|
Delaware
|
| |
6770
|
| |
85-2373325
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Brad L. Shiffman, Esq.
Kathleen A. Cunningham, Esq. Blank Rome LLP 1271 Avenue of the Americas New York, New York 10020 (212) 885-5000 Brad.shiffman@blankrome.com Kathleen.cunningham@blankrome.com |
| |
Mitchell S. Nussbaum, Esq.
Tahra Wright, Esq. Loeb & Loeb LLP 345 Park Avenue New York, New York 10154 (212) 407-4000 |
|
|
Large accelerated file ☐
|
| |
Accelerated filer ☐
|
| |
Non-accelerated filer ☒
|
| |
Smaller reporting company ☒
|
|
| | | | | | | | | |
Emerging growth company ☒
|
|
| | | | Sincerely, | |
| | | |
Thomas Finke
Chairman and Chief Executive Officer |
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| | |
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| | | | 245 | | | |
| | | | F-1 | | | |
| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | | |
| | | | D-1 | | |
Holders
|
| |
No Redemption
Scenario(1) |
| |
% of
Total |
| |
Illustrative
Redemption Scenario(2) |
| |
% of
Total |
| |
Contractual
Maximum Redemption Scenario(3) |
| |
% of
Total |
| ||||||||||||||||||
Adara Public Stockholders
|
| | | | 11,500,000 | | | | | | 18.8% | | | | | | 5,750,000 | | | | | | 10.4% | | | | | | 1,485,149 | | | | | | 2.9% | | |
Adara Initial Stockholders(4)
|
| | | | 2,000,000 | | | | | | 3.3% | | | | | | 2,000,000 | | | | | | 3.6% | | | | | | 2,000,000 | | | | | | 3.9% | | |
Alliance Stockholders(5)
|
| | | | 47,500,000 | | | | | | 77.9% | | | | | | 47,500,000 | | | | | | 86.0% | | | | | | 47,500,000 | | | | | | 93.2% | | |
Total Shares Outstanding
Excluding Contingent Consideration Shares and Adara Warrants |
| | | | 61,000,000 | | | | | | 100.0% | | | | | | 55,250,000 | | | | | | 100.0% | | | | | | 50,985,149 | | | | | | 100.0% | | |
Total Equity Value Post- Redemptions
|
| | | $ | 616,100,000 | | | | | | | | | | | $ | 558,025,000 | | | | | | | | | | | $ | 514,950,005 | | | | | | | | |
Assumed Per Share Value
|
| | | $ | 10.10 | | | | | | | | | | | $ | 10.10 | | | | | | | | | | | $ | 10.10 | | | | | | | | |
Additional Dilution Sources(8)
|
| |
No Redemption
Scenario(1) |
| |
% of
Total(7) |
| |
Illustrative
Redemption Scenario(7) |
| |
% of
Total(6) |
| |
Contractual
Maximum Redemption Scenario(3) |
| |
% of
Total(7) |
| ||||||||||||||||||
Contingent Consideration Shares(8)
|
| | | | 60,000,000 | | | | | | 49.6% | | | | | | 60,000,000 | | | | | | 52.1% | | | | | | 60,000,000 | | | | | | 54.0% | | |
Adara Warrants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants(9)
|
| | | | 5,750,000 | | | | | | 8.6% | | | | | | 5,750,000 | | | | | | 9.4% | | | | | | 5,750,000 | | | | | | 10.1% | | |
Private Warrants(10)
|
| | | | 4,120,000 | | | | | | 6.3% | | | | | | 4,120,000 | | | | | | 6.9% | | | | | | 4,120,000 | | | | | | 7.8% | | |
Underwriter Warrants(11)
|
| | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | |
Total Additional Dilutive Sources(12)
|
| | | | 69,920,000 | | | | | | 53.4% | | | | | | 69,920,000 | | | | | | 55.6% | | | | | | 69,920,000 | | | | | | 57.8% | | |
Holders
|
| |
No Redemption
Scenario(1) |
| |
% of
Total |
| |
Illustrative
Redemption Scenario(2) |
| |
% of
Total |
| |
Contractual
Maximum Redemption Scenario(3) |
| |
% of
Total |
| ||||||||||||||||||
Adara Public Stockholders
|
| | | | 11,500,000 | | | | | | 18.8% | | | | | | 5,750,000 | | | | | | 10.4% | | | | | | 1,485,149 | | | | | | 2.9% | | |
Adara Initial Stockholders(4)
|
| | | | 2,000,000 | | | | | | 3.3% | | | | | | 2,000,000 | | | | | | 3.6% | | | | | | 2,000,000 | | | | | | 3.9% | | |
Alliance Stockholders(5)
|
| | | | 47,500,000 | | | | | | 77.9% | | | | | | 47,500,000 | | | | | | 86.0% | | | | | | 47,500,000 | | | | | | 93.2% | | |
Total Shares Outstanding
Excluding Contingent Consideration Shares and Adara Warrants |
| | | | 61,000,000 | | | | | | 100.0% | | | | | | 55,250,000 | | | | | | 100.0% | | | | | | 50,985,149 | | | | | | 100.0% | | |
Holders
|
| |
No Redemption
Scenario(1) |
| |
% of
Total |
| |
Illustrative
Redemption Scenario(2) |
| |
% of
Total |
| |
Contractual
Maximum Redemption Scenario(3) |
| |
% of
Total |
| |||||||||
Total Equity Value Post- Redemptions
|
| | | $ | 616,100,000 | | | | | | | | $ | 558,025,000 | | | | | | | | $ | 514,950,005 | | | | | |
Assumed Per Share Value
|
| | | $ | 10.10 | | | | | | | | $ | 10.10 | | | | | | | | $ | 10.10 | | | | | |
Additional Dilution Sources(8)
|
| |
No Redemption
Scenario(1) |
| |
% of
Total(7) |
| |
Illustrative
Redemption Scenario(7) |
| |
% of
Total(6) |
| |
Contractual
Maximum Redemption Scenario(3) |
| |
% of
Total(7) |
| ||||||||||||||||||
Contingent Consideration Shares(8)
|
| | | | 60,000,000 | | | | | | 49.6% | | | | | | 60,000,000 | | | | | | 52.1% | | | | | | 60,000,000 | | | | | | 54.0% | | |
Adara Warrants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants(9)
|
| | | | 5,750,000 | | | | | | 8.6% | | | | | | 5,750,000 | | | | | | 9.4% | | | | | | 5,750,000 | | | | | | 10.1% | | |
Private Warrants(10)
|
| | | | 4,120,000 | | | | | | 6.3% | | | | | | 4,120,000 | | | | | | 6.9% | | | | | | 4,120,000 | | | | | | 7.8% | | |
Underwriter Warrants(11)
|
| | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | |
Total Additional Dilutive Sources(12)
|
| | | | 69,920,000 | | | | | | 53.4% | | | | | | 69,920,000 | | | | | | 55.6% | | | | | | 69,920,000 | | | | | | 57.8% | | |
| | |
For the
Year Ended June 30, 2022 |
| |
For the
Year Ended June 30, 2021 |
| |
For the
Year Ended June 30, 2020 |
| |||||||||
Total revenue
|
| | | $ | 1,417,377 | | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Total operating expenses
|
| | | $ | 140,285 | | | | | $ | 134,775 | | | | | $ | 109,850 | | |
Net Income
|
| | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,361 | | |
Net Income per share attributable to common stockholders – Basic and diluted
|
| | | $ | 31.80 | | | | | $ | 37.98 | | | | | $ | 5.96 | | |
| | |
As of
June 30, 2022 |
| |
As of
June 30, 2021 |
| ||||||
Consolidated Balance Sheet Data: | | | | | | | | | | | | | |
Total assets
|
| | | $ | 473,039 | | | | | $ | 388,963 | | |
Total liabilities
|
| | | $ | 364,111 | | | | | $ | 308,661 | | |
Retained earnings
|
| | | $ | 71,668 | | | | | $ | 43,049 | | |
| | |
For the
Six Months Ended June 30, 2022 |
| |
For the
Year Ended December 31, 2021 |
| |
For the
period from August 5, 2020 (inception) through December 31, 2020 |
| |||||||||
Operating formation costs
|
| | | $ | 1,252,359 | | | | | $ | 976,831 | | | | | $ | 5,476 | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 157,895 | | | | | | 10,281 | | | | | | — | | |
Transaction costs incurred in connection with IPO
|
| | | | — | | | | | | (86,544) | | | | | | — | | |
Change fair value of warrant holders
|
| | | | 3,075,200 | | | | | | 4,297,300 | | | | | | — | | |
Net income (loss)
|
| | | | 1,980,736 | | | | | | 3,244,206 | | | | | | (5,476) | | |
Basic and diluted net (income loss) per share, Class A common stock
|
| | | | 0.14 | | | | | | 0.25 | | | | | | — | | |
Basic and diluted net (income loss) per share, Class B common stock
|
| | | $ | 0.14 | | | | | $ | 0.25 | | | | | $ | (0.00) | | |
| | |
As of
June 30, 2022 |
| |
As of
December 31, 2021 |
| |
As of
December 31, 2020 |
| |||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 116,448,616 | | | | | $ | 117,083,857 | | | | | $ | 624,406 | | |
Total liabilities
|
| | | | 2,685,068 | | | | | | 5,301,045 | | | | | | 604,882 | | |
Total redeemable shares of common stock
|
| | | | 116,150,000 | | | | | | 116,150,000 | | | | | | — | | |
Total shareholders’ (deficit) equity
|
| | | $ | (2,386,452) | | | | | $ | (4,367,188) | | | | | $ | 79,524 | | |
Year Ended December 31, 2021
|
| |
Pro Forma
Combined (Assuming No Redemptions) |
| |
Pro Forma
Combined (Assuming Maximum Redemptions) |
| ||||||
Revenue
|
| | | $ | 1,441,762 | | | | | $ | 1,441,762 | | |
Net loss per share – basic and diluted
|
| | | $ | 0.68 | | | | | $ | 0.88 | | |
Weighted-average Common shares outstanding – basic and
diluted |
| | |
|
61,000,000
|
| | | |
|
50,485,149
|
| |
Summary Unaudited Pro Forma Condensed Combined Balance Sheet Data as of June 30, 2022 | | ||||||||||||
Total assets
|
| | | $ | 581,522 | | | | | $ | 484,437 | | |
Total liabilities
|
| | | $ | 365,759 | | | | | $ | 365,759 | | |
Total stockholders’ equity
|
| | | $ | 215,763 | | | | | $ | 118,678 | | |
| | |
Historical
|
| |
No Redemptions
Scenario |
| |
Maximum
Redemptions Scenario |
| |||||||||||||||
As of and For the Six Months Ended June 30, 2022
|
| |
Adara
|
| |
Alliance
|
| |
Pro Forma
Combined |
| |
Pro Forma
Combined |
| ||||||||||||
Pro Forma Income Per Share | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average Shares of Class A Outstanding – Basic and Diluted
|
| | | | 11,500,000 | | | | | | — | | | | | | 61,000,000 | | | | | | 50,485,149 | | |
Income Per Share Class A – Basic and Diluted
|
| | | $ | 0.14 | | | | | | — | | | | | $ | (0.01) | | | | | $ | (0.02) | | |
Weighted Average Shares of Class B Outstanding – Basic and Diluted
|
| | | | 2,875,000 | | | | | | — | | | | | | — | | | | | | — | | |
Income Per Share Class B – Basic and Diluted
|
| | | $ | 0.14 | | | | | | — | | | | | | — | | | | | | — | | |
Weighted Average Common Shares Outstanding – Basic and Diluted
|
| | | | — | | | | | | 900 | | | | | | — | | | | | | — | | |
Income Per Common Share – Basic and Diluted
|
| | | | — | | | | | $ | (1,007.78) | | | | | | — | | | | | | — | | |
Book Value Per Share
|
| | | $ | (0.17) | | | | | $ | 121,031 | | | | | $ | 3.54 | | | | | $ | 2.35 | | |
| | |
Historical
|
| |
No Redemptions
Scenario |
| |
Maximum
Redemptions Scenario |
| |||||||||||||||
For the Year Ending December 31, 2021
|
| |
Adara
(Historical from 1/1/21 through 12/31/21) |
| |
Alliance
|
| |
Pro Forma
Combined |
| |
Pro Forma
Combined |
| ||||||||||||
Pro Forma Income Per Share | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average Shares of Class A Outstanding – Basic and Diluted
|
| | | | 11,500,000 | | | | | | — | | | | | | 61,000,000 | | | | | | 50,485,149 | | |
Income Per Share Class A – Basic and Diluted
|
| | | $ | 0.25 | | | | | $ | — | | | | | $ | 0.68 | | | | | $ | 0.88 | | |
Weighted Average Shares of Class B Outstanding – Basic and Diluted
|
| | | | 2,875,000 | | | | | | — | | | | | | — | | | | | | — | | |
Income Per Share Class B – Basic and Diluted
|
| | | $ | 0.25 | | | | | | — | | | | | | — | | | | | | — | | |
Weighted Average Common Shares Outstanding – Basic and Diluted
|
| | | | — | | | | | | 900 | | | | | | — | | | | | | — | | |
Income Per Common Share – Basic and Diluted
|
| | | | — | | | | | $ | 49,534.44 | | | | | | | | | | | | | | |
($ in thousands)
|
| |
June 30,
2022 |
| |
June 30,
2021 |
| ||||||
Bank of America Revolving Credit Agreement
|
| | | $ | 136,176 | | | | | $ | 53,955 | | |
Less: Deferred Finance Costs
|
| | | | (208) | | | | | | (375) | | |
Revolving Credit, Net
|
| | | $ | 135,968 | | | | | $ | 53,580 | | |
Holders
|
| |
No Redemption
Scenario(1) |
| |
% of
Total |
| |
Illustrative
Redemption Scenario(2) |
| |
% of
Total |
| |
Contractual
Maximum Redemption Scenario(3) |
| |
% of
Total |
| ||||||||||||||||||
Adara Public Stockholders
|
| | | | 11,500,000 | | | | | | 18.8% | | | | | | 5,750,000 | | | | | | 10.4% | | | | | | 1,485,149 | | | | | | 2.9% | | |
Adara Initial Stockholders(4)
|
| | | | 2,000,000 | | | | | | 3.3% | | | | | | 2,000,000 | | | | | | 3.6% | | | | | | 2,000,000 | | | | | | 3.9% | | |
Alliance Stockholders(5)
|
| | | | 47,500,000 | | | | | | 77.9% | | | | | | 47,500,000 | | | | | | 86.0% | | | | | | 47,500,000 | | | | | | 93.2% | | |
Total Shares Outstanding
Excluding Contingent Consideration Shares and Adara Warrants |
| | | | 61,000,000 | | | | | | 100.0% | | | | | | 55,250,000 | | | | | | 100.0% | | | | | | 50,985,149 | | | | | | 100.0% | | |
Total Equity Value Post- Redemptions
|
| | | $ | 616,100,000 | | | | | | | | | | | $ | 558,025,000 | | | | | | | | | | | $ | 514,950,005 | | | | | | | | |
Assumed Per Share Value
|
| | | $ | 10.10 | | | | | | | | | | | $ | 10.10 | | | | | | | | | | | $ | 10.10 | | | | | | | | |
Additional Dilution Sources(8)
|
| |
No Redemption
Scenario(1) |
| |
% of
Total(7) |
| |
Illustrative
Redemption Scenario(7) |
| |
% of
Total(6) |
| |
Contractual
Maximum Redemption Scenario(3) |
| |
% of
Total(7) |
| ||||||||||||||||||
Contingent Consideration Shares(8)
|
| | | | 60,000,000 | | | | | | 49.6% | | | | | | 60,000,000 | | | | | | 52.1% | | | | | | 60,000,000 | | | | | | 54.0% | | |
Adara Warrants
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants(9)
|
| | | | 5,750,000 | | | | | | 8.6% | | | | | | 5,750,000 | | | | | | 9.4% | | | | | | 5,750,000 | | | | | | 10.1% | | |
Private Warrants(10)
|
| | | | 4,120,000 | | | | | | 6.3% | | | | | | 4,120,000 | | | | | | 6.9% | | | | | | 4,120,000 | | | | | | 7.8% | | |
Underwriter Warrants(11)
|
| | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | |
Total Additional Dilutive Sources(12)
|
| | | | 69,920,000 | | | | | | 53.4% | | | | | | 69,920,000 | | | | | | 55.6% | | | | | | 69,920,000 | | | | | | 57.8% | | |
| | |
Assuming Minimum
Redemptions |
| |
Assuming Maximum
Redemptions |
| ||||||||||||||||||
| | |
Shares
|
| |
%
|
| |
Shares
|
| |
%
|
| ||||||||||||
Adara Class A common stockholders (Public Shareholders)
|
| | | | 11,500,000 | | | | | | 18.8 | | | | | | 1,485,149 | | | | | | 2.9 | | |
Adara Class A common stockholders (Sponsor)
|
| | | | 2,000,000 | | | | | | 3.3 | | | | | | 1,500,000 | | | | | | 3.0 | | |
Former Alliance stockholders(1)
|
| | | | 47,500,000 | | | | | | 77.9 | | | | | | 47,500,000 | | | | | | 94.1 | | |
Shares outstanding at Closing
|
| | | | 61,000,000 | | | | | | 100% | | | | | | 50,485,149 | | | | | | 100% | | |
| | |
Historical
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | |
US GAAP
|
| |
Assuming Minimum Redemption
|
| |
Assuming Maximum Redemption
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| ||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 9 | | | | | $ | 1,469 | | | | | $ | 116,318 | | | | | | 1c | | | | | $ | 109,831 | | | | | $ | 15,168 | | | | | | 1c | | | | | $ | 12,746 | | |
| | | | | | | | | | | | | | | | | (7,965) | | | | | | 1f | | | | | | | | | | | | (3,900) | | | | | | 1f | | | | | | | | |
Accounts Receivables – Net
|
| | | | | | | | | | 98,698 | | | | | | | | | | | | | | | | | | 98,698 | | | | | | | | | | | | | | | | | | 98,698 | | |
Inventory
|
| | | | | | | | | | 249,439 | | | | | | | | | | | | | | | | | | 249,439 | | | | | | | | | | | | | | | | | | 249,439 | | |
Other Current Assets
|
| | | | 121 | | | | | | 9,129 | | | | | | | | | | | | | | | | | | 9,250 | | | | | | | | | | | | | | | | | | 9,250 | | |
Related Party Receivable
|
| | | | | | | | | | 245 | | | | | | | | | | | | | | | | | | 245 | | | | | | | | | | | | | | | | | | 245 | | |
Total Current Assets
|
| | | | 130 | | | | | | 358,980 | | | | | | 108,353 | | | | | | | | | | | | 467,463 | | | | | | 11,268 | | | | | | | | | | | | 370,378 | | |
Property & Equipment – Net
|
| | | | | | | | | | 3,284 | | | | | | | | | | | | | | | | | | 3,284 | | | | | | | | | | | | | | | | | | 3,284 | | |
Operating Lease Right-Of-Use Assets
|
| | | | | | | | | | 8,360 | | | | | | | | | | | | | | | | | | 8,360 | | | | | | | | | | | | | | | | | | 8,360 | | |
Intangible Assets
|
| | | | | | | | | | 18,764 | | | | | | | | | | | | | | | | | | 18,764 | | | | | | | | | | | | | | | | | | 18,764 | | |
Goodwill
|
| | | | | | | | | | 79,903 | | | | | | | | | | | | | | | | | | 79,903 | | | | | | | | | | | | | | | | | | 79,903 | | |
Marketable securities held in Trust Account
|
| | | | 116,318 | | | | | | — | | | | | | (116,318) | | | | | | 1c | | | | | | — | | | | | | (101,150) | | | | | | 1b | | | | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (15,168) | | | | | | 1c | | | | | | | | |
Other Assets
|
| | | | | | | | | | 3,748 | | | | | | | | | | | | | | | | | | 3,748 | | | | | | | | | | | | | | | | | | 3,748 | | |
Total Assets
|
| | |
$
|
116,448
|
| | | |
$
|
473,039
|
| | | | $ | (7,965) | | | | | | | | | | | $ | 581,522 | | | | | $ | (105,050) | | | | | | | | | | | $ | 484,437 | | |
| | |
Historical
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | |
US GAAP
|
| |
Assuming Minimum Redemption
|
| |
Assuming Maximum Redemption
|
| ||||||||||||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| |||||||||||||||||||||
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding Checks
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts Payable
|
| | | | | | | | | $ | 198,187 | | | | | | | | | | | | | | | | | $ | 198,187 | | | | | | | | | | | | | | $ | 198,187 | | |
Accrued Expenses
|
| | | | 569 | | | | | | 11,573 | | | | | | | | | | | | | | | | | | 12,142 | | | | | | | | | | | | | | | 12,142 | | |
Revolving Credit Facility
|
| | | | | | | | | | 135,968 | | | | | | | | | | | | | | | | | | 135,968 | | | | | | | | | | | | | | | 135,968 | | |
Promissory Note
|
| | | | 330 | | | | | | | | | | | | | | | | | | | | | | | | 330 | | | | | | | | | | | | | | | 330 | | |
Current Portion of Seller Note
|
| | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | |
Current Portion of Obligations Under
Capital Lease |
| | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | |
Current Portion of Operating Lease Obligations
|
| | | | | | | | | | 4,453 | | | | | | | | | | | | | | | | | | 4,453 | | | | | | | | | | | | | | | 4,453 | | |
Income Tax Payable
|
| | | | | | | | | | 418 | | | | | | | | | | | | | | | | | | 418 | | | | | | | | | | | | | | | 418 | | |
Total Current Liabilities
|
| | | | 899 | | | | | | 350,599 | | | | | | | | | | | | | | | | | | 351,498 | | | | | | | | | | | | | | | 351,498 | | |
Long-Term Liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred Tax Liability
|
| | | | | | | | | | 5,271 | | | | | | | | | | | | | | | | | | 5,271 | | | | | | | | | | | | | | | 5,271 | | |
Debt – Non-Current
|
| | | | | | | | | | 3,377 | | | | | | | | | | | | | | | | | | 3,377 | | | | | | | | | | | | | | | 3,377 | | |
Long-Term Portion of Operating Lease Obligations
|
| | | | | | | | | | 4,864 | | | | | | | | | | | | | | | | | | 4,864 | | | | | | | | | | | | | | | 4,864 | | |
Warrant Liabilities
|
| | | | 1,786 | | | | | | — | | | | | | (1,037) | | | | | | 1h | | | | | | 749 | | | | | | (1,037) | | | | | | | | | 749 | | |
Total Long-Term Liabilities
|
| | | | 1,786 | | | | | | 13,512 | | | | | | (1,037) | | | | | | | | | | | | 14,261 | | | | | | (1,037) | | | | | | | | | 14,261 | | |
Total Liabilities
|
| | | $ | 2,685 | | | | | $ | 364,111 | | | | | $ | (1,037) | | | | | | | | | | | $ | 365,759 | | | | | $ | (1,037) | | | | | | | | $ | 365,759 | | |
| | |
Historical
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | |
US GAAP
|
| |
Assuming Minimum Redemption
|
| |
Assuming Maximum Redemption
|
| | |||||||||||||||||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| | ||||||||||||||||||||||||||
Commitments and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Class A common stock subject to possible redemption, $0.0001 par value; 11,500,000 shares at $10.10 per share redemption value
|
| | | | 116,150 | | | | | | | | | | | | (116,150) | | | | | | 1b | | | | | | — | | | | | | (101,150) | | | | | | 1b | | | | | | — | | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (15,000) | | | | | | 1c | | | | | | | | | | ||
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding
|
| | | | — | | | | | | | | | | | | — | | | | | | 1d | | | | | | — | | | | | | — | | | | | | 1d | | | | | | — | | | | ||
Class A New
|
| | | | | | | | | | | | | | | | — | | | | | | 1d | | | | | | 6 | | | | | | — | | | | | | 1d | | | | | | 5 | | | | ||
| | | | | | | | | | | | | | | | | 1 | | | | | | 1b | | | | | | | | | | | | — | | | | | | 1b | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | 5 | | | | | | 1e | | | | | | | | | | | | 5 | | | | | | 1e | | | | | | | | | | ||
Paid-In Capital
|
| | | | | | | | | | 40,000 | | | | | | (2,387) | | | | | | 1a | | | | | | 215,822 | | | | | | (2,387) | | | | | | 1a | | | | | | 118,738 | | | | ||
| | | | | | | | | | | | | | | | | 116,149 | | | | | | 1b | | | | | | | | | | | | 15,000 | | | | | | 1c | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | (5) | | | | | | 1e | | | | | | | | | | | | (5) | | | | | | 1e | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | (2,400) | | | | | | 1f | | | | | | | | | | | | (2,400) | | | | | | 1f | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | (2,674) | | | | | | 1e | | | | | | | | | | | | (2,674) | | | | | | 1e | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | (5,565) | | | | | | 1f | | | | | | — | | | | | | (1,500) | | | | | | 1f | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | 71,667 | | | | | | 1g | | | | | | | | | | | | 71,667 | | | | | | 1g | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | 1,037 | | | | | | 1h | | | | | | | | | | | | 1,037 | | | | | | 1h | | | | | | | | | | ||
Treasury stock, 57 shares carried at cost
|
| | | | | | | | | | (2,674) | | | | | | 2,674 | | | | | | 1e | | | | | | — | | | | | | 2,674 | | | | | | 1e | | | | | | — | | | | ||
Retained Earnings
|
| | | | (2,387) | | | | | | 71,667 | | | | | | 2,387 | | | | | | 1a | | | | | | — | | | | | | 2,387 | | | | | | 1a | | | | | | — | | | | ||
| | | | | | | | | | | | | | | | | (71,667) | | | | | | 1g | | | | | | | | | | | | (71,667) | | | | | | 1g | | | | | | | | | | ||
Comprehensive Income
|
| | | | | | | | | | (65) | | | | | | | | | | | | | | | | | | (65) | | | | | | | | | | | | | | | | | | (65) | | | | ||
Total Stockholders’ Equity
|
| | | | (2,387) | | | | | | 108,928 | | | | | | 109,222 | | | | | | | | | | | | 215,763 | | | | | | 12,137 | | | | | | | | | | | | 118,678 | | | | ||
Total Liabilities and Stockholders’
Equity |
| | | $ | 116,448 | | | | | $ | 473,039 | | | | | $ | (7,965) | | | | | | | | | | | $ | 581,522 | | | | | $ | (105,050) | | | | | | | | | | | $ | 484,437 | | | |
| | |
Historical
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | |
US GAAP
|
| |
Assuming Minimum Redemption
|
| |
Assuming Maximum Redemption
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| ||||||||||||||||||||||||
Net Sales
|
| | | | | | | | | $ | 585,857 | | | | | | | | | | | | | | | | | $ | 585,857 | | | | | | | | | | | | | | | | | $ | 585,857 | | |
Cost of Sales
|
| | | | | | | | | | 517,232 | | | | | | | | | | | | | | | | | | 517,232 | | | | | | | | | | | | | | | | | | 517,232 | | |
Gross Margin
|
| | | | | | | | | | 68,625 | | | | | | — | | | | | | | | | | | | 68,625 | | | | | | — | | | | | | | | | | | | 68,625 | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fulfillment Services
|
| | | | | | | | | | 31,053 | | | | | | | | | | | | | | | | | | 31,053 | | | | | | | | | | | | | | | | | | 31,053 | | |
Technology
|
| | | | | | | | | | 6,444 | | | | | | | | | | | | | | | | | | 6,444 | | | | | | | | | | | | | | | | | | 6,444 | | |
Sales & Marketing
|
| | | | | | | | | | 14,940 | | | | | | | | | | | | | | | | | | 14,940 | | | | | | | | | | | | | | | | | | 14,940 | | |
General & Administrative
|
| | | $ | 1,252 | | | | | $ | 7,116 | | | | | $ | (60) | | | | | | 2a | | | | | $ | 8,308 | | | | | $ | (60) | | | | | | 2a | | | | | $ | 8,308 | | |
Depreciation & Amortization
|
| | | | — | | | | | | 3,885 | | | | | | | | | | | | | | | | | | 3,885 | | | | | | | | | | | | | | | | | | 3,885 | | |
Transaction Costs
|
| | | | | | | | | | 31 | | | | | | | | | | | | | | | | | | 31 | | | | | | | | | | | | | | | | | | 31 | | |
IC DISC
|
| | | | | | | | | | 3,644 | | | | | | | | | | | | | | | | | | 3,644 | | | | | | | | | | | | | | | | | | 3,644 | | |
Total Operating Expenses
|
| | | | 1,252 | | | | | | 67,113 | | | | | | (60) | | | | | | | | | | | | 68,305 | | | | | | (60) | | | | | | | | | | | | 68,305 | | |
Operating Income (Loss)
|
| | | | (1,252) | | | | | | 1,512 | | | | | | 60 | | | | | | | | | | | | 320 | | | | | | 60 | | | | | | | | | | | | 320 | | |
| | |
Historical
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | |
US GAAP
|
| |
Assuming Minimum Redemption
|
| |
Assuming Maximum Redemption
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| ||||||||||||||||||||||||
Non Operating Income (Expenses):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest
|
| | | | | | | | | | (2,320) | | | | | | | | | | | | | | | | | | (2,320) | | | | | | | | | | | | | | | | | | (2,320) | | |
Interest earned on marketable securities held in Trust
Account |
| | | | 158 | | | | | | | | | | | | (158) | | | | | | 2b | | | | | | — | | | | | | (158) | | | | | | 2b | | | | | | — | | |
Change in fair value of warrants liabilities
|
| | | | 3,075 | | | | | | | | | | | | (1,783) | | | | | | 2e | | | | | | 1,292 | | | | | | (1,783) | | | | | | 2e | | | | | | 1,292 | | |
Total Non-Operating Income (Expenses)
|
| | | | 3,233 | | | | | | (2,320) | | | | | | (1,941) | | | | | | | | | | | | (1,028) | | | | | | (1,941) | | | | | | | | | | | | (1,028) | | |
Income before Income
Taxes |
| | | | 1,981 | | | | | | (808) | | | | | | (1,881) | | | | | | | | | | | | (708) | | | | | | (1,881) | | | | | | | | | | | | (708) | | |
Provision for Income Taxes
|
| | | | | | | | | | (99) | | | | | | 24 | | | | | | 2d | | | | | | (75) | | | | | | 24 | | | | | | 2d | | | | | | (75) | | |
Net Income (Loss)
|
| | | $ | 1,981 | | | | | $ | (907) | | | | | $ | (1,857) | | | | | | | | | | | $ | (783) | | | | | $ | (1,857) | | | | | | | | | | | $ | (783) | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic shares outstanding
|
| | | | 14,375 | | | | | | 1 | | | | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | | | | 50,485 | | |
Diluted shares outstanding
|
| | | | 14,375 | | | | | | 1 | | | | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | | | | 50,485 | | |
Basic and Diluted earnings (Loss) per share:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings (Loss) per share
|
| | | $ | 0.14 | | | | | $ | (1,007.78) | | | | | | | | | | | | | | | | | $ | (0.01) | | | | | | | | | | | | | | | | | $ | (0.02) | | |
Diluted earnings (Loss) per share
|
| | | $ | 0.14 | | | | | $ | (1,007.78) | | | | | | | | | | | | | | | | | $ | (0.01) | | | | | | | | | | | | | | | | | $ | (0.02) | | |
| | |
Historical
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | |
US GAAP
|
| |
Assuming Minimum Redemption
|
| |
Assuming Maximum Redemption
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| ||||||||||||||||||||||||
Net Sales
|
| | | | | | | | | $ | 1,441,762 | | | | | | | | | | | | | | | | | $ | 1,441,762 | | | | | | | | | | | | | | | | | $ | 1,441,762 | | |
Cost of Sales
|
| | | | | | | | | | 1,241,650 | | | | | | | | | | | | | | | | | | 1,241,650 | | | | | | | | | | | | | | | | | | 1,241,650 | | |
Gross Margin
|
| | | | | | | | | | 200,112 | | | | | | | | | | | | | | | | | | 200,112 | | | | | | | | | | | | | | | | | | 200,112 | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fulfillment Services
|
| | | | | | | | | | 60,682 | | | | | | | | | | | | | | | | | | 60,682 | | | | | | | | | | | | | | | | | | 60,682 | | |
Technology
|
| | | | | | | | | | 12,772 | | | | | | | | | | | | | | | | | | 12,772 | | | | | | | | | | | | | | | | | | 12,772 | | |
Sales & Marketing
|
| | | | | | | | | | 29,845 | | | | | | | | | | | | | | | | | | 29,845 | | | | | | | | | | | | | | | | | | 29,845 | | |
General & Administrative
|
| | | | 977 | | | | | | 16,655 | | | | | | (105) | | | | | | 2a | | | | | | 17,527 | | | | | | (105) | | | | | | 2a | | | | | | 17,527 | | |
Depreciation & Amortization
|
| | | | | | | | | | 9,910 | | | | | | — | | | | | | | | | | | | 9,910 | | | | | | | | | | | | | | | | | | 9,910 | | |
Transaction costs
|
| | | | 86 | | | | | | (282) | | | | | | 5,565 | | | | | | 2c | | | | | | 5,369 | | | | | | 1,500 | | | | | | 2c | | | | | | 1,304 | | |
IC DISC
|
| | | | | | | | | | 8,589 | | | | | | | | | | | | | | | | | | 8,589 | | | | | | | | | | | | | | | | | | 8,589 | | |
Total Operating Expenses
|
| | | | 1,063 | | | | | | 138,171 | | | | | | 5,460 | | | | | | | | | | | | 144,694 | | | | | | 1,395 | | | | | | | | | | | | 140,629 | | |
Income from Operations
|
| | | | (1,063) | | | | | | 61,941 | | | | | | (5,460) | | | | | | | | | | | | 55,418 | | | | | | (1,395) | | | | | | | | | | | | 59,483 | | |
| | |
Historical
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | |
US GAAP
|
| |
Assuming Minimum Redemption
|
| |
Assuming Maximum Redemption
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Adara
|
| |
Alliance
|
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| |
Pro Forma
Adjustments |
| |
Notes
|
| |
Pro Forma
Condensed Combined |
| ||||||||||||||||||||||||
Non Operating Income (Expenses):
|
| | |
|
—
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain\loss on Disposal of PPE
|
| | | | | | | | | | (47) | | | | | | | | | | | | | | | | | | (47) | | | | | | | | | | | | | | | | | | (47) | | |
Interest
|
| | | | | | | | | | (3,237) | | | | | | | | | | | | | | | | | | (3,237) | | | | | | | | | | | | | | | | | | (3,237) | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 10 | | | | | | — | | | | | | (10) | | | | | | 2b | | | | | | — | | | | | | (10) | | | | | | 2b | | | | | | — | | |
Change in fair value of warrants liabilities
|
| | | | 4,297 | | | | | | — | | | | | | (2,490) | | | | | | 2e | | | | | | 1,807 | | | | | | (2,490) | | | | | | 2e | | | | | | 1,807 | | |
Total Non Operating Income (Expenses)
|
| | | | 4,307 | | | | | | (3,284) | | | | | | (2,500) | | | | | | | | | | | | (1,477) | | | | | | (2,500) | | | | | | | | | | | | (1,477) | | |
Income before Income
Taxes |
| | | | 3,244 | | | | | | 58,657 | | | | | | (7,960) | | | | | | | | | | | | 53,941 | | | | | | (3,895) | | | | | | | | | | | | 58,006 | | |
Provision for Income Taxes
|
| | | | | | | | | | (14,076) | | | | | | 1,313 | | | | | | 2d | | | | | | (12,763) | | | | | | 337 | | | | | | 2d | | | | | | (13,739) | | |
Net Income
|
| | | $ | 3,244 | | | | | $ | 44,581 | | | | | $ | (6,647) | | | | | | | | | | | $ | 41,178 | | | | | $ | (3,558) | | | | | | | | | | | $ | 44,267 | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic shares outstanding
|
| | | | 13,040 | | | | | | 1 | | | | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | | | | 50,485 | | |
Diluted shares outstanding
|
| | | | 13,040 | | | | | | 1 | | | | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | | | | 50,485 | | |
Basic and Diluted earnings per share:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share
|
| | | $ | 0.25 | | | | | $ | 49,534.44 | | | | | | | | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | | | | $ | 0.88 | | |
Diluted earnings per share
|
| | | $ | 0.25 | | | | | $ | 49,534.44 | | | | | | | | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | | | | $ | 0.88 | | |
| | |
Tranche 1
|
| |
Tranche 2
|
| |
Tranche 3
|
| |||||||||
Common stock value
|
| | | $ | 9.89 | | | | | $ | 9.89 | | | | | $ | 9.89 | | |
Exercise price
|
| | | $ | 0.00 | | | | | $ | 0.00 | | | | | $ | 0.00 | | |
Contractual stock price threshold
|
| | | $ | 20.00 | | | | | $ | 30.00 | | | | | $ | 50.00 | | |
One-touch barrier
|
| | | $ | 21.95 | | | | | $ | 32.92 | | | | | $ | 54.86 | | |
Expiration date
|
| | | | 6/30/2027 | | | | | | 6/30/2029 | | | | | | 6/29/2032 | | |
Expected item
|
| | | | 5.00 | | | | | | 7.00 | | | | | | 10.00 | | |
Risk-free rate
|
| | | | 2.99% | | | | | | 3.01% | | | | | | 2.96% | | |
Dividend
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Volatility
|
| | | | 34.8% | | | | | | 34.8% | | | | | | 34.8% | | |
Value of an up-and-in barrier option
|
| | | $ | 5.01 | | | | | $ | 4.03 | | | | | $ | 3.37 | | |
Fair value per share
|
| | | $ | 5.01 | | | | | $ | 4.03 | | | | | $ | 3.37 | | |
| | |
For the six months ended
June 30, 2022 |
| |||||||||
| | |
Minimum
Redemption Scenario |
| |
Maximum
Redemption Scenario |
| ||||||
Pro forma net Loss attributable to common stockholders
|
| | | $ | (783,000) | | | | | $ | (783,000) | | |
Pro forma weighted average shares calculation, basic and diluted: | | | | | | | | | | | | | |
Adara Class A common stockholders (Public Shareholders)
|
| | | | 11,500,000 | | | | | | 1,485,149 | | |
Adara Class B common stockholders (Sponsor)
|
| | | | 2,000,000 | | | | | | 1,500,000 | | |
Former Alliance stockholders
|
| | | | 47,500,000 | | | | | | 47,500,000 | | |
Pro forma weighted average shares outstanding – basic and diluted(1)
|
| | | | 61,000,000 | | | | | | 50,485,149 | | |
Net income per share – basic and diluted(1)
|
| | | $ | (0.01) | | | | | $ | (0.02) | | |
| | |
For the year ended
December 31, 2021 |
| |||||||||
| | |
Minimum
Redemption Scenario |
| |
Maximum
Redemption Scenario |
| ||||||
Pro forma net income attributable to common stockholders
|
| | | $ | 41,178,000 | | | | | $ | 44,267,000 | | |
Pro forma weighted average shares calculation, basic and diluted: | | | | | | | | | | | | | |
Adara Class A common stockholders (Public Shareholders)
|
| | | | 11,500,000 | | | | | | 1,485,149 | | |
Adara Class B common stockholders (Sponsor)
|
| | | | 2,000,000 | | | | | | 1,500,000 | | |
Former Alliance stockholders
|
| | | | 47,500,000 | | | | | | 47,500,000 | | |
Pro forma weighted average shares outstanding – basic and diluted(1)
|
| | | | 61,000,000 | | | | | | 50,485,149 | | |
Net income per share – basic and diluted(1)
|
| | | $ | 0.68 | | | | | $ | 0.88 | | |
Company
|
| |
Stock Price(1)
|
| |
Market Value
of Equity |
| |
Enterprise
Value(2) |
| |
Enterprise Value as a Multiple of:
|
| ||||||||||||||||||||||||||||||
|
EBITDA
|
| |||||||||||||||||||||||||||||||||||||||||
|
TTM
|
| |
CY 2022E
|
| |
CY2023E
|
| |
CY2024E
|
| ||||||||||||||||||||||||||||||||
Aterian, Inc.
|
| | | | 2.59 | | | | | | 174.7 | | | | | | 164.6 | | | | | | NM | | | | | | NM | | | | | | NM | | | | | | 15.3x | | |
ChannelAdvisor Corporation
|
| | | | 14.76 | | | | | | 449.8 | | | | | | 347.4 | | | | | | 16.4 | | | | | | 9.3 | | | | | | 8.1 | | | | | | 7.1 | | |
Funko, Inc.
|
| | | | 20.66 | | | | | | 960.2 | | | | | | 1,267.3 | | | | | | 9.1 | | | | | | 6.9 | | | | | | 6.1 | | | | | | 6.7 | | |
Arrow Electronics, Inc.
|
| | | | 109.30 | | | | | | 7,217.8 | | | | | | 10,142.2 | | | | | | 5.2 | | | | | | 4.4 | | | | | | 4.8 | | | | | | 5.7 | | |
TD SYNNEX Corporation
|
| | | | 93.00 | | | | | | 8,937.7 | | | | | | 13,501.0 | | | | | | 11.2 | | | | | | 7.2 | | | | | | 6.7 | | | | | | 6.1 | | |
Advantage Solutions Inc.
|
| | | | 4.12 | | | | | | 1,311.8 | | | | | | 3,294.6 | | | | | | 6.6 | | | | | | 6.8 | | | | | | 6.6 | | | | | | 6.7 | | |
GameStop Corp.
|
| | | | 140.28 | | | | | | 10,624.8 | | | | | | 10,206.8 | | | | | | NM | | | | | | NM | | | | | | NM | | | | | | NM | | |
|
High
|
| | | | 16.4x | | | | | | 9.3x | | | | | | 8.1x | | | | | | 15.3x | | |
|
Average
|
| | | | 9.7 | | | | | | 6.9 | | | | | | 6.5 | | | | | | 7.9 | | |
|
Median
|
| | | | 9.1 | | | | | | 6.9 | | | | | | 6.6 | | | | | | 6.7 | | |
|
Low
|
| | | | 5.2 | | | | | | 4.4 | | | | | | 4.8 | | | | | | 5.7 | | |
| | |
EV/EBITDA
TTM |
| |
EV/EBITDA
2022 |
| |
EV/EBITDA
2023 |
| |
EV/EBITDA
2024 |
| ||||||||||||
Enterprise Value (Low)
|
| | | $ | 397,068,456 | | | | | $ | 283,551,459 | | | | | $ | 333,314,352 | | | | | $ | 394,673,812 | | |
Enterprise Value (Mean)
|
| | | $ | 737,631,016 | | | | | $ | 443,261,568 | | | | | $ | 448,155,912 | | | | | $ | 547,662,808 | | |
Enterprise Value (Median)
|
| | | $ | 687,233,866 | | | | | $ | 439,343,317 | | | | | $ | 458,525,128 | | | | | $ | 462,291,372 | | |
Enterprise Value (High)
|
| | | $ | 1,237,020,958 | | | | | $ | 589,704,646 | | | | | $ | 556,949,521 | | | | | $ | 1,053,252,376 | | |
| | |
Historical Year Ending 6/30
|
| |
Projected Year Ending 6/30*
|
| |
2021-2026
CAGR |
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
2026
|
| ||||||||||||||||||||||||||||||
Sales
|
| | | | 746.5 | | | | | | 775.6 | | | | | | 1,323.6 | | | | | | 1,400.0 | | | | | | 1,424.0 | | | | | | 1,450.0 | | | | | | 1,479.0 | | | | | | 1,508.6 | | | | | | 2.7% | | |
Cost of goods sold
|
| | | | 637.9 | | | | | | 656.5 | | | | | | 1,140.9 | | | | | | 1,213.0 | | | | | | 1,227.3 | | | | | | 1,250.0 | | | | | | 1,276.4 | | | | | | 1,301.9 | | | | | | | | |
Gross Profit
|
| | | | 108.6 | | | | | | 119.1 | | | | | | 182.7 | | | | | | 187.0 | | | | | | 196.7 | | | | | | 200.0 | | | | | | 202.6 | | | | | | 206.7 | | | | | | 2.5% | | |
Operating Expenses
|
| | | | 83.6 | | | | | | 85.9 | | | | | | 114.1 | | | | | | 122.6 | | | | | | 127.1 | | | | | | 131.2 | | | | | | 131.6 | | | | | | 134.3 | | | | | | | | |
EBITDA
|
| | | | 25.9 | | | | | | 33.6 | | | | | | 68.5 | | | | | | 64.4 | | | | | | 69.6 | | | | | | 69.1 | | | | | | 72.5 | | | | | | 73.9 | | | | | | 1.5% | | |
EBITDA Margin
|
| | | | 3.5% | | | | | | 4.3% | | | | | | 5.2% | | | | | | 4.6% | | | | | | 4.9% | | | | | | 4.8% | | | | | | 4.9% | | | | | | 4.9% | | | | | | | | |
Less: Depreciation
|
| | | | (6.2) | | | | | | (7.1) | | | | | | (5.6) | | | | | | (3.2) | | | | | | (4.0) | | | | | | (4.1) | | | | | | (4.0) | | | | | | (4.0) | | | | | | | | |
Less: Amortization
|
| | | | (7.9) | | | | | | (8.7) | | | | | | (6.0) | | | | | | (5.2) | | | | | | (3.5) | | | | | | (3.5) | | | | | | (3.5) | | | | | | (3.5) | | | | | | | | |
EBIT
|
| | | | 11.8 | | | | | | 17.8 | | | | | | 56.9 | | | | | | 56.0 | | | | | | 62.1 | | | | | | 61.5 | | | | | | 65.0 | | | | | | 66.4 | | | | | | 3.1% | | |
Less: Taxes
|
| | | | (1.7) | | | | | | (0.4) | | | | | | (10.9) | | | | | | (10.0) | | | | | | (13.3) | | | | | | (14.0) | | | | | | (14.2) | | | | | | (14.5) | | | | | | | | |
Tax-effected EBIT
|
| | | | 10.1 | | | | | | 17.4 | | | | | | 46.0 | | | | | | 46.0 | | | | | | 48.8 | | | | | | 47.5 | | | | | | 50.8 | | | | | | 51.9 | | | | | | 2.5% | | |
| | | | | | | | | | | | | | | | | | | | | | | -17.9% | | | | | | -21.4% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Plus: Depreciation and amortization
|
| | | | | | | | | | 15.8 | | | | | | 11.6 | | | | | | 8.4 | | | | | | 7.5 | | | | | | 7.6 | | | | | | 7.5 | | | | | | 7.5 | | | | | | | | |
Less: Capital expenditures
|
| | | | | | | | | | (1.6) | | | | | | (0.7) | | | | | | (0.2) | | | | | | (1.0) | | | | | | (1.0) | | | | | | (1.0) | | | | | | (1.0) | | | | | | | | |
(Increase)/decrease in working capital
|
| | | | | | | | | | (18.0) | | | | | | (35.3) | | | | | | (34.8) | | | | | | (38.0) | | | | | | 0.0 | | | | | | 0.0 | | | | | | 0.0 | | | | | | | | |
Unlevered Free Cash Flow
|
| | | | | | | | | | 13.6 | | | | | | 21.7 | | | | | | 19.2 | | | | | | 17.1 | | | | | | 54.1 | | | | | | 57.3 | | | | | | 58.4 | | | | | | 22.0% | | |
|
Unlevered Free Cash Flow
|
| | | | 19.2 | | | | | | 17.1 | | | | | | 54.1 | | | | | | 57.3 | | | | | | 58.4 | | |
|
Discount period
|
| | | | 1.0 | | | | | | 2.0 | | | | | | 3.0 | | | | | | 4.0 | | | | | | 5.0 | | |
|
WACC
|
| | | | 10.0% | | | | | | 10.0% | | | | | | 10.0% | | | | | | 10.0% | | | | | | 10.0% | | |
|
Discount factor
|
| | | | 0.909 | | | | | | 0.826 | | | | | | 0.751 | | | | | | 0.683 | | | | | | 0.621 | | |
|
Present value of each Unlevered Free Cash Flow
|
| | | | 17.5 | | | | | | 14.1 | | | | | | 40.6 | | | | | | 39.1 | | | | | | 36.3 | | |
|
Perpetuity Growth Rate Method
|
| ||||||
|
Weighted average cost of capital:
|
| | | | 10.0% | | |
|
Net present value of free cash flow
|
| | | | 147.6 | | |
|
Terminal growth rate
|
| | | | 2.0% | | |
|
Terminal value
|
| | | | 744.9 | | |
|
Present value of the terminal value
|
| | | | 462.5 | | |
|
Enterprise value
|
| | | | 610.1 | | |
|
Perpetuity Growth Rate Method
|
| ||||||
|
Less: Net debt**
|
| | | | (135.5) | | |
|
Equity value
|
| | | | 474.6 | | |
|
Shares:
|
| | | | 47.500 | | |
|
Equity Value Per Share
|
| | | | 9.99 | | |
Name and Position
|
| |
Year
|
| |
Salary
|
| |
Bonus
|
| |
All Other
Compensation(1)(2) |
| |
Total
Compensation |
| |||||||||||||||
Jeffrey Walker
Chief Executive Officer |
| | | | 2021 | | | | | $ | 800,000 | | | | | $ | 0 | | | | | $ | 77,243 | | | | | $ | 877,243 | | |
Bruce Ogilvie
Executive Chairman |
| | | | 2021 | | | | | $ | 800,000 | | | | | $ | 0 | | | | | $ | 78,535 | | | | | $ | 878,535 | | |
John Kutch
Chief Financial Officer |
| | | | 2021 | | | | | $ | 275,000 | | | | | $ | 68,750 | | | | | $ | 11,855 | | | | | $ | 355,605 | | |
Paul Eibeler
Board Chairman, COKeM |
| | | | 2021 | | | | | $ | 292,000 | | | | | $ | 29,200 | | | | | $ | 14,572 | | | | | $ | 335,772 | | |
Ben Means
President, Distribution Solutions |
| | | | 2021 | | | | | $ | 335,000 | | | | | $ | 50,250 | | | | | $ | 14,571 | | | | | $ | 399,821 | | |
Name
|
| |
Year
|
| |
401(K)
Matching Plan Contributions |
| |
Car Allowance
|
| |
Mobile
Phone Allowance & Benefits |
| |
Work From
Home Allowance |
| |
Life and
AD&D Insurance |
| |
Company
Paid Health & Welfare Benefits |
| |
Company
Paid Disability Insurance |
| |
Travel
Expenses |
| |||||||||||||||||||||||||||
Jeffrey Walker
|
| | | | 2021 | | | | | $ | 5,000 | | | | | $ | 24,000 | | | | | $ | 1,440 | | | | | $ | 1,440 | | | | | $ | 814 | | | | | $ | 7,911 | | | | | $ | 365 | | | | | $ | 36,273 | | |
Bruce Ogilvie
|
| | | | 2021 | | | | | $ | 5,000 | | | | | $ | 24,000 | | | | | $ | 1,440 | | | | | $ | 1,440 | | | | | $ | 814 | | | | | $ | 9,203 | | | | | $ | 365 | | | | | $ | 36,273 | | |
John Kutch
|
| | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 1,440 | | | | | $ | 0 | | | | | $ | 374 | | | | | $ | 4,676 | | | | | $ | 365 | | | | | $ | 0 | | |
Paul Eibeler
|
| | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 900 | | | | | $ | 0 | | | | | $ | 396 | | | | | $ | 7,911 | | | | | $ | 365 | | | | | $ | 0 | | |
Ben Means
|
| | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 900 | | | | | $ | 0 | | | | | $ | 456 | | | | | $ | 7,850 | | | | | $ | 365 | | | | | $ | 0 | | |
Name
|
| |
Fees earned or
paid in cash ($) |
| |
Stock-based
awards ($)(1) |
| |
Total
($) |
| ||||||
Alan Tuchman (former director, resigned on August 13th, 2022)
|
| | | $ | 136,000 | | | | | | | | $ | 136,000 | | |
($ in thousands, except shares)
|
| |
Year Ended
June 30, 2022 |
| |
Year Ended
June 30, 2021 |
| ||||||
Net Revenues
|
| | | $ | 1,417,377 | | | | | $ | 1,323,567 | | |
Cost of Revenues (excluding depreciation and amortization)
|
| | | | 1,234,995 | | | | | | 1,140,885 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense
|
| | | | 64,260 | | | | | | 56,885 | | |
Selling, General and Administrative Expense
|
| | | | 58,110 | | | | | | 57,250 | | |
Depreciation and Amortization
|
| | | | 8,259 | | | | | | 11,651 | | |
Transaction Costs
|
| | | | (251) | | | | | | 3,509 | | |
IC DISC Commissions
|
| | | | 9,907 | | | | | | 5,394 | | |
Loss on Disposal of Property and Equipment
|
| | | | — | | | | | | 87 | | |
Total Operating Expenses
|
| | | | 140,285 | | | | | | 134,775 | | |
Operating Income
|
| | | | 42,098 | | | | | | 47,907 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net
|
| | | | 4,056 | | | | | | 2,938 | | |
Total Other Expenses
|
| | | | 4,056 | | | | | | 2,938 | | |
Income Before Provision for Income Tax Expense
|
| | | | 38,042 | | | | | | 44,969 | | |
Income Tax Expense
|
| | | | 9,423 | | | | | | 10,791 | | |
Net Income
|
| | | | 28,619 | | | | | | 34,178 | | |
Other Comprehensive Income | | | | | | | | | | | | | |
Foreign Currency Translation
|
| | | | 7 | | | | | | 15 | | |
Total Comprehensive Income
|
| | | $ | 28,626 | | | | | $ | 34,193 | | |
Net Income per Share – Basic and Diluted
|
| | | $ | 31.80 | | | | | $ | 37.98 | | |
Shares Used in Computing Net Income per Share
|
| | | | 900 | | | | | | 900 | | |
Distributions of Paid in Capital per Share
|
| | | $ | — | | | | | $ | 7.57 | | |
| | |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Provision for Income Taxes
|
| | | $ | 9,423 | | | | | $ | 10,791 | | |
Effective Tax Rate
|
| | | | 25% | | | | | | 24% | | |
Statutory Federal Income Tax Rate
|
| | | | 21% | | | | | | 21% | | |
($ in thousands, except shares)
|
| |
Year Ended
June 30, 2021 |
| |
Year Ended
June 30, 2020 |
| ||||||
Net Revenues
|
| | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Cost of Revenues (excluding depreciation and amortization)
|
| | | | 1,140,885 | | | | | | 656,485 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense
|
| | | | 56,885 | | | | | | 35,877 | | |
Selling, General and Administrative Expense
|
| | | | 57,250 | | | | | | 50,007 | | |
Depreciation and Amortization
|
| | | | 11,651 | | | | | | 15,784 | | |
Transaction Costs
|
| | | | 3,509 | | | | | | — | | |
IC DISC Commissions
|
| | | | 5,394 | | | | | | 8,182 | | |
Loss on Disposal of Property and Equipment
|
| | | | 87 | | | | | | — | | |
Total Operating Expenses
|
| | | | 134,775 | | | | | | 109,850 | | |
Operating Income
|
| | | | 47,907 | | | | | | 9,261 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net
|
| | | | 2,938 | | | | | | 3,524 | | |
Total Other Expenses
|
| | | | 2,938 | | | | | | 3,524 | | |
Income Before Provision for Income Tax Expense
|
| | | | 44,969 | | | | | | 5,737 | | |
Income Tax Expense
|
| | | | 10,791 | | | | | | 376 | | |
Net Income
|
| | | | 34,178 | | | | | | 5,361 | | |
Other Comprehensive Income | | | | | | | | | | | | | |
Foreign Currency Translation
|
| | | | 15 | | | | | | (318) | | |
Total Comprehensive Income
|
| | | $ | 34,193 | | | | | $ | 5,043 | | |
Net Income per Share – Basic and Diluted
|
| | | $ | 37.98 | | | | | $ | 5.96 | | |
Shares Used in Computing Net Income per Share
|
| | | | 900 | | | | | | 900 | | |
Distributions of Paid in Capital per Share
|
| | | $ | 7.57 | | | | | $ | — | | |
| | |
June 30, 2021
|
| |
June 30, 2020
|
| ||||||
Provision for Income Taxes
|
| | | $ | 10,791 | | | | | $ | 376 | | |
Effective Tax Rate
|
| | | | 24% | | | | | | 7% | | |
Statutory Federal Income Tax Rate
|
| | | | 21% | | | | | | 21% | | |
| | |
Year Ended June 30
|
| |||||||||||||||
(in millions)
|
| |
2022
|
| |
2021
|
| |
2020
|
| |||||||||
Revolver Balance
|
| | | $ | 136 | | | | | $ | 54 | | | | | $ | 46 | | |
Availability
|
| | | | 48 | | | | | | 95 | | | | | | 40 | | |
| | |
Year Ended June 30
|
| |||||||||||||||
(in thousands)
|
| |
2022
|
| |
2021
|
| |
2020
|
| |||||||||
Net Income
|
| | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,362 | | |
Net Cash Provided by (Used In) Operating Activities
|
| | | | (83,554) | | | | | | 74,716 | | | | | | 27,390 | | |
Investing Activities
|
| | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Financing Activities
|
| | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
Name
|
| |
Age
|
| |
Position
|
|
Thomas Finke | | |
57
|
| | Chairman and Chief Executive Officer | |
Paul G. Porter | | |
57
|
| | Chief Financial Officer | |
W. Tom Donaldson III | | |
44
|
| | Director | |
Frank Quintero | | |
50
|
| | Director | |
Dylan Glenn | | |
52
|
| | Director | |
Beatriz Acevedo-Greiff | | |
53
|
| | Director | |
Individual
|
| |
Entity
|
| |
Entity’s Business
|
| |
Affiliation
|
|
Thomas Finke | | | Invesco Ltd. | | | Investment management | | | Director | |
W. Tom Donaldson III
|
| |
Blystone & Donaldson, LLC
Legion Brewing Holdings LLC |
| |
Private investment
Alcohol beverage manufacturer |
| |
Managing Partner
Director |
|
| Group G Holdings LLC | | | Electric lawn mowers | | | Director | | ||
Frank Quintero | | |
Yucaipa Companies, LLC
BioSig Technologies Inc Independent Sport & Entertainment |
| |
Private investment
Medical technology Sports agency |
| |
Principal
Advisory Board Member Director |
|
Dylan Glen
|
| |
KBBO Americas, L.P.
Intellicheck, Inc. |
| |
Private investment
Authentication services in the financial industry |
| |
Chief Executive Officer
Director |
|
|
Guggenheim Partners
American Action Network Episcopal High School Davidson College |
| |
Private investment
Issue advocacy Private school Private college |
| |
Senior Managing Director
Director Trustee Trustee |
| ||
Beatriz Acevedo-Greiff | | |
Suma Wealth
9th Wonder Agency Acevedo Foundation PocketWatch Silicon Valley Bank Beneficial State Bank Delta Air Lines |
| |
Fin-tech
Marketing agency Latino advocacy Digital media Banking Banking Airline |
| |
Founding Partner
Partner and Board Member Founding Partner Director Board advisor Director Board Advisor |
|
Individual
|
| |
Entity
|
| |
Entity’s Business
|
| |
Affiliation
|
|
Martin A. Sumichrast
|
| |
cbdMD, Inc.
Washington Capital, LLC SFT1, LLC Stone Street Capital, LLC Barings Global Short Duration High Yield Fund, Inc |
| |
Production and sales of consumer CBD products
Private investment Private investment Private investment Private investment |
| |
Chairman and Co-Chief
Executive Officer Managing Director Managing Director Managing Member Trustee and Chairman of the Nominating and Governance Committees |
|
| Barings Capital Funds Trust, Inc | | | Private investment | | | Trustee and Chairman of the Nominating and Governance Committees | |
Name
|
| |
Age
|
| |
Position
|
|
Bruce Ogilvie | | |
64
|
| |
Executive Chairman of the Board and AEC Director
|
|
Jeffrey Walker | | |
54
|
| | Chief Executive Officer and AEC Director | |
John Kutch | | |
56
|
| | Chief Financial Officer and retiring Director | |
Paul Eibeler | | |
66
|
| | Chairman of COKeM subsidiary and Director | |
Thomas Finke | | |
57
|
| | Independent Director Nominee | |
W. Tom Donaldson III | | |
45
|
| | Independent Director Nominee | |
Terilea J. Wielenga | | |
63
|
| | Independent Director Nominee | |
Name
|
| |
Base Salary ($)
|
| |
Target Bonus
Percentage (%) |
| ||||||
Bruce Ogilvie
|
| | | | 800,000 | | | | | | 100 | | |
Jeffrey Walker
|
| | | | 800,000 | | | | | | 100 | | |
| | | | | | | | | | | | | | |
After the Business Combination
|
| |||||||||||||||||||||
| | |
Before the Business
Combination |
| |
Assuming No Redemption
|
| |
Assuming Maximum
Redemption |
| |||||||||||||||||||||||||||
| | |
Number of
Shares of Adara |
| |
Number of Shares of
Combined Company |
| |
Number of Shares of
Combined Company |
| |||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1)
|
| |
Common Stock
|
| |
%
|
| |
Common Stock
|
| |
%
|
| |
Common Stock
|
| |
%
|
| ||||||||||||||||||
Directors and Executive Officers of Adara prior to the Business Combination:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Thomas Finke(4)
|
| | | | 2,825,000 | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0%(4) | | |
Paul G. Porter(3)
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
W. Tom Donaldson(4)
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Frank Quintero(4)
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Dylan Glenn(4)
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Beatriz Acevedo-Greiff(4)
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
All Directors and Executive Officers of Adara as a Group prior to the Business Combination (6 Individuals)
|
| | | | 2,825,000 | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0% | | |
Five Percent Holders of Adara prior to the Business Combination:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adara Sponsor LLC(2)(6)
|
| | | | 2,825,000 | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0% | | |
Hudson Bay Capital Management LP(7)
|
| | | | 750,000 | | | | | | 5.2% | | | | | | 750,000 | | | | | | 1.2% | | | | | | 750,000 | | | | | | 1.5% | | |
Karpus Management, Inc.(8)
|
| | | | 897,571 | | | | | | 6.2% | | | | | | 897,571 | | | | | | 1.5% | | | | | | 897,571 | | | | | | 1.8% | | |
MMCAP International Inc. SPC(9)
|
| | | | 650,000 | | | | | | 4.5% | | | | | | 650,000 | | | | | | 1.1% | | | | | | 650,000 | | | | | | 1.3% | | |
CVI Investments, Inc.(10)
|
| | | | 500,000 | | | | | | 3.5% | | | | | | 500,000 | | | | | | * | | | | | | 500,000 | | | | | | * | | |
Directors and Executive Officers of the Combined Company After Consummation of the Business Combination
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bruce Ogilvie(11)(12)(13)
|
| | | | — | | | | | | * | | | | | | 23,750,000 | | | | | | 38.9% | | | | | | 23,750,000 | | | | | | 46.6% | | |
Jeffrey Walker(11)(13)
|
| | | | — | | | | | | * | | | | | | 23,750,000 | | | | | | 38.9% | | | | | | 23,750,000 | | | | | | 46.6% | | |
John Kutch
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Paul Eibeler
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Terilea J. Wielenga
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Thomas Finke
|
| | | | 2,875,000(5) | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0% | | |
W. Tom Donaldson
|
| | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
All Directors and Executive Officers of the Combined Company as a Group (8 individuals)
|
| | | | 2,875,000(5) | | | | | | 19.7% | | | | | | 53,570,000(5) | | | | | | 82.3% | | | | | | 53,570,000(5) | | | | | | 97.1% | | |
| | |
Units
|
| |
Common Stock
|
| |
Warrants
|
| |||||||||||||||||||||||||||
Quarter Ended
|
| |
High
|
| |
Low
|
| |
High
|
| |
Low
|
| |
High
|
| |
Low
|
| ||||||||||||||||||
2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31
|
| | | $ | 10.09 | | | | | $ | 9.82 | | | | | $ | 9.90 | | | | | $ | 9.75 | | | | | $ | 0.50 | | | | | $ | 0.23 | | |
June 30
|
| | | $ | 10.09 | | | | | $ | 9.85 | | | | | $ | 9.94 | | | | | $ | 9.80 | | | | | $ | 0.37 | | | | | $ | 0.05 | | |
September 30 | | | | $ | 10.13 | | | | | $ | 9.94 | | | | | $ | 9.97 | | | | | $ | 9.88 | | | | | $ | 0.35 | | | | | $ | 0.12 | | |
2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31(1) | | | | $ | 10.45 | | | | | $ | 9.72 | | | | | $ | 10.80 | | | | | $ | 9.59 | | | | | $ | 0.62 | | | | | $ | 0.50 | | |
June 30
|
| | | $ | 10.15 | | | | | $ | 9.88 | | | | | $ | 10.00 | | | | | $ | 9.61 | | | | | $ | 1.00 | | | | | $ | 0.43 | | |
September 30
|
| | | $ | 10.11 | | | | | $ | 9.64 | | | | | $ | 9.80 | | | | | $ | 9.61 | | | | | $ | 0.75 | | | | | $ | 0.46 | | |
December 31
|
| | | $ | 10.13 | | | | | $ | 9.96 | | | | | $ | 9.88 | | | | | $ | 9.72 | | | | | $ | 0.61 | | | | | $ | 0.47 | | |
| | |
Page
|
| |||
ALLIANCE FINANCIAL STATEMENTS | | | |||||
| | | | F-2 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
ADARA FINANCIAL STATEMENTS | | | | | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
| | | | F-27 | | | |
| | | | F-28 | | | |
| | | | F-29 | | | |
| | | | F-45 | | | |
| | | | F-46 | | | |
| | | | F-47 | | | |
| | | | F-48 | | | |
| | | | F-49 | | | |
| | | | F-50 | | |
($ in thousands, except shares)
|
| |
Year Ended
June 30, 2022 |
| |
Year Ended
June 30, 2021 |
| |
Year Ended
June 30, 2020 |
| |||||||||
Net Revenues
|
| | | $ | 1,417,377 | | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Cost of Revenues (excluding depreciation and amortization)
|
| | | | 1,234,995 | | | | | | 1,140,885 | | | | | | 656,485 | | |
Operating Expenses | | | | | | | | | | | | | | | | | | | |
Distribution and Fulfillment Expense
|
| | | | 64,260 | | | | | | 56,885 | | | | | | 35,877 | | |
Selling, General and Administrative Expense
|
| | | | 58,110 | | | | | | 57,249 | | | | | | 50,007 | | |
Depreciation and Amortization
|
| | | | 8,259 | | | | | | 11,651 | | | | | | 15,784 | | |
Transaction Costs
|
| | | | (251) | | | | | | 3,509 | | | | | | — | | |
IC DISC Commissions
|
| | | | 9,907 | | | | | | 5,394 | | | | | | 8,182 | | |
Loss on Disposal of Property and Equipment
|
| | | | — | | | | | | 87 | | | | | | — | | |
Total Operating Expenses
|
| | | | 140,285 | | | | | | 134,775 | | | | | | 109,850 | | |
Operating Income
|
| | | | 42,098 | | | | | | 47,907 | | | | | | 9,261 | | |
Other Expenses | | | | | | | | | | | | | | | | | | | |
Interest Expense, Net
|
| | | | 4,056 | | | | | | 2,938 | | | | | | 3,524 | | |
Total Other Expenses
|
| | | | 4,056 | | | | | | 2,938 | | | | | | 3,524 | | |
Income Before Provision for Income Tax Expense
|
| | | | 38,042 | | | | | | 44,969 | | | | | | 5,737 | | |
Income Tax Expense
|
| | | | 9,423 | | | | | | 10,791 | | | | | | 376 | | |
Net Income
|
| | | | 28,619 | | | | | | 34,178 | | | | | | 5,361 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | |
Foreign Currency Translation
|
| | | | 7 | | | | | | 15 | | | | | | (318) | | |
Total Comprehensive Income
|
| | | $ | 28,626 | | | | | | 34,193 | | | | | | 5,043 | | |
Net Income per Share – Basic and Diluted
|
| | | $ | 31.80 | | | | | $ | 37.98 | | | | | $ | 5.96 | | |
Shares Used in Computing Net Income per Share
|
| | | | 900 | | | | | | 900 | | | | | | 900 | | |
Distributions of Paid In Capital per Share
|
| | | $ | — | | | | | $ | 7.57 | | | | | $ | — | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and Cash Equivalents
|
| | | $ | 1,469 | | | | | $ | 4,028 | | |
Trade Receivables, Net
|
| | | | 98,699 | | | | | | 111,332 | | |
Related Party Receivable
|
| | | | 245 | | | | | | 1,476 | | |
Inventory, Net
|
| | | | 249,439 | | | | | | 141,661 | | |
Other Current Assets
|
| | | | 9,128 | | | | | | 7,287 | | |
Total Current Assets
|
| | | | 358,980 | | | | | | 265,784 | | |
Property and Equipment, Net
|
| | | | 3,284 | | | | | | 6,330 | | |
Operating Lease Right-Of-Use Assets
|
| | | | 8,360 | | | | | | 12,658 | | |
Goodwill
|
| | | | 79,903 | | | | | | 79,903 | | |
Intangibles, Net
|
| | | | 18,764 | | | | | | 23,927 | | |
Other Long-Term Assets
|
| | | | 3,748 | | | | | | 361 | | |
Total Assets
|
| | | $ | 473,039 | | | | | $ | 388,963 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable
|
| | | $ | 198,187 | | | | | $ | 214,332 | | |
Accrued Expenses
|
| | | | 11,573 | | | | | | 13,555 | | |
Current Portion of Financing Lease Obligations
|
| | | | — | | | | | | 811 | | |
Current Portion of Operating Lease Obligations
|
| | | | 4,453 | | | | | | 4,622 | | |
Seller Note, Current
|
| | | | — | | | | | | 3,000 | | |
Income Taxes Payable
|
| | | | 418 | | | | | | 2,286 | | |
Revolving Credit Facility, Net
|
| | | | 135,968 | | | | | | — | | |
Total Current Liabilities
|
| | | | 350,599 | | | | | | 238,606 | | |
Revolving Credit Facility, Net
|
| | | | — | | | | | | 53,580 | | |
Debt, Non-Current
|
| | | | 3,377 | | | | | | | | |
Seller Note, Non-Current
|
| | | | — | | | | | | 750 | | |
Operating Lease Obligations
|
| | | | 4,864 | | | | | | 9,277 | | |
Deferred Tax Liability
|
| | | | 5,271 | | | | | | 6,448 | | |
Total Liabilities
|
| | | | 364,111 | | | | | | 308,661 | | |
Commitments and Contingencies (Note 11) | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common Stock: No Par Value, Authorized 1,000 shares
|
| | | | | | | | | | | | |
Issued 957 Shares, Outstanding 900 Shares as of June 30, 2022, and 2021
|
| | | | | | | | | | | | |
Paid In Capital
|
| | | | 40,000 | | | | | | 40,000 | | |
Treasury Stock, 57 Shares Carried at Cost
|
| | | | (2,674) | | | | | | (2,674) | | |
Accumulated Other Comprehensive Loss
|
| | | | (66) | | | | | | (73) | | |
Retained Earnings
|
| | | | 71,668 | | | | | | 43,049 | | |
Total Stockholders’ Equity
|
| | | | 108,928 | | | | | | 80,302 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 473,039 | | | | | $ | 388,963 | | |
($ in thousands)
|
| |
Year Ended
June 30, 2022 |
| |
Year Ended
June 30, 2021 |
| |
Year Ended
June 30, 2020 |
| |||||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | | | | | | | |
Net Income
|
| | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,361 | | |
Adjustments to Reconcile Net Income to
|
| | | | | | | | | | | | | | | | | | |
Cash provided by (Used In) Operating Activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation of Property and Equipment
|
| | | | 3,096 | | | | | | 5,623 | | | | | | 7,124 | | |
Amortization of Intangible Assets
|
| | | | 5,163 | | | | | | 5,772 | | | | | | 8,660 | | |
Amortization of Deferred Financing Costs (Included in Interest)
|
| | | | 165 | | | | | | 334 | | | | | | 358 | | |
Bad Debt Expense
|
| | | | 496 | | | | | | 225 | | | | | | 155 | | |
Deferred Income Taxes
|
| | | | (1,177) | | | | | | 1,543 | | | | | | 1,286 | | |
Loss on Disposal of Fixed Assets
|
| | | | — | | | | | | 87 | | | | | | — | | |
Changes in Assets and Liabilities, Net of Acquisitions
|
| | | | | | | | | | | | | | | | | | |
Trade Receivables
|
| | | | 12,138 | | | | | | 8,053 | | | | | | 13,684 | | |
Related Party Receivable
|
| | | | 1,231 | | | | | | 157 | | | | | | (1,633) | | |
Inventory
|
| | | | (107,778) | | | | | | (8,617) | | | | | | 35,821 | | |
Income Taxes Payable\Receivable
|
| | | | (1,867) | | | | | | 4,453 | | | | | | (1,187) | | |
Operating Lease Right-Of-Use Assets
|
| | | | 4,299 | | | | | | (817) | | | | | | 3,137 | | |
Operating Lease Obligations
|
| | | | (4,583) | | | | | | 664 | | | | | | (3,284) | | |
Other Assets
|
| | | | (5,230) | | | | | | 1,980 | | | | | | 3,228 | | |
Accounts Payable
|
| | | | (16,146) | | | | | | 18,686 | | | | | | (38,761) | | |
Accrued Expenses
|
| | | | (1,980) | | | | | | 2,395 | | | | | | (6,560) | | |
Net Cash Provided by (Used in) Operating Activities
|
| | | | (83,554) | | | | | | 74,718 | | | | | | 27,391 | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | | | | | | |
Capital Expenditures
|
| | | | (50) | | | | | | (650) | | | | | | (2,702) | | |
Cash Paid for Business Acquisitions, Net of Cash
Acquired |
| | | | — | | | | | | (65,409) | | | | | | (2,561) | | |
Net Cash Used in Investing Activities
|
| | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | | | | |
Payments on Seller Notes
|
| | | | (3,750) | | | | | | (4,750) | | | | | | — | | |
Payments on Revolving Credit Facility
|
| | | | (1,346,442) | | | | | | (1,310,333) | | | | | | (724,783) | | |
Borrowings on Revolving Credit Facility
|
| | | | 1,428,664 | | | | | | 1,318,518 | | | | | | 698,670 | | |
Payments on Financing Leases
|
| | | | (811) | | | | | | (2,101) | | | | | | (2,478) | | |
Proceeds from Debt
|
| | | | 3,377 | | | | | | — | | | | | | 1,378 | | |
Capital Dividends
|
| | | | — | | | | | | (6,811) | | | | | | — | | |
Capital Contribution
|
| | | | — | | | | | | — | | | | | | 3,860 | | |
Deferred Financing Costs
|
| | | | — | | | | | | (500) | | | | | | — | | |
Net Cash Provided by (Used In) Financing Activities
|
| | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
Net Increase (Decrease) in Cash and Cash Equivalents
|
| | |
|
(2,566)
|
| | | |
|
2,682
|
| | | |
|
(1,225)
|
| |
Net Effect of Currency Translation on Cash and Cash Equivalents
|
| | |
|
7
|
| | | |
|
15
|
| | | |
|
(318)
|
| |
Cash, Beginning of the Period
|
| | |
|
4,028
|
| | | |
|
1,331
|
| | | |
|
2,874
|
| |
Cash, End of the Period
|
| | | $ | 1,469 | | | | | $ | 4,028 | | | | | $ | 1,331 | | |
Supplemental disclosure for Cash Flow Information | | | | | | | | | | | | | | | | | | | |
Cash Paid for Interest
|
| | | $ | 2,878 | | | | | $ | 2,079 | | | | | $ | 3,272 | | |
Cash Paid for Income Taxes
|
| | | $ | 9,345 | | | | | $ | 6,540 | | | | | $ | 362 | | |
Supplemental Disclosure for Non-Cash Investing Activities | | | | | | | | | | | | | | | | | | | |
Property and Equipment Acquired Under Capital Leases
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,378 | | |
Issuance of Seller’s Note Related to Acquisition
|
| | | $ | — | | | | | $ | 8,500 | | | | | $ | — | | |
PPP Loan Forgiveness
|
| | | $ | — | | | | | $ | 1,740 | | | | | $ | — | | |
($ in thousands)
|
| |
Common
Stock Shares Issued |
| |
Paid In
Capital |
| |
Cost of
Treasury Stock |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Retained
Earnings |
| |
Total
|
| ||||||||||||||||||
Balances at June 30, 2019
|
| | | | 900 | | | | | $ | 42,951 | | | | | $ | (2,675) | | | | | $ | 230 | | | | | $ | 3,510 | | | | | $ | 44,016 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Translation Adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | (318) | | | | | | — | | | | | | (318) | | |
Capital Contribution
|
| | | | — | | | | | | 3,860 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,860 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,361 | | | | | | 5,361 | | |
Balances at June 30, 2020
|
| | | | 900 | | | | | $ | 46,811 | | | | | $ | (2,675) | | | | | $ | (88) | | | | | $ | 8,871 | | | | | $ | 52,919 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Translation Adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | 15 | | | | | | — | | | | | | 15 | | |
Distributions of Paid In Capital
|
| | | | — | | | | | | (6,811) | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,811) | | |
Purchase of Treasury Stock
|
| | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 34,178 | | | | | | 34,178 | | |
Balances at June 30, 2021
|
| | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 43,049 | | | | | $ | 80,302 | | |
Currency Translation Adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | — | | | | | | 7 | | |
Net Income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,619 | | | | | | 28,619 | | |
Balances at June 30, 2022
|
| | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 71,668 | | | | | $ | 108,928 | | |
Asset Class
|
| |
Useful Life
|
|
Leasehold Improvements
|
| | 5 – 10 years | |
Machinery and Equipment
|
| | 3 – 7 years | |
Furniture and Fixtures
|
| | 5 – 7 years | |
Capitalized Software
|
| | 1 – 3 years | |
Equipment Under Capital Leases
|
| | 5 years | |
Computer Equipment
|
| | 2 – 5 years | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Trade receivables
|
| | | $ | 101,064 | | | | | $ | 115,618 | | |
Less: | | | | | | | | | | | | | |
Allowances for Doubtful Accounts
|
| | | | (558) | | | | | | (1,145) | | |
Sales returns reserve, net
|
| | | | (1,898) | | | | | | (2,975) | | |
Customer Rebate and Discount Reserve
|
| | | | 90 | | | | | | (166) | | |
Total Allowances
|
| | | | (2,366) | | | | | | (4,286) | | |
Trade Receivables, Net
|
| | | $ | 98,699 | | | | | $ | 111,332 | | |
| | |
Year Ended
|
| |||||||||||||||
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| |
June 30, 2020
|
| |||||||||
Customer #1
|
| | | | 23.6% | | | | | | 23.7% | | | | | | 19.6% | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Customer #1
|
| | | | 21.4% | | | | | | 12.2% | | |
Customer #2
|
| | | | 14.2% | | | | | | * | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Inventory
|
| | | $ | 255,236 | | | | | $ | 145,740 | | |
Less: Reserves
|
| | | | (5,797) | | | | | | (4,079) | | |
Inventory, Net
|
| | | $ | 249,439 | | | | | $ | 141,661 | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Other Assets – Current | | | | | | | | | | | | | |
Prepaid Intellectual Property
|
| | | $ | 2,443 | | | | | $ | 3,411 | | |
Prepaid Insurance
|
| | | | 431 | | | | | | 2,011 | | |
Prepaid Acquisitions
|
| | | | 2,243 | | | | | | — | | |
Prepaid Freight
|
| | | | 216 | | | | | | | | |
Prepaid Manufacturing Components
|
| | | | 79 | | | | | | 167 | | |
Prepaid Maintenance
|
| | | | 885 | | | | | | 165 | | |
Prepaid Shipping Supplies
|
| | | | 2,832 | | | | | | 1,533 | | |
Total Other Assets – Current
|
| | | $ | 9,129 | | | | | $ | 7,287 | | |
Other Assets – Long Term | | | | | | | | | | | | | |
Deposits
|
| | | $ | 3,748 | | | | | $ | 361 | | |
Total Other Assets – Long Term
|
| | | $ | 3,748 | | | | | $ | 361 | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Property and Equipment | | | | | | | | | | | | | |
Leasehold Improvements
|
| | | $ | 1,680 | | | | | $ | 1,597 | | |
Machinery and Equipment
|
| | | | 19,440 | | | | | | 19,236 | | |
Furniture and Fixtures
|
| | | | 3,530 | | | | | | 2,622 | | |
Capitalized Software
|
| | | | 11,451 | | | | | | 11,422 | | |
Equipment Under Capital Leases
|
| | | | 12,917 | | | | | | 12,917 | | |
Computer Equipment
|
| | | | 2,662 | | | | | | 2,665 | | |
Construction in Progress
|
| | | | 154 | | | | | | 104 | | |
| | | | | 51,834 | | | | | | 50,563 | | |
Less: Accumulated Depreciation and Amortization
|
| | | | (48,550) | | | | | | (44,233) | | |
Total Property and Equipment, Net
|
| | | $ | 3,284 | | | | | $ | 6,330 | | |
($ in thousands)
|
| |
Life
(in yrs.) |
| |
Amortization
Year Ended June 30, 2021 |
| |
June 30,
2021 |
| |
Amortization
Year Ended June 30, 2022 |
| |
June 30,
2022 |
| ||||||||||||
Identifiable Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer Relationships
|
| |
15
|
| | | $ | (4,331) | | | | | $ | 14,633 | | | | | $ | (3,690) | | | | | $ | 10,943 | | |
Trade Name – Alliance
|
| |
10
|
| | | | (382) | | | | | | 634 | | | | | | (254) | | | | | | 380 | | |
Covenant Not to Compete
|
| |
7
|
| | | | (1) | | | | | | 4 | | | | | | (1) | | | | | | 3 | | |
Mecca Customer Relationships
|
| |
15
|
| | | | (575) | | | | | | 3,932 | | | | | | (575) | | | | | | 3,357 | | |
Customer List
|
| |
10 – 15
|
| | | | (739) | | | | | | 4,724 | | | | | | (643) | | | | | | 4,081 | | |
Total Identifiable Intangible Assets:
|
| | | | | | $ | (6,028) | | | | | $ | 23,927 | | | | | $ | (5,163) | | | | | $ | 18,764 | | |
($ in thousands)
|
| |
Intangible
Assets |
| |||
Year Ended June 30 | | | | | | | |
2023
|
| | | $ | 4,056 | | |
2024
|
| | | | 3,470 | | |
2025
|
| | | | 2,898 | | |
2026
|
| | | | 2,586 | | |
2027
|
| | | | 2,536 | | |
Thereafter
|
| | | | 3,218 | | |
Total Expected Amortization
|
| | | $ | 18,764 | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Marketing Funds Accruals
|
| | | $ | 2,738 | | | | | $ | 1,294 | | |
Payroll and Payroll Tax Accruals
|
| | | | 3,904 | | | | | | 6,833 | | |
Accruals for Other Expenses
|
| | | | 4,931 | | | | | | 5,428 | | |
Total Accrued Expenses
|
| | | $ | 11,573 | | | | | $ | 13,555 | | |
($ in thousands)
|
| |
June 30, 2022
|
| |
June 30, 2021
|
| ||||||
Bank of America Revolving Credit Agreement
|
| | | $ | 136,176 | | | | | $ | 53,955 | | |
Less: Deferred Finance Costs
|
| | | | (208) | | | | | | (375) | | |
Revolving Credit, Net
|
| | | $ | 135,968 | | | | | $ | 53,580 | | |
| | |
Year Ended June 30
|
| |||||||||||||||
(In thousands)
|
| |
2022
|
| |
2021
|
| |
2020
|
| |||||||||
Income Tax Expense (Benefit): | | | | | | | | | | | | | | | | | | | |
Current:
|
| | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | 7,937 | | | | | $ | 7,201 | | | | | $ | (1,759) | | |
State
|
| | | | 2,663 | | | | | | 2,304 | | | | | | 849 | | |
Total Current
|
| | | $ | 10,599 | | | | | $ | 9,505 | | | | | $ | (910) | | |
Deferred:
|
| | | | | | | | | | | | | | | | | | |
Federal
|
| | | | (951) | | | | | | 1,070 | | | | | | 1,137 | | |
State
|
| | | | (226) | | | | | | 216 | | | | | | 149 | | |
Total Deferred
|
| | | | (1,177) | | | | | | 1,286 | | | | | | 1,286 | | |
Income Tax Expense
|
| | | $ | 9,423 | | | | | $ | 10,791 | | | | | $ | 376 | | |
| | |
Year Ended June 30
|
| | | | |||||||||||||||||||||||||||||||||
(In thousands)
|
| |
2022
|
| |
2021
|
| |
2020
|
| | | | |||||||||||||||||||||||||||
Federal Income Tax Provision at Statutory Rate
|
| | | $ | 7,484 | | | | | | 21% | | | | | $ | 9,444 | | | | | | 21% | | | | | $ | 1,205 | | | | | | 21% | | | | | |
State Taxes, Net of Federal Benefits
|
| | | | 2,437 | | | | | | 6% | | | | | | 2,520 | | | | | | 6% | | | | | | 997 | | | | | | 17% | | | | | |
Meals Entertainments
|
| | | | — | | | | | | 0% | | | | | | 6 | | | | | | 0% | | | | | | 18 | | | | | | 0% | | | | | |
Foreign Derived Intangible Income
|
| | | | (618) | | | | | | -2% | | | | | | (802) | | | | | | -2% | | | | | | (598) | | | | | | -10% | | | | | |
NOL Carryback Refund Before AMT
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | (1,216) | | | | | | -21% | | | | | |
Debt Forgiveness and Interest Income
|
| | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | |
Other
|
| | | | 120 | | | | | | -1% | | | | | | (377) | | | | | | -1% | | | | | | (30) | | | | | | -1% | | | | | |
Income Tax Expense
|
| | | $ | 9,423 | | | | | | 24% | | | | | $ | 10,791 | | | | | | 24% | | | | | $ | 376 | | | | | | 6% | | | | | |
| | |
Year Ended June 30
|
| |||||||||
(In thousands)
|
| |
2022
|
| |
2021
|
| ||||||
Deferred Tax Assets: | | | | ||||||||||
Other Deferred (ICDISC)
|
| | | $ | 583 | | | | | $ | 245 | | |
Net Operating Losses
|
| | | | 30 | | | | | | 30 | | |
Bad Debt
|
| | | | 39 | | | | | | 83 | | |
Total Deferred Tax Assets
|
| | | | 652 | | | | | | 358 | | |
Deferred Tax Liabilities: | | | | | | | | | | | | | |
Inventory
|
| | | | (324) | | | | | | (875) | | |
Accruals Not Currently Deductible
|
| | | | (792) | | | | | | (98) | | |
Prepaids
|
| | | | (1,004) | | | | | | (1,224) | | |
Property and Equipment
|
| | | | (1,399) | | | | | | (1,924) | | |
Goodwill/Intangibles
|
| | | | (2,404) | | | | | | (2,685) | | |
Total Deferred Tax Liabilities
|
| | | | (5,923) | | | | | | (6,806) | | |
Net Deferred Tax Liability
|
| | |
$
|
(5,271)
|
| | | |
$
|
(6,448)
|
| |
($ in thousands)
|
| |
2022
|
| |
2021
|
| |
2020
|
| |||||||||
Lease cost | | | | | | | | | | | | | | | | | | | |
Finance Lease Costs:
|
| | | | | | | | | | | | | | | | | | |
Amortization of Right-of-Use Assets
|
| | | $ | 675 | | | | | $ | 1,189 | | | | | $ | 1,095 | | |
Interest on Lease Liabilities
|
| | | | 27 | | | | | | 81 | | | | | | 125 | | |
Operating Lease Cost
|
| | | | 4,515 | | | | | | 4,789 | | | | | | 3,827 | | |
Short Term Lease Cost
|
| | | | 1,140 | | | | | | — | | | | | | — | | |
Variable Lease Cost
|
| | | | 1,633 | | | | | | 869 | | | | | | 680 | | |
Total Lease Cost
|
| | | $ | 7,990 | | | | | $ | 6,928 | | | | | $ | 5,727 | | |
Other Information | | | | | | | | | | | | | | | | | | | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | | | | | | | | | | | | | | | | | | | |
Operating Cash Flows from Financing Leases
|
| | | $ | 30 | | | | | $ | 86 | | | | | $ | 125 | | |
($ in thousands)
|
| |
2022
|
| |
2021
|
| |
2020
|
| |||||||||
Operating Cash Flows from Operating Leases
|
| | | $ | 4,820 | | | | | $ | 4,944 | | | | | $ | 3,973 | | |
Financing Cash Flows from Finance Leases
|
| | | | 1,070 | | | | | | 1,931 | | | | | | 1,720 | | |
Right-of Use Assets Obtained in Exchange for New Finance Lease Liabilities
|
| | | | — | | | | | | — | | | | | | 1,561 | | |
Right-of Use Assets Obtained in Exchange for Capitalized Operating Lease Liabilities
|
| | | | — | | | | | | 3,640 | | | | | | 39 | | |
Net ROU Remeasurement
|
| | | | (651) | | | | | | 841 | | | | | | 169 | | |
| | |
Year Ended June 30,
|
| |||||||||||||||
| | |
2022
|
| |
2021
|
| |
2020
|
| |||||||||
Weighted-Average Remaining Lease Term – Operating Leases
|
| | | | 2.33 | | | | | | 1.63 | | | | | | 2.13 | | |
Weighted-Average Remaining Lease Term – Financing Leases
|
| | | | 2.06 | | | | | | 3.12 | | | | | | 4.09 | | |
Weighted-Average Discount Rate – Operating Leases
|
| | | | 4.10 | | | | | | 3.35 | | | | | | 3.26 | | |
Weighted-Average Discount Rate – Financing Leases
|
| | | | 3.70 | | | | | | 4.46 | | | | | | 4.45 | | |
($ in thousands)
|
| |
Operating
Leases |
| |||
2023
|
| | | | 4,403 | | |
2024
|
| | | | 4,019 | | |
2025
|
| | | | 1,402 | | |
2026
|
| | | | 99 | | |
Total Lease Payments
|
| | | | 9,923 | | |
Less Imputed Interest
|
| | | | (606) | | |
Total
|
| | | $ | 9,317 | | |
($ in thousands)
|
| |
Nine Months Ended
June 30, 2021 |
| |||
Revenue
|
| | | $ | 405,714 | | |
Net Income
|
| | | | 19,567 | | |
|
Cash at Close
|
| | | $ | 71,859 | | |
|
Note to Seller
|
| | | | 8,500 | | |
| | | | | $ | 80,359 | | |
($ in thousands)
|
| | | | | | |
Cash Acquired
|
| | | $ | 6,450 | | |
Trade Receivables
|
| | | | 48,729 | | |
Inventory
|
| | | | 70,267 | | |
Other Assets
|
| | | | 1,779 | | |
Accounts Payable
|
| | | | (48,770) | | |
Accrued Expenses
|
| | | | (734) | | |
Property and Equipment
|
| | | | 2,638 | | |
Total Purchase Price
|
| | | $ | 80,359 | | |
| | |
Year Ended
|
| |||||||||
($ in thousands)
|
| |
June 30, 2021
|
| |
June 30, 2020
|
| ||||||
Revenue
|
| | | $ | 1,414,039 | | | | | $ | 1,195,005 | | |
Net Income
|
| | | | 42,542 | | | | | | 3,402 | | |
| | |
June 30, 2022
|
| |
December 31, 2021
|
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 9,607 | | | | | $ | 724,410 | | |
Prepaid expenses
|
| | | | 120,833 | | | | | | 199,166 | | |
Total Current Assets
|
| | |
|
130,440
|
| | | |
|
923,576
|
| |
Marketable securities held in Trust Account
|
| | | | 116,318,176 | | | | | | 116,160,281 | | |
TOTAL ASSETS
|
| | | $ | 116,448,616 | | | | | $ | 117,083,857 | | |
LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE
REDEMPTION, AND STOCKHOLDERS’ DEFICIT |
| | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 569,468 | | | | | $ | 440,245 | | |
Promissory note
|
| | | | 330,000 | | | | | | — | | |
Total Current Liabilities
|
| | |
|
899,468
|
| | | |
|
440,245
|
| |
Warrant Liabilities
|
| | | | 1,785,600 | | | | | | 4,860,800 | | |
TOTAL LIABILITIES
|
| | | | 2,685,068 | | | | | | 5,301,045 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption, $0.0001 par value; 11,500,000 shares at $10.10 redemption value at June 30, 2022 and December 31, 2021
|
| | | | 116,150,000 | | | | | | 116,150,000 | | |
STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued
and outstanding |
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized
|
| | | | — | | | | | | — | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding at June 30, 2022 and December 31, 2021
|
| | | | 288 | | | | | | 288 | | |
Additional paid-in capital
|
| | | | — | | | | | | — | | |
Accumulated deficit
|
| | | | (2,386,740) | | | | | | (4,367,476) | | |
TOTAL STOCKHOLDERS’ DEFICIT
|
| | | | (2,386,452) | | | | | | (4,367,188) | | |
TOTAL LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ DEFICIT
|
| | | $ | 116,448,616 | | | | | $ | 117,083,857 | | |
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| ||||||||||||
Operating and formation costs
|
| | | $ | 677,791 | | | | | $ | 247,167 | | | | | $ | 1,252,359 | | | | | $ | 415,170 | | |
Loss from operations
|
| | | | (677,791) | | | | | | (247,167) | | | | | | (1,252,359) | | | | | | (415,170) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earned on marketable securities held in
Trust Account |
| | | | 147,540 | | | | | | 2,896 | | | | | | 157,895 | | | | | | 4,424 | | |
Transaction costs incurred in connection with IPO
|
| | | | — | | | | | | — | | | | | | — | | | | | | (86,544) | | |
Change in fair value of warrants liabilities
|
| | | | 1,388,800 | | | | | | (1,561,700) | | | | | | 3,075,200 | | | | | | 2,545,200 | | |
Other income (expense), net
|
| | | | 1,536,340 | | | | | | (1,558,804) | | | | | | 3,233,095 | | | | | | 2,463,080 | | |
Net income (loss)
|
| | | $ | 858,549 | | | | | $ | (1,805,971) | | | | | $ | 1,980,736 | | | | | $ | 2,047,910 | | |
Weighted average shares outstanding, Class A common stock
|
| | | | 11,500,000 | | | | | | 11,500,000 | | | | | | 11,500,000 | | | | | | 8,831,492 | | |
Basic and diluted net income (loss) per share, Class A common stock
|
| | | $ | 0.06 | | | | | $ | (0.13) | | | | | $ | 0.14 | | | | | $ | 0.18 | | |
Weighted average shares outstanding, Class B common stock
|
| | | | 2,875,000 | | | | | | 2,875,000 | | | | | | 2,875,000 | | | | | | 2,787,983 | | |
Basic and diluted net income (loss) per share, Class B common stock
|
| | | $ | 0.06 | | | | | $ | (0.13) | | | | | $ | 0.14 | | | | | $ | 0.18 | | |
| | |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – January 1, 2022
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (4,367,476) | | | | | $ | (4,367,188) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,122,187 | | | | | | 1,122,187 | | |
Balance – March 31, 2022
|
| | | | 2,875,000 | | | | | $ | 288 | | | | |
$
|
—
|
| | | | $ | (3,245,289) | | | | | $ | (3,245,001) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 858,549 | | | | | | 858,549 | | |
Balance – June 30, 2022
|
| | | | 2,875,000 | | | | | $ | 288 | | | | |
$
|
—
|
| | | | $ | (2,386,740) | | | | | $ | (2,386,452) | | |
| | |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity (Deficit) |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – January 1, 2021
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (5,476) | | | | | $ | 19,524 | | |
Accretion for Class A common stock to redemption amount
|
| | | | — | | | | | | — | | | | | | (313,212) | | | | | | (7,606,206) | | | | | | (7,919,418) | | |
Cash paid in excess of fair value of private warrants
|
| | | | — | | | | | | — | | | | | | 288,400 | | | | | | — | | | | | | 288,400 | | |
Issuance of Representative Warrants
|
| | | | — | | | | | | — | | | | | | 100 | | | | | | — | | | | | | 100 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 3,853,881 | | | | | | 3,853,881 | | |
Balance – March 31, 2021
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (3,757,801) | | | | | $ | (3,757,513) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,805,971) | | | | | | (1,805,971) | | |
Balance – June 30, 2021
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (5,563,772) | | | | | $ | (5,563,484) | | |
| | |
Six Months Ended
June 30, 2022 |
| |
Six Months Ended
June 30, 2021 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 1,980,736 | | | | | $ | 2,047,910 | | |
Adjustments to reconcile net income to net cash used in operating activities:
|
| | | | | | | | | | | | |
Change in fair value of warrant liabilities
|
| | | | (3,075,200) | | | | | | (2,545,200) | | |
Transaction costs incurred in connection with IPO
|
| | | | — | | | | | | 86,544 | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (157,895) | | | | | | (4,424) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | 78,333 | | | | | | 104,014 | | |
Accrued expenses
|
| | | | 129,223 | | | | | | 182,798 | | |
Net cash used in operating activities
|
| | | | (1,044,803) | | | | | | (128,358) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account
|
| | | | — | | | | | | (116,150,000) | | |
Net cash used in investing activities
|
| | | | — | | | | | | (116,150,000) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | — | | | | | | 114,000,000 | | |
Proceeds from sale of Private Placements Warrants
|
| | | | — | | | | | | 4,120,000 | | |
Proceeds from sale of Unit Purchase Option
|
| | | | — | | | | | | 100 | | |
Proceeds from promissory note
|
| | | | 330,000 | | | | | | — | | |
Repayment of promissory note – related party
|
| | | | — | | | | | | (600,000) | | |
Payment of offering costs
|
| | | | — | | | | | | (402,352) | | |
Net cash provided by financing activities
|
| | | | 330,000 | | | | | | 117,117,748 | | |
Net Change in Cash
|
| | | | (714,803) | | | | | | 839,390 | | |
Cash – Beginning of period
|
| | | | 724,410 | | | | | | 102,296 | | |
Cash – End of period
|
| | | $ | 9,607 | | | | | $ | 941,686 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Offering costs included in accrued offering costs
|
| | | $ | — | | | | | $ | 5,000 | | |
Accretion for Class A common stock to redemption amount
|
| | | $ | — | | | | | $ | 7,606,206 | | |
|
Gross proceeds
|
| | | $ | 115,000,000 | | |
| Less: | | | | | | | |
|
Proceeds allocated to Public Warrants
|
| | | $ | (5,290,000) | | |
|
Class A common stock issuance at cost
|
| | | $ | (1,479,418) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | $ | 7,919,418 | | |
|
Class A common stock subject to possible redemption
|
| | | $ | 116,150,000 | | |
| | |
Three Months Ended
June 30, 2022 |
| |
Basic Dilutive
Three Months Ended June 30, 2021 |
| |
Dilutive
Three Months Ended June 30, 2021 |
| |||||||||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income (loss), as adjusted
|
| | | $ | 686,839 | | | | | $ | 171,710 | | | | | $ | (1,444,777) | | | | | $ | (361,194) | | | | | $ | (1,444,777) | | | | | $ | (361,194) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding
|
| | | | 11,500,000 | | | | | | 2,875,000 | | | | | | 11,500,000 | | | | | | 2,875,000 | | | | | | 11,500,000 | | | | | | 2,875,000 | | |
Basic and diluted net income (loss) per common shares
|
| | | $ | 0.06 | | | | | $ | 0.06 | | | | | $ | (0.13) | | | | | $ | (0.13) | | | | | $ | (0.13) | | | | | $ | (0.13) | | |
| | |
Six Months Ended
June 30, 2022 |
| |
Basic Dilutive
Six Months Ended June 30, 2021 |
| |
Dilutive
Six Months Ended June 30, 2021 |
| |||||||||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income, as adjusted
|
| | | $ | 1,584,589 | | | | | $ | 396,147 | | | | | $ | 1,556,533 | | | | | $ | 491,377 | | | | | $ | 1,556,533 | | | | | $ | 491,377 | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares
outstanding |
| | | | 11,500,000 | | | | | | 2,875,000 | | | | | | 8,831,492 | | | | | | 2,787,983 | | | | | | 8,831,492 | | | | | | 2,875,000 | | |
Basic and diluted net income per
common shares |
| | | $ | 0.14 | | | | | $ | 0.14 | | | | | $ | 0.18 | | | | | $ | 0.18 | | | | | $ | 0.18 | | | | | $ | 0.18 | | |
Description
|
| |
Level
|
| |
June 30,
2022 |
| |
December 31,
2021 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable Securities held in Trust Account – U.S. Treasury Securities
Money Market Fund |
| | | | 1 | | | | | | 116,318,176 | | | | | | 116,160,281 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Warrant Liability – Public Warrants
|
| | | | 1 | | | | | | 1,035,000 | | | | | | 2,817,500 | | |
Warrant Liability – Private Placement Warrants
|
| | | | 2 | | | | | | 732,600 | | | | | | 1,994,300 | | |
Warrant Liability – Representative Warrants
|
| | | | 3 | | | | | | 18,000 | | | | | | 49,000 | | |
| | |
March 31, 2022
|
| |
June 30, 2022
|
| ||||||||||||||||||
Input
|
| |
Representative
Warrants |
| |
Private
Warrants |
| |
Representative
Warrants |
| |
Private
Warrants |
| ||||||||||||
Market price of public stock
|
| | | $ | 9.88 | | | | | $ | — | | | | | $ | 9.89 | | | | | $ | — | | |
Risk-free rate
|
| | | | 2.44% | | | | | | —% | | | | | | 2.98% | | | | | | — | | |
Dividend Yield
|
| | | | 0.00% | | | | | | —% | | | | | | 0.00% | | | | | | — | | |
Exercise price
|
| | | $ | 11.50 | | | | | $ | — | | | | | $ | 11.50 | | | | | $ | — | | |
Effective expiration date
|
| | | | 6/23/26 | | | | | | — | | | | | | 6/23/26 | | | | | | — | | |
One-touch hurdle
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
Private
Placement |
| |
Public
|
| |
Representative
|
| |
Warrant
Liabilities |
| ||||||||||||
Fair value as of January 1, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial measurement on February 11, 2021
|
| | | | 3,785,100 | | | | | | 5,290,000 | | | | | | 36,500 | | | | | | 9,111,600 | | |
Change in valuation inputs or other assumptions
|
| | | | (1,730,400) | | | | | | (2,357,500) | | | | | | (19,000) | | | | | | (4,106,900) | | |
Transfer to Level 1
|
| | | | (2,054,700) | | | | | | (2,932,500) | | | | | | — | | | | | | (4,987,200) | | |
Fair value as of March 31, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | 17,500 | | | | | $ | 17,500 | | |
Change in valuation inputs or other assumptions
|
| | | | — | | | | | | — | | | | | | 16,000 | | | | | | 16,000 | | |
Fair value as of June 30, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | 33,500 | | | | | $ | 33,500 | | |
| | |
Representative
|
| |
Warrant
Liabilities |
| ||||||
Fair value as of January 1, 2022
|
| | | $ | 49,000 | | | | | $ | 49,000 | | |
Change in valuation inputs or other assumptions
|
| | | | (17,000) | | | | | | (17,000) | | |
Fair value as of March 31, 2022
|
| | | $ | 32,000 | | | | | $ | 32,000 | | |
Change in valuation inputs or other assumptions
|
| | | | (14,000) | | | | | | (14,000) | | |
Fair value as of June 30, 2022
|
| | | $ | 18,000 | | | | | $ | 18,000 | | |
| | |
December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 724,410 | | | | | $ | 102,296 | | |
Prepaid expenses
|
| | | | 199,166 | | | | | | 400,000 | | |
Total Current Assets
|
| | |
|
923,576
|
| | | |
|
502,296
|
| |
Deferred offering costs
|
| | | | — | | | | | | 122,110 | | |
Marketable securities held in Trust Account
|
| | | | 116,160,281 | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 117,083,857 | | | | | $ | 624,406 | | |
LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ (DEFICIT) EQUITY
|
| | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 440,245 | | | | | $ | 4,882 | | |
Promissory note – related party
|
| | | | — | | | | | | 600,000 | | |
Total Current Liabilities
|
| | | | 440,245 | | | | | | 604,882 | | |
Warrant Liabilities
|
| | | | 4,860,800 | | | | | | — | | |
TOTAL LIABILITIES
|
| | | | 5,301,045 | | | | | | 604,882 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption, $0.0001 par value; 11,500,000 and 0 shares at $10.10 per share redemption value at December 31, 2021 and 2020, respectively
|
| | | | 116,150,000 | | | | | | — | | |
Stockholders’ (Deficit) Equity | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding
|
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized
|
| | | | — | | | | | | — | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding at December 31, 2021 and 2020
|
| | | | 288 | | | | | | 288 | | |
Additional paid-in capital
|
| | | | — | | | | | | 24,712 | | |
Accumulated deficit
|
| | | | (4,367,476) | | | | | | (5,476) | | |
Total Stockholders’ (Deficit) Equity
|
| | | | (4,367,188) | | | | | | 19,524 | | |
TOTAL LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ (DEFICIT) EQUITY
|
| | | $ | 117,083,857 | | | | | $ | 624,406 | | |
| | |
Year Ended
December 31, 2021 |
| |
For the
Period from August 5, 2020 (Inception) Through December 31, 2020 |
| ||||||
Operating and formation costs
|
| | | $ | 976,831 | | | | | $ | 5,476 | | |
Loss from operations
|
| | | | (976,831) | | | | | | (5,476) | | |
Other income (expenses): | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 10,281 | | | | | | — | | |
Transaction costs incurred in connection with IPO
|
| | | | (86,544) | | | | | | — | | |
Change in fair value of warrants liabilities
|
| | | | 4,297,300 | | | | | | — | | |
Other income, net
|
| | |
|
4,221,037
|
| | | | | — | | |
Net income (loss)
|
| | | $ | 3,244,206 | | | | | $ | (5,476) | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 10,208,219 | | | | | | — | | |
Basic and Diluted income per share, Class A common stock
|
| | | $ | 0.25 | | | | | $ | — | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 2,831,849 | | | | | | 2,500,000 | | |
Basic net income (loss) per share, Class B common stock
|
| | | $ | 0.25 | | | | | $ | (0.00) | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 2,875,000 | | | | | | — | | |
Diluted net income per share, Class B common stock
|
| | | $ | 0.25 | | | | | $ | — | | |
| | |
Class B Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity (Deficit) |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – August 5, 2020 (inception)
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B common stock to Sponsor
|
| | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (5,476) | | | | | | (5,476) | | |
Balance – December 31, 2020
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (5,476) | | | | | $ | 19,524 | | |
Accretion for Class A common stock to redemption amount
|
| | | | — | | | | | | — | | | | | | (313,212) | | | | | | (7,606,206) | | | | | | (7,919,418) | | |
Cash paid in excess of fair value of private warrants
|
| | | | — | | | | | | — | | | | | | 288,400 | | | | | | — | | | | | | 288,400 | | |
Issuance of Representative Warrants
|
| | | | — | | | | | | — | | | | | | 100 | | | | | | — | | | | | | 100 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 3,244,206 | | | | | | 3,244,206 | | |
Balance – December 31, 2021
|
| | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (4,367,476) | | | | | $ | (4,367,188) | | |
| | |
Year Ended
December 31, 2021 |
| |
For the Period from
August 5, 2020 (Inception) Through December 31, 2020 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 3,244,206 | | | | | $ | (5,476) | | |
Adjustments to reconcile net income (loss) to net cash used in operating
activities: |
| | | | | | | | | | | | |
Change in fair value of warrant liabilities
|
| | | | (4,297,300) | | | | | | — | | |
Transaction costs incurred in connection with IPO
|
| | | | 86,544 | | | | | | — | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (10,281) | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | 200,834 | | | | | | (400,000) | | |
Accounts payable and accrued expenses
|
| | | | 435,363 | | | | | | 4,882 | | |
Net cash used in operating activities
|
| | | | (340,634) | | | | | | (400,594) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account
|
| | | | (116,150,000) | | | | | | — | | |
Net cash used in investing activities
|
| | |
|
(116,150,000)
|
| | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B common stock to Sponsor
|
| | | | — | | | | | | 25,000 | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | 114,000,000 | | | | | | — | | |
Proceeds from sale of Private Placements Warrants
|
| | | | 4,120,000 | | | | | | — | | |
Proceeds from sale of Unit Purchase Option
|
| | | | 100 | | | | | | — | | |
Proceeds from promissory note – related party
|
| | | | — | | | | | | 600,000 | | |
Repayment of promissory note – related party
|
| | | | (600,000) | | | | | | — | | |
Payment of offering costs
|
| | | | (407,352) | | | | | | (122,110) | | |
Net cash provided by financing activities
|
| | | | 117,112,748 | | | | | | 502,890 | | |
Net Change in Cash
|
| | | | 622,114 | | | | | | 102,296 | | |
Cash – Beginning of period
|
| | | | 102,296 | | | | | | — | | |
Cash – End of period
|
| | | $ | 724,410 | | | | | $ | 102,296 | | |
|
Gross proceeds
|
| | | $ | 115,000,000 | | |
| Less: | | | | | | | |
|
Proceeds allocated to Public Warrants
|
| | | $ | (5,290,000) | | |
|
Class A common stock issuance at cost
|
| | | $ | (1,479,418) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | $ | 7,919,418 | | |
|
Class A common stock subject to possible redemption
|
| | | $ | 116,150,000 | | |
| | |
Year Ended
December 31, 2021 |
| |
For the Period from August 5,
2020 (Inception) Through December 31, 2020 |
| ||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||
Basic net income (loss) per common share | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income (loss), as adjusted
|
| | | $ | 2,539,677 | | | | | $ | 704,529 | | | | | $ | — | | | | | $ | (5,476) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic weighted average shares outstanding
|
| | | | 10,208,219 | | | | | | 2,831,849 | | | | | | — | | | | | | 2,500,000 | | |
Basic net income (loss) per common share
|
| | | $ | 0.25 | | | | | $ | 0.25 | | | | | $ | — | | | | | $ | (0.00) | | |
| | |
Year Ended
December 31, 2021 |
| |
For the Period from August 5,
2020 (Inception) Through December 31, 2020 |
| ||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||
Diluted net income per common share | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income, as adjusted
|
| | | $ | 2,531,301 | | | | | $ | 712,905 | | | | | $ | — | | | | | $ | — | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted weighted average shares outstanding
|
| | | | 10,208,219 | | | | | | 2,875,000 | | | | | | — | | | | | | — | | |
Diluted net income per common share
|
| | | $ | 0.25 | | | | | $ | 0.25 | | | | | $ | — | | | | | $ | — | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
Deferred tax assets | | | | | | | | | | | | | |
Net operating loss carryforward
|
| | | $ | 39,841 | | | | | $ | — | | |
Startup/Organization Expenses
|
| | | $ | 181,309 | | | | | $ | — | | |
Total deferred tax assets
|
| | | | 221,150 | | | | | | — | | |
Valuation allowance
|
| | | | (221,150) | | | | | | — | | |
Deferred tax assets, net of allowance
|
| | | $ | — | | | | | $ | — | | |
| | |
Year ended
December 31, 2021 |
| |
For the period
from August 5, 2020 (inception) through December 31, 2020 |
| ||||||
Federal | | | | | | | | | | | | | |
Deferred
|
| | | $ | (221,150) | | | | | $ | — | | |
State | | | | | | | | | | | | | |
Change in valuation allowance
|
| | | $ | 221,150 | | | | | $ | — | | |
Income tax provision
|
| | | $ | — | | | | | $ | — | | |
| | |
Year ended
December 31, 2021 |
| |
For the period
from August 5, 2020 (inception) through December 31, 2020 |
| ||||||
Statutory federal income tax rate
|
| | | | 21.0% | | | | | | —% | | |
State taxes, net of federal tax benefit
|
| | | | 0.0% | | | | | | —% | | |
Deferred tax liability change in rate
|
| | | | 0.0% | | | | | | —% | | |
Change in fair value of warrants liabilities
|
| | | | (27.8)% | | | | | | —% | | |
Change in valuation allowance
|
| | | | 6.8% | | | | | | —% | | |
Income tax provision
|
| | | | 0.0% | | | | | | —% | | |
Description
|
| |
Level
|
| |
December 31,
2021 |
| ||||||
Assets: | | | | | | | | | | | | | |
Marketable securities held in Trust Account – U.S. Treasury Securities Money Market Fund
|
| | | | 1 | | | | | $ | 116,160,281 | | |
Liabilities: | | | | | | | | | | | | | |
Warrant Liabilities – Public Warrants
|
| | | | 1 | | | | | | 2,817,500 | | |
Warrant Liabilities – Private Placement Warrants
|
| | | | 2 | | | | | | 1,994,300 | | |
Warrant Liabilities – Representative Warrants
|
| | | | 3 | | | | | | 49,000 | | |
| | |
February 11, 2021
(Initial Measurement) |
| |
December 31, 2021
|
| ||||||||||||||||||||||||
Input
|
| |
Public
Warrants |
| |
Private
Warrants |
| |
Representative
Warrants |
| |
Representative
Warrants |
| |
Private
Warrants |
| |||||||||||||||
Market price of public stock
|
| | | $ | 9.54 | | | | | $ | 9.54 | | | | | $ | 9.54 | | | | | $ | 9.79 | | | | | $ | 9.79 | | |
Risk-free rate
|
| | | | 0.52% | | | | | | 0.52% | | | | | | 0.36% | | | | | | 1.18% | | | | | | 1.18% | | |
Dividend Yield
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Exercise price
|
| | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Effective expiration date
|
| | | | 6/26/26 | | | | | | 6/26/26 | | | | | | 5/11/25 | | | | | | 6/23/26 | | | | | | 6/23/26 | | |
One-touch hurdle
|
| | | $ | 18.15 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
Private Placement
|
| |
Public
|
| |
Representative
|
| |
Warrant Liabilities
|
| ||||||||||||
Fair value as of January 1, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial measurement on February 11th, 2021
|
| | | | 3,785,100 | | | | | | 5,290,000 | | | | | | 36,500 | | | | | | 9,111,600 | | |
Change in valuation inputs or other assumptions
|
| | | | (1,587,300) | | | | | | (1,437,500) | | | | | | 12,500 | | | | | | (3,012,300) | | |
Transfer to Level 1
|
| | | | — | | | | | | (3,852,500) | | | | | | — | | | | | | (3,852,500) | | |
Transfer to Level 2
|
| | | | (2,197,800) | | | | | | — | | | | | | — | | | | | | (2,197,800) | | |
Fair value as of December 31, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | 49,000 | | | | | $ | 49,000 | | |
| | |
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| | | | A-57 | | | |
EXHIBIT A
Form of Amended and Restated Registration Rights Agreement
|
| | | | | | |
EXHIBIT B
Form of Lock-Up Agreement
|
| | | | | | |
EXHIBIT C
Form of Amended and Restated Adara Insider Agreement
|
| | | | | | |
EXHIBIT D
Form of Amended and Restated Certificate of Incorporation of Surviving Corporation
|
| | | | | | |
EXHIBIT E
Form of Amended and Restated Bylaws of Surviving Corporation
|
| | | | | | |
EXHIBIT F
Form of Adara Second Amended and Restated Certificate of Incorporation
|
| | | | | | |
EXHIBIT G
Directors and Officers of the Surviving Corporation and Adara
|
| | | | | | |
SCHEDULE A
Company Knowledge Parties
|
| | | | | | |
SCHEDULE B
Key Company Stockholders
|
| | | | | | |
SCHEDULE C
Adara Initial Stockholders
|
| | | | | | |
Defined Term
|
| |
Location of Definition
|
|
2021 Balance Sheet | | | Section 4.07 | |
Action | | | Section 4.09 | |
Adara | | | Preamble | |
Adara Board | | | Recitals | |
Adara Preferred Stock | | | Section 5.03(a) | |
Adara Proposals | | | Section 7.01(a) | |
Adara SEC Reports | | | Section 5.07(a) | |
Adara Stockholders’ Meeting | | | Section 7.01(a) | |
Agreement | | | Preamble | |
Alternative Transaction | | | Section 7.05 | |
Amended and Restated Adara Insider Agreement | | | Recitals | |
Annual Financial Statements | | | Section 4.07(a) | |
Antitrust Laws | | | Section 7.13(a) | |
Audited Financial Statements | | | Section 7.17 | |
Blue Sky Laws | | | Section 4.05(b) | |
Certificate of Merger | | | Section 2.02(a) | |
Certificates | | | Section 3.02(b) | |
Change of Control | | | Section 3.03(f) | |
Claims | | | Section 6.03 | |
Closing | | | Section 2.02(b) | |
Closing Date | | | Section 2.02(b) | |
Code | | | Section 3.02(h) | |
Company | | | Preamble | |
Company Board | | | Recitals | |
Company Disclosure Schedule | | | Article III | |
Company Permits | | | Section 4.06 | |
Company Stockholder Approval | | | Section 4.18 | |
Company Stockholder Meeting | | | Section 7.03 | |
Confidentiality Agreement | | | Section 7.04(b) | |
Contingent Consideration Shares | | | Section 3.03(a) | |
Continuing Employees | | | Section 7.06(a) | |
Contracting Parties | | | Section 10.11 | |
DGCL | | | Recitals | |
Effective Time | | | Section 2.02(a) | |
Environmental Permits | | | Section 4.15 | |
ERISA Affiliate | | | Section 4.10(c) | |
Exchange Agent | | | Section 3.02(a) | |
Defined Term
|
| |
Location of Definition
|
|
Exchange Fund | | | Section 3.02(a) | |
Existing Security Agreements | | | Section 4.16(a)(v) | |
GAAP | | | Section 4.07(a) | |
Governmental Authority | | | Section 4.05(b) | |
Health Plan | | | Section 4.10(k) | |
Intended Tax-Free Treatment | | | Recitals | |
Interim Financial Statements | | | Section 4.07(b) | |
IRS | | | Section 4.10(b) | |
Law | | | Section 4.05(a) | |
Lease | | | Section 4.12(b) | |
Lease Documents | | | Section 4.12(b) | |
Letter of Transmittal | | | Section 3.02(b) | |
Lock-Up Agreement | | | Recitals | |
Major Customers | | | Section 4.19(a) | |
Major Vendors | | | Section 4.19(b) | |
Material Contracts | | | Section 4.16(a) | |
Maximum Annual Premium | | | Section 7.08(b) | |
Merger | | | Recitals | |
Merger Sub | | | Preamble | |
Merger Sub Board | | | Recitals | |
Merger Sub Common Stock | | | Section 5.03(b) | |
Nonparty Affiliates | | | Section 10.11 | |
Ordinary Commercial Agreement | | | Section 4.14(b) | |
Outside Date | | | Section 9.01(b) | |
Per Share Closing Merger Consideration | | | Section 3.01(a)(i) | |
Plans | | | Section 4.10(a) | |
PPACA | | | Section 4.10(k) | |
Proxy Statement | | | Section 7.01(a) | |
Registration Rights Agreement | | | Recitals | |
Remedies Exceptions | | | Section 4.04 | |
Representatives | | | Section 7.04(a) | |
Reviewed Financial Statements | | | Section 7.17 | |
SEC | | | Section 5.07(a) | |
Securities Act | | | Section 5.07(a) | |
Sponsor Stockholder Support Agreement | | | Recitals | |
Stockholder Support Agreement | | | Recitals | |
Surviving Corporation | | | Section 2.01 | |
Terminating Company Breach | | | Section 9.01(d) | |
Terminating Adara Breach | | | Section 9.01(g) | |
Trust Account | | | Section 5.13 | |
Trust Agreement | | | Section 5.13 | |
Trust Fund | | | Section 5.13 | |
Trustee | | | Section 5.13 | |
Written Consent | | | Section 7.03 | |
By: |
|
By: |
|
By: |
|
Name: |
|
|
Exhibit
Number |
| | | | |
Incorporated by Reference
|
| |||||||||
|
Description of Document
|
| |
Schedule/Form
|
| |
File Number
|
| |
Exhibits
|
| |
Filing Date
|
| |||
| 2.1† | | | | |
Form 8-K
|
| |
001-40014
|
| |
2.1
|
| | June 23, 2022 | | |
| 3.1 | | | | |
Form S-1/A
|
| |
333-250157
|
| |
3.1
|
| | January 14, 2021 | | |
| 3.2 | | | | |
Form 8-K
|
| |
001-40014
|
| |
3.1
|
| | February 11, 2021 | | |
| 3.3 | | | | |
Form S-1
|
| |
333-250157
|
| |
3.3
|
| |
November 18, 2020
|
| |
| 3.4 | | | | |
Form 8-K
|
| |
001-40014
|
| |
2.1
|
| | June 23, 2022 | | |
| 4.1 | | | | |
Form S-1/A
|
| |
333-250157
|
| |
4.1
|
| | January 14, 2021 | | |
| 4.2 | | | | |
Form S-1/A
|
| |
333-250157
|
| |
4.2
|
| | January 14, 2021 | | |
| 4.3 | | | | |
Form S-1/A
|
| |
333-250157
|
| |
4.3
|
| | January 14, 2021 | | |
| 4.4 | | | | |
Form 8-K
|
| |
001-40014
|
| |
4.1
|
| | February 11, 2021 | | |
| 4.5 | | | | |
Form S-4
|
| |
333-266098
|
| |
4.5
|
| | October 18, 2022 | | |
| 4.6 | | | | |
Form S-4
|
| |
333-266098
|
| |
4.6
|
| | October 18, 2022 | | |
| 5.1 | | | | |
Form S-4
|
| |
333-266098
|
| |
5.1
|
| | October 18, 2022 | | |
| 8.1* | | | Tax Opinion of Blank Rome LLP. | | | | | | | | | | | | ||
| 10.1 | | | | |
Form S-1
|
| |
333-250157
|
| |
10.2
|
| |
November 18, 2020
|
|
|
Exhibit
Number |
| | | | |
Incorporated by Reference
|
| |||||||||
|
Description of Document
|
| |
Schedule/Form
|
| |
File Number
|
| |
Exhibits
|
| |
Filing Date
|
| |||
| 10.2 | | | | |
Form S-1
|
| |
333-250157
|
| |
10.5
|
| |
November 18, 2020
|
| |
| 10.3 | | | | |
Form S-1/A
|
| |
333-250157
|
| |
10.7
|
| | January 14, 2021 | | |
| 10.4 | | | Letter Agreement, dated February 8, 2021, by and among Adara, its officers, its directors, Adara Sponsor LLC and other initial stockholders of Adara. | | |
Form 8-K
|
| |
001-40014
|
| |
10.1
|
| | February 11, 2021 | |
| 10.5 | | | Investment Management Trust Agreement, dated February 8, 2021, by and between the Company and Continental Stock Transfer & Trust Company, as trustee. | | |
Form 8-K
|
| |
001-40014
|
| |
10.2
|
| | February 11, 2021 | |
| 10.6 | | | | |
Form 8-K
|
| |
001-40014
|
| |
10.3
|
| | February 11, 2021 | | |
| 10.7 | | | | |
Form 8-K
|
| |
001-40014
|
| |
10.4
|
| | February 11, 2021 | | |
| 10.8 | | | | |
Form 8-K
|
| |
001-40014
|
| |
10.5
|
| | February 11, 2021 | | |
| 10.9 | | | | |
Form 8-K
|
| |
001-40014
|
| |
2.1
|
| | June 23, 2022 | | |
| 10.10 | | | | |
Form S-4
|
| |
333-266098
|
| |
10.10
|
| | July 12, 2022 | |
|
Exhibit
Number |
| | | | |
Incorporated by Reference
|
| |||||||||
|
Description of Document
|
| |
Schedule/Form
|
| |
File Number
|
| |
Exhibits
|
| |
Filing Date
|
| |||
| 10.18 | | | | |
Form S-4
|
| |
333-266098
|
| |
10.18
|
| | October 18, 2022 | | |
| 10.19 | | | | |
Form S-4
|
| |
333-266098
|
| |
10.19
|
| | October 18, 2022 | | |
| 10.20 | | | | |
Form S-4
|
| |
333-266098
|
| |
10.20
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| | October 18, 2022 | | |
| 10.21 | | | | |
Form S-4
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333-266098
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10.21
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| | October 18, 2022 | | |
| 10.22 | | | | |
Form S-4
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333-266098
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10.22
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| | October 18, 2022 | | |
| 10.23 | | | | |
Form S-4
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333-266098
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10.23
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| | October 18, 2022 | | |
| 10.24 | | | | |
Form S-4
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333-266098
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10.24
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| | October 18, 2022 | | |
| 10.25 | | | | |
Form S-4
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333-266098
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10.25
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| | October 18, 2022 | |
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Exhibit
Number |
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Incorporated by Reference
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Description of Document
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Schedule/Form
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File Number
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Exhibits
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Filing Date
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| 10.26 | | | | |
Form S-4
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333-266098
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10.26
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| | October 18, 2022 | | |
| 10.27 | | | | |
Form S-4
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333-266098
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10.27
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| | October 18, 2022 | | |
| 10.28 | | | | |
Form S-4
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333-266098
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10.28
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| | October 18, 2022 | | |
| 23.1* | | | Consent of WithumSmith+Brown, PC, independent registered public accounting firm of Adara. | | | | | | | | | | | | | |
| 23.2* | | | Consent of BDO USA, LLP, independent registered public accounting firm of Alliance. | | | | | | | | | | | | | |
| 23.3 | | | | |
Form S-4
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333-266098
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5.1
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| | October 18, 2022 | | |
| 24.1 | | | Power of Attorney (included on the signature page to this Registration Statement on Form S-4). | | | | | | | | | | | | | |
| 99.1 | | | | |
Form S-4
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333-266098
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99.1
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| | July 12, 2022 | | |
| 99.2 | | | | |
Form S-4
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333-266098
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99.2
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| | July 12, 2022 | | |
| 99.3 | | | | |
Form S-4
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333-266098
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99.3
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| | July 12, 2022 | | |
| 99.4 | | | | |
Form S-4
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333-266098
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99.4
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| | July 12, 2022 | | |
| 99.5* | | | | | | | | | | | | | | | | |
| 99.6* | | | | |
Form S-4
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333-266098
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99.7
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| | July 12, 2022 | | |
| 101.INS* | | |
XBRL Instance Document.
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Exhibit
Number |
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Incorporated by Reference
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Description of Document
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Schedule/Form
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File Number
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Exhibits
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Filing Date
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| 101.CAL* | | | XBRL Taxonomy Extension Calculation Linkbase Document. | | | | | | | | | | | | | |
| 101.SCH* | | | XBRL Taxonomy Extension Schema Document. | | | | | | | | | | | | | |
| 101.DEF* | | | XBRL Taxonomy Extension Definition Linkbase Document. | | | | | | | | | | | | | |
| 101.LAB* | | | XBRL Taxonomy Extension Labels Linkbase Document. | | | | | | | | | | | | | |
| 101.PRE* | | | XBRL Taxonomy Extension Presentation Linkbase Document. | | | | | | | | | | | | | |
| 104* | | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | | | | | | | | | | | | | |
| 107 | | | | |
Form S-4
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333-266098
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107
|
| | July 12, 2022 | |
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Signature
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Title
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Date
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/s/ Thomas Finke
Thomas Finke
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Chairman of the Board of Director and Chief Executive Officer
(Principal Executive Officer) |
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November 8, 2022
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/s/ Paul G. Porter
Paul G. Porter
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Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer) |
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November 8, 2022
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*
W. Tom Donaldson III
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Director
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November 8, 2022
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*
Frank Quintero
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Director
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November 8, 2022
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*
Dylan Glenn
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Director
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November 8, 2022
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*
Beatriz Acevedo-Greiff
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Director
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November 8, 2022
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* By:
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| | /s/ Paul G. Porter | |
| | | |
Paul G. Porter, Attorney-in-fact
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Exhibit 8.1
November 8, 2022
Adara Acquisition Corp.
211 East Blvd.
Charlotte, NC 28203
Ladies and Gentlemen:
We have acted as counsel to Adara Acquisition Corp., a Delaware corporation (“Adara”), in connection with the Business Combination Agreement and Plan of Reorganization (the “Business Combination Agreement”), by and among Adara, Adara Merger Sub, Inc., a wholly-owned subsidiary of Adara incorporated in the State of Delaware (“Merger Sub”), and Alliance Entertainment Holding Corporation, a Delaware corporation (“Alliance”), pursuant to which Merger Sub will merge with and into Alliance, with Alliance surviving the merger and becoming a wholly-owned direct subsidiary of Adara (collectively with the other transactions described in the Business Combination Agreement, the “Business Combination”) and the filing of a Registration Statement on Form S-4 (File No. 333-266098) (as amended through the date hereof, the “Registration Statement”).
In rendering our opinion, we have examined and, with your consent, are expressly relying upon (without any independent investigation or review thereof) the truth and accuracy of the factual statements, representations and warranties contained in (i) the Business Combination Agreement (including any exhibits and schedules thereto), (ii) the Registration Statement (including the proxy statement/prospectus included therein), and (iii) originals or copies, certified or otherwise identified to our satisfaction, of such corporate records, agreements, documents, and other instruments. In such examination, we have assumed the genuineness of all signatures, the legal capacity of natural persons, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as duplicates or certified or conformed copies, and the authenticity of the originals of such latter documents. We have not, however, undertaken any independent investigation of any factual matter set forth in any of the foregoing.
We have assumed that (i) the Business Combination will be effected in accordance with the Business Combination Agreement and none of the material terms and conditions of the Business Combination Agreement have been or will be waived or modified, (ii) the statements set forth in the Business Combination Agreement are true, correct and complete and will remain accurate and complete at all times up to and including the effective time of the Registration Statement, (iii) any representations made in the Business Combination Agreement “to the knowledge of,” or based on the belief or that are similarly qualified, are accurate and complete and will remain accurate and complete at all times up to and including the effective time, in each case without such qualification, and (iv) there are no understandings between any of the parties that would alter, or are inconsistent with, the terms or representations set forth in the Business Combination Agreement. We also have assumed that the parties have complied with and, if applicable, will continue to comply with, the covenants contained in the Business Combination Agreement.
Based upon the foregoing, and subject to the limitations, qualifications, assumptions and caveats set forth herein and in the Registration Statement, it is our opinion that the discussion contained in the Registration Statement under the caption “Certain U.S. Federal Income Tax Considerations of the Redemption and the Business Combination,” insofar as such discussion summarizes U.S. federal income tax law or legal conclusions with respect thereto, is accurate in all material respects as of the date hereof.
The opinion set forth in this letter is based on current provisions of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder, and interpretations of the foregoing as expressed in court decisions, applicable legislative history, and the administrative rulings and practices of the Internal Revenue Service (the “IRS”), all as of the date hereof and all of which are subject to change (possibly with retroactive effect). Changes in applicable law could adversely affect our opinion. We express no opinion other than as to the federal income tax laws of the United States of America and do not express any opinion, either implicitly or otherwise, on any issue not expressly addressed above. Our opinion is not binding upon the IRS or the courts, and there is no assurance that the IRS or a court will not take a contrary position.
We are furnishing this opinion in connection with the filing of the Registration Statement, and this opinion is not to be used, relied upon, circulated, quoted, or otherwise referred to for any other purposes without our express written consent. No assurance can be given that future legislative, judicial, or administrative changes, on either a prospective or retroactive basis, or future factual developments, would not adversely affect the accuracy of the conclusion stated herein. This opinion is expressed as of the date hereof, and we are under no obligation to supplement or revise our opinion to reflect any legal developments, changes in the federal income tax laws or the application or interpretation thereof, any factual matters arising subsequent to the date hereof or the impact of any information, fact, document, certificate, record, representation, statement, covenant, or assumption relied upon herein that becomes incorrect or untrue. In the event that any one or more of the matters referred to herein or in the Registration Statement are untrue, inaccurate, or incomplete, our opinions shall be void and of no force or effect, but only to the extent that such untruth, inaccuracy, or incompletion affects the accuracy of the opinions provided herein. We hereby consent to the use of our name in the Registration Statement and to the filing of this opinion as an exhibit to the Registration Statement. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder.
Very truly yours,
Blank Rome LLP
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in the Prospectus constituting a part of this Registration Statement on Amendment No. 2 to Form S-4 of our report dated March 28, 2022, relating to the financial statements of Adara Acquisition Corp., which is contained in that Prospectus. We also consent the reference to our Firm under the caption “Experts” in the Prospectus.
/s/ WithumSmith+Brown, PC
New York, New York
November 8, 2022
Exhibit 23.2
Consent of Independent Registered Public Accounting Firm
Alliance Entertainment Holding Corporation
Sunrise, Florida
We hereby consent to the use in the Proxy Statement/Prospectus constituting a part of this Registration Statement of our report dated October 17, 2022, relating to the consolidated financial statements of Alliance Entertainment Holding Corporation, which is contained in the Proxy Statement/Prospectus.
We also consent to the reference to us under the caption “Experts” in the Proxy Statement/Prospectus.
/s/BDO USA, LLP
Miami, Florida
November 8, 2022
Exhibit 99.5
PRELIMINARY PROXY CARD
SUBJECT TO COMPLETION
ADARA ACQUISITION CORP.
211 East Blvd.
Charlotte, NC 28203
SPECIAL MEETING OF STOCKHOLDERS
, 2022
YOUR VOTE IS IMPORTANT
ADARA ACQUISITION CORP.
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS
FOR THE SPECIAL MEETING OF STOCKHOLDERS TO BE HELD ON
, 2022
The undersigned, revoking any previous proxies relating to these shares, hereby acknowledges receipt of the Notice and Proxy Statement/Prospectus, dated ___________ ___, 2022, in connection with the Special Meeting to be held at 10:00 a.m. EST on ___, 2022 via live webcast at the following address: [____], and hereby appoints Thomas M. Finke and Paul G. Porter, and each of them (with full power to act alone), the attorneys and proxies of the undersigned, with power of substitution to each, to vote all shares of the common stock of Adara Acquisition Corp. (“Adara”) registered in the name provided, which the undersigned is entitled to vote at the Special Meeting of Stockholders and at any adjournments thereof, with all the powers the undersigned would have if personally present. Without limiting the general authorization hereby given, said proxies are, and each of them is, instructed to vote or act as follows on the proposals set forth in this Proxy Statement.
Adara may not consummate the Business Combination unless the Business Combination Proposal, each of the Charter Proposals, the Equity Incentive Plan Proposal and the NYSE American Proposal are approved at the special meeting, each of which is conditioned upon all such proposals having been approved at the special meeting. The Adjournment Proposal is not conditioned on the approval of any other Stockholder Proposal set forth in this proxy statement/prospectus.
THIS PROXY WILL BE VOTED AS DIRECTED. IF NO DIRECTIONS ARE GIVEN, THIS PROXY WILL BE VOTED “FOR” PROPOSAL 1 (THE BUSINESS COMBINATION PROPOSAL) BELOW, “FOR” PROPOSALS 2A THROUGH 2G (THE CHARTER PROPOSALS) BELOW, “FOR” PROPOSAL 3 (THE EQUITY INCENTIVE PLAN PROPOSAL) BELOW, “FOR” PROPOSAL 4 (THE NYSE AMERICAN PROPOSAL) BELOW AND “FOR” PROPOSAL 5 (THE ADJOURNMENT PROPOSAL) BELOW.
THE ADARA BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” PROPOSAL 1 (THE BUSINESS COMBINATION PROPOSAL) BELOW, “FOR” PROPOSAL 2A THROUGH 2G (THE CHARTER PROPOSALS) BELOW, “FOR” PROPOSAL 3 (THE EQUITY INCENTIVE PLAN PROPOSAL) BELOW, “FOR” PROPOSAL 4 (THE NYSE AMERICAN PROPOSAL) BELOW AND “FOR” PROPOSAL 5 (THE ADJOURNMENT PROPOSAL) BELOW.
PLEASE RETURN THIS PROXY AS SOON AS POSSIBLE.
PROXY | ||||
1. | To approve and adopt the Business Combination Agreement, dated as of June 22, 2022 (the “Business Combination Agreement”), by and among Adara, Alliance Entertainment Holding Corporation, a Delaware corporation (“Alliance”), and Adara Merger Sub, Inc., a Delaware corporation (“Merger Sub”), and the transactions contemplated thereby, pursuant to which Adara will issue (i) shares of Class A common stock of Adara (“Combined Company Common Stock”) to holders of common stock of Alliance (“Alliance Common Stock”) and (ii) shares of Class E Common stock of Adara (“Combined Company Class E Common Stock”) to the Alliance Stockholders which will be placed in an escrow account to be released to the Alliance stockholders and converted into Combined Company Common Stock upon the occurrence of certain triggering events and Merger Sub will merge with and into Alliance, with Alliance surviving the merger and becoming a wholly-owned direct subsidiary of Adara (collectively with the other transactions described in the Business Combination Agreement, the “Business Combination”). |
FOR ¨ |
AGAINST ¨ |
ABSTAIN ¨ |
2. | To approve the following amendments to Adara’s current amended and restated certificate of incorporation: | |||
2a. | To change the name of Adara Acquisition Corp. to “Alliance Entertainment Holding Corporation.” |
FOR ¨ |
AGAINST ¨ |
ABSTAIN ¨ |
2b. | To change the number of authorized shares of Adara’s capital stock, par value $0.0001 per share, from 111,000,000 shares, consisting of (a) 110,000,000 shares of common stock, including 100,000,000 shares of Adara Common Stock and 10,000,000 shares of Adara Class B Common Stock and (b) 1,000,000 shares of preferred stock, to 551,000,000 shares, consisting of (i) 490,000,000 shares of Class A common stock, (ii) 60,000,000 shares of Class E common stock and (iii) 1,000,000 shares of preferred stock, and eliminate the Class B common stock classification. |
FOR ¨ |
AGAINST ¨ |
ABSTAIN ¨ |
2c. | To increase the required vote threshold for approving amendments to certain specified provisions of the certificate of incorporation to 66-⅔%. |
FOR ¨ |
AGAINST ¨ |
ABSTAIN ¨ |
2d. | To increase the required vote threshold for approving amendments to the bylaws to 66-⅔%. |
FOR ¨ |
AGAINST ¨ |
ABSTAIN ¨ |
2e. | To divide Adara’s board of directors into three classes with one class of directors being elected each year and each class (except for those directors appointed prior to the first annual meeting of stockholders) serving a three-year term. | |||
2f. | To provide for the removal of directors with cause only by stockholders voting at least two-thirds (66-⅔%) of the voting power of all of the then outstanding shares of voting stock of the Combined Company entitled to vote at an election of directors. |
FOR ¨ |
AGAINST ¨ |
ABSTAIN ¨ |
2g. | To approve all other changes including eliminating various provisions applicable only to blank check companies, including business combination requirements that will no longer be relevant following the closing of the Business Combination (the “Closing”). |
FOR ¨ |
AGAINST ¨ |
ABSTAIN ¨ |
3. | To adopt the Alliance Entertainment Holding Corporation 2022 Equity Incentive Plan (the “2022 Plan”) established to be effective after the Closing to assist Adara, immediately upon consummation of the Business Combination (the “Combined Company”) in retaining the services of eligible employees, directors and consultants, to secure and retain the services of new employees, directors and consultants and to provide incentives for such persons to exert maximum efforts for the Combined Company’s success. |
FOR ¨ |
AGAINST ¨ |
ABSTAIN ¨ |
4. | To (i) approve the issuance of Combined Company Common Stock and Combined Company Class E Common Stock to Alliance’s stockholders as a result of the Merger pursuant to the Business Combination Agreement, including the Combined Company Common Stock issuable upon conversion of the Combined Company Class E Common Stock and (ii) approve the issuance of equity awards under the 2022 Plan if such plan is approved in accordance with Proposal 3 (Equity Incentive Plan Proposal). |
FOR ¨ |
AGAINST ¨ |
ABSTAIN ¨ |
5. | To adjourn the special meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies if, based upon the tabulated vote at the time of the special meeting, there are not sufficient votes to approve one or more proposals presented to stockholders for vote. |
FOR ¨ |
AGAINST ¨ |
ABSTAIN ¨ |
¨ | MARK HERE FOR ADDRESS CHANGE AND NOTE AT RIGHT. |
PLEASE MARK, DATE AND RETURN THIS PROXY PROMPTLY. ANY VOTES RECEIVED AFTER A MATTER HAS BEEN VOTED UPON WILL NOT BE COUNTED.
Dated: ___ , 2022 | |
Stockholder’s Signature | |
Stockholder’s Signature |
Signature should agree with name printed hereon. If stock is held in the name of more than one person, EACH joint owner should sign. Executors, administrators, trustees, guardians, and attorneys should indicate the capacity in which they sign. Attorneys should submit powers of attorney.
Exhibit 99.6
CONSENT OF THINKEQUITY LLC
We hereby consent to the use in the Registration Statement (Amendment No. 2) of Adara Acquisition Corp. on Form S-4 (the “Registration Statement”) and in the Proxy Statement/Prospectus of Adara Acquisition Corp., which is part of the Registration Statement, of our written opinion, dated June 21, 2022, appearing as Annex D to such Proxy Statement/Prospectus, and to the description of such opinion and to the references thereto and to our name contained therein under the headings “Questions and Answers About the Business Combination”, “Summary of the Proxy Statement/Prospectus—Opinion of Financial Advisor to Adara, ThinkEquity LLC”, “Risk Factors—Risks Related to Adara”, “Proposal No. 1—The Business Combination Proposal” and “Opinion of Financial Advisor to Adara, ThinkEquity LLC”. In giving the foregoing consent, we do not admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended (the “Securities Act”), or the rules and regulations promulgated thereunder, nor do we admit that we are experts with respect to any part of such Registration Statement within the meaning of the term “experts” as used in the Securities Act or the rules and regulations promulgated thereunder.
THINKEQUITY LLC | |
Dated: November 8, 2022 | |
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ThinkEquity LLC |