| | | | Sincerely, | |
| , 2021 | | | | |
| | | | Jonathan Lin | |
| | | | Chairman of the Board of Directors | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 8 | | | |
| SUMMARY | | | | | 20 | | |
| | | | | 35 | | | |
| | | | | 36 | | | |
| | | | | 38 | | | |
| | | | | 40 | | | |
| | | | | 81 | | | |
| | | | | 83 | | | |
| | | | | 90 | | | |
| | | | | 115 | | | |
| | | | | 117 | | | |
| | | | | 118 | | | |
| | | | | 120 | | | |
| | | | | 126 | | | |
| | | | | 130 | | | |
| | | | | 131 | | | |
| | | | | 139 | | | |
| | | | | 143 | | | |
| | | | | 152 | | | |
| | | | | 170 | | | |
| | | | | 181 | | | |
| | | | | 182 | | | |
| | | | | 193 | | | |
| | | | | 196 | | | |
| | | | | 211 | | | |
| | | | | 213 | | | |
| | | | | 216 | | | |
| | | | | 227 | | | |
| | | | | 228 | | | |
| | | | | 229 | | | |
| | | | | 230 | | | |
| | | | | 231 | | | |
| | | | | 232 | | | |
| | | | | 233 | | |
| “Board” | | | means the board of directors of Magnum Opus Acquisition Limited. | |
| “Cayman Companies Act” | | | means the Cayman Companies Act (As Revised) of the Cayman Islands. | |
| “Exchange Act” | | | means the Securities Exchange Act of 1934, as amended. | |
| “Founder Shares” | | | means the 5,000,000 Class B ordinary shares held by the Sponsor, which were acquired for an aggregate purchase price of $25,000 prior to the IPO. | |
| “GAAP” | | | means accounting principles generally accepted in the United States of America. | |
| “Initial Shareholders” | | | means Magnum Opus Holdings LLC, Jonathan Lin, Frank Han, Kevin Lee, Sammy Hsieh, Alexandre Casin, Johnny Liu Dickson Cheng and Kersten Hui. | |
| “IPO” | | | means the initial public offering of Magnum Opus, which was consummated on March 25, 2021. | |
| “Optionholders” | | | means each holder of options under Forbes Global Media Holdings Inc. (BVI) Long-Term Incentive Plan, as amended from time to time, and any other plan or arrangement pursuant to which rights with respect to shares of Forbes have been granted to service providers immediately prior to the Closing. | |
| “Private Warrants” | | | means the warrants sold to Sponsor in a private placement consummated concurrently with IPO, each entitling its holder to purchase one Class A ordinary share of the Company at an exercise price of $11.50 per share, subject to adjustment. | |
| “Public Shareholders” | | | means all holders of the Public Shares. | |
| “Public Shares” | | | means Class A ordinary shares issued in the IPO. | |
| “Public Warrants” | | | means warrants issued in the IPO, each entitling its holder to purchase one Class A ordinary share of the Company at an exercise price of $11.50 per share, subject to adjustment. | |
| “Securities Act” | | | means the Securities Act of 1933, as amended. | |
| “Sponsor” | | | means Magnum Opus Management LLC. | |
| “Trust Account” | | | means the trust account of the Company that holds the proceeds from the IPO. | |
| “Units” | | | means the units issued in the IPO, each consisting of one Class A ordinary share and one-half of one Public Warrant. | |
| | |
No
Redemptions(1) |
| |
%
|
| |
10%
Redemption(2) |
| |
%
|
| |
50%
Redemption(3) |
| |
%
|
| |
75%
Redemption(4) |
| |
%
|
| |
Maximum
Redemption(5) |
| |
%
|
| ||||||||||||||||||||||||||||||
Forbes shareholders
|
| | | | 16,575,304 | | | | | | 20.4% | | | | | | 18,575,304 | | | | | | 22.8% | | | | | | 26,575,304 | | | | | | 32.6% | | | | | | 31,575,304 | | | | | | 38.8% | | | | | | 36,575,304 | | | | | | 44.9% | | |
Magnum Opus public shareholders
|
| | | | 20,000,000 | | | | | | 24.5% | | | | | | 18,000,000 | | | | | | 22.1% | | | | | | 10,000,000 | | | | | | 12.3% | | | | | | 5,000,000 | | | | | | 6.1% | | | | | | — | | | | | | —% | | |
Founder Shares
|
| | | | 5,000,000 | | | | | | 6.1% | | | | | | 5,000,000 | | | | | | 6.1% | | | | | | 5,000,000 | | | | | | 6.1% | | | | | | 5,000,000 | | | | | | 6.1% | | | | | | 5,000,000 | | | | | | 6.1% | | |
PIPE Investors(6)
|
| | | | 39,998,800 | | | | | | 49.0% | | | | | | 39,998,800 | | | | | | 49.0% | | | | | | 39,998,800 | | | | | | 49.0% | | | | | | 39,998,800 | | | | | | 49.0% | | | | | | 39,998,800 | | | | | | 49.0% | | |
Pro forma ordinary shares
at September 30, 2021 |
| | | | 81,574,104 | | | | | | 100.0% | | | | | | 81,574,104 | | | | | | 100.0% | | | | | | 81,574,104 | | | | | | 100.0% | | | | | | 81,574,104 | | | | | | 100.0% | | | | | | 81,574,104 | | | | | | 100.0% | | |
Potential sources of dilution:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants
|
| | | | 10,000,000 | | | | | | 12.3% | | | | | | 10,000,000 | | | | | | 12.3% | | | | | | 10,000,000 | | | | | | 12.3% | | | | | | 10,000,000 | | | | | | 12.3% | | | | | | 10,000,000 | | | | | | 12.3% | | |
Private Warrants
|
| | | | 6,000,000 | | | | | | 7.4% | | | | | | 6,000,000 | | | | | | 7.4% | | | | | | 6,000,000 | | | | | | 7.4% | | | | | | 6,000,000 | | | | | | 7.4% | | | | | | 6,000,000 | | | | | | 7.4% | | |
| | |
No
Redemptions(1) |
| |
%
|
| |
10%
Redemption(2) |
| |
%
|
| |
50%
Redemption(3) |
| |
%
|
| |
75%
Redemption(4) |
| |
%
|
| |
Maximum
Redemption(5) |
| |
%
|
| ||||||||||||||||||||||||||||||
Forbes shareholders
|
| | | | 16,575,304 | | | | | | 20.4% | | | | | | 18,575,304 | | | | | | 22.8% | | | | | | 26,575,304 | | | | | | 32.6% | | | | | | 31,575,304 | | | | | | 38.8% | | | | | | 36,575,304 | | | | | | 44.9% | | |
Magnum Opus public shareholders
|
| | | | 20,000,000 | | | | | | 24.5% | | | | | | 18,000,000 | | | | | | 22.1% | | | | | | 10,000,000 | | | | | | 12.3% | | | | | | 5,000,000 | | | | | | 6.1% | | | | | | — | | | | | | —% | | |
Founder Shares
|
| | | | 5,000,000 | | | | | | 6.1% | | | | | | 5,000,000 | | | | | | 6.1% | | | | | | 5,000,000 | | | | | | 6.1% | | | | | | 5,000,000 | | | | | | 6.1% | | | | | | 5,000,000 | | | | | | 6.1% | | |
PIPE Investors(6)
|
| | | | 39,998,800 | | | | | | 49.0% | | | | | | 39,998,800 | | | | | | 49.0% | | | | | | 39,998,800 | | | | | | 49.0% | | | | | | 39,998,800 | | | | | | 49.0% | | | | | | 39,998,800 | | | | | | 49.0% | | |
Pro forma ordinary shares at September 30, 2021
|
| | | | 81,574,104 | | | | | | 100.0% | | | | | | 81,574,104 | | | | | | 100.0% | | | | | | 81,574,104 | | | | | | 100.0% | | | | | | 81,574,104 | | | | | | 100.0% | | | | | | 81,574,104 | | | | | | 100.0% | | |
Potential sources of dilution: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants
|
| | | | 10,000,000 | | | | | | 12.3% | | | | | | 10,000,000 | | | | | | 12.3% | | | | | | 10,000,000 | | | | | | 12.3% | | | | | | 10,000,000 | | | | | | 12.3% | | | | | | 10,000,000 | | | | | | 12.3% | | |
Private Warrants
|
| | | | 6,000,000 | | | | | | 7.4% | | | | | | 6,000,000 | | | | | | 7.4% | | | | | | 6,000,000 | | | | | | 7.4% | | | | | | 6,000,000 | | | | | | 7.4% | | | | | | 6,000,000 | | | | | | 7.4% | | |
| | |
As of
September 30, 2021 |
| |||
| | |
(in thousands)
|
| |||
Balance Sheet Data: | | | | | | | |
Cash
|
| | | $ | 892 | | |
Investments held in Trust Account
|
| | | $ | 200,006 | | |
Total assets
|
| | | $ | 201,100 | | |
Total liabilities
|
| | | $ | 25,653 | | |
Class A ordinary shares subject to possible redemption
|
| | | $ | 200,000 | | |
Total shareholders’ deficit
|
| | | $ | (24,553) | | |
| | |
For the period from
January 22, 2021 (inception) through September 30, 2021 |
| |||
| | |
(in thousands, except
share and per share amounts) |
| |||
Statement of Operations Data: | | | | | | | |
Loss from operations
|
| | | $ | (1,361) | | |
Change in fair value of warrant liabilities
|
| | | $ | 5,060 | | |
Interest income on Trust Account
|
| | | $ | 6 | | |
Net income
|
| | | $ | 825 | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares
|
| | | | 15,059,761 | | |
Basic and diluted net earnings per share, Class A ordinary shares
|
| | | $ | 0.04 | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares
|
| | | | 4,920,319 | | |
Basic and diluted net earnings per share, Class B ordinary shares
|
| | | $ | 0.04 | | |
Statement of Cash Flows Data: | | | | | | | |
Net cash used in operating activities
|
| | | $ | (671) | | |
Net cash used in investing activities
|
| | | $ | 200,000 | | |
Net cash provided by financing activities
|
| | | $ | 201,562 | | |
| | |
Nine Months Ended
September 30, |
| |
Years Ended
December 31, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
($, in thousands)
|
| |||||||||||||||||||||
Revenues
|
| | | | 164,836 | | | | | | 122,569 | | | | | | 184,853 | | | | | | 210,628 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization)
|
| | | | 64,485 | | | | | | 59,827 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing
|
| | | | 30,311 | | | | | | 18,810 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development
|
| | | | 15,566 | | | | | | 13,027 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative
|
| | | | 28,259 | | | | | | 22,749 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization
|
| | | | 11,113 | | | | | | 10,038 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge
|
| | | | — | | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs
|
| | | | 149,734 | | | | | | 124,451 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit (loss)
|
| | | | 15,102 | | | | | | (1,882) | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net
|
| | | | 8,328 | | | | | | (373) | | | | | | 1,803 | | | | | | 1,066 | | |
Income (loss) from operations before income taxes
|
| | | | 23,430 | | | | | | (2,255) | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense
|
| | | | 3,922 | | | | | | 517 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income (loss)
|
| | | | 19,508 | | | | | | (2,772) | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income (loss) attributable to non-controlling interest
|
| | | | 5,523 | | | | | | (1,033) | | | | | | 560 | | | | | | 1,430 | | |
Net income (loss) attributable to Forbes Global Holdings Inc. shareholders
|
| | | | 13,985 | | | | | | (1,739) | | | | | | 6,980 | | | | | | 6,207 | | |
| | |
As of September 30,
|
| |
As of December 31,
|
| ||||||||||||
| | |
2021
|
| |
2020
|
| |
2019
|
| |||||||||
| | |
($, in thousands)
|
| |||||||||||||||
Total current assets
|
| | | | 94,150 | | | | | | 116,525 | | | | | | 98,823 | | |
Deferred subscription commissions, net of current portion
|
| | | | 2,437 | | | | | | 2,610 | | | | | | 6,086 | | |
Property and equipment, net
|
| | | | 12,889 | | | | | | 10,935 | | | | | | 9,374 | | |
Investments
|
| | | | 1,370 | | | | | | 1,370 | | | | | | 1,050 | | |
Equity method investments
|
| | | | 2,206 | | | | | | — | | | | | | — | | |
Goodwill
|
| | | | 12,040 | | | | | | 12,040 | | | | | | 12,767 | | |
Intangible assets, net
|
| | | | 110,759 | | | | | | 119,049 | | | | | | 130,102 | | |
Deferred tax assets, net
|
| | | | 45,332 | | | | | | 48,590 | | | | | | 51,918 | | |
Other assets
|
| | | | 4,368 | | | | | | 4,678 | | | | | | 5,401 | | |
Total assets
|
| | | | 285,551 | | | | | | 315,797 | | | | | | 315,521 | | |
Total current liabilities
|
| | | | 41,302 | | | | | | 45,166 | | | | | | 43,038 | | |
Loans payable, net of current portion, debt discount, and debt issuance costs
|
| | | | 11,656 | | | | | | 12,091 | | | | | | 12,671 | | |
Unexpired subscriptions
|
| | | | 5,492 | | | | | | 5,949 | | | | | | 10,059 | | |
Deferred revenues, net of current portion
|
| | | | 3,515 | | | | | | 4,139 | | | | | | 3,509 | | |
Other liabilities
|
| | | | 7,651 | | | | | | 5,033 | | | | | | 7,902 | | |
Total liabilities
|
| | | | 69,616 | | | | | | 72,378 | | | | | | 77,179 | | |
Total shareholders’ equity
|
| | | | 215,935 | | | | | | 243,419 | | | | | | 238,342 | | |
Total liabilities and shareholders’ equity
|
| | | | 285,551 | | | | | | 315,797 | | | | | | 315,521 | | |
| | |
Nine Months Ended September 30,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
($, in thousands)
|
| |||||||||||||||||||||
Net cash provided by operating activities
|
| | | | 32,733 | | | | | | 20,865 | | | | | | 26,989 | | | | | | 18,010 | | |
Net cash used in investing activities
|
| | | | (4,831) | | | | | | (3,363) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash provided by (used in) financing activities
|
| | | | (47,563) | | | | | | 7,473 | | | | | | 6,567 | | | | | | (23,018) | | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
| | | | 8 | | | | | | 56 | | | | | | 12 | | | | | | (38) | | |
Net increase (decrease) in cash, cash equivalents, and
restricted cash |
| | | | (19,653) | | | | | | 25,031 | | | | | | 26,911 | | | | | | (8,720) | | |
Cash, cash equivalents, and restricted cash at beginning of period/year
|
| | | | 50,281 | | | | | | 23,370 | | | | | | 23,370 | | | | | | 32,090 | | |
Cash, cash equivalents, and restricted cash at end of period/year
|
| | | | 30,628 | | | | | | 48,401 | | | | | | 50,281 | | | | | | 23,370 | | |
| | |
Pro Forma Combined and Consolidated
|
| |||||||||
| | |
Assuming No
Redemptions |
| |
Assuming
Maximum Redemptions |
| ||||||
| | |
(in thousands, except share and per share amounts)
|
| |||||||||
Summary Unaudited Pro Forma Condensed Combined and Consolidated Statement of Operations Data
For the Nine Months Ended September 30, 2021 |
| | | | | | | | | | | | |
Net income
|
| | | $ | 20,327 | | | | | $ | 20,327 | | |
Net income per ordinary share – basic and diluted
|
| | | $ | 0.25 | | | | | $ | 0.25 | | |
Weighted average shares of ordinary shares outstanding – basic and diluted
|
| | | | 81,574,104 | | | | | | 81,574,104 | | |
Summary Unaudited Pro Forma Condensed Combined and Consolidated Statement of Operations Data
For the Year Ended December 31, 2020 |
| | | | | | | | | | | | |
Net loss
|
| | | $ | (1,972) | | | | | $ | (1,972) | | |
Net loss per ordinary share – basic and diluted
|
| | | $ | (0.02) | | | | | $ | (0.02) | | |
Weighted average shares of ordinary shares outstanding – basic and diluted
|
| | | | 81,574,104 | | | | | | 81,574,104 | | |
Summary Unaudited Pro Forma Condensed Combined and Consolidated Balance Sheet Data
As of September 30, 2021 |
| | | | | | | | | | | | |
Total assets
|
| | | $ | 407,109 | | | | | $ | 407,109 | | |
Total liabilities
|
| | | $ | 81,969 | | | | | $ | 81,969 | | |
Total shareholders’ equity
|
| | | $ | 325,140 | | | | | $ | 325,140 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2021E
|
| |
2022E
|
| ||||||
| | |
($, in millions, except for %)
|
| |||||||||
Pro Forma Revenue | | | | | | | | | | | | | |
Magazine
|
| | | | 18 | | | | | | 16 | | |
Others
|
| | | | 193 | | | | | | 221 | | |
Total
|
| | | | 211 | | | | | | 237 | | |
Pro Forma Contribution Margin
|
| | | | 64% | | | | | | 63% | | |
Pro Forma EBITDA
|
| | | | 44 | | | | | | 53 | | |
|
Sources of Funds
(in millions) |
| |
Uses
(in millions) |
| ||||||||||||
|
Existing cash and cash held in Trust Account(1)
|
| | | $ | 229.5 | | | |
Aggregate cash and ordinary share consideration issued to Forbes shareholders(3)
|
| | | $ | 635.3 | | |
|
PIPE Financing
|
| | | | 400.0 | | | |
Transaction and other costs(2)
|
| | | | 15.0 | | |
|
Ordinary shares of combined company issued to Forbes shareholders(2)
|
| | | | 165.8 | | | |
Cash to combined company
Balance Sheet |
| | | | 145.0 | | |
|
Total Sources
|
| | | $ | 795.3 | | | |
Total Uses
|
| | | $ | 795.3 | | |
|
Sources of Funds
(in millions) |
| |
Uses
(in millions) |
| ||||||||||||
|
Existing cash and cash held in Trust Account(1)
|
| | | $ | 29.5 | | | |
Aggregate cash and ordinary share consideration issued to Forbes shareholders(3)
|
| | | $ | 635.3 | | |
|
PIPE Financing
|
| | | | 400.0 | | | |
Transaction and other costs(2)
|
| | | | 15.0 | | |
|
Ordinary shares of combined company issued to Forbes shareholders(2)
|
| | | | 365.8 | | | |
Cash to combined
company Balance Sheet |
| | | | 145.0 | | |
|
Total Sources
|
| | | $ | 795.3 | | | |
Total Uses
|
| | | $ | 795.3 | | |
| | |
Nine Months Ended September 30,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Revenues | | | | $ | 164,836 | | | | | $ | 122,569 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | | | |||||
Cost of revenue (excluding depreciation and amortization)
|
| | | | 64,485 | | | | | | 59,827 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing
|
| | | | 30,311 | | | | | | 18,810 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development
|
| | | | 15,566 | | | | | | 13,027 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative
|
| | | | 28,259 | | | | | | 22,749 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization
|
| | | | 11,113 | | | | | | 10,038 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge
|
| | | | — | | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs
|
| | | | 149,734 | | | | | | 124,451 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit (loss)
|
| | | | 15,102 | | | | | | (1,882) | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net: | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on loan forgiveness
|
| | | | 8,036 | | | | | | — | | | | | | — | | | | | | — | | |
Gain on sale of Forbes Media Hong Kong
Limited |
| | | | 1,556 | | | | | | — | | | | | | — | | | | | | — | | |
Interest expense
|
| | | | (574) | | | | | | (678) | | | | | | (874) | | | | | | (1,162) | | |
Other (expense) income, net
|
| | | | (690) | | | | | | 305 | | | | | | 2,677 | | | | | | 2,228 | | |
Total other income (expense), net
|
| | | | 8,328 | | | | | | (373) | | | | | | 1,803 | | | | | | 1,066 | | |
Income (loss) from operations before income taxes
|
| | | | 23,430 | | | | | | (2,255) | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense
|
| | | | 3,922 | | | | | | 517 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income (loss)
|
| | | | 19,508 | | | | | | (2,772) | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income (loss) attributable to noncontrolling interest
|
| | | | 5,523 | | | | | | (1,033) | | | | | | 560 | | | | | | 1,430 | | |
Net income (loss) attributable to Forbes Global Holdings Inc. shareholders
|
| | | $ | 13,985 | | | | | $ | (1,739) | | | | | $ | 6,980 | | | | | $ | 6,207 | | |
| | |
Nine Months Ended September 30, 2021
|
| |
Nine Months Ended September 30, 2020
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Media
|
| |
Brand
Extension |
| |
Consumer
|
| |
Total
|
| |
Media
|
| |
Brand
Extension |
| |
Consumer
|
| |
Total
|
| ||||||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Advertising
|
| | | $ | 105,199 | | | | | $ | — | | | | | $ | 10,551 | | | | | $ | 115,750 | | | | | $ | 78,267 | | | | | $ | — | | | | | $ | 4,910 | | | | | $ | 83,177 | | |
Circulation
|
| | | | 7,922 | | | | | | — | | | | | | 2,298 | | | | | | 10,220 | | | | | | 9,324 | | | | | | — | | | | | | 1,016 | | | | | | 10,340 | | |
Licensing
|
| | | | — | | | | | | 14,028 | | | | | | 800 | | | | | | 14,828 | | | | | | — | | | | | | 11,495 | | | | | | 1,023 | | | | | | 12,518 | | |
Events
|
| | | | — | | | | | | 10,236 | | | | | | 54 | | | | | | 10,290 | | | | | | — | | | | | | 4,368 | | | | | | 560 | | | | | | 4,928 | | |
Research
|
| | | | — | | | | | | 6,252 | | | | | | — | | | | | | 6,252 | | | | | | — | | | | | | 6,001 | | | | | | — | | | | | | 6,001 | | |
Other
|
| | | | — | | | | | | 7,432 | | | | | | 64 | | | | | | 7,496 | | | | | | — | | | | | | 5,605 | | | | | | — | | | | | | 5,605 | | |
Total revenues
|
| | | $ | 113,121 | | | | | $ | 37,948 | | | | | $ | 13,767 | | | | | $ | 164,836 | | | | | $ | 87,591 | | | | | $ | 27,469 | | | | | $ | 7,509 | | | | | $ | 122,569 | | |
| | |
Years Ended December 31, 2020
|
| |
Years Ended December 31, 2019
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Media
|
| |
Brand
Extension |
| |
Consumer
|
| |
Total
|
| |
Media
|
| |
Brand
Extension |
| |
Consumer
|
| |
Total
|
| ||||||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Advertising
|
| | | $ | 115,922 | | | | | $ | — | | | | | $ | 9,038 | | | | | $ | 124,960 | | | | | $ | 113,911 | | | | | $ | — | | | | | $ | 3,209 | | | | | $ | 117,120 | | |
Circulation
|
| | | | 14,676 | | | | | | — | | | | | | 1,408 | | | | | | 16,084 | | | | | | 23,699 | | | | | | — | | | | | | 1,488 | | | | | | 25,187 | | |
Licensing
|
| | | | — | | | | | | 16,566 | | | | | | 1,234 | | | | | | 17,800 | | | | | | — | | | | | | 18,970 | | | | | | 1,237 | | | | | | 20,207 | | |
Events
|
| | | | — | | | | | | 10,553 | | | | | | 599 | | | | | | 11,152 | | | | | | — | | | | | | 22,793 | | | | | | 3,092 | | | | | | 25,885 | | |
Research
|
| | | | — | | | | | | 8,500 | | | | | | — | | | | | | 8,500 | | | | | | — | | | | | | 10,666 | | | | | | — | | | | | | 10,666 | | |
Other
|
| | | | — | | | | | | 6,357 | | | | | | | | | | | | 6,357 | | | | | | — | | | | | | 11,563 | | | | | | — | | | | | | 11,563 | | |
Total revenues
|
| | | $ | 130,598 | | | | | $ | 41,976 | | | | | $ | 12,279 | | | | | $ | 184,853 | | | | | $ | 137,610 | | | | | $ | 63,992 | | | | | $ | 9,026 | | | | | $ | 210,628 | | |
| | |
Nine Months Ended September 30,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Forbes Media
|
| | | $ | 136,108 | | | | | $ | 117,093 | | | | | $ | 172,374 | | | | | $ | 198,477 | | |
Marketplace
|
| | | | 25,367 | | | | | | 3,378 | | | | | | 5,742 | | | | | | 342 | | |
Quantalytics
|
| | | | 64 | | | | | | — | | | | | | — | | | | | | — | | |
Other
|
| | | | 3,297 | | | | | | 2,098 | | | | | | 6,737 | | | | | | 11,809 | | |
Total revenue
|
| | | $ | 164,836 | | | | | $ | 122,569 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | | | |
Forbes Media
|
| | | $ | 30,069 | | | | | $ | 14,016 | | | | | $ | 41,832 | | | | | $ | 47,969 | | |
Marketplace
|
| | | | 4,680 | | | | | | (2,019) | | | | | | (2,972) | | | | | | (2,085) | | |
Quantalytics
|
| | | | (1,315) | | | | | | (133) | | | | | | (1,539) | | | | | | (125) | | |
Other
|
| | | | 10 | | | | | | 2,491 | | | | | | (4,793) | | | | | | (6,147) | | |
| | |
Nine Months Ended September 30,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net income (loss)
|
| | | $ | 19,508 | | | | | $ | (2,772) | | | | | $ | 7,540 | | | | | $ | 7,637 | | |
Interest expense
|
| | | | 605 | | | | | | 752 | | | | | | 941 | | | | | | 1,183 | | |
Interest income
|
| | | | (18) | | | | | | (18) | | | | | | (25) | | | | | | (154) | | |
Income taxes
|
| | | | 3,922 | | | | | | 517 | | | | | | 4,006 | | | | | | 6,739 | | |
Depreciation and amortization
|
| | | | 11,113 | | | | | | 10,038 | | | | | | 14,179 | | | | | | 13,943 | | |
Stock-based compensation
|
| | | | 3,050 | | | | | | (2,409) | | | | | | (2,270) | | | | | | 2,583 | | |
Management fees
|
| | | | 750 | | | | | | 730 | | | | | | 980 | | | | | | 1,062 | | |
Gain/loss on sale
|
| | | | (1,384) | | | | | | (12) | | | | | | (12) | | | | | | 85 | | |
Restructuring charges(1)
|
| | | | 2,336 | | | | | | 6,736 | | | | | | 5,508 | | | | | | 5,187 | | |
Goodwill impairment
|
| | | | — | | | | | | — | | | | | | 727 | | | | | | — | | |
Gain on loan forgiveness
|
| | | | (8,036) | | | | | | — | | | | | | — | | | | | | — | | |
Gain on sale of Forbes Media Hong Kong Limited
|
| | | | (1,556) | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Nine Months Ended September 30,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Other(2)
|
| | | | 3,154 | | | | | | 793 | | | | | | 954 | | | | | | 1,347 | | |
Adjusted EBITDA
|
| | | $ | 33,444 | | | | | $ | 14,355 | | | | | $ | 32,528 | | | | | $ | 39,612 | | |
|
| | |
Nine Months Ended September 30,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net cash provided by operating activities
|
| | | $ | 32,733 | | | | | $ | 20,865 | | | | | $ | 26,989 | | | | | $ | 18,010 | | |
| | |
Nine Months Ended September 30,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net cash used in investing activities
|
| | | | (4,831) | | | | | | (3,363) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash (used in) provided by financing activities
|
| | | | (47,563) | | | | | | 7,473 | | | | | | 6,567 | | | | | | (23,018) | | |
Grant Date
|
| |
Number of Shares
Subject to Option Granted |
| |
Per Share Exercise
Price of Options |
| |
Fair Value of
Common Stock per share on Grant Date |
| |
Per Share Fair
Value of Options |
|
3/1/2021
|
| |
165
|
| |
$14,583
|
| |
$13,340
|
| |
$20,833
|
|
3/12/2021
|
| |
528
|
| |
$14,583
|
| |
$13,340
|
| |
$20,833
|
|
| | |
Assuming
Minimum Redemptions (Shares) |
| |
%
|
| |
Assuming
Maximum Redemptions (Shares) |
| |
%
|
| ||||||||||||
Forbes shareholders
|
| | | | 16,575,304 | | | | | | 20.4% | | | | | | 36,575,304 | | | | | | 44.9% | | |
Magnum Opus Public Shareholders
|
| | | | 20,000,000 | | | | | | 24.5% | | | | | | — | | | | | | —% | | |
Founder Shares
|
| | | | 5,000,000 | | | | | | 6.1% | | | | | | 5,000,000 | | | | | | 6.1% | | |
PIPE Investors
|
| | | | 39,998,800 | | | | | | 49.0% | | | | | | 39,998,800 | | | | | | 49.0% | | |
Pro forma ordinary shares at September 30, 2021
|
| | | | 81,574,104 | | | | | | 100.0% | | | | | | 81,574,104 | | | | | | 100.0% | | |
| | |
Magnum Opus
(Historical) |
| |
Forbes
(Historical) |
| |
Transaction
Accounting Adjustments (Assuming No Redemptions) |
| | | | |
Pro Forma
Combined (Assuming No Redemptions) |
| |
Transaction
Accounting Adjustments (Assuming Maximum Redemptions) |
| | | | |
Pro Forma
Combined (Assuming Maximum Redemptions) |
| ||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 892 | | | | | $ | 28,644 | | | | | $ | 200,006 | | | |
A
|
| | | $ | 145,000 | | | | | $ | (200,006) | | | |
K
|
| | | $ | 145,000 | | |
| | | | | — | | | | | | — | | | | | | 400,000 | | | |
B
|
| | | | — | | | | | | 200,006 | | | |
L
|
| | | | — | | |
| | | | | — | | | | | | — | | | | | | (464,542) | | | |
C
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (5,000) | | | |
D
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (15,000) | | | |
E
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Restricted cash
|
| | | | — | | | | | | — | | | | | | 5,000 | | | |
D
|
| | | | 5,000 | | | | | | — | | | | | | | | | 5,000 | | |
Accounts receivable, net
|
| | | | — | | | | | | 45,615 | | | | | | — | | | | | | | | | 45,615 | | | | | | — | | | | | | | | | 45,615 | | |
Current portion of deferred subscription commissions
|
| | | | — | | | | | | 7,323 | | | | | | — | | | | | | | | | 7,323 | | | | | | — | | | | | | | | | 7,323 | | |
Prepaid expenses and other current assets
|
| | | | 202 | | | | | | 12,568 | | | | | | — | | | | | | | | | 12,770 | | | | | | — | | | | | | | | | 12,770 | | |
Total current assets
|
| | | | 1,094 | | | | | | 94,150 | | | | | | 120,464 | | | | | | | | | 215,708 | | | | | | — | | | | | | | | | 215,708 | | |
Investments held in Trust Account
|
| | | | 200,006 | | | | | | — | | | | | | (200,006) | | | |
A
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Deferred subscription commissions,
net of current portion |
| | | | — | | | | | | 2,437 | | | | | | — | | | | | | | | | 2,437 | | | | | | — | | | | | | | | | 2,437 | | |
Investments
|
| | | | — | | | | | | 1,370 | | | | | | — | | | | | | | | | 1,370 | | | | | | — | | | | | | | | | 1,370 | | |
Equity method investments
|
| | | | — | | | | | | 2,206 | | | | | | — | | | | | | | | | 2,206 | | | | | | — | | | | | | | | | 2,206 | | |
Property and equipment, net
|
| | | | — | | | | | | 12,889 | | | | | | — | | | | | | | | | 12,889 | | | | | | — | | | | | | | | | 12,889 | | |
Intangible assets, net
|
| | | | — | | | | | | 110,759 | | | | | | — | | | | | | | | | 110,759 | | | | | | — | | | | | | | | | 110,759 | | |
Goodwill
|
| | | | — | | | | | | 12,040 | | | | | | — | | | | | | | | | 12,040 | | | | | | — | | | | | | | | | 12,040 | | |
Deferred tax assets, net
|
| | | | — | | | | | | 45,332 | | | | | | — | | | | | | | | | 45,332 | | | | | | — | | | | | | | | | 45,332 | | |
Other assets
|
| | | | — | | | | | | 4,368 | | | | | | — | | | | | | | | | 4,368 | | | | | | — | | | | | | | | | 4,368 | | |
Total assets
|
| | | $ | 201,100 | | | | | $ | 285,551 | | | | | $ | (79,542) | | | | | | | | $ | 407,109 | | | | | $ | — | | | | | | | | $ | 407,109 | | |
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | — | | | | | $ | 883 | | | | | $ | — | | | | | | | | $ | 883 | | | | | $ | — | | | | | | | | $ | 883 | | |
Accrued expenses and other current liabilities
|
| | | | 33 | | | | | | 7,629 | | | | | | — | | | | | | | | | 7,662 | | | | | | — | | | | | | | | | 7,662 | | |
Current portion of unexpired subscriptions
|
| | | | — | | | | | | 11,994 | | | | | | — | | | | | | | | | 11,994 | | | | | | — | | | | | | | | | 11,994 | | |
Current portion of deferred revenues
|
| | | | — | | | | | | 11,915 | | | | | | — | | | | | | | | | 11,915 | | | | | | — | | | | | | | | | 11,915 | | |
Accrued compensation
|
| | | | — | | | | | | 8,301 | | | | | | — | | | | | | | | | 8,301 | | | | | | — | | | | | | | | | 8,301 | | |
Loans payable, current
|
| | | | — | | | | | | 580 | | | | | | — | | | | | | | | | 580 | | | | | | — | | | | | | | | | 580 | | |
Total current liabilities
|
| | | | 33 | | | | | | 41,302 | | | | | | — | | | | | | | | | 41,335 | | | | | | — | | | | | | | | | 41,335 | | |
Loans payable, net of current
portion, debt discount, and debt issuance costs |
| | | | — | | | | | | 11,656 | | | | | | — | | | | | | | | | 11,656 | | | | | | — | | | | | | | | | 11,656 | | |
Deferred underwriting fee payable
|
| | | | 7,000 | | | | | | — | | | | | | (7,000) | | | |
E
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | |
Magnum Opus
(Historical) |
| |
Forbes
(Historical) |
| |
Transaction
Accounting Adjustments (Assuming No Redemptions) |
| | | | |
Pro Forma
Combined (Assuming No Redemptions) |
| |
Transaction
Accounting Adjustments (Assuming Maximum Redemptions) |
| | | | |
Pro Forma
Combined (Assuming Maximum Redemptions) |
| ||||||||||||||||||
Unexpired subscriptions
|
| | | | — | | | | | | 5,492 | | | | | | — | | | | | | | | | 5,492 | | | | | | — | | | | | | | | | 5,492 | | |
Deferred revenues, net of current portion
|
| | | | — | | | | | | 3,515 | | | | | | — | | | | | | | | | 3,515 | | | | | | — | | | | | | | | | 3,515 | | |
Other liabilities
|
| | | | — | | | | | | 7,651 | | | | | | (6,300) | | | |
F
|
| | | | 1,351 | | | | | | — | | | | | | | | | 1,351 | | |
Warrant liabilities
|
| | | | 18,620 | | | | | | — | | | | | | — | | | | | | | | | 18,620 | | | | | | — | | | | | | | | | 18,620 | | |
Total liabilities
|
| | | | 25,653 | | | | | | 69,616 | | | | | | (13,300) | | | | | | | | | 81,969 | | | | | | — | | | | | | | | | 81,969 | | |
Class A ordinary shares subject to possible redemption
|
| | | | 200,000 | | | | | | — | | | | | | (200,000) | | | |
G
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Shareholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preference shares
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | — | | |
Ordinary shares, $0.0001 par value
|
| | | | 1 | | | | | | 10 | | | | | | 4 | | | |
B
|
| | | | 8 | | | | | | (2) | | | |
K
|
| | | | 8 | | |
| | | | | — | | | | | | — | | | | | | 2 | | | |
G
|
| | | | — | | | | | | 2 | | | |
L
|
| | | | — | | |
| | | | | — | | | | | | — | | | | | | (10) | | | |
H
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 1 | | | |
I
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Additional paid-in capital
|
| | | | — | | | | | | 153,642 | | | | | | 399,996 | | | |
B
|
| | | | 299,868 | | | | | | (200,004) | | | |
K
|
| | | | 299,868 | | |
| | | | | — | | | | | | — | | | | | | (464,542) | | | |
C
|
| | | | — | | | | | | 200,004 | | | |
L
|
| | | | — | | |
| | | | | — | | | | | | — | | | | | | 6,300 | | | |
F
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (4,100) | | | |
E
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 199,998 | | | |
G
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 33,129 | | | |
H
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (1) | | | |
I
|
| | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (24,554) | | | |
J
|
| | | | — | | | | | | — | | | | | | | | | — | | |
(Accumulated deficit) retained earnings
|
| | | | (24,554) | | | | | | 29,188 | | | | | | (3,900) | | | |
E
|
| | | | 25,288 | | | | | | — | | | | | | | | | 25,288 | | |
| | | | | — | | | | | | — | | | | | | 24,554 | | | |
J
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Accumulated other comprehensive loss
|
| | | | — | | | | | | (24) | | | | | | — | | | | | | | | | (24) | | | | | | — | | | | | | | | | (24) | | |
Total shareholders’ equity
attributable to Forbes Global Media Holdings Inc. shareholders |
| | | | (24,553) | | | | | | 182,816 | | | | | | 166,877 | | | | | | | | | 325,140 | | | | | | — | | | | | | | | | 325,140 | | |
Noncontrolling interest
|
| | | | — | | | | | | 33,119 | | | | | | (33,119) | | | |
H
|
| | | | — | | | | | | — | | | | | | | | | — | | |
Total shareholders’ equity
|
| | | | (24,553) | | | | | | 215,935 | | | | | | 133,758 | | | | | | | | | 325,140 | | | | | | — | | | | | | | | | 325,140 | | |
Total liabilities, temporary equity, and shareholders’ equity
|
| | | $ | 201,100 | | | | | $ | 285,551 | | | | | $ | (79,542) | | | | | | | | $ | 407,109 | | | | | $ | — | | | | | | | | $ | 407,109 | | |
|
| | |
Period From
January 22, 2021 (Inception) Through September 30, 2021 |
| |
Nine Months
Ended September 30, 2021 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
| | |
Magnum
Opus (Historical) |
| |
Forbes
(Historical) |
| |
Transaction
Accounting Adjustments (Assuming No Redemptions) |
| | | | |
Pro Forma
Combined (Assuming No Redemptions) |
| |
Transaction
Accounting Adjustments (Assuming Maximum Redemptions) |
| |
Pro Forma
Combined (Assuming Maximum Redemptions) |
| ||||||||||||||||||
Revenues
|
| | | $ | — | | | | | $ | 164,836 | | | | | $ | — | | | | | | | | $ | 164,836 | | | | | $ | — | | | | | $ | 164,836 | | |
Operating costs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization)
|
| | | | — | | | | | | 64,485 | | | | | | — | | | | | | | | | 64,485 | | | | | | — | | | | | | 64,485 | | |
Sales and marketing
|
| | | | — | | | | | | 30,311 | | | | | | — | | | | | | | | | 30,311 | | | | | | — | | | | | | 30,311 | | |
Product development
|
| | | | — | | | | | | 15,566 | | | | | | — | | | | | | | | | 15,566 | | | | | | — | | | | | | 15,566 | | |
General and administrative
|
| | | | 1,361 | | | | | | 28,259 | | | | | | — | | | | | | | | | 29,620 | | | | | | — | | | | | | 29,620 | | |
Depreciation and amortization
|
| | | | — | | | | | | 11,113 | | | | | | — | | | | | | | | | 11,113 | | | | | | — | | | | | | 11,113 | | |
Total operating costs
|
| | | | 1,361 | | | | | | 149,734 | | | | | | — | | | | | | | | | 151,095 | | | | | | — | | | | | | 151,095 | | |
Operating (loss) profit
|
| | | | (1,361) | | | | | | 15,102 | | | | | | — | | | | | | | | | 13,741 | | | | | | — | | | | | | 13,741 | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on loan forgiveness
|
| | | | — | | | | | | 8,036 | | | | | | — | | | | | | | | | 8,036 | | | | | | — | | | | | | 8,036 | | |
Gain on sale of Forbes Media
Hong Kong Limited |
| | | | — | | | | | | 1,556 | | | | | | — | | | | | | | | | 1,556 | | | | | | — | | | | | | 1,556 | | |
Interest earned on marketable
securities held in Trust Account |
| | | | 6 | | | | | | — | | | | | | (6) | | | |
AA
|
| | | | — | | | | | | — | | | | | | — | | |
Interest expense
|
| | | | — | | | | | | (574) | | | | | | — | | | | | | | | | (574) | | | | | | — | | | | | | (574) | | |
Loss on sale of private placement warrants
|
| | | | (2,880) | | | | | | — | | | | | | — | | | | | | | | | (2,880) | | | | | | — | | | | | | (2,880) | | |
Change in fair value of warrant liabilities
|
| | | | 5,060 | | | | | | — | | | | | | — | | | | | | | | | 5,060 | | | | | | — | | | | | | 5,060 | | |
Other income, net
|
| | | | — | | | | | | (690) | | | | | | — | | | | | | | | | (690) | | | | | | — | | | | | | (690) | | |
Total other income (expense), net
|
| | | | 2,186 | | | | | | 8,328 | | | | | | (6) | | | | | | | | | 10,508 | | | | | | — | | | | | | 10,508 | | |
Income from operations before income taxes
|
| | | | 825 | | | | | | 23,430 | | | | | | (6) | | | | | | | | | 24,249 | | | | | | — | | | | | | 24,249 | | |
Income tax expense
|
| | | | — | | | | | | 3,922 | | | | | | — | | | | | | | | | 3,922 | | | | | | — | | | | | | 3,922 | | |
Net income
|
| | | $ | 825 | | | | | $ | 19,508 | | | | | $ | (6) | | | | | | | | $ | 20,327 | | | | | $ | — | | | | | $ | 20,327 | | |
Net income per ordinary share (Note 4):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares of ordinary shares outstanding – basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | 81,574,104 | | | | | | | | | | | | 81,574,104 | | |
Net income per ordinary share – basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | $ | 0.25 | | | | | | | | | | | $ | 0.25 | | |
| | |
Magnum
Opus (Historical) |
| |
Forbes
(Historical) |
| |
Transaction
Accounting Adjustments (Assuming No Redemptions) |
| | | | |
Pro Forma
Combined (Assuming No Redemptions) |
| |
Transaction
Accounting Adjustments (Assuming Maximum Redemptions) |
| |
Pro Forma
Combined (Assuming Maximum Redemptions) |
| ||||||||||||||||||
Revenues | | | | $ | — | | | | | $ | 184,853 | | | | | $ | — | | | | | | | | $ | 184,853 | | | | | $ | — | | | | | $ | 184,853 | | |
Operating costs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization)
|
| | | | — | | | | | | 85,935 | | | | | | 506 | | | |
CC
|
| | | | 86,441 | | | | | | — | | | | | | 86,441 | | |
Sales and marketing
|
| | | | — | | | | | | 24,070 | | | | | | 506 | | | |
CC
|
| | | | 24,576 | | | | | | — | | | | | | 24,576 | | |
Product development
|
| | | | — | | | | | | 17,703 | | | | | | 449 | | | |
CC
|
| | | | 18,152 | | | | | | — | | | | | | 18,152 | | |
General and administrative
|
| | | | — | | | | | | 32,496 | | | | | | 3,900 | | | |
BB
|
| | | | 40,547 | | | | | | — | | | | | | 40,547 | | |
| | | | | — | | | | | | — | | | | | | 4,151 | | | |
CC
|
| | | | — | | | | | | — | | | | | | — | | |
Depreciation and amortization
|
| | | | — | | | | | | 14,179 | | | | | | — | | | | | | | | | 14,179 | | | | | | — | | | | | | 14,179 | | |
Goodwill impairment charge
|
| | | | — | | | | | | 727 | | | | | | — | | | | | | | | | 727 | | | | | | — | | | | | | 727 | | |
Total operating costs
|
| | | | — | | | | | | 175,110 | | | | | | 9,512 | | | | | | | | | 184,622 | | | | | | — | | | | | | 184,622 | | |
Operating profit
|
| | | | — | | | | | | 9,743 | | | | | | (9,512) | | | | | | | | | 231 | | | | | | — | | | | | | 231 | | |
Other income (expense), net
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | — | | | | | | (874) | | | | | | — | | | | | | | | | (874) | | | | | | — | | | | | | (874) | | |
Other income, net
|
| | | | — | | | | | | 2,677 | | | | | | — | | | | | | | | | 2,677 | | | | | | — | | | | | | 2,677 | | |
Total other income (expense), net
|
| | | | — | | | | | | 1,803 | | | | | | — | | | | | | | | | 1,803 | | | | | | — | | | | | | 1,803 | | |
Income from operations before income taxes
|
| | | | — | | | | | | 11,546 | | | | | | (9,512) | | | | | | | | | 2,034 | | | | | | — | | | | | | 2,034 | | |
Income tax benefit
|
| | | | — | | | | | | 4,006 | | | | | | — | | | | | | | | | 4,006 | | | | | | — | | | | | | 4,006 | | |
Net income (loss)
|
| | | $ | — | | | | | $ | 7,540 | | | | | $ | (9,512) | | | | | | | | $ | (1,972) | | | | | $ | — | | | | | $ | (1,972) | | |
Net loss per ordinary share (Note 4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares of ordinary shares outstanding – basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | 81,574,104 | | | | | | | | | | | | 81,574,104 | | |
Net loss per ordinary share – basic and
diluted |
| | | | | | | | | | | | | | | | | | | | | | | | $ | (0.02) | | | | | | | | | | | $ | (0.02) | | |
| | |
Nine Months Ended
September 30, 2021(1) |
| |
Year Ended
December 31, 2020(1) |
| ||||||||||||||||||
| | |
Assuming No
Redemptions |
| |
Assuming
Maximum Redemptions |
| |
Assuming No
Redemptions |
| |
Assuming
Maximum Redemptions |
| ||||||||||||
| | |
(in thousands, except share and per share amounts)
|
| |||||||||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Pro forma net income (loss)
|
| | | $ | 20,327 | | | | | $ | 20,327 | | | | | $ | (1,972) | | | | | $ | (1,972) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding – basic and diluted(2)
|
| | | | 81,574,104 | | | | | | 81,574,104 | | | | | | 81,574,104 | | | | | | 81,574,104 | | |
Net income (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | 0.25 | | | | | $ | 0.25 | | | | | $ | (0.02) | | | | | $ | (0.02) | | |
Name and Principal Position
|
| |
Fiscal
Year |
| |
Salary
($) |
| |
Bonus
($)(1) |
| |
Option
Awards ($)(2) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| ||||||||||||||||||
Michael Federle
|
| | | | 2020 | | | | | | 750,000 | | | | | | 604,500 | | | | | | — | | | | | | — | | | | | | 1,354,500 | | |
Chief Executive Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jessica Sibley
|
| | | | 2020 | | | | | | 551,500 | | | | | | 473,267 | | | | | | 602,834 | | | | | | — | | | | | | 1,627,601 | | |
Chief Revenue Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Michael York
|
| | | | 2020 | | | | | | 401,500 | | | | | | 237,500 | | | | | | — | | | | | | — | | | | | | 639,000 | | |
Chief Financial Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Option Awards
|
| ||||||||||||||||||
Name
|
| |
Grant Date(1)
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option
Exercise Price($) |
| |
Option
Expiration Date |
| |||||||||
Michael Federle(2)
|
| | 10/13/2015 | | | | | 247 | | | | | | — | | | | | | 14,583.33 | | | | 10/13/2025 | |
| | | 1/1/2018 | | | | | 55 | | | | | | 110 | | | | | | 14,583.33 | | | | 1/1/2028 | |
Jessica Sibley
|
| | 8/1/2020 | | | | | — | | | | | | 165 | | | | | | 14,583.33 | | | | 8/1/2030 | |
Michael York(3)
|
| | 10/13/2015 | | | | | 124 | | | | | | — | | | | | | 14,583.33 | | | | 10/13/2025 | |
| | | 9/30/2016 | | | | | 124 | | | | | | — | | | | | | 14,583.33 | | | | 9/30/2026 | |
Name
|
| |
Age
|
| |
Position
|
|
Michael Federle | | |
62
|
| | Chief Executive Officer and Director Nominee | |
Jonathan Lin | | |
37
|
| | Director Nominee | |
Jeffrey Yam | | |
29
|
| | Director Nominee | |
MariaRosa Cartolano | | |
60
|
| | General Counsel | |
Jessica Sibley | | |
52
|
| | Chief Revenue Officer | |
Michael D. York | | |
45
|
| | Chief Financial Officer | |
| | | | | | | | | | | | | | |
After the Business Combination
|
| |||||||||||||||||||||
| | |
Prior to the
Business Combination(1) |
| |
Assuming No
Redemption(2) |
| |
Assuming
Maximum Redemption(3) |
| |||||||||||||||||||||||||||
Name and Address of Beneficial Owners†
|
| |
Number of
Shares |
| |
%
|
| |
Number of
Shares |
| |
%
|
| |
Number of
Shares |
| |
%
|
| ||||||||||||||||||
Officers and Directors Prior to the Transactions:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Alexandre Casin
|
| | | | 50,000 | | | | | | 0.2% | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | |
Dickson Cheng
|
| | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | |
Frank Han
|
| | | | 162,500 | | | | | | 0.7% | | | | | | 162,500 | | | | | | * | | | | | | 162,500 | | | | | | * | | |
Johnny Liu
|
| | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | |
Jonathan Lin(4)(5)
|
| | | | 4,500,000 | | | | | | 18.0% | | | | | | 4,500,000 | | | | | | 5.5% | | | | | | 4,500,000 | | | | | | 5.5% | | |
Kersten Hui
|
| | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | |
Kevin Lee
|
| | | | 162,500 | | | | | | 0.7% | | | | | | 162,500 | | | | | | * | | | | | | 162,500 | | | | | | * | | |
Sammy Hsieh
|
| | | | 50,000 | | | | | | 0.2% | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | |
Officers and Directors After the Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Michael Federle
|
| | | | — | | | | | | — | | | | | | 87,444 | | | | | | * | | | | | | 192,956 | | | | | | * | | |
Jonathan Lin(4)(5)
|
| | | | 4,500,000 | | | | | | 18.0% | | | | | | 4,500,000 | | | | | | 5.5% | | | | | | 4,500,000 | | | | | | 5.5% | | |
Jeffrey Yam(6)
|
| | | | — | | | | | | — | | | | | | 15,442,885 | | | | | | 18.9% | | | | | | 34,076,492 | | | | | | 41.8% | | |
MariaRosa Cartolano
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | | | | | | | | | | |
After the Business Combination
|
| |||||||||||||||||||||
| | |
Prior to the
Business Combination(1) |
| |
Assuming No
Redemption(2) |
| |
Assuming
Maximum Redemption(3) |
| |||||||||||||||||||||||||||
Name and Address of Beneficial Owners†
|
| |
Number of
Shares |
| |
%
|
| |
Number of
Shares |
| |
%
|
| |
Number of
Shares |
| |
%
|
| ||||||||||||||||||
Jessica Sibley
|
| | | | — | | | | | | — | | | | | | 27,326 | | | | | | * | | | | | | 60,299 | | | | | | * | | |
Michael D. York
|
| | | | — | | | | | | — | | | | | | 54,653 | | | | | | * | | | | | | 120,597 | | | | | | * | | |
All officers, directors and director nominees as
a group (9 individuals) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Greater than 5% Holders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Magnum Opus Holdings LLC(4)(5)
|
| | | | 4,500,000 | | | | | | 18.0% | | | | | | 4,500,000 | | | | | | 5.5% | | | | | | 4,500,000 | | | | | | 5.5% | | |
TT International Asset Management Ltd.(6)
|
| | | | 2,300,000 | | | | | | 9.2% | | | | | | 2,300,000 | | | | | | 2.8% | | | | | | — | | | | | | —% | | |
China Investment Corporation(7)
|
| | | | 1,152,526 | | | | | | 4.6% | | | | | | 1,152,526 | | | | | | 1.4% | | | | | | — | | | | | | —% | | |
Integrated Whale Media Investment Inc.(8)
|
| | | | — | | | | | | — | | | | | | 15,442,885 | | | | | | 18.9% | | | | | | 34,076,492 | | | | | | 41.8% | | |
| | |
Page
|
| |||
Magnum Opus Acquisition Limited | | | | | | | |
Audited Financial Statements: | | | | | | | |
Report of Independent Registered Public Accounting Firm | | | | | F-2 | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
Condensed Financial Statements (Unaudited):
|
| | | | | | |
| | | | F-17 | | | |
| | | | F-18 | | | |
| | | | F-19 | | | |
| | | | F-20 | | | |
| | | | F-21 | | | |
Forbes Global Holdings Inc. | | | | | | | |
Audited Consolidated Financial Statements: | | | | | | | |
| | | | F-39 | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
| | | | F-43 | | | |
| | | | F-44 | | | |
| | | | F-45 | | | |
Condensed Consolidated Financial Statements (Unaudited): | | | | | | | |
| | | | F-78 | | | |
| | | | F-79 | | | |
| | | | F-80 | | | |
| | | | F-81 | | | |
| | | | F-82 | | | |
| | | | F-83 | | |
| ASSETS | | | | | | | |
|
Deferred offering costs
|
| | | $ | 94,250 | | |
|
TOTAL ASSETS
|
| | | $ | 94,250 | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | |
|
Current liabilities:
|
| | | | | | |
|
Accrued expenses
|
| | | $ | 5,500 | | |
|
Accrued offering costs
|
| | | | 69,250 | | |
|
Total Liabilities
|
| | | | 74,750 | | |
| Commitments | | | | | | | |
| Shareholder’s Equity | | | | | | | |
|
Preference Shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding
|
| | | | — | | |
|
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; none issued and outstanding
|
| | | | — | | |
|
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,750,000 issued and
outstanding(1) |
| | | | 575 | | |
|
Additional paid-in capital
|
| | | | 24,425 | | |
|
Accumulated deficit
|
| | | | (5,500) | | |
|
Total Shareholder’s Equity
|
| | | | 19,500 | | |
|
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY
|
| | | $ | 94,250 | | |
|
Formation costs
|
| | | $ | 5,500 | | |
|
Net Loss
|
| | | $ | (5,500) | | |
|
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 5,000,000 | | |
|
Basic and diluted net loss per common share
|
| | | $ | (0.00) | | |
| | |
Class B Ordinary Shares
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Shareholder’s Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance at January 22, 2021
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor(1)
|
| | | | 5,750,000 | | | | | | 575 | | | | | | 24,425 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (5,500) | | | | | | (5,500) | | |
Balance at January 26, 2021
|
| | | | 5,750,000 | | | | | $ | 575 | | | | | $ | 24,425 | | | | | $ | (5,500) | | | | | $ | 19,500 | | |
| Cash Flows from Operating Activities: | | | | | | | |
|
Net loss
|
| | | $ | (5,500) | | |
|
Changes in operating assets and liabilities
|
| | | | | | |
|
Accrued expenses
|
| | | | 5,500 | | |
|
Net cash provided by (used in) operating activities
|
| | | | — | | |
|
Net Change in Cash
|
| | | | — | | |
|
Cash – Beginning of period
|
| | | | — | | |
|
Cash – End of period
|
| | | $ | — | | |
| Non-cash investing and financing activities: | | | | | | | |
|
Deferred offering costs paid by Sponsor in exchange for issuance of Class B ordinary shares
|
| | | $ | 25,000 | | |
|
Deferred offering costs included in accrued offering costs
|
| | | $ | 69,250 | | |
|
ASSETS
|
| | | | | | |
| Current assets: | | | | | | | |
|
Cash
|
| | | $ | 891,406 | | |
|
Prepaid expenses
|
| | | | 202,436 | | |
|
Total current assets
|
| | | | 1,093,842 | | |
|
Investments held in Trust Account
|
| | | | 200,006,205 | | |
|
Total assets
|
| | | $ | 201,100,047 | | |
| LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | |
| Current liabilities: | | | | | | | |
|
Accounts payable and accrued expenses
|
| | | $ | 24,960 | | |
|
Accrued offering cost
|
| | | | 7,780 | | |
|
Due to related parties
|
| | | | 129 | | |
|
Total current liabilities
|
| | | | 32,869 | | |
|
Deferred underwriting fee payable
|
| | | | 7,000,000 | | |
|
Warrant liabilities
|
| | | | 18,620,000 | | |
|
Total liabilities
|
| | | | 25,652,869 | | |
| Commitments | | | | | | | |
|
Class A ordinary shares subject to possible redemption, 20,000,000 shares at redemption value
|
| | | | 200,000,000 | | |
| Shareholders’ Deficit | | | | | | | |
|
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding
|
| | | | — | | |
|
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 20,000,000 shares issued and no shares outstanding (excluding 20,000,000 shares subject to possible redemption)
|
| | | | — | | |
|
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,000,000 shares issued and outstanding
|
| | | | 500 | | |
|
Additional paid-in capital
|
| | | | — | | |
|
Accumulated deficit
|
| | | | (24,553,322) | | |
|
Total shareholders’ deficit
|
| | | | (24,552,822) | | |
|
Total liabilities and shareholders’ deficit
|
| | | $ | 201,100,047 | | |
| | |
Three months ended
September 30, 2021 |
| |
For the period from
January 22, 2021 (inception) through September 30, 2021 |
| ||||||
Formation and operating costs
|
| | | $ | 254,268 | | | | | $ | 493,560 | | |
Expensed offering costs
|
| | | | — | | | | | | 867,351 | | |
Loss from operations
|
| | | | (254,268) | | | | | | (1,360,911) | | |
Interest income on Trust Account
|
| | | | 3,021 | | | | | | 6,205 | | |
Loss on sale of private placement warrants
|
| | | | — | | | | | | (2,880,000) | | |
Change in fair value of warrant liabilities
|
| | | | (5,180,000) | | | | | | 5,060,000 | | |
Net (loss) income
|
| | | $ | (5,431,247) | | | | | $ | 825,294 | | |
Basic and diluted weighted average shares outstanding, Class A ordinary
shares |
| | | | 20,000,000 | | | | | | 15,059,761 | | |
Basic and diluted net (loss) income per share of ordinary share, Class A ordinary shares
|
| | | $ | (0.22) | | | | | $ | 0.04 | | |
Basic and diluted weighted average shares outstanding, Class B ordinary
shares |
| | | | 5,000,000 | | | | | | 4,920,319 | | |
Basic and diluted net (loss) income per share of ordinary share, Class B ordinary shares
|
| | | $ | (0.22) | | | | | $ | 0.04 | | |
| | |
Ordinary Shares
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Shareholders’ Deficit |
| ||||||||||||||||||||||||||||||
|
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||
Balance – January 22, 2021 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor
|
| | | | — | | | | | | — | | | | | | 5,750,000 | | | | | | 575 | | | | | | 24,425 | | | | | | — | | | | | | 25,000 | | |
Accretion of Class A ordinary shares to redemption amount, as restated
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,425) | | | | | | (25,378,691) | | | | | | (25,403,116) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,885,251) | | | | | | (4,885,251) | | |
Balance at March 31, 2021, as restated
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (30,263,942) | | | | | $ | (30,263,367) | | |
Forfeiture of Class B ordinary shares
|
| | | | — | | | | | | — | | | | | | (750,000) | | | | | | (75) | | | | | | — | | | | | | 75 | | | | | | — | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,141,792 | | | | | | 11,141,792 | | |
Balance at June 30, 2021, as restated
|
| | | | — | | | | | $ | — | | | | | | 5,000,000 | | | | | $ | 500 | | | | | $ | — | | | | | $ | (19,122,075) | | | | | $ | (19,121,575) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,431,247) | | | | | | (5,431,247) | | |
Balance – September 30, 2021
|
| | | | — | | | | | $ | — | | | | | | 5,000,000 | | | | | $ | 500 | | | | | $ | — | | | | | $ | (24,553,322) | | | | | $ | (24,552,822) | | |
|
Cash Flows from Operating Activities:
|
| | | | | | |
|
Net income
|
| | | $ | 825,294 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | |
|
Expensed offering costs
|
| | | | 867,351 | | |
|
Interest income on investments held in Trust Account
|
| | | | (6,205) | | |
|
Loss on sale of private placement warrants
|
| | | | 2,880,000 | | |
|
Change in fair value of warrant liabilities
|
| | | | (5,060,000) | | |
|
Changes in operating assets and liabilities:
|
| | | | | | |
|
Prepaid expenses
|
| | | | (202,436) | | |
|
Accrued expenses
|
| | | | 24,960 | | |
|
Due to related parties
|
| | | | 129 | | |
|
Net cash used in operating activities
|
| | | | (670,907) | | |
| Cash Flows from Investing Activities: | | | | | | | |
|
Cash deposited in Trust Account
|
| | | | (200,000,000) | | |
|
Net cash used in investing activities
|
| | | | (200,000,000) | | |
| Cash Flows from Financing Activities: | | | | | | | |
|
Proceeds from issuance of Class B ordinary shares to Sponsor
|
| | | | 25,000 | | |
|
Proceeds from initial public offering, net of underwriter’s discount paid
|
| | | | 196,000,000 | | |
|
Proceeds from sale of private placement warrants
|
| | | | 6,000,000 | | |
|
Offering costs paid
|
| | | | (462,687) | | |
|
Net cash provided by financing activities
|
| | | | 201,562,313 | | |
|
Net Change in Cash
|
| | | | 891,406 | | |
|
Cash – Beginning of Period
|
| | | | — | | |
|
Cash – End of Period
|
| | | $ | 891,406 | | |
| Supplemental disclosure of noncash investing and financing activities: | | | | | | | |
|
Accretion of Class A ordinary shares subject to redemption to redemption value
|
| | | $ | 25,403,116 | | |
|
Deferred underwriting fee payable
|
| | | $ | 7,000,000 | | |
|
Offering costs included in accrued offering costs
|
| | | $ | 7,780 | | |
|
Forfeiture of Class B ordinary shares
|
| | | $ | 75 | | |
| | |
June 30, 2021
|
| |||||||||||||||
| | |
As Previously
Reported |
| |
Adjustments
|
| |
As Restated
|
| |||||||||
Balance Sheet (unaudited) | | | | | | | | | | | | | | | | | | | |
Class A common stock subject to possible redemption
|
| | | $ | 175,878,420 | | | | | $ | 24,121,580 | | | | | $ | 200,000,000 | | |
Class A ordinary shares
|
| | | | 241 | | | | | | (241) | | | | | | — | | |
Accumulated deficit
|
| | | | 4,999,264 | | | | | | (24,121,339) | | | | | | (19,122,075) | | |
Total shareholders’ equity (deficit)
|
| | | $ | 5,000,005 | | | | | $ | (24,121,580) | | | | | $ | (19,121,575) | | |
Statement of Operations for the Three Months Ended June 30,
2021 (unaudited) |
| | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares
|
| | | | 17,587,842 | | | | | | 2,412,158 | | | | | | 20,000,000 | | |
Basic and diluted net income per share, Class A ordinary shares
|
| | | $ | 0.00 | | | | | $ | 0.45 | | | | | $ | 0.45 | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares(1)
|
| | | | 7,412,158 | | | | | | (2,412,158) | | | | | | 5,000,000 | | |
Basic and diluted net income per share, Class B ordinary shares
|
| | | $ | 1.50 | | | | | $ | (1.05) | | | | | $ | 0.45 | | |
Statement of Operations for the Period from January 22, 2021 (Inception) Through June 30, 2021 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares
|
| | | | 17,587,842 | | | | | | (6,810,064) | | | | | | 10,777,778 | | |
Basic and diluted net income per share, Class A ordinary shares
|
| | | $ | 0.00 | | | | | $ | 0.41 | | | | | $ | 0.41 | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares
|
| | | | 7,412,158 | | | | | | (3,106,602) | | | | | | 4,305,556 | | |
Basic and diluted net income per share, Class B ordinary shares
|
| | | $ | 0.84 | | | | | $ | (0.43) | | | | | $ | 0.41 | | |
| | |
March 31, 2021
|
| |||||||||||||||
| | |
As Previously
Reported |
| |
Adjustments
|
| |
As Restated
|
| |||||||||
Balance Sheet (unaudited) | | | | | | | | | | | | | | | | | | | |
Class A common stock subject to possible redemption
|
| | | $ | 164,736,630 | | | | | $ | 35,263,370 | | | | | $ | 200,000,000 | | |
Class A ordinary shares
|
| | | | 353 | | | | | | (353) | | | | | | — | | |
Additional paid-in capital
|
| | | | 9,884,326 | | | | | | (9,884,326) | | | | | | — | | |
Accumulated deficit
|
| | | | (4,885,251) | | | | | | (25,378,691) | | | | | | (30,263,942) | | |
Total shareholders’ equity (deficit)
|
| | | $ | 5,000,003 | | | | | $ | (35,263,370) | | | | | $ | (30,263,367) | | |
Statement of Operations for the Period from January 22, 2021 (Inception) Through March 31, 2021 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares
|
| | | | 16,473,663 | | | | | | (15,140,330) | | | | | | 1,333,333 | | |
Basic and diluted net earnings per share, Class A ordinary shares
|
| | | $ | 0.00 | | | | | $ | (1.00) | | | | | $ | (1.00) | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares(1)
|
| | | | 8,526,337 | | | | | | (4,970,781) | | | | | | 3,555,556 | | |
Basic and diluted net loss per share, Class B ordinary
shares |
| | | $ | (0.57) | | | | | $ | (0.43) | | | | | $ | (1.00) | | |
| | |
March 25, 2021
|
| |||||||||||||||
| | |
As Previously
Reported |
| |
Adjustments
|
| |
As Restated
|
| |||||||||
Balance Sheet (unaudited) | | | | | | | | | | | | | | | | | | | |
Class A common stock subject to possible redemption
|
| | | $ | 165,863,690 | | | | | $ | 34,136,310 | | | | | $ | 200,000,000 | | |
Class A ordinary shares
|
| | | | 341 | | | | | | (341) | | | | | | — | | |
Additional paid-in capital
|
| | | | 8,756,203 | | | | | | (8,756,203) | | | | | | — | | |
Accumulated deficit
|
| | | | (3,757,113) | | | | | | (25,379,766) | | | | | | (29,136,879) | | |
Total shareholders’ equity (deficit)
|
| | | $ | 5,000,006 | | | | | $ | (34,136,310) | | | | | $ | (29,136,304) | | |
|
Gross proceeds
|
| | | $ | 200,000,000 | | |
| Less: | | | | | | | |
|
Proceeds allocated to Public Warrants
|
| | | | (14,800,000) | | |
|
Issuance costs allocated to Class A ordinary shares
|
| | | | (10,603,116) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 25,403,116 | | |
|
Class A ordinary shares subject to possible redemption
|
| | | $ | 200,000,000 | | |
| | |
Three months ended
September 30, 2021 |
| |
For the period from
January 22, 2021 (inception) through September 30, 2021 |
| ||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||
Basic and diluted net loss per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (4,344,998) | | | | | $ | (1,086,249) | | | | | $ | 622,056 | | | | | $ | 203,238 | | |
Denominator:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding
|
| | | | 20,000,000 | | | | | | 5,000,000 | | | | | | 15,059,761 | | | | | | 4,920,319 | | |
Basic and diluted net (loss) income per share of ordinary share
|
| | | $ | (0.22) | | | | | $ | (0.22) | | | | | $ | 0.04 | | | | | $ | 0.04 | | |
Description
|
| |
Amount at
Fair Value |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
September 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Investments held in Trust Account:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Money Market investments
|
| | | $ | 200,006,205 | | | | | $ | 200,006,205 | | | | | $ | — | | | | | $ | — | | |
Liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Warrant liability – Public Warrants
|
| | | $ | 11,600,000 | | | | | $ | 11,600,000 | | | | | $ | — | | | | | $ | — | | |
Warrant liability – Private Placement Warrants
|
| | | $ | 7,020,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 7,020,000 | | |
| | |
At March 25, 2021
(Initial Measurement) |
| |||
Stock price
|
| | | $ | 9.76 | | |
Strike price
|
| | | $ | 11.50 | | |
Expected life of the option to convert (in years)
|
| | | | 6.59 | | |
Volatility
|
| |
4.5% pre-merger /
25.0% post-merger |
| |||
Risk-free rate
|
| | | | 1.19% | | |
Fair value of warrants
|
| | | $ | 1.48 | | |
| | |
At March 25, 2021
(Initial Measurement) |
| |
As of September 30,
2021 |
| ||||||
Stock price
|
| | | $ | 9.76 | | | | | $ | 9.89 | | |
Strike price
|
| | | $ | 11.50 | | | | | $ | 11.50 | | |
Probability of completing a Business Combination
|
| | | | 83.0% | | | | | | * | | |
Dividend yield
|
| | | | —% | | | | | | —% | | |
Remaining term (in years)
|
| | | | 6.59 | | | | | | 6.05 | | |
Volatility
|
| | | | 21.3% | | | | | | 15.4% | | |
Risk-free rate
|
| | | | 1.19% | | | | | | 1.16% | | |
Fair value of warrants
|
| | | $ | 1.48 | | | | | $ | 1.17 | | |
| | |
Private
Placement |
| |
Public
|
| |
Warrant
Liabilities |
| |||||||||
Fair value as of January 22, 2021 (inception)
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial measurement at March 25, 2021
|
| | | | 8,880,000 | | | | | | 14,800,000 | | | | | | 23,680,000 | | |
Change in fair value of warrant liabilities
|
| | | | (1,860,000) | | | | | | (3,200,000) | | | | | | (5,060,000) | | |
Fair value as of September 30, 2021
|
| | | $ | 7,020,000 | | | | | $ | 11,600,000 | | | | | $ | 18,620,000 | | |
|
Fair value as of January 22, 2021
|
| | | $ | — | | |
|
Initial measurement at March 25, 2021
|
| | | | 23,680,000 | | |
|
Change in fair value
|
| | | | (5,060,000) | | |
|
Transfer of Public Warrants to Level 1 measurement
|
| | | | (11,600,000) | | |
|
Fair value as of September 30, 2021
|
| | | $ | 7,020,000 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 48,314 | | | | | $ | 21,424 | | |
Accounts receivable, net
|
| | | | 45,181 | | | | | | 52,012 | | |
Current portion of deferred subscription commissions
|
| | | | 7,852 | | | | | | 11,035 | | |
Prepaid expenses and other current assets
|
| | | | 15,178 | | | | | | 14,352 | | |
Total current assets
|
| | | | 116,525 | | | | | | 98,823 | | |
Deferred subscription commissions, net of current portion
|
| | | | 2,610 | | | | | | 6,086 | | |
Property and equipment, net
|
| | | | 10,935 | | | | | | 9,374 | | |
Investments
|
| | | | 1,370 | | | | | | 1,050 | | |
Goodwill, net
|
| | | | 12,040 | | | | | | 12,767 | | |
Intangible assets, net
|
| | | | 119,049 | | | | | | 130,102 | | |
Deferred tax assets, net
|
| | | | 48,590 | | | | | | 51,918 | | |
Other assets
|
| | | | 4,678 | | | | | | 5,401 | | |
Total assets
|
| | | $ | 315,797 | | | | | $ | 315,521 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 942 | | | | | $ | 347 | | |
Accrued expenses and other current liabilities
|
| | | | 8,549 | | | | | | 10,911 | | |
Current portion of unexpired subscriptions
|
| | | | 10,769 | | | | | | 13,393 | | |
Current portion of deferred revenues
|
| | | | 8,958 | | | | | | 9,100 | | |
Accrued compensation
|
| | | | 7,332 | | | | | | 8,707 | | |
Loans payable, current
|
| | | | 8,616 | | | | | | 580 | | |
Total current liabilities
|
| | | | 45,166 | | | | | | 43,038 | | |
Loans payable, net of current portion, debt discount, and debt issuance costs
|
| | | | 12,091 | | | | | | 12,671 | | |
Unexpired subscriptions
|
| | | | 5,949 | | | | | | 10,059 | | |
Deferred revenues, net of current portion
|
| | | | 4,139 | | | | | | 3,509 | | |
Other liabilities
|
| | | | 5,033 | | | | | | 7,902 | | |
Total liabilities
|
| | | | 72,378 | | | | | | 77,179 | | |
Commitments and contingencies (See Note 19) | | | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Common stock, $1 par value per share; 50,000 shares authorized as of December 31, 2020 and 2019; 10,000 shares issued and outstanding as of December 31, 2020 and 2019
|
| | | | 10 | | | | | | 10 | | |
Additional paid-in capital
|
| | | | 200,639 | | | | | | 201,932 | | |
Retained earnings
|
| | | | 15,203 | | | | | | 8,223 | | |
Accumulated other comprehensive loss
|
| | | | (30) | | | | | | (41) | | |
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders
|
| | | | 215,822 | | | | | | 210,124 | | |
Noncontrolling interest
|
| | | | 27,597 | | | | | | 28,218 | | |
Total shareholders’ equity
|
| | | | 243,419 | | | | | | 238,342 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 315,797 | | | | | $ | 315,521 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenues
|
| | | $ | 184,853 | | | | | $ | 210,628 | | |
Operating costs: | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization)
|
| | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing
|
| | | | 24,070 | | | | | | 30,053 | | |
Product development
|
| | | | 17,703 | | | | | | 13,705 | | |
General and administrative
|
| | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization
|
| | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge
|
| | | | 727 | | | | | | — | | |
Total operating costs
|
| | | | 175,110 | | | | | | 197,318 | | |
Operating profit
|
| | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net: | | | | | | | | | | | | | |
Interest expense
|
| | | | (874) | | | | | | (1,162) | | |
Other income, net
|
| | | | 2,677 | | | | | | 2,228 | | |
Total other income (expense), net
|
| | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes
|
| | | | 11,546 | | | | | | 14,376 | | |
Income tax expense
|
| | | | 4,006 | | | | | | 6,739 | | |
Net income
|
| | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to noncontrolling interest
|
| | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders
|
| | | $ | 6,980 | | | | | $ | 6,207 | | |
| | |
Years Ended
December 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net income
|
| | | $ | 7,540 | | | | | $ | 7,637 | | |
Other comprehensive income: | | | | | | | | | | | | | |
Foreign currency translation adjustments, net of taxes
|
| | | | 13 | | | | | | (38) | | |
Total other comprehensive income
|
| | | | 7,553 | | | | | | 7,599 | | |
Comprehensive income attributable to noncontrolling interest
|
| | | | 560 | | | | | | 1,430 | | |
Comprehensive income attributable to Forbes Global Holdings Inc. shareholders
|
| | | $ | 6,993 | | | | | $ | 6,169 | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Loss |
| |
Total
Shareholders’ Equity Attributable to Forbes Global Holdings Inc. Shareholders |
| |
Noncontrolling
Interest |
| |
Total
Shareholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018
|
| | | | 10,000 | | | | | $ | 10 | | | | | $ | 225,682 | | | | | $ | 2,016 | | | | | $ | (7) | | | | | $ | 227,701 | | | | | $ | 22,269 | | | | | $ | 249,970 | | |
Contribution from noncontrolling interests
|
| | | | — | | | | |
|
—
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,100 | | | | | | 6,100 | | |
Distribution to shareholders
|
| | | | — | | | | |
|
—
|
| | | | | (23,750) | | | | | | — | | | | | | — | | | | | | (23,750) | | | | | | (1,577) | | | | | | (25,327) | | |
Foreign currency translation adjustment, net of tax
|
| | | | — | | | | |
|
—
|
| | | | | — | | | | | | — | | | | | | (34) | | | | | | (34) | | | | | | (4) | | | | | | (38) | | |
Net income
|
| | | | — | | | | |
|
—
|
| | | | | — | | | | | | 6,207 | | | | | | — | | | | | | 6,207 | | | | | | 1,430 | | | | | | 7,637 | | |
Balance as of December 31, 2019
|
| | | | 10,000 | | | | | | 10 | | | | | | 201,932 | | | | | | 8,223 | | | | | | (41) | | | | | | 210,124 | | | | | | 28,218 | | | | | | 238,342 | | |
Distribution to shareholders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (719) | | | | | | (719) | | |
Foreign currency translation adjustment, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | | | | | 11 | | | | | | 2 | | | | | | 13 | | |
Purchase of investment in Forbes Marketplace Holdings Limited (See Note 4)
|
| | | | — | | | | | | — | | | | | | (1,293) | | | | | | — | | | | | | — | | | | | | (1,293) | | | | | | (464) | | | | | | (1,757) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 6,980 | | | | | | — | | | | | | 6,980 | | | | | | 560 | | | | | | 7,540 | | |
Balance as of December 31, 2020
|
| | | | 10,000 | | | | | $ | 10 | | | | | $ | 200,639 | | | | | $ | 15,203 | | | | | $ | (30) | | | | | $ | 215,822 | | | | | $ | 27,597 | | | | | $ | 243,419 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 7,540 | | | | | $ | 7,637 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 14,071 | | | | | | 13,943 | | |
Goodwill impairment charge
|
| | | | 727 | | | | | | — | | |
Liability-classified stock-based compensation
|
| | | | (2,270) | | | | | | 2,583 | | |
Amortization of deferred termination fees
|
| | | | 590 | | | | | | 590 | | |
Non-cash interest expense
|
| | | | 170 | | | | | | 180 | | |
Loss on sale of assets
|
| | | | — | | | | | | 85 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable, net
|
| | | | 6,831 | | | | | | (6,521) | | |
Deferred subscription commissions
|
| | | | 6,659 | | | | | | 4,741 | | |
Prepaid expenses and other current assets
|
| | | | (827) | | | | | | (5,196) | | |
Other assets
|
| | | | 155 | | | | | | (199) | | |
Accounts payable
|
| | | | 595 | | | | | | (475) | | |
Accrued expenses and other current liabilities
|
| | | | (2,362) | | | | | | 643 | | |
Accrued compensation
|
| | | | (1,375) | | | | | | (1,099) | | |
Unexpired subscriptions
|
| | | | (6,734) | | | | | | (5,553) | | |
Deferred revenues
|
| | | | 488 | | | | | | 1,320 | | |
Deferred taxes
|
| | | | 3,329 | | | | | | 5,763 | | |
Other liabilities
|
| | | | (598) | | | | | | (432) | | |
Net cash provided by operating activities
|
| | | | 26,989 | | | | | | 18,010 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (4,591) | | | | | | (3,707) | | |
Proceeds from sale of assets
|
| | | | 12 | | | | | | 33 | | |
Purchase of additional interests in Forbes Marketplace Holdings Limited
|
| | | | (1,757) | | | | | | — | | |
Purchase of investments
|
| | | | (321) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (6,657) | | | | | | (3,674) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Distributions to shareholders
|
| | | | (719) | | | | | | (25,325) | | |
Repayments of loans
|
| | | | (750) | | | | | | (2,673) | | |
Contribution from noncontrolling interest
|
| | | | — | | | | | | 4,980 | | |
Proceeds from the Paycheck Protection Program loan
|
| | | | 8,036 | | | | | | — | | |
Net cash provided by (used in) financing activities
|
| | | | 6,567 | | | | | | (23,018) | | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
| | | | 12 | | | | | | (38) | | |
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
| | | | 26,911 | | | | | | (8,720) | | |
Cash, cash equivalents, and restricted cash at beginning of year
|
| | | | 23,370 | | | | | | 32,090 | | |
Cash, cash equivalents, and restricted cash at end of year
|
| | | $ | 50,281 | | | | | $ | 23,370 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 716 | | | | | $ | 992 | | |
Cash paid for income taxes
|
| | | $ | 407 | | | | | $ | 989 | | |
Supplemental disclosure of non-cash financing activities: | | | | | | | | | | | | | |
Contributions of noncontrolling interest related to Quantalytics Holding, LLC
|
| | | $ | — | | | | | $ | 1,120 | | |
Subsidiaries
|
| |
Equity Interest(i)
|
|
FGMH and its subsidiaries
|
| |
95%
|
|
Quantalytics | | |
See Note 4, “Variable Interest Entities”
|
|
Marketplace | | |
See Note 4, “Variable Interest Entities”
|
|
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Reconciliation of cash and cash equivalents and restricted cash: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 48,314 | | | | | $ | 21,424 | | |
Restricted cash included within other assets
|
| | | | 1,967 | | | | | | 1,946 | | |
Total cash and cash equivalents and restricted cash
|
| | | $ | 50,281 | | | | | $ | 23,370 | | |
Intangible Assets
|
| |
Weighted-Average Useful Life
(in years) |
|
Trade names and trademarks
|
| |
20
|
|
Advertiser relationships
|
| |
5 to 15
|
|
Subscriber relationships
|
| |
5
|
|
EBSCO publishing license agreement
|
| |
12
|
|
Favorable leases
|
| |
Remaining term of the lease
|
|
Other
|
| |
1
|
|
| | |
Marketplace
|
| |
Quantalytics
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 556 | | | | | $ | 1,186 | | |
Accounts receivable, net
|
| | | | 1,539 | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | 784 | | | | | | — | | |
Total current assets
|
| | | | 2,879 | | | | | | 1,186 | | |
Property and equipment, net
|
| | | | 308 | | | | | | 2,084 | | |
Other assets
|
| | | | — | | | | | | 103 | | |
Total assets
|
| | | $ | 3,187 | | | | | $ | 3,373 | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 19 | | | | | $ | — | | |
Accrued expenses and other current liabilities
|
| | | | — | | | | | | 155 | | |
Due to an affiliate
|
| | | | 2,220 | | | | | | — | | |
Total current liabilities
|
| | | | 2,239 | | | | | | 155 | | |
Total liabilities
|
| | | $ | 2,239 | | | | | $ | 155 | | |
| | |
Marketplace
|
| |
Quantalytics
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 3,553 | | | | | $ | 3,520 | | |
Accounts receivable, net
|
| | | | 169 | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | 611 | | | | | | — | | |
Total current assets
|
| | | | 4,333 | | | | | | 3,520 | | |
Property and equipment, net
|
| | | | 308 | | | | | | 1,320 | | |
Other assets
|
| | | | — | | | | | | 85 | | |
Total assets
|
| | | $ | 4,641 | | | | | $ | 4,925 | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 45 | | | | | $ | — | | |
Accrued expenses and other current liabilities
|
| | | | — | | | | | | 11 | | |
Due to an affiliate
|
| | | | 681 | | | | | | — | | |
Total current liabilities
|
| | | | 726 | | | | | | 11 | | |
Other liabilities
|
| | | | — | | | | | | 23 | | |
Total liabilities
|
| | | $ | 726 | | | | | $ | 34 | | |
| | |
As of December 31, 2020
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
FGMH’s liability-classified stock options
|
| | | $ | 3,295 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,295 | | |
Total
|
| | | $ | 3,295 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,295 | | |
| | |
As of December 31, 2019
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
FGMH’s liability-classified stock options
|
| | | $ | 5,565 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,565 | | |
Total
|
| | | $ | 5,565 | | | | | $ | — | | | | | $ | — | | | | | $ | 5,565 | | |
|
Balance as of December 31, 2018
|
| | | $ | 2,982 | | |
|
Change in fair value
|
| | | | 2,583 | | |
|
Balance as of December 31, 2019
|
| | | $ | 5,565 | | |
|
Change in fair value
|
| | | | (2,270) | | |
|
Balance as of December 31, 2020
|
| | | $ | 3,295 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Weighted-average expected term in years
|
| | | | 1.00 | | | | | | 0.50 | | |
Weighted-average expected stock price volatility
|
| | | | 79.0% | | | | | | 28.0% | | |
Risk-free interest rate
|
| | | | 0.10% | | | | | | 1.30% | | |
Expected dividend yield
|
| | | | 0% | | | | | | 0% | | |
| | |
As of December 31, 2020
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Goodwill | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill, related to Forbes Asia
|
| | | $ | 3,104 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,104 | | |
Total
|
| | | $ | 3,104 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,104 | | |
| | |
Year Ended December 31, 2020
|
| |||||||||||||||||||||
| | |
Media
|
| |
Brand Extension
|
| |
Consumer
|
| |
Total
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Advertising
|
| | | $ | 115,922 | | | | | $ | — | | | | | $ | 9,038 | | | | | $ | 124,960 | | |
Circulation
|
| | | | 14,676 | | | | | | — | | | | | | 1,408 | | | | | | 16,084 | | |
Licensing
|
| | | | — | | | | | | 16,566 | | | | | | 1,234 | | | | | | 17,800 | | |
Events
|
| | | | — | | | | | | 10,553 | | | | | | 599 | | | | | | 11,152 | | |
Research
|
| | | | — | | | | | | 8,500 | | | | | | — | | | | | | 8,500 | | |
Other
|
| | | | — | | | | | | 6,357 | | | | | | | | | | | | 6,357 | | |
Total revenues
|
| | | $ | 130,598 | | | | | $ | 41,976 | | | | | $ | 12,279 | | | | | $ | 184,853 | | |
| | |
Year Ended December 31, 2019
|
| |||||||||||||||||||||
| | |
Media
|
| |
Brand Extension
|
| |
Consumer
|
| |
Total
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Advertising
|
| | | $ | 113,911 | | | | | $ | — | | | | | $ | 3,209 | | | | | $ | 117,120 | | |
Circulation
|
| | | | 23,699 | | | | | | — | | | | | | 1,488 | | | | | | 25,187 | | |
Licensing
|
| | | | — | | | | | | 18,970 | | | | | | 1,237 | | | | | | 20,207 | | |
Events
|
| | | | — | | | | | | 22,793 | | | | | | 3,092 | | | | | | 25,885 | | |
Research
|
| | | | — | | | | | | 10,666 | | | | | | — | | | | | | 10,666 | | |
Other
|
| | | | — | | | | | | 11,563 | | | | | | — | | | | | | 11,563 | | |
Total revenues
|
| | | $ | 137,610 | | | | | $ | 63,992 | | | | | $ | 9,026 | | | | | $ | 210,628 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Revenue, net transferred at a point in time
|
| | | $ | 99,571 | | | | | $ | 101,873 | | |
Revenue, net transferred over time
|
| | | | 85,282 | | | | | | 108,755 | | |
Total
|
| | | $ | 184,853 | | | | | $ | 210,628 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Accounts receivable, net
|
| | | $ | 45,181 | | | | | $ | 52,012 | | |
Contract assets included in prepaid expenses and other current assets
|
| | | $ | 894 | | | | | $ | 1,330 | | |
Unexpired subscriptions, current and noncurrent portions
|
| | | $ | 16,718 | | | | | $ | 23,452 | | |
Deferred revenues, current and noncurrent portions
|
| | | $ | 13,097 | | | | | $ | 12,609 | | |
| | |
Unexpired
Subscriptions |
| |
Deferred
Revenues |
| |
Total
|
| |||||||||
Balance as of December 31, 2018
|
| | | $ | 29,005 | | | | | $ | 12,825 | | | | | $ | 41,830 | | |
Amounts billed but not recognized
|
| | | | 18,080 | | | | | | 29,262 | | | | | | 47,342 | | |
Revenue recognized
|
| | | | (23,633) | | | | | | (29,478) | | | | | | (53,111) | | |
Balance as of December 31, 2019
|
| | | $ | 23,452 | | | | | $ | 12,609 | | | | | $ | 36,061 | | |
Amounts billed but not recognized
|
| | | | 7,852 | | | | | | 25,365 | | | | | | 33,217 | | |
Revenue recognized
|
| | | | (14,586) | | | | | | (24,877) | | | | | | (39,463) | | |
Balance as of December 31, 2020
|
| | | $ | 16,718 | | | | | $ | 13,097 | | | | | $ | 29,815 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Prepaid insurance
|
| | | $ | 882 | | | | | $ | 596 | | |
Contract assets
|
| | | | 894 | | | | | | 1,330 | | |
Deposits
|
| | | | 242 | | | | | | 69 | | |
Tax credits
|
| | | | 4,598 | | | | | | 4,660 | | |
Other prepaid expenses
|
| | | | 7,721 | | | | | | 6,613 | | |
Other current assets
|
| | | | 841 | | | | | | 1,084 | | |
Total prepaid expenses and other current assets
|
| | | $ | 15,178 | | | | | $ | 14,352 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Furniture and fixtures
|
| | | $ | 9,390 | | | | | $ | 8,591 | | |
Capitalized internal-use software
|
| | | | 1,281 | | | | | | 1,281 | | |
Website development costs
|
| | | | 7,035 | | | | | | 3,305 | | |
Leasehold improvements
|
| | | | 10,688 | | | | | | 10,639 | | |
| | | | | 28,394 | | | | | | 23,816 | | |
Less: accumulated depreciation and amortization
|
| | | | (17,459) | | | | | | (14,442) | | |
Property and equipment, net
|
| | | $ | 10,935 | | | | | $ | 9,374 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Outdoor Voices, Inc.
|
| | | $ | 1,000 | | | | | $ | 1,000 | | |
Creative Labs
|
| | | | 319 | | | | | | — | | |
Roman Health Ventures, Inc
|
| | | | 51 | | | | | | 50 | | |
Total
|
| | | $ | 1,370 | | | | | $ | 1,050 | | |
| | |
Forbes Media
|
| |
Forbes Asia
|
| |
Total Goodwill
|
| |||||||||
Balance as of December 31, 2018
|
| | | $ | 8,936 | | | | | $ | 3,831 | | | | | $ | 12,767 | | |
Goodwill impairment charge
|
| | | | — | | | | | | — | | | | | | — | | |
Balance as of December 31, 2019(1)
|
| | | $ | 8,936 | | | | | $ | 3,831 | | | | | $ | 12,767 | | |
Goodwill impairment charge
|
| | | | — | | | | | | (727) | | | | | | (727) | | |
Balance as of December 31, 2020(1)
|
| | | $ | 8,936 | | | | | $ | 3,104 | | | | | $ | 12,040 | | |
| | |
As of December 31, 2020
|
| |||||||||||||||||||||
| | |
Weighted-Average
Remaining Amortization Period (in years) |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Trade names and trademarks
|
| | | | 14 | | | | | $ | 108,300 | | | | | $ | (34,121) | | | | | $ | 74,179 | | |
Advertiser relationships
|
| | | | 13 | | | | | | 78,430 | | | | | | (34,652) | | | | | | 43,778 | | |
Subscriber relationships
|
| | | | — | | | | | | 160 | | | | | | (160) | | | | | | — | | |
EBSCO publishing license agreement
|
| | | | 6 | | | | | | 2,300 | | | | | | (1,208) | | | | | | 1,092 | | |
Favorable leases
|
| | | | — | | | | | | 278 | | | | | | (278) | | | | | | — | | |
Other
|
| | | | — | | | | | | 746 | | | | | | (746) | | | | | | — | | |
Total
|
| | | | | | | | | $ | 190,214 | | | | | $ | (71,165) | | | | | $ | 119,049 | | |
| | |
As of December 31, 2019
|
| |||||||||||||||||||||
| | |
Weighted-Average
Remaining Amortization Period (in years) |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Trade names and trademarks
|
| | | | 15 | | | | | $ | 108,300 | | | | | $ | (28,706) | | | | | $ | 79,594 | | |
Advertiser relationships
|
| | | | 15 | | | | | | 78,430 | | | | | | (29,205) | | | | | | 49,225 | | |
Subscriber relationships
|
| | | | — | | | | | | 160 | | | | | | (160) | | | | | | — | | |
EBSCO publishing license agreement
|
| | | | 7 | | | | | | 2,300 | | | | | | (1,017) | | | | | | 1,283 | | |
Favorable leases
|
| | | | — | | | | | | 278 | | | | | | (278) | | | | | | — | | |
Other
|
| | | | — | | | | | | 746 | | | | | | (746) | | | | | | — | | |
Total
|
| | | | | | | | | $ | 190,214 | | | | | $ | (60,112) | | | | | $ | 130,102 | | |
Years Ending December 31,
|
| |
Intangible
Assets |
| |||
2021
|
| | | $ | 11,053 | | |
2022
|
| | | | 11,053 | | |
2023
|
| | | | 11,053 | | |
2024
|
| | | | 10,836 | | |
2025
|
| | | | 10,333 | | |
Thereafter
|
| | | | 64,721 | | |
Total
|
| | | $ | 119,049 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Term Loan
|
| | | $ | 13,125 | | | | | $ | 13,875 | | |
Paycheck Protection Program
|
| | | | 8,036 | | | | | | — | | |
Debt discount
|
| | | | (213) | | | | | | (292) | | |
Debt issuance costs
|
| | | | (241) | | | | | | (332) | | |
Less: current portion
|
| | | | (8,616) | | | | | | (580) | | |
Total loans payable, net of debt discount and debt issuance costs
|
| | | $ | 12,091 | | | | | $ | 12,671 | | |
Years Ending December 31,
|
| | | | | | |
2021
|
| | | $ | 750 | | |
2022
|
| | | | 750 | | |
2023
|
| | | | 11,625 | | |
Total
|
| | | $ | 13,125 | | |
| | |
Number
of Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-Average
Remaining Contractual Term (in years) |
| |
Aggregate
Intrinsic Value (in thousands) |
| ||||||||||||
Outstanding as of December 31, 2019
|
| | | | 1,320 | | | | | $ | 14,583 | | | | | | 6.32 | | | | | $ | 6,849 | | |
Granted
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | |
Exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | |
Cancelled or forfeited
|
| | | | (247) | | | | | | 14,583 | | | | | | — | | | | | | | | |
Outstanding as of December 31, 2020
|
| | | | 1,073 | | | | | $ | 14,583 | | | | | | 5.49 | | | | | $ | — | | |
Vested and expected to vest as of December 31, 2020
|
| | | | 1,073 | | | | | | 14,583 | | | | | | 5.49 | | | | | $ | — | | |
Exercisable as of December 31, 2020
|
| | | | 902 | | | | | $ | 14,583 | | | | | | 5.18 | | | | | $ | — | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Cost of revenue (excluding depreciation and amortization)
|
| | | $ | (349) | | | | | $ | 397 | | |
General and administrative
|
| | | | (1,921) | | | | | | 2,186 | | |
Total
|
| | | $ | (2,270) | | | | | $ | 2,583 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
United States
|
| | | $ | 7,486 | | | | | $ | 9,682 | | |
Foreign
|
| | | | 4,060 | | | | | | 4,694 | | |
Total
|
| | | $ | 11,546 | | | | | $ | 14,376 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Current:
|
| | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | 213 | | | | | | (89) | | |
Foreign
|
| | | | 465 | | | | | | 1,130 | | |
Deferred:
|
| | | | | | | | | | | | |
Federal
|
| | | | 1,986 | | | | | | 2,558 | | |
State
|
| | | | 1,342 | | | | | | 3,140 | | |
Foreign
|
| | | | — | | | | | | — | | |
Income tax expense
|
| | | $ | 4,006 | | | | | $ | 6,739 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||||||||
| | |
Amount
(in thousands) |
| |
% of
Pre-Tax |
| |
Amount
(in thousands) |
| |
% of
Pre-Tax |
| ||||||||||||
Statutory tax rate
|
| | | $ | 3,019 | | | | | | 21% | | | | | $ | 3,427 | | | | | | 21% | | |
Permanent differences
|
| | | | 349 | | | | | | 2% | | | | | | 301 | | | | | | 2% | | |
Excludable jurisdictions
|
| | | | (699) | | | | | | -5% | | | | | | (871) | | | | | | -5% | | |
Foreign taxes
|
| | | | 465 | | | | | | 3% | | | | | | 1,130 | | | | | | 7% | | |
Partnership basis differences
|
| | | | 2,319 | | | | | | 16% | | | | | | 2,006 | | | | | | 12% | | |
Change in tax rates
|
| | | | 1,055 | | | | | | 7% | | | | | | 3,907 | | | | | | 24% | | |
Rate differential
|
| | | | (2,605) | | | | | | -18% | | | | | | (2,809) | | | | | | -17% | | |
Current impact of uncertain tax position
|
| | | | — | | | | | | 0% | | | | | | (143) | | | | | | -1% | | |
Other, net
|
| | | | 103 | | | | | | 1% | | | | | | (209) | | | | | | -1% | | |
Income tax expense
|
| | | $ | 4,006 | | | | | | 27% | | | | | $ | 6,739 | | | | | | 42% | | |
| | |
As of December 31,
|
| | | | |||||||||
| | |
2020
|
| |
2019
|
| | ||||||||
| | |
(in thousands)
|
| | |||||||||||
Deferred tax assets: | | | | | | | | | | | | | | | ||
Accrued expenses and compensation
|
| | | $ | 17 | | | | | $ | 8 | | | | ||
Investment in partnership
|
| | | | 36,667 | | | | | | 41,716 | | | | ||
Net operating losses
|
| | | | 12,383 | | | | | | 10,511 | | | | ||
Deferred revenues
|
| | | | 36 | | | | | | 26 | | | | ||
Depreciation
|
| | | | 35 | | | | | | 10 | | | | ||
Other
|
| | | | 16 | | | | | | 12 | | | | ||
Total deferred tax asset before valuation allowance
|
| | | | 49,154 | | | | | | 52,283 | | | | ||
Less: valuation allowance
|
| | | | — | | | | | | — | | | | ||
Net deferred tax asset
|
| | | | 49,154 | | | | | | 52,283 | | | | ||
Deferred tax liabilities: | | | | | | | | | | | | | | | ||
Amortization
|
| | | | 564 | | | | | | 365 | | | | ||
Total deferred tax liabilities
|
| | | | 564 | | | | | | 365 | | | | ||
Deferred tax assets, net
|
| | | $ | 48,590 | | | | | $ | 51,918 | | | |
|
Unrecognized tax benefits as of December 31, 2018
|
| | | $ | 143 | | |
|
Gross increases – tax positions in prior period
|
| | | | — | | |
|
Gross decreases – tax positions in prior period
|
| | | | (143) | | |
|
Gross increases – tax positions in current period
|
| | | | — | | |
|
Settlement
|
| | | | — | | |
|
Lapse of statue limitations
|
| | | | — | | |
|
Unrecognized tax benefits as of December 31, 2019
|
| | | $ | — | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Forbes Media
|
| |
Marketplace
|
| |
Quantalytics
|
| |
Other
|
| |
Corporate
and other adjustments |
| |
Total
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advertising
|
| | | $ | 116,379 | | | | | $ | 5,742 | | | | | $ | — | | | | | $ | 2,839 | | | | | $ | — | | | | | $ | 124,960 | | |
Circulation
|
| | | | 15,529 | | | | | | — | | | | | | — | | | | | | 555 | | | | | | — | | | | | | 16,084 | | |
Other
|
| | | | 40,466 | | | | | | — | | | | | | — | | | | | | 3,343 | | | | | | — | | | | | | 43,809 | | |
Total
|
| | | $ | 172,374 | | | | | $ | 5,742 | | | | | $ | — | | | | | $ | 6,737 | | | | | | | | | | | $ | 184,853 | | |
Adjusted EBITDA
|
| | | $ | 41,832 | | | | | $ | (2,972) | | | | | $ | (1,539) | | | | | $ | (4,793) | | | | | $ | — | | | | | $ | 32,528 | | |
Total assets
|
| | | $ | 258,601 | | | | | $ | 967 | | | | | $ | 3,326 | | | | | $ | 4,313 | | | | | $ | 48,590 | | | | | $ | 315,797 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||||||||||||||
| | |
Forbes Media
|
| |
Marketplace
|
| |
Quantalytics
|
| |
Other
|
| |
Corporate
and other adjustments |
| |
Total
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advertising
|
| | | $ | 113,373 | | | | | $ | 342 | | | | | $ | — | | | | | $ | 3,405 | | | | | $ | — | | | | | $ | 117,120 | | |
Circulation
|
| | | | 24,092 | | | | | | — | | | | | | — | | | | | | 1,095 | | | | | | — | | | | | | 25,187 | | |
Other
|
| | | | 61,012 | | | | | | — | | | | | | — | | | | | | 7,309 | | | | | | — | | | | | | 68,321 | | |
Total
|
| | | $ | 198,477 | | | | | $ | 342 | | | | | $ | — | | | | | $ | 11,809 | | | | | $ | — | | | | | $ | 210,628 | | |
Adjusted EBITDA
|
| | | $ | 47,969 | | | | | $ | (2,085) | | | | | $ | (125) | | | | | $ | (6,147) | | | | | $ | — | | | | | $ | 39,612 | | |
Total assets
|
| | | $ | 249,496 | | | | | $ | 2,340 | | | | | $ | 4,886 | | | | | $ | 6,881 | | | | | $ | 51,918 | | | | | $ | 315,521 | | |
| | |
Year Ended December 31, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Forbes Media
|
| |
Marketplace
|
| |
Quantalytics
|
| |
Other
|
| |
Corporate
and other adjustments |
| |
Total
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Net income (loss)
|
| | | $ | 21,203 | | | | | $ | (2,972) | | | | | $ | (1,683) | | | | | $ | (5,680) | | | | | $ | (3,328) | | | | | $ | 7,540 | | |
Interest expense
|
| | | | 947 | | | | | | — | | | | | | (6) | | | | | | — | | | | | | — | | | | | | 941 | | |
Interest income
|
| | | | (25) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (25) | | |
Income taxes
|
| | | | 516 | | | | | | — | | | | | | — | | | | | | 162 | | | | | | 3,328 | | | | | | 4,006 | | |
Depreciation and amortization
|
| | | | 13,998 | | | | | | — | | | | | | 150 | | | | | | 31 | | | | | | — | | | | | | 14,179 | | |
Stock-based compensation
|
| | | | (2,270) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,270) | | |
Management fees
|
| | | | 980 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 980 | | |
Gain/loss on sale
|
| | | | (12) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (12) | | |
Restructuring charges(1)
|
| | | | 5,210 | | | | | | — | | | | | | — | | | | | | 298 | | | | | | — | | | | | | 5,508 | | |
Goodwill impairment charge
|
| | | | — | | | | | | — | | | | | | — | | | | | | 727 | | | | | | — | | | | | | 727 | | |
Other(2)
|
| | | | 1,285 | | | | | | — | | | | | | — | | | | | | (331) | | | | | | — | | | | | | 954 | | |
Adjusted EBITDA
|
| | | $ | 41,832 | | | | | $ | (2,972) | | | | | $ | (1,539) | | | | | $ | (4,793) | | | | | $ | — | | | | | $ | 32,528 | | |
| | |
Year Ended December 31, 2019
|
| |||||||||||||||||||||||||||||||||
| | |
Forbes Media
|
| |
Marketplace
|
| |
Quantalytics
|
| |
Other
|
| |
Corporate
and other adjustments |
| |
Total
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Net income (loss)
|
| | | $ | 23,092 | | | | | $ | (2,085) | | | | | $ | (226) | | | | | $ | (7,446) | | | | | $ | (5,698) | | | | | $ | 7,637 | | |
Interest expense
|
| | | | 1,183 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,183 | | |
Interest income
|
| | | | (154) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (154) | | |
Income taxes
|
| | | | 647 | | | | | | — | | | | | | — | | | | | | 394 | | | | | | 5,698 | | | | | | 6,739 | | |
Depreciation and amortization
|
| | | | 13,750 | | | | | | — | | | | | | 101 | | | | | | 92 | | | | | | — | | | | | | 13,943 | | |
Stock-based compensation
|
| | | | 2,583 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,583 | | |
Management fees
|
| | | | 1,062 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,062 | | |
Gain/loss on sale
|
| | | | 85 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 85 | | |
Restructuring charges(1)
|
| | | | 4,374 | | | | | | — | | | | | | — | | | | | | 813 | | | | | | — | | | | | | 5,187 | | |
Other(2)
|
| | | | 1,347 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,347 | | |
Adjusted EBITDA
|
| | | $ | 47,969 | | | | | $ | (2,085) | | | | | $ | (125) | | | | | $ | (6,147) | | | | | $ | — | | | | | $ | 39,612 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Geographic Region: | | | | | | | | | | | | | |
United States
|
| | | $ | 155,731 | | | | | $ | 180,331 | | |
Asia
|
| | | | 16,806 | | | | | | 18,023 | | |
Other
|
| | | | 12,316 | | | | | | 12,274 | | |
Total revenue
|
| | | $ | 184,853 | | | | | $ | 210,628 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Geographic Region: | | | | | | | | | | | | | |
United States
|
| | | $ | 129,568 | | | | | $ | 139,048 | | |
Asia
|
| | | | 416 | | | | | | 428 | | |
Total long-lived assets, net
|
| | | $ | 129,984 | | | | | $ | 139,476 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Cost of revenue (excluding depreciation and amortization)
|
| | | $ | 554 | | | | | $ | 518 | | |
Sales and marketing
|
| | | | 231 | | | | | | 228 | | |
Product development
|
| | | | 199 | | | | | | 151 | | |
General and administrative
|
| | | | 89 | | | | | | 12 | | |
Total
|
| | | $ | 1,073 | | | | | $ | 909 | | |
Years Ending December 31,
|
| | | | | | |
2021
|
| | | $ | 5,048 | | |
2022
|
| | | | 4,718 | | |
2023
|
| | | | 4,322 | | |
2024
|
| | | | 4,306 | | |
2025
|
| | | | 1,757 | | |
Thereafter
|
| | | | 1,778 | | |
Total future minimum lease payments
|
| | | $ | 21,929 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(Unaudited)
|
| | ||||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 28,644 | | | | | $ | 48,314 | | |
Accounts receivable, net
|
| | | | 45,615 | | | | | | 45,181 | | |
Current portion of deferred subscription commissions
|
| | | | 7,323 | | | | | | 7,852 | | |
Prepaid expenses and other current assets
|
| | | | 12,568 | | | | | | 15,178 | | |
Total current assets
|
| | | | 94,150 | | | | | | 116,525 | | |
Deferred subscription commissions, net of current portion
|
| | | | 2,437 | | | | | | 2,610 | | |
Property and equipment, net
|
| | | | 12,889 | | | | | | 10,935 | | |
Investments
|
| | | | 1,370 | | | | | | 1,370 | | |
Equity method investments
|
| | | | 2,206 | | | | | | — | | |
Goodwill, net
|
| | | | 12,040 | | | | | | 12,040 | | |
Intangible assets, net
|
| | | | 110,759 | | | | | | 119,049 | | |
Deferred tax assets, net
|
| | | | 45,332 | | | | | | 48,590 | | |
Other assets
|
| | | | 4,368 | | | | | | 4,678 | | |
Total assets
|
| | | $ | 285,551 | | | | | $ | 315,797 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 883 | | | | | $ | 942 | | |
Accrued expenses and other current liabilities
|
| | | | 7,629 | | | | | | 8,549 | | |
Current portion of unexpired subscriptions
|
| | | | 11,994 | | | | | | 10,769 | | |
Current portion of deferred revenues
|
| | | | 11,915 | | | | | | 8,958 | | |
Accrued compensation
|
| | | | 8,301 | | | | | | 7,332 | | |
Loans payable, current
|
| | | | 580 | | | | | | 8,616 | | |
Total current liabilities
|
| | | | 41,302 | | | | | | 45,166 | | |
Loans payable, net of current portion, debt discount, and debt issuance costs
|
| | | | 11,656 | | | | | | 12,091 | | |
Unexpired subscriptions
|
| | | | 5,492 | | | | | | 5,949 | | |
Deferred revenues, net of current portion
|
| | | | 3,515 | | | | | | 4,139 | | |
Other liabilities
|
| | | | 7,651 | | | | | | 5,033 | | |
Total liabilities
|
| | | | 69,616 | | | | | | 72,378 | | |
Commitments and contingencies (See Note 19) | | | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Common stock, $1 par value per share; 50,000 shares authorized; 10,000
shares issued and outstanding as of September 30, 2021 and December 31, 2020 |
| | | | 10 | | | | | | 10 | | |
Additional paid-in capital
|
| | | | 153,642 | | | | | | 200,639 | | |
Retained earnings
|
| | | | 29,188 | | | | | | 15,203 | | |
Accumulated other comprehensive loss
|
| | | | (24) | | | | | | (30) | | |
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders
|
| | | | 182,816 | | | | | | 215,822 | | |
Noncontrolling interest
|
| | | | 33,119 | | | | | | 27,597 | | |
Total shareholders’ equity
|
| | | | 215,935 | | | | | | 243,419 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 285,551 | | | | | $ | 315,797 | | |
| | |
Nine Months Ended September 30,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Revenues
|
| | | $ | 164,836 | | | | | $ | 122,569 | | |
Total revenues
|
| | | | 164,836 | | | | | | 122,569 | | |
Operating costs: | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization)
|
| | | | 64,485 | | | | | | 59,827 | | |
Sales and marketing
|
| | | | 30,311 | | | | | | 18,810 | | |
Product development
|
| | | | 15,566 | | | | | | 13,027 | | |
General and administrative
|
| | | | 28,259 | | | | | | 22,749 | | |
Depreciation and amortization
|
| | | | 11,113 | | | | | | 10,038 | | |
Total operating costs
|
| | | | 149,734 | | | | | | 124,451 | | |
Operating profit (loss)
|
| | | | 15,102 | | | | | | (1,882) | | |
Other income (expense), net: | | | | | | | | | | | | | |
Gain on loan forgiveness
|
| | | | 8,036 | | | | | | — | | |
Gain on sale of Forbes Media Hong Kong Limited
|
| | | | 1,556 | | | | | | — | | |
Interest expense
|
| | | | (574) | | | | | | (678) | | |
Other (expense) income, net
|
| | | | (690) | | | | | | 305 | | |
Total other income (expense), net
|
| | | | 8,328 | | | | | | (373) | | |
Income (loss) from operations before income taxes
|
| | | | 23,430 | | | | | | (2,255) | | |
Income tax expense
|
| | | | 3,922 | | | | | | 517 | | |
Net income (loss)
|
| | | | 19,508 | | | | | | (2,772) | | |
Less: net income (loss) attributable to noncontrolling interest
|
| | | | 5,523 | | | | | | (1,033) | | |
Net income (loss) attributable to Forbes Global Holdings Inc. shareholders
|
| | | $ | 13,985 | | | | | $ | (1,739) | | |
| | |
Nine Months Ended September 30,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Net income (loss)
|
| | | $ | 19,508 | | | | | $ | (2,772) | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Foreign currency translation adjustments, net of taxes
|
| | | | 8 | | | | | | 56 | | |
Total other comprehensive income (loss)
|
| | | | 19,516 | | | | | | (2,716) | | |
Comprehensive income (loss) attributable to noncontrolling interest
|
| | | | 5,523 | | | | | | (1,033) | | |
Comprehensive income (loss) attributable to Forbes Global Holdings Inc. shareholders
|
| | | $ | 13,993 | | | | | $ | (1,683) | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Accumulated
Other Comprehensive Loss |
| |
Total
Shareholders’ Equity Attributable to Forbes Global Holdings Inc. Shareholders |
| |
Noncontrolling
Interest |
| |
Total
Shareholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020
|
| | | | 10,000 | | | | | $ | 10 | | | | | $ | 200,639 | | | | | $ | 15,203 | | | | | $ | (30) | | | | | $ | 215,822 | | | | | $ | 27,597 | | | | | $ | 243,419 | | |
Contribution from noncontrolling interests
|
| | | | | | | | | | — | | | | | | 503 | | | | | | — | | | | | | — | | | | | | 503 | | | | | | 2,497 | | | | | | 3,000 | | |
Distribution to shareholders
|
| | | | | | | | | | — | | | | | | (47,500) | | | | | | — | | | | | | — | | | | | | (47,500) | | | | | | (2,500) | | | | | | (50,000) | | |
Foreign currency translation adjustment, net of tax
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 6 | | | | | | 6 | | | | | | 2 | | | | | | 8 | | |
Net income
|
| | | | | | | | | | — | | | | | | — | | | | | | 13,985 | | | | | | — | | | | | | 13,985 | | | | | | 5,523 | | | | | | 19,508 | | |
Balance as of September 30, 2021
|
| | | | 10,000 | | | | | $ | 10 | | | | | $ | 153,642 | | | | | $ | 29,188 | | | | | $ | (24) | | | | | $ | 182,816 | | | | | $ | 33,119 | | | | | $ | 215,935 | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income |
| |
Total
Shareholders’ Equity Attributable to Forbes Global Holdings Inc. Shareholders |
| |
Noncontrolling
Interest |
| |
Total
Shareholders’ Equity |
| |||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019
|
| | | | 10,000 | | | | | $ | 10 | | | | | $ | 201,932 | | | | | $ | 8,223 | | | | | $ | (41) | | | | | $ | 210,124 | | | | | $ | 28,218 | | | | | $ | 238,342 | | |
Foreign currency translation adjustment, net of tax
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 48 | | | | | | 48 | | | | | | 8 | | | | | | 56 | | |
Net loss
|
| | | | | | | | | | — | | | | | | — | | | | | | (1,739) | | | | | | — | | | | | | (1,739) | | | | | | (1,033) | | | | | | (2,772) | | |
Balance as of September 30, 2020
|
| | | | 10,000 | | | | | $ | 10 | | | | | $ | 201,932 | | | | | $ | 6,484 | | | | | $ | 7 | | | | | $ | 208,433 | | | | | $ | 27,193 | | | | | $ | 235,626 | | |
| | |
Nine Months Ended September 30,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 19,508 | | | | | $ | (2,772) | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 11,113 | | | | | | 10,038 | | |
Liability-classified stock-based compensation
|
| | | | 3,050 | | | | | | (2,409) | | |
Amortization of debt issuance costs
|
| | | | 128 | | | | | | 128 | | |
Gain on debt forgiveness
|
| | | | (8,036) | | | | | | — | | |
Gain on sale of Forbes Media Hong Kong Limited
|
| | | | (1,556) | | | | | | — | | |
Loss from equity method investment
|
| | | | 600 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable, net
|
| | | | (1,285) | | | | | | 20,445 | | |
Deferred subscription commissions
|
| | | | 702 | | | | | | 3,664 | | |
Prepaid expenses and other current assets
|
| | | | 2,333 | | | | | | 1,473 | | |
Other assets
|
| | | | 327 | | | | | | 418 | | |
Accounts payable
|
| | | | (59) | | | | | | 359 | | |
Accrued expenses and other current liabilities
|
| | | | (622) | | | | | | (4,396) | | |
Accrued compensation
|
| | | | 969 | | | | | | (3,255) | | |
Unexpired subscriptions
|
| | | | 768 | | | | | | (3,492) | | |
Deferred revenues
|
| | | | 2,282 | | | | | | 1,117 | | |
Deferred taxes
|
| | | | 3,258 | | | | | | — | | |
Other liabilities
|
| | | | (747) | | | | | | (453) | | |
Net cash provided by operating activities
|
| | | | 32,733 | | | | | | 20,865 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (4,831) | | | | | | (3,042) | | |
Investment in Creative Labs
|
| | | | — | | | | | | (321) | | |
Net cash used in investing activities
|
| | | | (4,831) | | | | | | (3,363) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Distributions to shareholders
|
| | | | (50,000) | | | | | | — | | |
Contributions from noncontrolling interests
|
| | | | 3,000 | | | | | | — | | |
Payments of long-term debt
|
| | | | (563) | | | | | | (563) | | |
Proceeds from the Paycheck Protection Program loan
|
| | | | — | | | | | | 8,036 | | |
Net cash provided by (used in) financing activities
|
| | | | (47,563) | | | | | | 7,473 | | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
| | | | 8 | | | | | | 56 | | |
Net (decrease) increase in cash, cash equivalents, and restricted cash
|
| | | | (19,653) | | | | | | 25,031 | | |
Cash, cash equivalents, and restricted cash at beginning of the period
|
| | | | 50,281 | | | | | | 23,370 | | |
Cash, cash equivalents, and restricted cash at end of the period
|
| | | $ | 30,628 | | | | | $ | 48,401 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 447 | | | | | $ | 564 | | |
Cash paid for income taxes
|
| | | $ | 365 | | | | | $ | 363 | | |
Supplemental disclosure of non-cash financing activities: | | | | | | | | | | | | | |
Equity method investment in Energetic Force
|
| | | $ | 2,300 | | | | | $ | — | | |
Subsidiaries
|
| |
Equity Interest(i)
|
|
FGMH and its subsidiaries
|
| |
95%
|
|
Quantalytics
|
| |
See Note 4, “Variable Interest Entities”
|
|
Marketplace
|
| |
See Note 4, “Variable Interest Entities”
|
|
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Reconciliation of cash and cash equivalents and restricted cash: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 28,644 | | | | | $ | 48,314 | | |
Restricted cash included within other assets
|
| | | | 1,984 | | | | | | 1,967 | | |
Total cash and cash equivalents and restricted cash
|
| | | $ | 30,628 | | | | | $ | 50,281 | | |
| | |
Marketplace
|
| |
Quantalytics
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 5,650 | | | | | $ | 560 | | |
Accounts receivable, net
|
| | | | 8,067 | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | 453 | | | | | | — | | |
Total current assets
|
| | | | 14,170 | | | | | | 560 | | |
Property and equipment, net
|
| | | | 465 | | | | | | 3,290 | | |
Other assets
|
| | | | — | | | | | | 108 | | |
Total assets
|
| | | $ | 14,635 | | | | | $ | 3,958 | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 500 | | | | | $ | — | | |
Accrued expenses and other current liabilities
|
| | | | — | | | | | | 1,344 | | |
Due to an affiliate
|
| | | | 5,687 | | | | | | 1,350 | | |
Total current liabilities
|
| | | | 6,187 | | | | | | 2,694 | | |
Total liabilities
|
| | | $ | 6,187 | | | | | $ | 2,694 | | |
| | |
Marketplace
|
| |
Quantalytics
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 556 | | | | | $ | 1,186 | | |
Accounts receivable, net
|
| | | | 1,539 | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | 784 | | | | | | — | | |
Total current assets
|
| | | | 2,879 | | | | | | 1,186 | | |
Property and equipment, net
|
| | | | 308 | | | | | | 2,084 | | |
Other assets
|
| | | | — | | | | | | 103 | | |
Total assets
|
| | | $ | 3,187 | | | | | $ | 3,373 | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 19 | | | | | $ | — | | |
Accrued expenses and other current liabilities
|
| | | | — | | | | | | 155 | | |
Due to an affiliate
|
| | | | 2,220 | | | | | | — | | |
Total current liabilities
|
| | | | 2,239 | | | | | | 155 | | |
Total liabilities
|
| | | $ | 2,239 | | | | | $ | 155 | | |
| | |
As of September 30, 2021
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Liability-classified stock options
|
| | | $ | 6,345 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,345 | | |
Total
|
| | | $ | 6,345 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,345 | | |
| | |
As of December 31, 2020
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Liability-classified stock options
|
| | | $ | 3,295 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,295 | | |
Total
|
| | | $ | 3,295 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,295 | | |
|
Balance as of December 31, 2019
|
| | | $ | 5,565 | | |
|
Change in fair value
|
| | | | (2,270) | | |
|
Balance as of December 31, 2020
|
| | | $ | 3,295 | | |
|
Change in fair value
|
| | | | 3,050 | | |
|
Balance as of September 30, 2021
|
| | | $ | 6,345 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Weighted-average expected term in years
|
| | | | 0.50 | | | | | | 1.00 | | |
Weighted-average expected stock price volatility
|
| | | | 35.1% | | | | | | 79.0% | | |
Risk-free interest rate
|
| | | | 0.05% | | | | | | 0.10% | | |
Expected dividend yield
|
| | | | 0% | | | | | | 0% | | |
| | |
As of December 31, 2020
|
| |||||||||||||||||||||
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Goodwill | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill, related to Forbes Asia
|
| | | $ | 3,104 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,104 | | |
Total
|
| | | $ | 3,104 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,104 | | |
| | |
Nine Months Ended September 30, 2021
|
| |||||||||||||||||||||
| | |
Media
|
| |
Brand Extension
|
| |
Consumer
|
| |
Total
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Advertising
|
| | | $ | 105,199 | | | | | $ | — | | | | | $ | 10,551 | | | | | $ | 115,750 | | |
Circulation
|
| | | | 7,922 | | | | | | — | | | | | | 2,298 | | | | | | 10,220 | | |
Licensing
|
| | | | — | | | | | | 14,028 | | | | | | 800 | | | | | | 14,828 | | |
Events
|
| | | | — | | | | | | 10,236 | | | | | | 54 | | | | | | 10,290 | | |
Research
|
| | | | — | | | | | | 6,252 | | | | | | — | | | | | | 6,252 | | |
Other
|
| | | | — | | | | | | 7,432 | | | | | | 64 | | | | | | 7,496 | | |
Total revenues
|
| | | $ | 113,121 | | | | | $ | 37,948 | | | | | $ | 13,767 | | | | | $ | 164,836 | | |
| | |
Nine Months Ended September 30, 2020
|
| |||||||||||||||||||||
| | |
Media
|
| |
Brand Extension
|
| |
Consumer
|
| |
Total
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Advertising
|
| | | $ | 78,267 | | | | | $ | — | | | | | $ | 4,910 | | | | | $ | 83,177 | | |
Circulation
|
| | | | 9,324 | | | | | | — | | | | | | 1,016 | | | | | | 10,340 | | |
Licensing
|
| | | | — | | | | | | 11,495 | | | | | | 1,023 | | | | | | 12,518 | | |
Events
|
| | | | — | | | | | | 4,368 | | | | | | 560 | | | | | | 4,928 | | |
Research
|
| | | | — | | | | | | 6,001 | | | | | | — | | | | | | 6,001 | | |
Other
|
| | | | — | | | | | | 5,605 | | | | | | — | | | | | | 5,605 | | |
Total revenues
|
| | | $ | 87,591 | | | | | $ | 27,469 | | | | | $ | 7,509 | | | | | $ | 122,569 | | |
| | |
Nine Months Ended September 30,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Revenue, net transferred at a point in time
|
| | | $ | 85,898 | | | | | $ | 69,220 | | |
Revenue, net transferred over time
|
| | | | 78,938 | | | | | | 53,349 | | |
Total
|
| | | $ | 164,836 | | | | | $ | 122,569 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Accounts receivable, net
|
| | | $ | 45,615 | | | | | $ | 45,181 | | |
Contract assets included in prepaid expenses and other current assets
|
| | | $ | 4,001 | | | | | $ | 894 | | |
Unexpired subscriptions, current and noncurrent portions
|
| | | $ | 17,486 | | | | | $ | 16,718 | | |
Deferred revenues, current and noncurrent portions
|
| | | $ | 15,430 | | | | | $ | 13,097 | | |
| | |
Unexpired
Subscriptions |
| |
Deferred Revenues
|
| |
Total
|
| |||||||||
Balance as of December 31, 2019
|
| | | $ | 23,452 | | | | | $ | 12,609 | | | | | $ | 36,061 | | |
Amounts billed but not recognized
|
| | | | 5,883 | | | | | | 16,964 | | | | | | 22,847 | | |
Revenue recognized
|
| | | | (9,375) | | | | | | (15,749) | | | | | | (25,124) | | |
Balance as of September 30, 2020
|
| | | $ | 19,960 | | | | | $ | 13,824 | | | | | $ | 33,784 | | |
Balance as of December 31, 2020
|
| | | $ | 16,718 | | | | | $ | 13,097 | | | | | $ | 29,815 | | |
Amounts billed but not recognized
|
| | | | 10,596 | | | | | | 26,191 | | | | | | 36,787 | | |
Revenue recognized
|
| | | | (9,828) | | | | | | (23,858) | | | | | | (33,686) | | |
Balance as of September 30, 2021
|
| | | $ | 17,486 | | | | | $ | 15,430 | | | | | $ | 32,916 | | |
| | |
As of
|
| |||||||||
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Prepaid insurance
|
| | | $ | 83 | | | | | $ | 882 | | |
Contract assets
|
| | | | 4,001 | | | | | | 894 | | |
Deposits
|
| | | | 83 | | | | | | 242 | | |
Tax credits
|
| | | | 2,300 | | | | | | 4,598 | | |
Other prepaid expenses
|
| | | | 5,168 | | | | | | 7,721 | | |
Other current assets
|
| | | | 933 | | | | | | 841 | | |
Total prepaid expenses and other current assets
|
| | | $ | 12,568 | | | | | $ | 15,178 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Furniture and fixtures
|
| | | $ | 10,212 | | | | | $ | 9,390 | | |
Capitalized internal-use software
|
| | | | 2,259 | | | | | | 1,281 | | |
Website development costs
|
| | | | 9,995 | | | | | | 7,035 | | |
Leasehold improvements
|
| | | | 10,534 | | | | | | 10,688 | | |
| | | | | 33,000 | | | | | | 28,394 | | |
Less: accumulated depreciation and amortization
|
| | | | (20,111) | | | | | | (17,459) | | |
Property and equipment, net
|
| | | $ | 12,889 | | | | | $ | 10,935 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Outdoor Voices, Inc.
|
| | | $ | 1,000 | | | | | $ | 1,000 | | |
Creative Labs
|
| | | | 319 | | | | | | 319 | | |
Roman Health Ventures, Inc
|
| | | | 51 | | | | | | 51 | | |
Total
|
| | | $ | 1,370 | | | | | $ | 1,370 | | |
| | |
Forbes Media
|
| |
Forbes Asia
|
| |
Total Goodwill
|
| |||||||||
Balance as of December 31, 2019
|
| | | $ | 8,936 | | | | | $ | 3,831 | | | | | $ | 12,767 | | |
Goodwill impairment charge
|
| | | | — | | | | | | (727) | | | | | | (727) | | |
Balance as of December 31, 2020(1)
|
| | | $ | 8,936 | | | | | $ | 3,104 | | | | | $ | 12,040 | | |
Goodwill impairment charge
|
| | | | — | | | | | | — | | | | | | — | | |
Balance as of September 30, 2021(1)
|
| | | $ | 8,936 | | | | | $ | 3,104 | | | | | $ | 12,040 | | |
| | |
As of September 30, 2021
|
| |||||||||||||||||||||
| | |
Weighted-Average
Remaining Amortization Period (in years) |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Trade names and trademarks
|
| | | | 13.3 | | | | | $ | 108,300 | | | | | $ | (38,183) | | | | | $ | 70,117 | | |
Advertiser relationships
|
| | | | 12.3 | | | | | | 78,430 | | | | | | (38,736) | | | | | | 39,694 | | |
Subscriber relationships
|
| | | | — | | | | | | 160 | | | | | | (160) | | | | | | — | | |
EBSCO publishing license agreement
|
| | | | 5.3 | | | | | | 2,300 | | | | | | (1,352) | | | | | | 948 | | |
Favorable leases
|
| | | | — | | | | | | 278 | | | | | | (278) | | | | | | — | | |
Other
|
| | | | — | | | | | | 746 | | | | | | (746) | | | | | | — | | |
Total
|
| | | | | | | | | $ | 190,214 | | | | | $ | (79,455) | | | | | $ | 110,759 | | |
| | |
As of December 31, 2020
|
| |||||||||||||||||||||
| | |
Weighted-Average
Remaining Amortization Period (in years) |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Trade names and trademarks
|
| | | | 14 | | | | | $ | 108,300 | | | | | $ | (34,121) | | | | | $ | 74,179 | | |
Advertiser relationships
|
| | | | 13 | | | | | | 78,430 | | | | | | (34,652) | | | | | | 43,778 | | |
Subscriber relationships
|
| | | | — | | | | | | 160 | | | | | | (160) | | | | | | — | | |
EBSCO publishing license agreement
|
| | | | 6 | | | | | | 2,300 | | | | | | (1,208) | | | | | | 1,092 | | |
Favorable leases
|
| | | | — | | | | | | 278 | | | | | | (278) | | | | | | — | | |
Other
|
| | | | — | | | | | | 746 | | | | | | (746) | | | | | | — | | |
Total
|
| | | | | | | | | $ | 190,214 | | | | | $ | (71,165) | | | | | $ | 119,049 | | |
As of Nine Months Ended September 30,
|
| |
Intangible Assets
|
| |||
2021
|
| | | | 2,764 | | |
2022
|
| | | | 11,053 | | |
2023
|
| | | | 11,053 | | |
2024
|
| | | | 10,836 | | |
2025 and Thereafter
|
| | | | 75,053 | | |
Total
|
| | | $ | 110,759 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Term Loan
|
| | | $ | 12,562 | | | | | $ | 13,125 | | |
Paycheck Protection Program
|
| | | | — | | | | | | 8,036 | | |
Debt discount
|
| | | | (153) | | | | | | (213) | | |
Debt issuance costs
|
| | | | (173) | | | | | | (241) | | |
Less: current portion
|
| | | | (580) | | | | | | (8,616) | | |
Total loans payable, net of debt discount and debt issuance costs
|
| | | $ | 11,656 | | | | | $ | 12,091 | | |
| | |
Number of
Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Contractual Term (in years) |
| |
Aggregate
Intrinsic Value (in thousands) |
| ||||||||||||
Outstanding as of December 31, 2020
|
| | | | 1,073 | | | | | $ | 14,583 | | | | | | 5.5 | | | | | $ | — | | |
Granted
|
| | | | 858 | | | | | | 14,583 | | | | | | — | | | | | | | | |
Exercised
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | |
Cancelled or forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | |
Outstanding as of September 30, 2021
|
| | | | 1,931 | | | | | $ | 14,583 | | | | | | 6.9 | | | | | $ | 11,638 | | |
Vested and expected to vest as of September 30, 2021
|
| | | | 1,931 | | | | | | 14,583 | | | | | | 6.9 | | | | | $ | 11,638 | | |
Exercisable as of September 30, 2021
|
| | | | 852 | | | | | $ | 14,583 | | | | | | 4.5 | | | | | $ | 5,139 | | |
| | |
Nine Months Ended September 30,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Cost of revenue (excluding depreciation and amortization)
|
| | | $ | 275 | | | | | $ | (370) | | |
General and administrative
|
| | | | 2,256 | | | | | | (2,039) | | |
Sales and marketing
|
| | | | 275 | | | | | | — | | |
Product development
|
| | | | 244 | | | | | | — | | |
Total
|
| | | $ | 3,050 | | | | | $ | (2,409) | | |
| | |
September 30, 2021
|
| |||||||||||||||||||||||||||||||||
| | |
Forbes Media
|
| |
Marketplace
|
| |
Quantalytics
|
| |
Other
|
| |
Corporate and
other adjustments |
| |
Total
|
| ||||||||||||||||||
| | |
(in thousands)
|
| | ||||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Advertising
|
| | | $ | 88,624 | | | | | $ | 25,367 | | | | | $ | — | | | | | $ | 1,760 | | | | | $ | — | | | | | $ | 115,751 | | |
Circulation
|
| | | | 10,029 | | | | | | — | | | | | | — | | | | | | 191 | | | | | | — | | | | | | 10,220 | | |
Licensing
|
| | | | 14,828 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,828 | | |
Events
|
| | | | 9,016 | | | | | | — | | | | | | — | | | | | | 1,273 | | | | | | — | | | | | | 10,289 | | |
Research
|
| | | | 6,252 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,252 | | |
Other
|
| | | | 7,359 | | | | | | — | | | | | | 64 | | | | | | 73 | | | | | | — | | | | | | 7,496 | | |
Total
|
| | | $ | 136,108 | | | | | $ | 25,367 | | | | | $ | 64 | | | | | $ | 3,297 | | | | | $ | — | | | | | $ | 164,836 | | |
Adjusted EBITDA
|
| | | $ | 30,069 | | | | | $ | 4,680 | | | | | $ | (1,315) | | | | | $ | 10 | | | | | $ | — | | | | | $ | 33,444 | | |
Total assets
|
| | | | 228,780 | | | | | | 1,809 | | | | | | 3,586 | | | | | | 6,044 | | | | | $ | 45,332 | | | | | | 285,551 | | |
| | |
September 30, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Forbes Media
|
| |
Marketplace
|
| |
Quantalytics
|
| |
Other
|
| |
Corporate
and Other Adjustments |
| |
Total
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Advertising
|
| | | $ | 78,350 | | | | | $ | 3,378 | | | | | $ | — | | | | | $ | 1,449 | | | | | | — | | | | | $ | 83,177 | | |
Circulation
|
| | | | 9,850 | | | | | | — | | | | | | — | | | | | | 489 | | | | | | — | | | | | | 10,339 | | |
Licensing
|
| | | | 12,518 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,518 | | |
Events
|
| | | | 4,826 | | | | | | — | | | | | | — | | | | | | 100 | | | | | | — | | | | | | 4,926 | | |
Research
|
| | | | 6,001 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,001 | | |
Other
|
| | | | 5,548 | | | | | | — | | | | | | — | | | | | | 60 | | | | | | — | | | | | | 5,608 | | |
Total
|
| | | $ | 117,093 | | | | | $ | 3,378 | | | | | $ | — | | | | | $ | 2,098 | | | | | | — | | | | | $ | 122,569 | | |
Adjusted EBITDA
|
| | | $ | 14,016 | | | | | $ | (2,019) | | | | | $ | (133) | | | | | $ | 2,491 | | | | | | — | | | | | $ | 14,355 | | |
Total assets as of December 31, 2020
|
| | | | 258,601 | | | | | | 967 | | | | | | 3,326 | | | | | | 4,313 | | | | | | 48,590 | | | | | | 315,797 | | |
| | |
Nine Months Ended September 30, 2021
|
| |||||||||||||||||||||||||||||||||
| | |
Forbes Media
|
| |
Marketplace
|
| |
Quantalytics
|
| |
Other
|
| |
Corporate
and Other Adjustments |
| |
Total
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Net income (loss)
|
| | | $ | 21,641 | | | | | | 4,501 | | | | | $ | (1,683) | | | | | $ | (1,693) | | | | | $ | (3,258) | | | | | $ | 19,508 | | |
Interest expense
|
| | | | 604 | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 605 | | |
Interest income
|
| | | | (18) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (18) | | |
Income taxes
|
| | | | 664 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,258 | | | | | | 3,922 | | |
Depreciation and amortization
|
| | | | 10,409 | | | | | | 179 | | | | | | 367 | | | | | | 158 | | | | | | — | | | | | | 11,113 | | |
Stock-based compensation
|
| | | | 3,050 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,050 | | |
Management fees
|
| | | | 750 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 750 | | |
Gain/loss on sale
|
| | | | (1,384) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,384) | | |
Restructuring charges(1)
|
| | | | 735 | | | | | | — | | | | | | — | | | | | | 1,601 | | | | | | — | | | | | | 2,336 | | |
Gain on loan forgiveness
|
| | | | (8,036) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,036) | | |
Gain on sale of Forbes Media Hong Kong Limited
|
| | | | (1,556) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,556) | | |
Other(2)
|
| | | | 3,210 | | | | | | — | | | | | | — | | | | | | (56) | | | | | | — | | | | | | 3,154 | | |
Adjusted EBITDA
|
| | | $ | 30,069 | | | | | $ | 4,680 | | | | | $ | (1,315) | | | | | $ | 10 | | | | | | — | | | | | $ | 33,444 | | |
| | |
Nine Months Ended September 30, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Forbes Media
|
| |
Marketplace
|
| |
Quantalytics
|
| |
Other
|
| |
Corporate
and Other Adjustments |
| |
Total
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Net loss
|
| | | $ | 221 | | | | | | (2,117) | | | | | $ | (226) | | | | | $ | (650) | | | | | | — | | | | | $ | (2,772) | | |
Interest expense
|
| | | | 751 | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 752 | | |
Interest income
|
| | | | (18) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (18) | | |
Income taxes
|
| | | | 517 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 517 | | |
Depreciation and amortization
|
| | | | 9,683 | | | | | | 98 | | | | | | 92 | | | | | | 165 | | | | | | — | | | | | | 10,038 | | |
Stock-based compensation
|
| | | | (2,409) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,409) | | |
Management fees
|
| | | | 730 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 730 | | |
Gain/loss on sale
|
| | | | (12) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (12) | | |
Restructuring charges(1)
|
| | | | 3,493 | | | | | | — | | | | | | — | | | | | | 3,243 | | | | | | — | | | | | | 6,736 | | |
Other(2)
|
| | | | 1,060 | | | | | | — | | | | | | — | | | | | | (267) | | | | | | — | | | | | | 793 | | |
Adjusted EBITDA
|
| | | $ | 14,016 | | | | | $ | (2,019) | | | | | $ | (133) | | | | | $ | 2,491 | | | | | | — | | | | | $ | 14,355 | | |
| | |
Nine Months Ended September 30,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Cost of revenue (excluding depreciation and amortization)
|
| | | $ | 465 | | | | | $ | 414 | | |
Sales and marketing
|
| | | | 163 | | | | | | 177 | | |
Product development
|
| | | | 163 | | | | | | 146 | | |
General and administrative
|
| | | | 41 | | | | | | 92 | | |
Total
|
| | | $ | 833 | | | | | $ | 828 | | |
| | |
Page
|
| |||
| | | | A-2 | | | |
| | | | A-14 | | | |
| | | | A-14 | | | |
| | | | A-14 | | | |
| | | | A-14 | | | |
| | | | A-15 | | | |
| | | | A-17 | | | |
| | | | A-19 | | | |
| | | | A-19 | | | |
| | | | A-19 | | | |
| | | | A-19 | | | |
| | | | A-20 | | | |
| | | | A-20 | | | |
| | | | A-20 | | | |
| | | | A-20 | | | |
| | | | A-21 | | | |
| | | | A-21 | | | |
| | | | A-21 | | | |
| | | | A-22 | | | |
| | | | A-23 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-24 | | | |
| | | | A-26 | | | |
| | | | A-28 | | | |
| | | | A-30 | | | |
| | | | A-30 | | | |
| | | | A-32 | | | |
| | | | A-32 | | | |
| | | | A-33 | | | |
| | | | A-33 | | | |
| | | | A-33 | | | |
| | | | A-33 | | | |
| | | | A-34 | | | |
| | | | A-35 | | | |
| | | | A-35 | | | |
| | | | A-35 | | | |
| | | | A-35 | | | |
| | | | A-35 | | |
| | |
Page
|
| |||
| | | | A-36 | | | |
| | | | A-36 | | | |
| | | | A-36 | | | |
| | | | A-36 | | | |
| | | | A-37 | | | |
| | | | A-37 | | | |
| | | | A-37 | | | |
| | | | A-37 | | | |
| | | | A-37 | | | |
| | | | A-37 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-39 | | | |
| | | | A-39 | | | |
| | | | A-40 | | | |
| | | | A-40 | | | |
| | | | A-40 | | | |
| | | | A-40 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-41 | | | |
| | | | A-42 | | | |
| | | | A-42 | | | |
| | | | A-43 | | | |
| | | | A-44 | | | |
| | | | A-44 | | | |
| | | | A-44 | | | |
| | | | A-44 | | | |
| | | | A-45 | | | |
| | | | A-45 | | | |
| | | | A-45 | | | |
| | | | A-46 | | | |
| | | | A-46 | | | |
| | | | A-49 | | | |
| | | | A-50 | | | |
| | | | A-51 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-53 | | | |
| | | | A-55 | | |
| | |
Page
|
| |||
| | | | A-55 | | | |
| | | | A-56 | | | |
| | | | A-56 | | | |
| | | | A-56 | | | |
| | | | A-57 | | | |
| | | | A-57 | | | |
| | | | A-57 | | | |
| | | | A-57 | | | |
| | | | A-59 | | | |
| | | | A-59 | | | |
| | | | A-59 | | | |
| | | | A-59 | | | |
| | | | A-59 | | | |
| | | | A-60 | | | |
| | | | A-60 | | | |
| | | | A-61 | | | |
| | | | A-61 | | | |
| | | | A-61 | | | |
| | | | A-62 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-63 | | | |
| | | | A-64 | | | |
| | | | A-64 | | | |
| | | | A-64 | | | |
| | | | A-64 | | | |
| | | | A-64 | | | |
| | | | A-65 | | | |
| | | | A-65 | | | |
| | | | A-65 | | | |
| | | | A-66 | | | |
| | | | A-66 | | | |
| | | | A-66 | | | |
| | | | A-66 | | | |
| | | | A-66 | | | |
| | | | A-66 | | | |
| | | | A-67 | | | |
| | | | A-67 | | | |
| | | | A-68 | | |
| | |
Page
|
| |||
| | | | A-69 | | | |
| | | | A-69 | | | |
| | | | A-70 | | | |
| | | | A-71 | | | |
| | | | A-71 | | | |
| | | | A-71 | | | |
| | | | A-71 | | | |
| | | | A-72 | | | |
| | | | A-72 | | | |
| | | | A-72 | | | |
| | | | A-72 | | |
| Exhibit A – Form of A&R Purchaser Charter | | | | |
| Exhibit B – Form of Investor Rights Agreement | | | | |
| Exhibit C – Form of Investor Representation Letter | | | | |
| Exhibit D – Form of Option Surrender Agreement | | | | |
| Exhibit E – Incentive Equity Plan Term Sheet | | | | |
Term
|
| |
Section
|
|
A&R Purchaser Charter
|
| |
Recitals
|
|
AAA
|
| |
Section 10.04(a)
|
|
ACA
|
| |
Section 3.13(b)
|
|
Additional Purchaser SEC Reports
|
| |
Section 5.14(a)
|
|
Adjustment Escrow Account
|
| |
Section 2.04(c)
|
|
Adjustment Escrow Agreement
|
| |
Section 2.04(c)
|
|
Adjustment Escrow Amount
|
| |
Section 2.04(c)
|
|
Agreement
|
| |
Preamble
|
|
Allocation Principles
|
| |
Section 9.07
|
|
Alternative Financing
|
| |
Section 6.09(b)
|
|
Amendment to Services Agreement
|
| |
Recitals
|
|
Audited Financial Statements
|
| |
Section 3.05(a)
|
|
Balance Sheet Date
|
| |
Section 3.05(a)
|
|
Business Combination
|
| |
Section 5.19
|
|
Cadwalader
|
| |
Section 10.15(a)
|
|
Cadwalader Privileged Communications
|
| |
Section 10.15(a)
|
|
Certificate
|
| |
Section 2.04(a)
|
|
Certifications
|
| |
Section 5.14(a)
|
|
Change in Recommendation
|
| |
Section 6.07(d)
|
|
Claims
|
| |
Section 6.11
|
|
Closing
|
| |
Section 2.01
|
|
Closing Date.
|
| |
Section 2.01
|
|
Closing Statement
|
| |
Section 2.03(a), Section 2.03(a)
|
|
Company
|
| |
Preamble
|
|
Company Disclosure Letter
|
| |
Article III
|
|
Company Indemnified Parties
|
| |
Section 6.16(a)
|
|
Company Registered IP
|
| |
Section 3.11(a)
|
|
Company Software
|
| |
Section 3.11(i)
|
|
Continuing Employee
|
| |
Section 6.23
|
|
Contributor
|
| |
Section 3.11(f)
|
|
Copyrights
|
| |
Article I
|
|
D&O Indemnified Parties
|
| |
Section 6.16(a)
|
|
Deferred Underwriting Commissions
|
| |
Section 5.05
|
|
Estimated Cash
|
| |
Section 2.03(a)
|
|
Estimated Closing Consideration
|
| |
Section 2.03(a)
|
|
Estimated Company Transaction Expenses
|
| |
Section 2.03(a)
|
|
Estimated Net Working Capital
|
| |
Section 2.03(a)
|
|
Estimated Outstanding Indebtedness
|
| |
Section 2.03(a)
|
|
Final Consideration Shortfall
|
| |
Section 2.05(e)
|
|
Final Consideration Surplus
|
| |
Section 2.05(f)
|
|
Final Purchaser Trust Amount
|
| |
Section 2.03(b)
|
|
Term
|
| |
Section
|
|
Financial Statements
|
| |
Section 3.05(a)
|
|
Forbes Group
|
| |
Section 10.15(a)
|
|
Highlander
|
| |
Preamble
|
|
Insurance Policies
|
| |
Section 3.14
|
|
Interim Financial Statements
|
| |
Section 3.05(a)
|
|
Intervening Event Notice Period
|
| |
Section 6.07(d)
|
|
Investor Representation Letter
|
| |
Recitals
|
|
Investor Rights Agreement
|
| |
Recitals
|
|
IPO
|
| |
Section 6.11
|
|
IWM
|
| |
Preamble
|
|
JOBS Act
|
| |
Section 5.14(d)
|
|
K&E
|
| |
Section 10.15(b)
|
|
K&E Privileged Communications
|
| |
Section 10.15(b)
|
|
Key Employee Employment Agreement
|
| |
Section 6.18
|
|
Leased Real Property
|
| |
Section 3.08(b)
|
|
Marks
|
| |
Article I
|
|
Material Contract
|
| |
Section 3.10(b)
|
|
Maximum Annual Premium
|
| |
Section 6.16(b)
|
|
Most Recent Balance Sheet Date
|
| |
Section 3.05(a)
|
|
multiemployer plan
|
| |
Section 3.13(d)
|
|
multiple employer welfare arrangement
|
| |
Section 3.13(d)
|
|
Non-U.S. Plan
|
| |
Section 3.13(h)
|
|
Notice of Objection
|
| |
Section 2.05(b)
|
|
Objection Period
|
| |
Section 2.05(b)
|
|
Offer
|
| |
Recitals
|
|
Option Cash Out
|
| |
Recitals
|
|
Option Surrender Agreement
|
| |
Section 2.12
|
|
Other Indemnitors
|
| |
Section 6.16(e)
|
|
Parties
|
| |
Preamble
|
|
Party
|
| |
Preamble
|
|
Patents
|
| |
Article I
|
|
Payroll Payment Amount
|
| |
Section 2.12
|
|
PIPE Investment
|
| |
Recitals
|
|
PIPE Investment Amount
|
| |
Section 5.15
|
|
PIPE Investors
|
| |
Section 5.15
|
|
Post- Closing Consideration Calculation
|
| |
Section 2.05(a)
|
|
Post-Closing Dispute
|
| |
Section 10.05(a)
|
|
Postmaster Statements
|
| |
Section 3.23
|
|
Pre-Closing Disputes
|
| |
Section 10.04(a)
|
|
Proxy Statement
|
| |
Section 6.07(a)
|
|
Public Shareholders
|
| |
Section 6.11
|
|
Purchaser
|
| |
Preamble
|
|
Purchaser Board
|
| |
Recitals
|
|
Term
|
| |
Section
|
|
Purchaser Board Recommendation
|
| |
Section 6.07(d)
|
|
Purchaser Closing Statement
|
| |
Section 2.03(b), Section 2.03(b)
|
|
Purchaser Disclosure Letter
|
| |
Article V
|
|
Purchaser Group
|
| |
Section 10.15(a)
|
|
Purchaser Incentive Plan
|
| |
Section 6.19
|
|
Purchaser Indemnified Parties
|
| |
Section 6.16(a)
|
|
Purchaser Post-Closing Statement
|
| |
Section 2.05(a)
|
|
Purchaser Prepared Returns
|
| |
Section 9.03
|
|
Purchaser Price Allocation
|
| |
Section 9.07
|
|
Purchaser SEC Reports
|
| |
Section 5.14(a)
|
|
Purchaser Share Redemptions
|
| |
Section 5.05
|
|
Purchaser Shareholder Approval
|
| |
Section 7.03(c)
|
|
Purchaser Special Meeting
|
| |
Section 6.07(c)
|
|
Released Party
|
| |
Section 10.14
|
|
Reviewing Accountant
|
| |
Section 2.05(d)
|
|
Rule
|
| |
Section 10.04(a)
|
|
Section 16
|
| |
Section 6.13
|
|
Sellers
|
| |
Preamble
|
|
Share Sale
|
| |
Recitals
|
|
Shareholders’ Representative
|
| |
Preamble
|
|
Sponsor
|
| |
Recitals
|
|
Subscription Agreement
|
| |
Recitals
|
|
Subsidiary Shares
|
| |
Section 3.04(a)
|
|
Support Agreement
|
| |
Recitals
|
|
Tax Proceeding
|
| |
Section 9.05
|
|
Termination Date
|
| |
Section 8.03(b)
|
|
Top Customers
|
| |
Section 3.18
|
|
Top Distributors
|
| |
Section 3.18
|
|
Top Suppliers
|
| |
Section 3.18
|
|
Trade Secrets
|
| |
Article I
|
|
Transfer Taxes
|
| |
Section 10.12
|
|
| “Articles” | | | means these articles of association of the Company. | |
| “Auditor” | | | means the person for the time being performing the duties of auditor of the Company (if any). | |
| “Company” | | | means the above named company. | |
| “Designated Stock Exchange” | | | means any United States national securities exchange on which the securities of the Company are listed for trading, including the New York Stock Exchange. | |
| “Directors” | | | means the directors for the time being of the Company. | |
| “Dividend” | | | means any dividend (whether interim or final) resolved to be paid on Shares pursuant to the Articles. | |
| “Electronic Record” | | | has the same meaning as in the Electronic Transactions Act. | |
| “Electronic Transactions Act” | | | means the Electronic Transactions Act (As Revised) of the Cayman Islands. | |
| “Equity Securities” | | | means, with respect to any Person, all of the shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares or equity (or such other interests), restricted stock or restricted share awards, restricted stock or restricted share units, equity appreciation rights, phantom equity rights, profit participation and all of the other ownership or profit interests of such Person (including partnership or member interests therein), whether voting or nonvoting. | |
| “Exchange Act” | | | means the United States Securities Exchange Act of 1934, as amended, or any similar U.S. federal statute and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time. | |
| “Highlander” | | | means Highlander Management LLC, a limied liability company incorporated in the State of Delaware. | |
| “Independent Directors” | | | means an individual who qualifies as “independent” as such term is used in the New York Stock Exchange rules. | |
| “Investor Rights Agreement” | | | means the investor rights agreements dated [ ] 2021 and made between, inter alia, the Company, the Sponsor, IWM, Highlander and the individuals listed as Other Holders therein. | |
| “IWM” | | | means Integrated Whale Media Investment Inc., a BVI business company incorporated under the laws of the British Virgin Islands. | |
| “Member” | | | has the same meaning as in the Statute. | |
| “Memorandum” | | | means the memorandum of association of the Company. | |
| “Minimum Member’ | | | means a Member meeting the minimum requirements set forth for eligible members to submit proposals under Rule 14a-8 of the Exchange Act or any applicable rules thereunder as may be amended or promulgated thereunder from time to time. | |
|
“Nominating and Corporate Governance Committee”
|
| | means the nominating and corporate governance committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. | |
| “Ordinary Resolution” | | | means a resolution passed by a simple majority of the Members as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by the Articles. | |
| “Ordinary Share” | | | means an ordinary share of a par value of US$0.0001 in the share capital of the Company. | |
| “Person” | | | means and includes an individual, a partnership (general or limited), a joint venture, a corporation, a company, a trust, an estate, a limited liability company, an association, a joint-stock company, an unincorporated organization or other entity and a governmental entity. | |
| “Preference Share” | | | means a preference share of a par value of US$0.0001 in the share capital of the Company. | |
| “Register of Members” | | | means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members. | |
| “Registered Office” | | | means the registered office for the time being of the Company. | |
| “Seal” | | | means the common seal of the Company and includes every duplicate seal. | |
| “Share” | | | means an Ordinary Share or a Preference Share and includes a fraction of a share in the Company. | |
| “Special Resolution” | | | has the same meaning as in the Statute, and includes a unanimous written resolution. | |
| “Sponsor” | | | means Magnum Opus Holdings LLC, a Cayman Islands limited liability company, and its successors or assigns. | |
| “Statute” | | | means the Companies Act (As Revised) of the Cayman Islands. | |
| “Subscriber” | | | means the subscriber to the Memorandum. | |
| “Treasury Share” | | | means a Share held in the name of the Company as a treasury share in accordance with the Statute. | |
Ordinary Shares Beneficially Owned by Sponsor and the Other Holders (and their Permitted
Transferees) as a Percentage of the Ordinary Shares Beneficially Owned by Sponsor and the Other Holders on the Closing Date |
| |
Number of Sponsor
Directors |
| |||
50% or greater
|
| | | | 1 | | |
Ordinary Shares Beneficially Owned by IWM (and its Permitted Transferees) as a Percentage of the
Ordinary Shares Beneficially Owned by IWM on the Closing Date |
| |
Number of IWM
Directors |
| |||
40% or greater
|
| | | | 2 | | |
12.5% or greater, but less than 40%
|
| | | | 1 | | |
Options Owned
|
| ||||||
Name
|
| |
# of Company
Options |
| |
Per Share Exercise Price
|
|
| | | | | | | |
| | | | | | | |
|
Share Reserve / Evergreen
|
| |
Purchaser shall create a new equity incentive plan (the “Plan”) with an award pool equal to 8,300,000 shares of Purchaser
(the “Share Reserve”). The Share Reserve will automatically increase on the first day of each calendar year by a share amount equal to the lesser of (i) 3% aggregate common stock outstanding immediately preceding the calendar year, and (ii) such smaller number determined by Board (defined below).
|
|
|
Plan Awards and Administration
|
| | The Plan shall be administered by the Board of Directors of Purchaser (the “Board”) or committee thereof. Employees, directors, and independent contractors of the Purchaser and its subsidiaries will be eligible for awards of options, stock appreciation rights, restricted stock, restricted stock units, stock appreciation rights, other stock-based awards, dividend equivalents and cash awards. Awards will be made by the Board on terms and conditions it establishes in its discretion. | |
|
Director Share Limits
|
| | The maximum number of shares subject to awards granted during a single fiscal year to any non-employee director, together with any cash fees paid to such non-employee director during the fiscal year, shall not exceed a total value of $750,000, increased to $1,000,000 in the directors first year of service. | |
|
Share Reserve / Evergreen
|
| |
Purchaser shall create an employee stock purchase plan (the “ESPP”) with a Share Reserve equal to 2% of Purchaser’s outstanding common stock immediately after the Closing. The Share Reserve will automatically increase on the first day of each calendar year by a share amount equal to the lesser of (i) 0.5% aggregate common stock outstanding immediately preceding the calendar year, and (ii) such smaller number determined by Board.
The ESPP will have both Section 423 of the Internal Revenue Code (“Section 423”) qualified components and non-Section 423 qualified components.
|
|
|
Plan Benefits, Administration and Other Terms
|
| | The ESPP will be administered by the Board or committee thereof (the “Board”), offering employees of Purchaser and its subsidiaries the ability to purchase shares at up to a 15% discount over such purchase periods as the Board determines in its discretion up to the limits set forth in Section 423. Other plan terms will be reasonable and customary for a similar public company employee stock purchase plan. | |
| “Articles” | | | means these articles of association of the Company. | |
| “Auditor” | | | means the person for the time being performing the duties of auditor of the Company (if any). | |
| “Company” | | | means the above named company. | |
| “Designated Stock Exchange” | | | means any United States national securities exchange on which the securities of the Company are listed for trading, including the New York Stock Exchange. | |
| “Directors” | | | means the directors for the time being of the Company. | |
| “Dividend” | | | means any dividend (whether interim or final) resolved to be paid on Shares pursuant to the Articles. | |
| “Electronic Record” | | | has the same meaning as in the Electronic Transactions Act. | |
| “Electronic Transactions Act” | | | means the Electronic Transactions Act (As Revised) of the Cayman Islands. | |
| “Equity Securities” | | | means, with respect to any Person, all of the shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares or equity (or such other interests), restricted stock or restricted share awards, restricted stock or restricted share units, equity appreciation rights, phantom equity rights, profit participation and all of the other ownership or profit interests of such Person (including partnership or member interests therein), whether voting or nonvoting. | |
| “Exchange Act” | | | means the United States Securities Exchange Act of 1934, as amended, or any similar U.S. federal statute and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time. | |
| “Highlander” | | | means Highlander Management LLC, a limied liability company incorporated in the State of Delaware. | |
| “Independent Directors” | | | means an individual who qualifies as “independent” as such term is used in the New York Stock Exchange rules. | |
| “Investor Rights Agreement” | | | means the investor rights agreements dated [ ] 2021 and made between, inter alia, the Company, the Sponsor, IWM, Highlander and the individuals listed as Other Holders therein. | |
| “IWM” | | | means Integrated Whale Media Investment Inc., a BVI business company incorporated under the laws of the British Virgin Islands. | |
| “Member” | | | has the same meaning as in the Statute. | |
| “Memorandum” | | | means the memorandum of association of the Company. | |
| “Minimum Member’ | | | means a Member meeting the minimum requirements set forth for eligible members to submit proposals under Rule 14a-8 of the Exchange Act or any applicable rules thereunder as may be amended or promulgated thereunder from time to time. | |
|
“Nominating and Corporate Governance Committee”
|
| | means the nominating and corporate governance committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. | |
| “Ordinary Resolution” | | | means a resolution passed by a simple majority of the Members as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by the Articles. | |
| “Ordinary Share” | | | means an ordinary share of a par value of US$0.0001 in the share capital of the Company. | |
| “Person” | | | means and includes an individual, a partnership (general or limited), a joint venture, a corporation, a company, a trust, an estate, a limited liability company, an association, a joint-stock company, an unincorporated organization or other entity and a governmental entity. | |
| “Preference Share” | | | means a preference share of a par value of US$0.0001 in the share capital of the Company. | |
| “Register of Members” | | | means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members. | |
| “Registered Office” | | | means the registered office for the time being of the Company. | |
| “Seal” | | | means the common seal of the Company and includes every duplicate seal. | |
| “Share” | | | means an Ordinary Share or a Preference Share and includes a fraction of a share in the Company. | |
| “Special Resolution” | | | has the same meaning as in the Statute, and includes a unanimous written resolution. | |
| “Sponsor” | | | means Magnum Opus Holdings LLC, a Cayman Islands limited liability company, and its successors or assigns. | |
| “Statute” | | | means the Companies Act (As Revised) of the Cayman Islands. | |
| “Subscriber” | | | means the subscriber to the Memorandum. | |
| “Treasury Share” | | | means a Share held in the name of the Company as a treasury share in accordance with the Statute. | |
| Signature: | | |
/s/ Hou Pu Jonathan Lin
|
| | | |
| Name: | | |
Hou Pu Jonathan Lin
|
| | | |
| Title: | | |
Manager
|
| | | |
|
/s/ Hou Pu Jonathan Lin
Hou Pu Jonathan Lin
|
| | | |
|
/s/ Ka Man Kevin Lee
Ka Man Kevin Lee
|
| | ||
|
/s/ Frank Han
Frank Han
|
| | ||
|
/s/ Alexandre Mathieu Valdemar Casin
Alexandre Mathieu Valdemar Casin
|
| | ||
|
/s/ Liu Xing Ling
Liu Xing Ling
|
| | ||
|
/s/ Wing Hong Sammy Hsieh
Wing Hong Sammy Hsieh
|
| | ||
|
/s/ Dickson Cheng
Dickson Cheng
|
| | ||
|
/s/ Tung Wai Hui
Tung Wai Hui
|
| |
| Signature: | | |
/s/ Hou Pu Jonathan Lin
|
|
| Name: | | |
Hou Pu Jonathan Lin
|
|
| Title: | | |
Chief Executive Officer
|
|
| Signature: | | |
/s/ Yam Tak Cheung
|
|
| Name: | | |
Yam Tak Cheung
|
|
| Title: | | |
Director
|
|
Name of Shareholder
|
| |
Number of Purchaser
Class B Shares |
| |
Number of Purchaser
Warrants |
| |
Address for Notice
|
| ||||||
Sponsor(1)
|
| | | | 4,500,000(1) | | | | | | 6,000,000(1) | | | |
Unit 1009, ICBC
Tower Three Garden Road, Central, Hong Kong |
|
Hou Pu Jonathan Lin(1)
|
| | | | 4,500,000(1) | | | | | | 6,000,000(1) | | | |||
Ka Man Kevin Lee
|
| | | | 162,500 | | | | | | / | | | |||
Frank Han
|
| | | | 162,500 | | | | | | / | | | |||
Alexandre Mathieu Valdemar Casin
|
| | | | 50,000 | | | | | | / | | | | | |
Liu Xing Ling
|
| | | | 25,000 | | | | | | / | | | | | |
Wing Hong Sammy Hsieh
|
| | | | 50,000 | | | | | | / | | | | | |
Dickson Cheng
|
| | | | 25,000 | | | | | | / | | | | | |
Tung Wai Hui
|
| | | | 25,000 | | | | | | / | | | | | |
Ordinary Shares Beneficially Owned by Sponsor and the Other Holders (and their Permitted Transferees) as a
Percentage of the Ordinary Shares Beneficially Owned by Sponsor and the Other Holders on the Closing Date |
| |
Number of
Sponsor Directors |
| |||
50% or greater
|
| | | | 1 | | |
Ordinary Shares Beneficially Owned by IWM (and its Permitted Transferees) as a Percentage of the Ordinary
Shares Beneficially Owned by IWM on the Closing Date |
| |
Number of
IWM Directors |
| |||
40% or greater
|
| | | | 2 | | |
12.5% or greater, but less than 40%
|
| | | | 1 | | |
|
By:
/s/ Hou Pu Jonathan Lin
|
| | ||
|
Name: Hou Pu Jonathan Lin
Title: Chief Executive Officer |
| | | |
|
By:
/s/ Hou Pu Jonathan Lin
|
| | ||
|
Name: Hou Pu Jonathan Lin
Title: Manager |
| | | |
|
By:
/s/ Yam Tak Cheung
|
| | ||
|
Name: Yam Tak Cheung
Title: Director |
| | | |
|
By:
/s/ Sean P Hegarty
|
| | ||
|
Name: Sean P Hegarty
Title: Chief Financial Officer |
| | | |
|
/s/ Hou Pu Jonathan Lin
Hou Pu Jonathan Lin
|
| | | |
|
/s/ Ka Man Kevin Lee
Ka Man Kevin Lee
|
| | ||
|
/s/ Frank Han
Frank Han
|
| | ||
|
/s/ Alexandre Mathieu Valdemar Casin
Alexandre Mathieu Valdemar Casin
|
| |
|
/s/ Liu Xing Ling
Liu Xing Ling
|
| | ||
|
/s/ Wing Hong Sammy Hsieh
Wing Hong Sammy Hsieh
|
| | ||
|
/s/ Dickson Cheng
Dickson Cheng
|
| | ||
|
/s/ Tung Wai Hui
Tung Wai Hui
|
| | | |
|
By:
Name: Title: |
| | | |
|
By:
Name: Title: Address for notices: |
| | | |
| Name of Investor: | | | State/Country of Formation or Domicile: | |
| By: | | |
|
| | | | | | |
| Name: | | |
|
| | | | | ||
| Title: | | |
|
| | | | | ||
| Name in which Shares are to be registered (if different): | | | Date: , 2021 | | ||||||
| Investor’s EIN: | | | | | ||||||
| Business Address-Street: | | | Mailing Address-Street (if different): | | ||||||
| City, State, Zip: | | | City, State, Zip: | |
| Attn: | | |
|
| | Attn: | | |
|
|
| Telephone No.: | | | Telephone No.: | | ||||||
| Facsimile No.: | | | Facsimile No.: | | ||||||
| Number of Shares subscribed for: | | | | | ||||||
| Aggregate Subscription Amount: $ | | | Price Per Share: $10.00 | |
| | | | | | | MAGNUM OPUS ACQUISITION LIMITED | | |||
| | | | | | | By: | | |
|
|
| | | | | | | Name: | | | ||
| | | | | | | Title: | | | ||
| Date: | | | | | | | | | | |