248,258 ) | | | | | $ | (11,905 ) | | |
Denominator: | | | | | | | | | | | | | | | | | | | |
Weighted average shares – basic
|
| | | | 7,553,650 | | | | | | 7,500,028 | | | | | | 4,852,335 | | |
Warrants
|
| | | | — | | | | | | — | | | | | | — | | |
Weighted average shares – diluted
|
| | | | 7,553,650 | | | | | | 7,500,028 | | | | | | 4,852,335 | | |
Basic and diluted loss per common share: | | | | | | | | | | | | | | | | | | | |
Net loss available to common shares
|
| | | $ | (0.05 ) | | | | | $ | (0.03 ) | | | | | $ | (0.00 ) | | |
| | |
Year ended December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Current income taxes
|
| | | $ | 442,515 | | | | | $ | — | | | | | $ | — | | |
Deferred income taxes
|
| | | | 11,623 | | | | | | (1,563 ) | | | | | | (4,476 ) | | |
Total expense (benefit)
|
| | | $ | 454,138 | | | | | $ | (1,563 ) | | | | | $ | (4,476 ) | | |
Change in valuation allowance
|
| | | | (6,039 ) | | | | | | 1,563 | | | | | | 4,476 | | |
Income tax expense (benefit)
|
| | | $ | 448,099 | | | | | $ | — | | | | | $ | — | | |
|
| | |
Year ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Deferred tax asset: | | | | | | | | | | | | | |
Net operating loss carryforward
|
| | | $ | — | | | | | $ | 6,039 | | |
Total deferred tax asset
|
| | | $ | — | | | | | $ | 6,039 | | |
Valuation allowance
|
| | | | — | | | | | | (6,039 ) | | |
Deferred tax asset, net of current allowance
|
| | | $ | — | | | | | $ | — | | |
|
| | |
Year ended December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Statutory rate
|
| | | | 34.4 % | | | | | | -31.0 % | | | | | | -34.0 % | | |
Other business tax credit
|
| | | | 0.0 % | | | | | | 0.0 % | | | | | | 0.0 % | | |
State income tax, net of federal tax benefit
|
| | | | 0.0 % | | | | | | -3.6 % | | | | | | -3.6 % | | |
Change in valuation allowance on deferred tax asset
|
| | | | -0.4 % | | | | | | 34.6 % | | | | | | 37.6 % | | |
Total
|
| | | | 34.0 % | | | | | | 0.0 % | | | | | | 0.0 % | | |
|
2017
|
| |
1
st
Quarter
|
| |
2
nd
Quarter
|
| |
3
rd
Quarter
|
| |
4
th
Quarter
|
| ||||||||||||
General and administrative expenses
|
| | | $ | 256,414 | | | | | $ | 33,704 | | | | | $ | 125,757 | | | | | $ | 64,428 | | |
Net income (loss)
|
| | | $ | 7,814 | | | | | $ | 221,852 | | | | | $ | 269,118 | | | | | $ | 371,056 | | |
Basic and diluted earnings (loss) available to common shares
|
| | | $ | (0.03 ) | | | | | $ | (0.00 ) | | | | | $ | (0.01 ) | | | | | $ | (0.01 ) | | |
2016
|
| |
1
st
Quarter
|
| |
2
nd
Quarter
|
| |
3
rd
Quarter
|
| |
4
th
Quarter
|
| ||||||||||||
General and administrative expenses
|
| | | $ | 2,276 | | | | | $ | 33,965 | | | | | $ | 75,188 | | | | | $ | 149,824 | | |
Net income (loss)
|
| | | $ | (2,276 ) | | | | | $ | (33,872 ) | | | | | $ | 32,093 | | | | | $ | (463 ) | | |
Basic and diluted earnings (loss) available to common shares
|
| | | | 0.00 | | | | | $ | (0.00 ) | | | | | $ | (0.01 ) | | | | | $ | (0.02 ) | | |
Description
|
| |
Balance at
Beginning of Period |
| |
Charges
(credits) to expense |
| |
Charges
(credits) to other accounts |
| |
Write-offs
|
| |
Balance at
End of Period |
| |||||||||||||||
Deferred tax valuation allowance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2017
|
| | | $ | (6,039 ) | | | | | $ | 6,039 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
December 31, 2016
|
| | | $ | (4,476 ) | | | | | $ | (1,563 ) | | | | | $ | — | | | | | $ | — | | | | | $ | (6,039 ) | | |
December 31, 2015
|
| | | $ | — | | | | | $ | (4,476 ) | | | | | $ | — | | | | | $ | — | | | | | $ | (4,476 ) | | |
| | |
Three months ended
June 30, |
| |
Six months ended
June 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
REVENUE
|
| | | $ | 16,160 | | | | | $ | 4,824 | | | | | $ | 28,569 | | | | | $ | 8,448 | | |
COSTS AND EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operations and support
|
| | | | 10,498 | | | | | | 4,042 | | | | | | 18,414 | | | | | | 6,862 | | |
Sales and marketing
|
| | | | 2,786 | | | | | | 1,319 | | | | | | 5,139 | | | | | | 2,434 | | |
Research and development
|
| | | | 609 | | | | | | 397 | | | | | | 1,197 | | | | | | 743 | | |
General and administrative
|
| | | | 9,256 | | | | | | 2,763 | | | | | | 13,957 | | | | | | 4,724 | | |
Depreciation and amortization
|
| | | | 276 | | | | | | 172 | | | | | | 502 | | | | | | 376 | | |
Related party expenses
|
| | | | 25 | | | | | | 15 | | | | | | 48 | | | | | | 23 | | |
Loss on disposal of assets
|
| | | | — | | | | | | — | | | | | | 8 | | | | | | — | | |
Impairment of intangible assets
|
| | | | — | | | | | | 551 | | | | | | — | | | | | | 576 | | |
TOTAL COSTS AND EXPENSES
|
| | | | 23,450 | | | | | | 9,259 | | | | | | 39,265 | | | | | | 15,738 | | |
LOSS FROM OPERATIONS
|
| | | | (7,290 ) | | | | | | (4,435 ) | | | | | | (10,696 ) | | | | | | (7,290 ) | | |
OTHER EXPENSES (INCOME) AND LOSSES (GAIN),
NET: |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense (income), net
|
| | | | 290 | | | | | | — | | | | | | 461 | | | | | | (1 ) | | |
Gain on derivatives
|
| | | | (165 ) | | | | | | — | | | | | | (327 ) | | | | | | — | | |
Other expenses (income)
|
| | | | (39 ) | | | | | | (37 ) | | | | | | (38 ) | | | | | | (33 ) | | |
NET LOSS BEFORE INCOME TAX EXPENSE
|
| | | | (7,376 ) | | | | | | (4,398 ) | | | | | | (10,792 ) | | | | | | (7,256 ) | | |
Income tax expense
|
| | | | 23 | | | | | | — | | | | | | 34 | | | | | | 2 | | |
NET LOSS
|
| | | $ | (7,399 ) | | | | | $ | (4,398 ) | | | | | $ | (10,826 ) | | | | | $ | (7,258 ) | | |
LOSS PER SHARE: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (0.67 ) | | | | | $ | (0.40 ) | | | | | $ | (0.97 ) | | | | | $ | (0.65 ) | | |
Weighted average common shares outstanding – basic and diluted
|
| | | | 11,093,128 | | | | | | 11,120,831 | | | | | | 11,172,929 | | | | | | 11,105,351 | | |
| | |
Preferred Seed I
|
| |
Preferred Seed II
|
| |
Preferred Seed AA
|
| |
Common stock
|
| |
Additional
paid in capital |
| |
Accumulated
deficit |
| |
Total
stockholders’ equity (deficit) |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2016
|
| | | | 3,804,763 | | | | | $ | — | | | | | | 3,680,017 | | | | | $ | — | | | | | | 5,720,637 | | | | | $ | — | | | | | | 10,800,000 | | | | | $ | — | | | | | $ | 16,096 | | | | | $ | (9,713 ) | | | | | $ | 6,383 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,258 ) | | | | | | (7,258 ) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 227 | | | | | | — | | | | | | 227 | | |
Equity issued in exchange for services
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 293,128 | | | | | | — | | | | | | 60 | | | | | | — | | | | | | 60 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 38,958 | | | | | | — | | | | | | 2 | | | | | | — | | | | | | 2 | | |
Issuance of stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,341,477 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,224 | | | | | | — | | | | | | 7,224 | | |
Balances at June 30, 2017
|
| | | | 3,804,763 | | | | | $ | — | | | | | | 3,680,017 | | | | | $ | — | | | | | | 8,062,114 | | | | | $ | — | | | | | | 11,132,086 | | | | | $ | — | | | | | $ | 23,609 | | | | | $ | (16,971 ) | | | | | $ | 6,638 | | |
Balances at December 31, 2017
|
| | | | 3,804,763 | | | | | $ | — | | | | | | 3,680,017 | | | | | $ | — | | | | | | 8,097,790 | | | | | $ | — | | | | | | 11,203,023 | | | | | $ | — | | | | | $ | 35,110 | | | | | $ | (36,620 ) | | | | | $ | (1,510 ) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,826 ) | | | | | | (10,826 ) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,962 | | | | | | — | | | | | | 1,962 | | |
Equity issued in exchange for services
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 60 | | | | | | — | | | | | | 60 | | |
Stock issued as consideration in GoGoGrocer asset acquisition
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,182 | | | | | | — | | | | | | 142 | | | | | | — | | | | | | 142 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 234,186 | | | | | | — | | | | | | 10 | | | | | | — | | | | | | 10 | | |
Cancellation of stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (147,247 ) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Equity compensation on Requested Amendment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 220 | | | | | | — | | | | | | 220 | | |
Discount on convertible notes due
to beneficial conversion feature |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,501 | | | | | | — | | | | | | 1,501 | | |
Balances at June 30, 2018
|
| | | | 3,804,763 | | | | | $ | — | | | | | | 3,680,017 | | | | | $ | — | | | | | | 8,097,790 | | | | | $ | — | | | | | | 11,308,144 | | | | | $ | — | | | | | $ | 39,005 | | | | | $ | (47,446 ) | | | | | $ | (8,441 ) | | |
|
| | |
Six months ended
June 30, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (10,826 ) | | | | | $ | (7,258 ) | | |
Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | | | |
Non-cash interest expense on convertible notes
|
| | | | 142 | | | | | | — | | |
Non-cash advertising expense
|
| | | | 187 | | | | | | — | | |
Stock-based compensation
|
| | | | 1,962 | | | | | | 227 | | |
Equity issued in exchange for services
|
| | | | 60 | | | | | | 60 | | |
Equity compensation on Requested Amendment
|
| | | | 220 | | | | | | — | | |
Loss on disposal of assets
|
| | | | 8 | | | | | | — | | |
Depreciation and amortization
|
| | | | 502 | | | | | | 376 | | |
Impairment of intangible assets
|
| | | | — | | | | | | 576 | | |
Amortization of capitalized contract costs
|
| | | | 613 | | | | | | 213 | | |
Gain on derivatives
|
| | | | (327 ) | | | | | | — | | |
Changes in assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (653 ) | | | | | | (416 ) | | |
Capitalized contract costs
|
| | | | (1,196 ) | | | | | | (589 ) | | |
Prepaid expenses and other current assets
|
| | | | (2,482 ) | | | | | | (682 ) | | |
Payments on lease deposits
|
| | | | (12 ) | | | | | | (3 ) | | |
Accounts payable
|
| | | | 829 | | | | | | 287 | | |
Gratuities payable
|
| | | | 240 | | | | | | 91 | | |
Deferred revenue
|
| | | | 1,362 | | | | | | 624 | | |
Income tax payable
|
| | | | 3 | | | | | | 2 | | |
Accrued payroll
|
| | | | 499 | | | | | | 723 | | |
Accrued interest
|
| | | | 319 | | | | | | — | | |
Accrued professional fees
|
| | | | 3,054 | | | | | | — | | |
Other current liabilities
|
| | | | 1,098 | | | | | | 21 | | |
Net cash used in operating activities
|
| | | | (4,398 ) | | | | | | (5,748 ) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (1,113 ) | | | | | | (860 ) | | |
Consideration paid for IndiePlate asset acquisition
|
| | | | (11 ) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (1,124 ) | | | | | | (860 ) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from convertible notes issuance
|
| | | | 1,410 | | | | | | — | | |
Proceeds of receivable from stockholder
|
| | | | — | | | | | | 200 | | |
Proceeds from short-term loan
|
| | | | 2,172 | | | | | | — | | |
Payments on short-term loan
|
| | | | (215 ) | | | | | | — | | |
Payments on financing arrangement
|
| | | | — | | | | | | 1 | | |
Proceeds from grants
|
| | | | — | | | | | | 40 | | |
Proceeds from exercise of stock options
|
| | | | 10 | | | | | | 2 | | |
Proceeds from issuance of stock
|
| | | | — | | | | | | 7,224 | | |
Net cash provided by financing activities
|
| | | | 3,377 | | | | | | 7,467 | | |
Net change in cash
|
| | | | (2,145 ) | | | | | | 859 | | |
Cash at the beginning of the period
|
| | | | 3,947 | | | | | | 3,285 | | |
Cash at the end of the period
|
| | | $ | 1,802 | | | | | $ | 4,144 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Cash paid during the period for interest
|
| | | $ | (6 ) | | | | | $ | — | | |
Cash paid during the period for state income taxes
|
| | | | (31 ) | | | | | | — | | |
Supplemental disclosures of non-cash financing activities: | | | | | | | | | | | | | |
Services receivable
|
| | | | 1,000 | | | | | | — | | |
Debt assumed in IndiePlate asset acquisition
|
| | | | (60 ) | | | | | | — | | |
Discount on convertible notes due to beneficial conversion feature
|
| | | | 1,501 | | | | | | — | | |
Non-cash consideration in GoGoGrocer asset acquisition
|
| | | | (142 ) | | | | | | — | | |
| | |
Three months ended
June 30, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Transaction fees
|
| | | $ | 15,406 | | | | | $ | 4,488 | | |
Setup and integration fees
|
| | | | 626 | | | | | | 251 | | |
Other
|
| | | | 128 | | | | | | 85 | | |
Total revenue
|
| | | $ | 16,160 | | | | | $ | 4,824 | | |
|
| | |
Six months ended
June 30, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Transaction fees
|
| | | $ | 27,249 | | | | | $ | 7,814 | | |
Setup and integration fees
|
| | | | 1,116 | | | | | | 468 | | |
Other
|
| | | | 204 | | | | | | 166 | | |
Total revenue
|
| | | $ | 28,569 | | | | | $ | 8,448 | | |
|
| | |
June 30,
2018 |
| |
December 31,
2017 |
| ||||||
Series 2017 Convertible Promissory Notes, par
|
| | | $ | 7,484 | | | | | $ | 7,484 | | |
Series 2018 Convertible Promissory Notes, par
|
| | | | 2,470 | | | | | | — | | |
| | | | $ | 9,954 | | | | | $ | 7,484 | | |
Less: discount on convertible notes
|
| | | | (1,450 ) | | | | | | — | | |
Convertible notes, net
|
| | | $ | 8,504 | | | | | $ | 7,484 | | |
Short-term loan
|
| | | $ | 1,957 | | | | | $ | — | | |
Total debt
|
| | | $ | 10,461 | | | | | $ | 7,484 | | |
|
| | |
Debt maturity
|
| |||
2019
|
| | | $ | 9,441 | | |
2020
|
| | | | 1,020 | | |
Total debt
|
| | | $ | 10,461 | | |
|
| | |
June 30,
2018 |
| |
December 31,
2017 |
| ||||||
Bifurcated embedded derivatives on convertible notes
|
| | | $ | 10 | | | | | $ | 250 | | |
| | |
Three months ended
June 30, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Gain on derivatives
|
| | | $ | 165 | | | | | $ | — | | |
| | |
Six months ended
June 30, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Gain on derivatives
|
| | | $ | 327 | | | | | $ | — | | |
| | |
June 30, 2018
|
| |||||||||||||||||||||
| | |
Carrying
Amount |
| |
Fair Value
|
| ||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
Bifurcated embedded derivatives on convertible notes
|
| | | $ | 10 | | | | | $ | — | | | | | $ | — | | | | | $ | 10 | | |
| | | | $ | 10 | | | | | $ | — | | | | | $ | — | | | | | $ | 10 | | |
|
| | |
December 31, 2017
|
| |||||||||||||||||||||
| | |
Carrying
Amount |
| |
Fair Value
|
| ||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
Bifurcated embedded derivatives on convertible notes
|
| | | $ | 250 | | | | | $ | — | | | | | $ | — | | | | | $ | 250 | | |
| | | | $ | 250 | | | | | $ | — | | | | | $ | — | | | | | $ | 250 | | |
|
| | |
June 30,
2018 |
| |
December 31,
2017 |
| ||||||
Balance, beginning of the period
|
| | | $ | 250 | | | | | $ | — | | |
Increases/additions
|
| | | | — | | | | | | 250 | | |
Reductions/settlements
|
| | | | (240 ) | | | | | | — | | |
Balance, end of the period
|
| | | $ | 10 | | | | | $ | 250 | | |
|
| | |
Number of
Shares |
| |||
Balance, March 31, 2018
|
| | | | 5,095,094 | | |
Granted
|
| | | | — | | |
Exercised
|
| | | | (234,186 ) | | |
Forfeited
|
| | | | (28,461 ) | | |
Balance, June 30, 2018
|
| | | | 4,832,447 | | |
| | |
Number of
Shares |
| |||
Balance, March 31, 2017
|
| | | | 2,286,912 | | |
Granted
|
| | | | 1,320,795 | | |
Exercised
|
| | | | (38,958 ) | | |
Forfeited
|
| | | | (15,000 ) | | |
Balance, June 30, 2017
|
| | | | 3,553,749 | | |
| | |
Number of
Shares |
| |||
Balance, December 31, 2017
|
| | | | 4,574,077 | | |
Granted
|
| | | | 545,500 | | |
Exercised
|
| | | | (234,186 ) | | |
Forfeited
|
| | | | (52,944 ) | | |
Balance, June 30, 2018
|
| | | | 4,832,447 | | |
| | |
Number of
Shares |
| |||
Balance, December 31, 2016
|
| | | | 2,256,912 | | |
Granted
|
| | | | 1,355,795 | | |
Exercised
|
| | | | (38,958 ) | | |
Forfeited
|
| | | | (20,000 ) | | |
Balance, June 30, 2017
|
| | | | 3,553,749 | | |
| | |
Six months ended June 30,
|
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Weighted-average fair value on grant date
|
| | | $ | 4.80 | | | | | $ | 2.92 | | |
Risk free interest rates
|
| | 1.64% – 2.13% | | | 1.07% – 1.44% | | ||||||
Expected Volatility
|
| | 40.3% – 44.6% | | | | | 48.9 % | | | |||
Expected option life
|
| | | | 0.75 – 1.50 | | | | | | 0.50 – 3.00 | | |
| | |
Three months ended
June 30, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Net loss attributable to common stockholders – basic and diluted
|
| | | $ | (7,399 ) | | | | | $ | (4,398 ) | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average number of shares outstanding – basic
|
| | | | 11,093,128 | | | | | | 11,120,831 | | |
Effect of dilutive securities | | | | | | | | | | | | | |
Convertible Preferred Stock
|
| | | | | | | | | | | | |
Seed I
|
| | | | 3,804,763 | | | | | | 3,804,763 | | |
Seed II
|
| | | | 3,680,017 | | | | | | 3,680,017 | | |
Series AA
|
| | | | 8,097,790 | | | | | | 8,062,114 | | |
Stock Options
|
| | | | 4,832,447 | | | | | | 3,553,749 | | |
Warrants
|
| | | | 452,947 | | | | | | 452,947 | | |
Weighted-average number of shares outstanding – diluted
|
| | | | 31,961,092 | | | | | | 30,674,421 | | |
|
| | |
Six months ended
June 30, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Net loss attributable to common stockholders – basic and diluted
|
| | | $ | (10,826 ) | | | | | $ | (7,258 ) | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average number of shares outstanding – basic
|
| | | | 11,172,929 | | | | | | 11,105,351 | | |
Effect of dilutive securities | | | | | | | | | | | | | |
Convertible Preferred Stock
|
| | | | | | | | | | | | |
Seed I
|
| | | | 3,804,763 | | | | | | 3,804,763 | | |
Seed II
|
| | | | 3,680,017 | | | | | | 3,680,017 | | |
Series AA
|
| | | | 8,097,790 | | | | | | 8,062,114 | | |
Stock Options
|
| | | | 4,832,447 | | | | | | 3,553,749 | | |
Warrants
|
| | | | 452,947 | | | | | | 452,947 | | |
Weighted-average number of shares outstanding – diluted
|
| | | | 32,040,893 | | | | | | 30,658,941 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
ASSETS
|
| | | | | | | | | | | | |
CURRENT ASSETS: | | | | | | | | | | | | | |
Cash
|
| | | $ | 3,947 | | | | | $ | 3,285 | | |
Accounts receivable, net of allowance for doubtful accounts of $50 and $58 as of December 31, 2017 and 2016, respectively
|
| | | | 2,124 | | | | | | 762 | | |
Receivable from stockholder
|
| | | | — | | | | | | 200 | | |
Capitalized contract costs, current
|
| | | | 947 | | | | | | 317 | | |
Prepaid expenses and other current assets
|
| | | | 363 | | | | | | 39 | | |
TOTAL CURRENT ASSETS
|
| | | | 7,381 | | | | | | 4,603 | | |
Property and equipment, net
|
| | | | 1,874 | | | | | | 635 | | |
Capitalized contract costs, noncurrent
|
| | | | 477 | | | | | | 198 | | |
Goodwill
|
| | | | 1,408 | | | | | | 1,408 | | |
Intangible assets, net
|
| | | | 243 | | | | | | 947 | | |
Other noncurrent assets
|
| | | | 24 | | | | | | 24 | | |
TOTAL ASSETS
|
| | | $ | 11,407 | | | | | $ | 7,815 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
| | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 247 | | | | | $ | 59 | | |
Gratuities payable
|
| | | | 372 | | | | | | 185 | | |
Deferred revenue, current
|
| | | | 1,630 | | | | | | 580 | | |
Income tax payable
|
| | | | 6 | | | | | | 5 | | |
Accrued payroll
|
| | | | 578 | | | | | | 127 | | |
Accrued interest
|
| | | | 156 | | | | | | — | | |
Other current liabilities
|
| | | | 177 | | | | | | 141 | | |
TOTAL CURRENT LIABILITIES
|
| | | | 3,166 | | | | | | 1,097 | | |
Convertible notes, net
|
| | | | 7,484 | | | | | | — | | |
Bifurcated embedded derivatives on convertible notes
|
| | | | 250 | | | | | | — | | |
Accrued workers’ compensation liability
|
| | | | 1,250 | | | | | | — | | |
Deferred revenue, noncurrent
|
| | | | 728 | | | | | | 329 | | |
Other noncurrent liabilities
|
| | | | 39 | | | | | | 6 | | |
TOTAL LIABILITIES
|
| | | | 12,917 | | | | | | 1,432 | | |
Commitment and contingencies (Note 13) | | | | | | | | | | | | | |
STOCKHOLDERS’ EQUITY (DEFICIT): | | | | | | | | | | | | | |
Convertible preferred stock: Seed I, par value of $0.00001 per share; 3,804,763 shares authorized,
issued, and outstanding at December 31, 2017 and 2016 |
| | | | — | | | | | | — | | |
Convertible preferred stock: Seed II, par value of $0.00001 per share; 3,680,017 shares authorized,
issued, and outstanding at December 31, 2017 and 2016 |
| | | | — | | | | | | — | | |
Convertible preferred stock: Seed AA, par value of $0.00001 per share; 8,171,138 shares authorized and 8,097,790 shares issued and outstanding at December 31, 2017 and 5,720,637 shares issued and outstanding at December 31, 2016
|
| | | | — | | | | | | — | | |
Common stock, par value of $0.00001 per share; 34,280,128 shares authorized and 11,203,023 shares issued and outstanding at December 31, 2017 and 10,800,000 shares issued and outstanding at December 31, 2016
|
| | | | — | | | | | | — | | |
Additional paid in capital
|
| | | | 35,110 | | | | | | 16,096 | | |
Accumulated deficit
|
| | | | (36,620 ) | | | | | | (9,713 ) | | |
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)
|
| | | | (1,510 ) | | | | | | 6,383 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
| | | $ | 11,407 | | | | | $ | 7,815 | | |
|
| | |
For the years ended December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
REVENUE | | | | $ | 22,911 | | | | | $ | 5,650 | | | | | $ | 340 | | |
COSTS AND EXPENSES: | | | | | | | | | | | | | | | | | | | |
Operations and support
|
| | | | 17,668 | | | | | | 4,785 | | | | | | 186 | | |
Sales and marketing
|
| | | | 5,617 | | | | | | 1,359 | | | | | | 137 | | |
Research and development
|
| | | | 1,586 | | | | | | 395 | | | | | | 180 | | |
General and administrative
|
| | | | 12,601 | | | | | | 4,161 | | | | | | 674 | | |
Depreciation and amortization
|
| | | | 723 | | | | | | 267 | | | | | | 26 | | |
Related party expenses
|
| | | | 182 | | | | | | — | | | | | | 3 | | |
Impairment of intangible assets
|
| | | | 584 | | | | | | 5 | | | | | | — | | |
Loss on disposal of assets
|
| | | | 33 | | | | | | 3 | | | | | | — | | |
TOTAL COSTS AND EXPENSES
|
| | | | 38,994 | | | | | | 10,975 | | | | | | 1,206 | | |
LOSS FROM OPERATIONS
|
| | | | (16,083 ) | | | | | | (5,325 ) | | | | | | (866 ) | | |
OTHER EXPENSES (INCOME) AND LOSSES (GAIN), NET | | | | | | | | | | | | | | | | | | | |
Interest expense, net
|
| | | | 281 | | | | | | 4,467 | | | | | | 91 | | |
(Gain) loss on derivatives
|
| | | | 52 | | | | | | (484 ) | | | | | | (144 ) | | |
(Gain) loss on debt extinguishment
|
| | | | 10,537 | | | | | | (599 ) | | | | | | — | | |
Other expenses (income)
|
| | | | (52 ) | | | | | | 8 | | | | | | 5 | | |
NET LOSS BEFORE INCOME TAX EXPENSE
|
| | | | (26,901 ) | | | | | | (8,717 ) | | | | | | (818 ) | | |
Income tax expense
|
| | | | 6 | | | | | | 5 | | | | | | — | | |
NET LOSS
|
| | | $ | (26,907 ) | | | | | $ | (8,722 ) | | | | | $ | (818 ) | | |
LOSS PER SHARE: | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (2.42 ) | | | | | $ | (0.91 ) | | | | | $ | (0.09 ) | | |
Weighted average common shares outstanding – basic and diluted
|
| | |
|
11,141,548
|
| | | |
|
9,562,192
|
| | | |
|
9,000,000
|
| |
| | |
Preferred Seed I
|
| |
Preferred
Seed II |
| |
Preferred Seed AA
|
| |
Common stock
|
| |
Additional
paid in capital |
| |
Accumulated
deficit |
| |
Total
stockholders’ Equity |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2014
|
| | | | 3,804,763 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 9,000,000 | | | | | $ | — | | | | | $ | 217 | | | | | $ | (173 ) | | | | | $ | 44 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (818 ) | | | | | | (818 ) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10 | | | | | | — | | | | | | 10 | | |
Equity issued in exchange for
services |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 95 | | | | | | — | | | | | | 95 | | |
Issuance of stock
|
| | | | — | | | | | | — | | | | | | 481,021 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 327 | | | | | | — | | | | | | 327 | | |
Discount on convertible notes due to beneficial conversion feature
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 55 | | | | | | — | | | | | | 55 | | |
Balances at December 31, 2015
|
| | | | 3,804,763 | | | | | $ | — | | | | | | 481,021 | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 9,000,000 | | | | | $ | — | | | | | $ | 704 | | | | | $ | (991 ) | | | | | $ | (287 ) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,722 ) | | | | | | (8,722 ) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 144 | | | | | | — | | | | | | 144 | | |
Equity issued in exchange for
services |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 452 | | | | | | — | | | | | | 452 | | |
Issuance of stock
|
| | | | — | | | | | | — | | | | | | 1,669,257 | | | | | | — | | | | | | 1,008,805 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,246 | | | | | | — | | | | | | 4,246 | | |
Conversion of convertible notes to Preferred Seed II stock
|
| | | | — | | | | | | — | | | | | | 1,529,739 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,040 | | | | | | — | | | | | | 1,040 | | |
Conversion of convertible notes to Preferred Seed AA stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,711,832 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,384 | | | | | | — | | | | | | 4,384 | | |
Discount on convertible notes due to beneficial conversion feature
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,930 | | | | | | — | | | | | | 2,930 | | |
Stock issued as consideration for the acquisition of Requested, Inc.
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,800,000 | | | | | | — | | | | | | 2,196 | | | | | | — | | | | | | 2,196 | | |
Balances at December 31, 2016
|
| | | | 3,804,763 | | | | | $ | — | | | | | | 3,680,017 | | | | | $ | — | | | | | | 5,720,637 | | | | | $ | — | | | | | | 10,800,000 | | | | | $ | — | | | | | $ | 16,096 | | | | | $ | (9,713 ) | | | | | $ | 6,383 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (26,907 ) | | | | | | (26,907 ) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,199 | | | | | | — | | | | | | 1,199 | | |
Equity issued in exchange for
services |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 293,128 | | | | | | — | | | | | | 120 | | | | | | — | | | | | | 120 | | |
Exercise of stock options
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 109,895 | | | | | | — | | | | | | 5 | | | | | | — | | | | | | 5 | | |
Issuance of stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,341,477 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,224 | | | | | | — | | | | | | 7,224 | | |
Debt premium recorded to
equity |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,444 | | | | | | — | | | | | | 10,444 | | |
Conversion of convertible notes to Preferred Seed AA stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 35,676 | | | | | | — | | | | | | — | | | | | | — | | | | | | 22 | | | | | | — | | | | | | 22 | | |
Balances at December 31, 2017
|
| | | | 3,804,763 | | | | | $ | — | | | | | | 3,680,017 | | | | | $ | — | | | | | | 8,097,790 | | | | | $ | — | | | | | | 11,203,023 | | | | | $ | — | | | | | $ | 35,110 | | | | | $ | (36,620 ) | | | | | $ | (1,510 ) | | |
|
| | |
For the years ended December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (26,907 ) | | | | | $ | (8,722 ) | | | | | $ | (818 ) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | | | | | | | |
Non-cash interest expense on convertible notes
|
| | | | 125 | | | | | | 4,467 | | | | | | 62 | | |
Stock-based compensation
|
| | | | 1,199 | | | | | | 144 | | | | | | 10 | | |
Equity issued in exchange for services
|
| | | | 120 | | | | | | 452 | | | | | | 95 | | |
Loss on disposal of assets
|
| | | | 33 | | | | | | 3 | | | | | | — | | |
Depreciation and amortization
|
| | | | 723 | | | | | | 267 | | | | | | 26 | | |
Impairment of intangible assets
|
| | | | 584 | | | | | | 5 | | | | | | — | | |
Amortization of capitalized contract costs
|
| | | | 589 | | | | | | 132 | | | | | | 7 | | |
(Gain) loss on derivatives
|
| | | | 52 | | | | | | (484 ) | | | | | | (144 ) | | |
(Gain) loss on debt extinguishment
|
| | | | 10,537 | | | | | | (599 ) | | | | | | — | | |
Changes in assets and liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (1,362 ) | | | | | | (727 ) | | | | | | (32 ) | | |
Capitalized contract costs
|
| | | | (1,498 ) | | | | | | (576 ) | | | | | | (78 ) | | |
Prepaid expenses and other current assets
|
| | | | (324 ) | | | | | | (33 ) | | | | | | (6 ) | | |
Payments for lease deposits
|
| | | | — | | | | | | (24 ) | | | | | | — | | |
Accounts payable
|
| | | | 188 | | | | | | 16 | | | | | | 43 | | |
Gratuities payable
|
| | | | 187 | | | | | | 180 | | | | | | 5 | | |
Deferred revenue
|
| | | | 1,449 | | | | | | 801 | | | | | | 108 | | |
Income tax payable
|
| | | | 1 | | | | | | 5 | | | | | | — | | |
Accrued payroll
|
| | | | 451 | | | | | | 92 | | | | | | 30 | | |
Accrued interest
|
| | | | 156 | | | | | | — | | | | | | 29 | | |
Accrued workers’ compensation liability
|
| | | | 1,250 | | | | | | — | | | | | | — | | |
Other current liabilities
|
| | | | 36 | | | | | | 104 | | | | | | — | | |
Net cash used in operating activities
|
| | | | (12,411 ) | | | | | | (4,497 ) | | | | | | (663 ) | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (1,769 ) | | | | | | (596 ) | | | | | | (109 ) | | |
Acquisition of Requested, net of cash acquired
|
| | | | — | | | | | | (22 ) | | | | | | — | | |
Internally developed software
|
| | | | (105 ) | | | | | | (208 ) | | | | | | (94 ) | | |
Net cash used in investing activities
|
| | | | (1,874 ) | | | | | | (826 ) | | | | | | (203 ) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from convertible notes issuance
|
| | | | 7,684 | | | | | | 4,091 | | | | | | 788 | | |
Payments on financing arrangement
|
| | | | (6 ) | | | | | | (3 ) | | | | | | — | | |
Proceeds from grants
|
| | | | 40 | | | | | | — | | | | | | — | | |
Proceeds from exercise of stock options
|
| | | | 5 | | | | | | — | | | | | | — | | |
Proceeds from issuance of stock
|
| | | | 7,224 | | | | | | 4,246 | | | | | | 327 | | |
Net cash provided by financing activities
|
| | | | 14,947 | | | | | | 8,334 | | | | | | 1,115 | | |
Net change in cash
|
| | | | 662 | | | | | | 3,011 | | | | | | 249 | | |
Cash, beginning of year
|
| | | | 3,285 | | | | | | 274 | | | | | | 25 | | |
Cash, end of year
|
| | | $ | 3,947 | | | | | $ | 3,285 | | | | | $ | 274 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | | | | | | | |
Cash paid during the year for state income taxes
|
| | | $ | 5 | | | | | $ | — | | | | | $ | — | | |
Supplemental disclosures of non-cash financing activities: | | | | | | | | | | | | | | | | | | | |
Stock issued as consideration for the acquisition of Requested, Inc.
|
| | | | — | | | | | | (2,196 ) | | | | | | — | | |
Bifurcated embedded derivatives
|
| | | | — | | | | | | — | | | | | | 233 | | |
Discount on convertible notes due to beneficial conversion feature
|
| | | | — | | | | | | 2,930 | | | | | | 55 | | |
Premium on convertible notes
|
| | | | 10,444 | | | | | | — | | | | | | — | | |
Conversion of convertible notes to preferred stock
|
| | | | 22 | | | | | | 5,424 | | | | | | — | | |
| Equipment | | | 3 years | |
| Furniture | | | 5 years | |
|
Leasehold improvements
|
| | 7 years | |
| | |
Years ended December 31
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Transaction fees
|
| | | $ | 21,406 | | | | | $ | 5,165 | | | | | $ | 296 | | |
Setup and integration fees
|
| | | | 1,214 | | | | | | 361 | | | | | | 21 | | |
Other
|
| | | | 291 | | | | | | 124 | | | | | | 23 | | |
| | | | $ | 22,911 | | | | | $ | 5,650 | | | | | $ | 340 | | |
|
| | |
As of December 31, 2016
|
| |||||||||||||||
| | |
Prior to
Adoption |
| |
Adjustments
|
| |
As Adjusted
|
| |||||||||
Capitalized contract costs
|
| | | $ | 230 | | | | | $ | 285 | | | | | $ | 515 | | |
| | |
Year ended December 31, 2016
|
| |||||||||||||||
| | |
Prior to
Adoption |
| |
Adjustments
|
| |
As Adjusted
|
| |||||||||
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Sales and marketing
|
| | | $ | 1,644 | | | | | $ | (285 ) | | | | | $ | 1,359 | | |
Operating loss
|
| | | | (5,610 ) | | | | | | 285 | | | | | | (5,325 ) | | |
Net loss
|
| | | | (9,007 ) | | | | | | 285 | | | | | | (8,722 ) | | |
Net loss per share, basic and diluted
|
| | | $ | (0.94 ) | | | | | $ | 0.03 | | | | | $ | (0.91 ) | | |
| | |
Year ended December 31, 2015
|
| |||||||||||||||
| | |
Prior to
Adoption |
| |
Adjustments
|
| |
As Adjusted
|
| |||||||||
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Sales and marketing
|
| | | $ | 183 | | | | | $ | (46 ) | | | | | $ | 137 | | |
Operating loss
|
| | | | (912 ) | | | | | | 46 | | | | | | (866 ) | | |
Net loss
|
| | | | (864 ) | | | | | | 46 | | | | | | (818 ) | | |
Net loss per share, basic and diluted
|
| | | $ | (0.09 ) | | | | | $ | (0.00 ) | | | | | $ | (0.09 ) | | |
| | |
Year ended December 31, 2016
|
| |||||||||||||||
| | |
Prior to
Adoption |
| |
Adjustments
|
| |
As Adjusted
|
| |||||||||
Cash flows from operating activities | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (9,007 ) | | | | | $ | 285 | | | | | $ | (8,722 ) | | |
Adjustment to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | | | | | | | |
Amortization of capitalized contract costs
|
| | | | 417 | | | | | | (285 ) | | | | | | 132 | | |
Change in capitalized contract costs
|
| | | | (622 ) | | | | | | 46 | | | | | | (576 ) | | |
| | |
Year ended December 31, 2015
|
| |||||||||||||||
(in ‘000s of USD)
|
| |
Prior to
Adoption |
| |
Adjustments
|
| |
As Adjusted
|
| |||||||||
Cash flows from operating activities | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (864 ) | | | | | $ | 46 | | | | | $ | (818 ) | | |
Adjustment to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | | | | | | | |
Amortization of capitalized contract costs
|
| | | | 53 | | | | | | (46 ) | | | | | | 7 | | |
Change in capitalized contract costs
|
| | | | (80 ) | | | | | | 2 | | | | | | (78 ) | | |
| Assets acquired: | | | | | | | |
|
Cash and cash equivalents
|
| | | $ | 38 | | |
|
Accounts receivable
|
| | | | 3 | | |
|
Other current assets
|
| | | | 1 | | |
|
Property and equipment
|
| | | | 34 | | |
|
Identifiable intangible assets
|
| | | | 810 | | |
|
Total identifiable assets acquired
|
| | | $ | 886 | | |
| Liabilities assumed: | | | | | | | |
|
Other current liabilities
|
| | | | (29 ) | | |
|
Other long-term liabilities
|
| | | | (9 ) | | |
|
Total liabilities assumed
|
| | | | (38 ) | | |
|
Net assets acquired
|
| | | | 848 | | |
|
Goodwill
|
| | | | 1,408 | | |
|
Total consideration paid
|
| | | $ | 2,256 | | |
|
| | | | |
Value
|
| |||||||
Technology
|
| | | | 2 | | | | | $ | 810 | | |
Total | | | | | | | | | | $ | 810 | | |
|
| | |
December 31,
2016 |
| |||
Net Revenue
|
| | | $ | 5,643 | | |
Net Loss
|
| | | | (9,403 ) | | |
| | |
Years Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Credit card receivables
|
| | | $ | 1,043 | | | | | $ | 332 | | |
Receivables from restaurant partners
|
| | | | 1,131 | | | | | | 488 | | |
Accounts receivable
|
| | | $ | 2,174 | | | | | $ | 820 | | |
Less allowance for doubtful accounts
|
| | | | (50 ) | | | | | | (58 ) | | |
Accounts receivable, net
|
| | | $ | 2,124 | | | | | $ | 762 | | |
|
| | |
Years Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Balance, beginning of the year
|
| | | $ | 58 | | | | | $ | 3 | | |
Additions to expense
|
| | | | 7 | | | | | | 64 | | |
Write-offs, net of recoveries and other adjustments
|
| | | | (15 ) | | | | | | (9 ) | | |
Balance, end of the year
|
| | | $ | 50 | | | | | $ | 58 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Prepaid insurance expense
|
| | | $ | 254 | | | | | $ | 7 | | |
Other current assets
|
| | | | 109 | | | | | | 32 | | |
Other current assets
|
| | | $ | 363 | | | | | $ | 39 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Computer equipment
|
| | | $ | 1,962 | | | | | $ | 578 | | |
Furniture and fixtures
|
| | | | 466 | | | | | | 69 | | |
Leasehold improvements
|
| | | | 34 | | | | | | — | | |
Construction in process
|
| | | | — | | | | | | 100 | | |
| | | | $ | 2,462 | | | | | $ | 747 | | |
Less: Accumulated depreciation
|
| | | | (588 ) | | | | | | (112 ) | | |
Property and equipment, net
|
| | | $ | 1,874 | | | | | $ | 635 | | |
|
| | |
As of December 31, 2017
|
| |||||||||||||||||||||
| | |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| |
Accumulated
Impairment |
| |
Intangible
Assets, Net |
| ||||||||||||
Software
|
| | | $ | 1,236 | | | | | $ | (409 ) | | | | | $ | (589 ) | | | | | $ | 238 | | |
Trademarks/Patents
|
| | | | 5 | | | | | | — | | | | | | — | | | | | | 5 | | |
Total | | | | $ | 1,241 | | | | | $ | (409 ) | | | | | $ | (589 ) | | | | | $ | 243 | | |
|
| | |
As of December 31, 2016
|
| |||||||||||||||||||||
| | |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| |
Accumulated
Impairment |
| |
Intangible
Assets, Net |
| ||||||||||||
Software
|
| | | $ | 1,131 | | | | | $ | (184 ) | | | | | $ | (5 ) | | | | | $ | 942 | | |
Trademarks/Patents
|
| | | | 5 | | | | | | — | | | | | | — | | | | | | 5 | | |
Total | | | | $ | 1,136 | | | | | $ | (184 ) | | | | | $ | (5 ) | | | | | $ | 947 | | |
|
Year ended December 31,
|
| |
Amortization
|
| |||
2018
|
| | | $ | 117 | | |
2019
|
| | | | 88 | | |
2020
|
| | | | 33 | | |
Thereafter
|
| | | | — | | |
Total future amortization
|
| | | $ | 238 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Balance, beginning of the year
|
| | | $ | 1,408 | | | | | $ | — | | |
Acquisitions during the year
|
| | | | — | | | | | | 1,408 | | |
Balance, end of the year
|
| | | $ | 1,408 | | | | | $ | 1,408 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Accrued insurance expenses
|
| | | $ | 50 | | | | | $ | 106 | | |
Other current liabilities
|
| | | | 127 | | | | | | 35 | | |
Other current liabilities
|
| | | $ | 177 | | | | | $ | 141 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Series 2016-II Convertible Promissory Notes, par
|
| | | $ | — | | | | | $ | 20 | | |
Series 2017 Convertible Promissory Notes, par
|
| | | | 7,484 | | | | | | — | | |
| | | | $ | 7,484 | | | | | $ | 20 | | |
Less: discount on convertible notes
|
| | | | — | | | | | | (20 ) | | |
Convertible notes, net
|
| | | $ | 7,484 | | | | | $ | — | | |
|
| | |
Years ended December 31,
|
| |||||||||||||||
| | |
2016
|
| |
2016
|
| |
2015
|
| |||||||||
(Gain) loss on derivatives
|
| | | | 52 | | | | | | (484 ) | | | | | | (144 ) | | |
| | |
Years ended December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Current | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
State
|
| | | | 6 | | | | | | 5 | | | | | | — | | |
Deferred | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | | — | | | | | | — | | | | | | — | | |
State
|
| | | | — | | | | | | — | | | | | | — | | |
Income tax expense
|
| | | $ | 6 | | | | | $ | 5 | | | | | $ | — | | |
|
| | |
Years ended December 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Tax at statutory rate
|
| | | $ | (9,120 ) | | | | | $ | (2,964 ) | | | | | $ | (278 ) | | |
State income taxes
|
| | | | (442 ) | | | | | | (284 ) | | | | | | (37 ) | | |
Stock-based compensation
|
| | | | 396 | | | | | | 46 | | | | | | 1 | | |
Non-deductible expenses
|
| | | | 56 | | | | | | 12 | | | | | | 16 | | |
Interest expense
|
| | | | 3,606 | | | | | | (160 ) | | | | | | 2 | | |
Tax credits
|
| | | | (15 ) | | | | | | — | | | | | | — | | |
Change in U.S. tax rates
|
| | | | 2,663 | | | | | | — | | | | | | — | | |
Change in valuation allowance
|
| | | | 2,862 | | | | | | 3,355 | | | | | | 296 | | |
Income tax expense
|
| | | $ | 6 | | | | | $ | 5 | | | | | $ | — | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Stock-based compensation
|
| | | $ | 144 | | | | | $ | 206 | | |
Bad debt reserve
|
| | | | 12 | | | | | | 22 | | |
Charitable contribution carryover
|
| | | | 4 | | | | | | 3 | | |
Unearned revenue
|
| | | | 583 | | | | | | 341 | | |
Workers’ compensation reserve
|
| | | | 309 | | | | | | — | | |
Net operating losses
|
| | | | 4,922 | | | | | | 2,536 | | |
Work opportunity tax credit
|
| | | | 15 | | | | | | — | | |
Total deferred tax assets
|
| | | | 5,989 | | | | | | 3,108 | | |
Valuation allowance
|
| | | | (5,312 ) | | | | | | (2,458 ) | | |
Net deferred tax assets
|
| | | | 677 | | | | | | 650 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Fixed assets
|
| | | | (361 ) | | | | | | (457 ) | | |
Capitalized contract costs
|
| | | | (352 ) | | | | | | (193 ) | | |
Prepaid sponsorship
|
| | | | (26 ) | | | | | | — | | |
Convertible debt
|
| | | | 62 | | | | | | (0 ) | | |
Total deferred tax liabilities
|
| | | $ | (677 ) | | | | | $ | (650 ) | | |
Net deferred tax asset (liability)
|
| | | | — | | | | | | — | | |
|
| | |
As of December 31,
|
| |
Beginning Year
of Expiration |
| ||||||||||||
| | |
2017
|
| |
2016
|
| ||||||||||||
Federal net operating losses
|
| | | $ | 19,915 | | | | | $ | 6,736 | | | | | | 2034 | | |
State net operating losses
|
| | | | 16,539 | | | | | | 6,070 | | | | | | 2034 | | |
Tax credit carryforwards
|
| | | | 15 | | | | | | — | | | | | | 2037 | | |
Total carryforwards
|
| | | $ | 36,469 | | | | | $ | 12,806 | | | | | | | | |
|
Year ended December 31,
|
| |
Amount
|
| |||
2018
|
| | | $ | 502 | | |
2019
|
| | | | 457 | | |
2020
|
| | | | 450 | | |
2021
|
| | | | 457 | | |
2022
|
| | | | 309 | | |
Thereafter
|
| | | | 9 | | |
Total minimum lease payments
|
| | | $ | 2,184 | | |
|
| | |
As of December 31, 2017
|
| |||||||||||||||||||||
| | |
Carrying
Amount |
| |
Fair Value
|
| ||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||
Bifurcated embedded derivatives on convertible notes
|
| | | $ | 250 | | | | | | | | | | | | | | | | | $ | 250 | | |
| | | | $ | 250 | | | | | $ | — | | | | | $ | — | | | | | $ | 250 | | |
|
| | |
As December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Balance, beginning of the year
|
| | | $ | — | | | | | $ | 96 | | |
Increases/additions
|
| | | | 250 | | | | | | | | |
Reductions/settlements
|
| | | | | | | | | | (96 ) | | |
Balance, end of the year
|
| | | $ | 250 | | | | | $ | — | | |
|
| | |
Years ended December 31,
|
| ||||||
| | |
2017
|
| |
2016
|
| |
2015
|
|
Weighted-average fair value at grant
|
| |
$3.69
|
| |
$0.67
|
| |
$0.02
|
|
Risk free interest rates
|
| |
1.1% – 1.8%
|
| |
1.0% – 1.4%
|
| |
1.50%
|
|
Expected volatility
|
| |
40.3% – 48.9%
|
| |
51.2% – 64.4%
|
| |
68.5%
|
|
Expected option life (years)
|
| |
0.5 – 3.0
|
| |
4.0 – 5.0
|
| |
5.0
|
|
| | |
Number of
Shares |
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Grant Date Fair Value |
| |||||||||
Balance, January 1, 2015
|
| | | | 623,912 | | | | | $ | 0.00 | | | | | $ | 0.02 | | |
Granted
|
| | | | 75,000 | | | | | | 0.00 | | | | | | 0.02 | | |
Exercised
|
| | | | — | | | | | | — | | | | | | — | | |
Forfeited
|
| | | | — | | | | | | — | | | | | | — | | |
Balance, December 31, 2015
|
| | | | 698,912 | | | | | $ | 0.00 | | | | | $ | 0.02 | | |
Granted
|
| | | | 1,558,000 | | | | | | 0.09 | | | | | | 0.67 | | |
Exercised
|
| | | | — | | | | | | — | | | | | | — | | |
Forfeited
|
| | | | — | | | | | | — | | | | | | — | | |
Balance, December 31, 2016
|
| | | | 2,256,912 | | | | | $ | 0.06 | | | | | $ | 0.47 | | |
Granted
|
| | | | 2,526,249 | | | | | | 0.86 | | | | | | 3.69 | | |
Exercised
|
| | | | (109,895 ) | | | | | | 0.03 | | | | | | 0.19 | | |
Forfeited
|
| | | | (99,189 ) | | | | | | 0.49 | | | | | | 1.98 | | |
Balance, December 31, 2017
|
| | | | 4,574,077 | | | | | $ | 0.49 | | | | | $ | 2.22 | | |
|
| | |
As of December 31,
|
| |||||||||||||||||||||
| | |
2017
|
| |
2016
|
| ||||||||||||||||||
| | |
Options Fully
Vested and Expected to Vest |
| |
Options
Exercisable |
| |
Options Fully
Vested and Expected to Vest |
| |
Options
Exercisable |
| ||||||||||||
Number of Options
|
| | | | 4,574,077 | | | | | | 1,800,512 | | | | | | 2,256,912 | | | | | | 631,042 | | |
Weighted-average remaining contractual term (year)
|
| | | | 9.43 | | | | | | 8.07 | | | | | | 8.78 | | | | | | 7.93 | | |
Weighted-average exercise price
|
| | | $ | 0.49 | | | | | $ | 0.28 | | | | | $ | 0.06 | | | | | $ | 0.01 | | |
Aggregate Intrinsic Value (in thousands)
|
| | | $ | 22,347 | | | | | $ | 9,176 | | | | | $ | 2,634 | | | | | $ | 769 | | |
| | |
Number of
Shares |
| |
Weighted
Average Grant Date Fair Value |
| |
Weighted
Average Contractual Remaining Term |
| |||||||||
Nonvested at January 1, 2015
|
| | | | 823,077 | | | | | $ | 0.02 | | | | | | 2.92 | | |
Shares vested
|
| | | | (280,769 ) | | | | | | 0.02 | | | | | | | | |
Nonvested at December 31, 2015
|
| | | | 542,308 | | | | | $ | 0.02 | | | | | | 1.92 | | |
Shares vested
|
| | | | (281,539 ) | | | | | | 0.02 | | | | | | | | |
Nonvested at December 31, 2016
|
| | | | 260,769 | | | | | $ | 0.02 | | | | | | 0.92 | | |
Shares vested
|
| | | | (260,769 ) | | | | | | 0.02 | | | | | | | | |
Nonvested at December 31, 2017
|
| | | | — | | | | | $ | — | | | | | | — | | |
|
| | |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| | |||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | | | ||
Net loss attributable to common stockholders – basic and diluted
|
| | | $ | (26,907 ) | | | | | $ | (8,722 ) | | | | | $ | (818 ) | | | | ||
Denominator: | | | | | | | | | | | | | | | | | | | | | ||
Weighted-average number of shares outstanding – basic
|
| | | | 11,141,548 | | | | | | 9,562,192 | | | | | | 9,000,000 | | | | ||
Potentially dilutive securities | | | | | | | | | | | | | | | | | | | | | ||
Convertible Preferred Stock
|
| | | | | | | | | | | | | | | | | | | | ||
Seed I
|
| | | | 3,804,763 | | | | | | 3,804,763 | | | | | | 3,804,763 | | | | ||
Seed II
|
| | | | 3,680,017 | | | | | | 3,680,017 | | | | | | 481,021 | | | | ||
Series AA
|
| | | | 8,097,790 | | | | | | 5,720,637 | | | | | | — | | | | ||
Stock Options
|
| | | | 4,574,077 | | | | | | 2,256,912 | | | | | | 698,912 | | | | ||
Warrants
|
| | | | 452,947 | | | | | | 452,947 | | | | | | 452,947 | | | | ||
Weighted-average number of shares outstanding – diluted
|
| | | | 31,751,142 | | | | | | 25,477,468 | | | | | | 14,437,643 | | | | ||
|
| | |
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| Exhibit A | | | Form of Registration Rights Agreement | |
| Exhibit B | | | Form of Stockholder Lockup Agreement | |
| Exhibit C | | | Form of Third Amended and Restated Articles of Incorporation of Landcadia | |
|
Exhibit D-1
|
| | Form of Delaware Certificate of Merger | |
|
Exhibit D-2
|
| | Form of Louisiana Articles of Merger | |
| | | | INVESTORS: | |
| | | | FERTITTA ENTERTAINMENT, INC. | |
| | | |
By:
Name:
Title: |
|
| | | | LEUCADIA NATIONAL CORPORATION | |
| | | |
By:
Name:
Title: |
|
| | | |
[Waitr Stockholder]
|
|
| | | |
[Waitr Stockholder]
|
|
| | | |
[Waitr Stockholder]
|
|
Name
|
| |
Address, Fax Number
or Email for Notices |
| |
Number of Shares
|
|
Fertitta Entertainment Inc. | | |
1510 West Loop South,
Houston, Texas 77027 Facsimile: [ ] E-mail: [ ] |
| |
[ ]
|
|
Leucadia National Corporation | | |
[ ]
[ ] Facsimile: [ ] E-mail: [ ] |
| |
[ ]
|
|
[Waitr Stockholder] | | |
[ ]
[ ] Facsimile: [ ] E-mail: [ ] |
| |
[ ]
|
|
[Waitr Stockholder] | | |
[ ]
[ ] Facsimile: [ ] Email: [ ] |
| |
[ ]
|
|
[Waitr Stockholder] | | |
[ ]
[ ] Facsimile: [ ] Email: [ ] |
| |
[ ]
|
|
| | | | Very truly yours, | | |||
| | | | Luxor Capital Group, LP | | |||
| | | | By: | | | /s/ Adam Miller | |
| | | | Name: Adam Miller | | |||
| | | | Title: Chief Operating Officer | | |||
| | | | Acknowledged and agreed: | | |||
| | | | Landcadia Holdings, Inc. | | |||
| | | | By: | | | /s/ Steven L. Scheinthal | |
| | | | Name: Steven L. Scheinthal | | |||
| | | | Title: Vice President, General Counsel and Secretary | | |||
| | | | Landcadia Merger Sub, Inc. | | |||
| | | | By: | | | /s/ Steven L. Scheinthal | |
| | | | Name: Steven L. Scheinthal | | |||
| | | | Title: Vice President and Secretary | |
|
Months from Closing Date
|
| |
Premium
|
|
|
1 to 12
|
| |
5%
|
|
|
Thereafter
|
| |
0%
|
|