0.00010.00010.00016.0Q30001826889false0.0001--12-310001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:CostOfSalesMember2022-07-012022-09-300001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001826889us-gaap:CommonClassAMember2022-01-012022-09-300001826889us-gaap:ForeignExchangeForwardMember2022-09-300001826889body:DigitalMember2022-07-012022-09-300001826889us-gaap:CommonStockMember2022-04-012022-06-300001826889us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001826889country:US2022-01-012022-09-3000018268892022-04-012022-06-300001826889us-gaap:SellingAndMarketingExpenseMember2022-01-012022-09-300001826889us-gaap:CommonClassAMember2021-12-3100018268892021-01-012021-09-300001826889body:DigitalMember2022-01-012022-09-300001826889us-gaap:AccountingStandardsUpdate202006Member2022-09-300001826889us-gaap:CommonStockMember2022-03-310001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:CostOfSalesMember2021-01-012021-09-300001826889us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001826889body:SeniorSecuredTermLoanMember2022-09-300001826889us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-09-3000018268892022-09-300001826889body:EnterpriseTechnologyAndDevelopmentMember2021-07-012021-09-300001826889us-gaap:MeasurementInputRiskFreeInterestRateMemberbody:PrivatePlacementWarrantsMember2021-12-310001826889body:MyxMember2021-06-250001826889us-gaap:CommonStockMember2022-07-012022-09-300001826889us-gaap:RetainedEarningsMember2022-09-300001826889body:PrivatePlacementWarrantsMember2022-09-300001826889us-gaap:SoftwareDevelopmentMember2021-12-310001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:GeneralAndAdministrativeExpenseMember2022-07-012022-09-300001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:OtherComprehensiveIncomeMember2021-01-012021-09-300001826889body:TermLoanWarrantsMember2022-01-012022-09-300001826889body:TermLoanWarrantsMemberus-gaap:MeasurementInputExercisePriceMember2022-09-300001826889body:SeniorSecuredTermLoanMember2022-08-082022-08-080001826889body:TermLoanWarrantsMember2022-09-3000018268892021-04-012021-06-300001826889body:TermLoanWarrantsMemberus-gaap:MeasurementInputExercisePriceMember2022-08-080001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:CostOfSalesMember2021-07-012021-09-300001826889us-gaap:MeasurementInputExpectedTermMemberbody:PrivatePlacementWarrantsMember2021-12-310001826889body:ConnectedFitnessMember2021-01-012021-09-300001826889us-gaap:AdditionalPaidInCapitalMember2020-12-310001826889body:DeferredRevenueMember2022-07-012022-09-300001826889us-gaap:SellingAndMarketingExpenseMember2021-07-012021-09-300001826889body:PrivatePlacementWarrantsMember2022-06-300001826889us-gaap:NonUsMember2021-07-012021-09-300001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:OtherComprehensiveIncomeMember2021-07-012021-09-300001826889body:NutritionAndOtherMember2022-01-012022-09-300001826889body:EnterpriseTechnologyAndDevelopmentMember2022-07-012022-09-300001826889us-gaap:AccumulatedTranslationAdjustmentMember2022-07-012022-09-300001826889us-gaap:MeasurementInputExpectedTermMemberbody:TermLoanWarrantsMember2022-09-300001826889us-gaap:AdditionalPaidInCapitalMember2022-06-300001826889us-gaap:RestrictedStockUnitsRSUMember2022-09-300001826889us-gaap:CostOfSalesMember2022-01-012022-09-300001826889body:DigitalMember2021-01-012021-09-300001826889srt:MaximumMemberbody:SeniorSecuredTermLoanMember2022-08-080001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001826889body:EmployeeRelatedCostsMember2022-07-012022-09-300001826889us-gaap:FurnitureAndFixturesMember2022-09-300001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-09-300001826889body:PublicAndPrivatePlacementWarrantsMember2021-01-012021-09-300001826889us-gaap:AdditionalPaidInCapitalMember2021-12-310001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001826889us-gaap:AdditionalPaidInCapitalMember2022-03-310001826889body:ConnectedFitnessMember2022-01-012022-09-300001826889us-gaap:CommonStockMember2021-07-012021-09-300001826889body:TwoThousandTwentyOnePlanMember2021-12-310001826889us-gaap:MeasurementInputRiskFreeInterestRateMemberbody:PrivatePlacementWarrantsMember2022-09-3000018268892021-03-3100018268892022-06-300001826889body:EmployeeRelatedCostsMember2022-09-300001826889us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001826889country:US2022-07-012022-09-300001826889body:TermLoanWarrantsMemberus-gaap:MeasurementInputPriceVolatilityMember2022-08-080001826889us-gaap:LeaseholdImprovementsMember2022-09-300001826889body:RedeemableWarrantsMember2022-01-012022-09-300001826889us-gaap:TradeNamesMember2022-01-012022-09-300001826889us-gaap:AdditionalPaidInCapitalMember2022-09-300001826889us-gaap:CommonStockMember2021-06-3000018268892020-12-310001826889us-gaap:CostOfSalesMember2021-01-012021-09-300001826889us-gaap:SoftwareDevelopmentMember2022-07-012022-09-300001826889us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-09-300001826889us-gaap:WarrantMember2021-01-012021-09-300001826889body:PrivatePlacementWarrantsMember2021-07-012021-09-300001826889body:PrivatePlacementWarrantsMember2021-12-310001826889body:DigitalContentAssetsMember2022-01-012022-09-300001826889body:NutritionAndOtherMember2021-01-012021-09-300001826889us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-3000018268892022-03-310001826889us-gaap:SoftwareDevelopmentMember2022-09-300001826889us-gaap:CostOfSalesMember2022-07-012022-09-300001826889body:TwoThousandTwentyOnePlanMember2022-09-300001826889us-gaap:AdditionalPaidInCapitalMember2021-09-300001826889us-gaap:CommonStockMember2021-12-310001826889us-gaap:CommonStockMember2021-03-310001826889us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001826889body:CommonClassXMember2022-11-040001826889us-gaap:ForeignExchangeOptionMember2022-09-300001826889us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001826889body:ConnectedFitnessMember2021-07-012021-09-300001826889us-gaap:RetainedEarningsMember2021-07-012021-09-300001826889us-gaap:RetainedEarningsMember2021-06-300001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001826889us-gaap:RetainedEarningsMember2022-07-012022-09-300001826889body:TermLoanWarrantsMember2022-01-012022-09-300001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:OtherComprehensiveIncomeMember2022-01-012022-09-300001826889us-gaap:RetainedEarningsMember2022-04-012022-06-300001826889us-gaap:CommonStockMember2020-12-310001826889us-gaap:CommonStockMember2022-09-300001826889body:PrivatePlacementWarrantsMember2021-06-300001826889us-gaap:RetainedEarningsMember2021-04-012021-06-300001826889us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001826889us-gaap:AdditionalPaidInCapitalMember2021-03-310001826889body:CommonStockClassXMember2022-09-300001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001826889body:PrivatePlacementWarrantsMember2022-07-012022-09-3000018268892021-06-3000018268892022-01-012022-03-310001826889us-gaap:CommonStockMember2021-04-012021-06-300001826889us-gaap:SellingAndMarketingExpenseMember2022-07-012022-09-300001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001826889us-gaap:SellingAndMarketingExpenseMember2021-01-012021-09-300001826889us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001826889body:EnterpriseTechnologyAndDevelopmentMember2021-01-012021-09-300001826889body:EmployeeRelatedCostsMember2022-01-012022-09-300001826889us-gaap:SoftwareDevelopmentMember2022-01-012022-09-3000018268892022-07-012022-09-300001826889us-gaap:CostOfSalesMember2021-07-012021-09-300001826889body:SeniorSecuredTermLoanMemberus-gaap:CommonClassAMember2022-08-080001826889us-gaap:NonUsMember2022-07-012022-09-300001826889us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001826889body:PrivatePlacementWarrantsMemberus-gaap:MeasurementInputPriceVolatilityMember2021-12-310001826889us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberbody:SeniorSecuredTermLoanMember2022-08-080001826889us-gaap:AdditionalPaidInCapitalMember2021-06-300001826889us-gaap:BuildingMember2021-12-310001826889us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-12-310001826889us-gaap:RetainedEarningsMember2021-12-310001826889us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-09-300001826889us-gaap:RetainedEarningsMember2022-01-012022-03-310001826889us-gaap:SellingAndMarketingExpenseMemberus-gaap:TradeNamesMember2022-07-012022-09-300001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001826889us-gaap:MeasurementInputRiskFreeInterestRateMemberbody:TermLoanWarrantsMember2022-09-300001826889us-gaap:ComputerEquipmentMember2021-12-3100018268892021-07-012021-09-300001826889us-gaap:ForeignExchangeOptionMember2021-12-310001826889body:MyxMember2021-01-012021-09-300001826889us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001826889us-gaap:FairValueInputsLevel1Memberbody:PublicWarrantsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001826889body:CommonClassXMember2022-09-300001826889body:PrivatePlacementWarrantsMember2022-01-012022-09-300001826889us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:InterestRateFloorMemberbody:SeniorSecuredTermLoanMember2022-08-082022-08-080001826889us-gaap:GeneralAndAdministrativeExpenseMember2022-07-012022-09-300001826889country:US2021-07-012021-09-300001826889us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001826889body:PrivatePlacementWarrantsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001826889us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001826889us-gaap:RetainedEarningsMember2021-03-310001826889body:EarnOutSharesMember2022-01-012022-09-300001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001826889body:PrivatePlacementWarrantsMember2021-09-300001826889us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2022-09-300001826889body:TwoThousandTwentyOnePlanMember2022-01-012022-09-300001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001826889us-gaap:MeasurementInputExpectedTermMemberbody:PrivatePlacementWarrantsMember2022-09-300001826889body:MyxMember2022-01-012022-09-300001826889body:NutritionAndOtherMember2022-07-012022-09-300001826889us-gaap:CommonStockMember2022-06-300001826889us-gaap:RetainedEarningsMember2021-09-300001826889body:MyxMember2021-07-012021-09-300001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001826889body:EmployeeRelatedCostsMember2022-06-300001826889body:TermLoanWarrantsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001826889us-gaap:LeaseholdImprovementsMember2021-12-310001826889us-gaap:CommonStockMember2022-01-012022-03-310001826889us-gaap:CommonClassCMember2022-09-300001826889us-gaap:SellingAndMarketingExpenseMemberus-gaap:TradeNamesMember2022-01-012022-09-300001826889us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberbody:SeniorSecuredTermLoanMember2022-08-082022-08-080001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001826889us-gaap:CommonStockMember2021-09-300001826889us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001826889us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001826889body:TermLoanWarrantsMember2022-07-012022-09-300001826889srt:MaximumMemberbody:TwoThousandTwentyOnePlanMember2022-01-010001826889body:PrivatePlacementWarrantsMember2021-01-012021-09-300001826889us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001826889body:PrivatePlacementWarrantsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001826889body:PrivatePlacementWarrantsMemberus-gaap:MeasurementInputExercisePriceMember2022-09-300001826889us-gaap:RetainedEarningsMember2022-03-310001826889body:TermLoanWarrantsMemberus-gaap:MeasurementInputPriceVolatilityMember2022-09-300001826889us-gaap:CommonClassCMember2021-12-310001826889us-gaap:RetainedEarningsMember2021-01-012021-03-310001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001826889body:PublicAndPrivatePlacementWarrantsMember2022-01-012022-09-300001826889us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001826889body:ConnectedFitnessMember2022-07-012022-09-300001826889body:DeferredRevenueMember2022-01-012022-09-300001826889body:EarnOutSharesMember2021-01-012021-09-300001826889us-gaap:RetainedEarningsMember2020-12-310001826889us-gaap:ComputerEquipmentMember2022-09-300001826889us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-3000018268892022-01-012022-09-300001826889us-gaap:MeasurementInputRiskFreeInterestRateMemberbody:TermLoanWarrantsMember2022-08-080001826889us-gaap:RetainedEarningsMember2022-06-300001826889us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-3000018268892021-09-300001826889body:SeniorSecuredTermLoanMember2022-01-012022-09-300001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:OtherComprehensiveIncomeMember2022-07-012022-09-300001826889body:DigitalMember2021-07-012021-09-3000018268892021-01-012021-03-310001826889body:TwoThousandTwentyOnePlanMember2021-01-012021-12-310001826889us-gaap:AccumulatedTranslationAdjustmentMemberus-gaap:CostOfSalesMember2022-01-012022-09-300001826889us-gaap:FairValueInputsLevel1Memberbody:PublicWarrantsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001826889body:DeferredRevenueMember2021-07-012021-09-300001826889us-gaap:BuildingMember2022-09-300001826889body:PrivatePlacementWarrantsMemberus-gaap:MeasurementInputPriceVolatilityMember2022-09-300001826889us-gaap:CommonClassAMember2022-11-040001826889body:NutritionAndOtherMember2021-07-012021-09-3000018268892021-12-310001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001826889us-gaap:NonUsMember2021-01-012021-09-300001826889body:EnterpriseTechnologyAndDevelopmentMember2022-01-012022-09-300001826889body:SeniorSecuredTermLoanMember2022-08-080001826889body:SeniorSecuredTermLoanMember2022-07-012022-09-300001826889us-gaap:ForeignExchangeForwardMember2021-12-310001826889body:OneMonthSecuredOvernightFinancingRateSofrMemberbody:SeniorSecuredTermLoanMember2022-08-082022-08-080001826889us-gaap:NonUsMember2022-01-012022-09-300001826889us-gaap:MeasurementInputExpectedTermMemberbody:TermLoanWarrantsMember2022-08-080001826889body:CommonStockClassXMember2021-12-310001826889us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001826889us-gaap:WarrantMember2022-01-012022-09-300001826889us-gaap:RestrictedStockUnitsRSUMember2021-12-310001826889us-gaap:FederalFundsEffectiveSwapRateMemberbody:SeniorSecuredTermLoanMember2022-08-082022-08-080001826889us-gaap:FurnitureAndFixturesMember2021-12-310001826889country:US2021-01-012021-09-300001826889body:DigitalContentAssetsMember2022-07-012022-09-300001826889us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001826889body:PrivatePlacementWarrantsMemberus-gaap:MeasurementInputExercisePriceMember2021-12-3100018268892022-01-012022-06-300001826889us-gaap:AccumulatedTranslationAdjustmentMember2021-07-012021-09-300001826889body:DeferredRevenueMember2021-01-012021-09-300001826889us-gaap:CommonClassAMember2022-09-30xbrli:pureiso4217:USDxbrli:sharesxbrli:sharesbody:Segmentiso4217:USDutr:Y

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2022

or

 

TRANSITION REPORT PURSUANT TO Section 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

Commission file number: 001-39735

 

The Beachbody Company, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

85-3222090

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

400 Continental Blvd, Suite 400

El Segundo, California

90245

(Address of principal executive offices)

(Zip Code)

(310) 883-9000

Registrant’s telephone number, including area code

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

 

Class A Common Stock, par value $0.0001 per share

BODY

The New York Stock Exchange

Redeemable warrants, each whole warrant exercisable for one Class A common stock at an exercise price of $11.50

BODY WS

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer ☐

Accelerated Filer ☒

Non-Accelerated Filer ☐

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No

There were 170,911,819 shares of the registrant’s Class A Common Stock, par value $0.0001 per share, and 141,250,310 shares of the registrant’s Class X Common Stock, par value $0.0001 per share, outstanding as of November 04, 2022.

 

 

 


 

Table of Contents

 

Part I.

Financial Information

3

Item 1.

Financial Statements

3

 

Condensed Consolidated Balance Sheets

3

 

Unaudited Condensed Consolidated Statements of Operations

4

 

Unaudited Condensed Consolidated Statements of Comprehensive Loss

5

 

Unaudited Condensed Consolidated Statements of Stockholders’ Equity

6

 

Unaudited Condensed Consolidated Statements of Cash Flows

7

 

Notes to Unaudited Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Operations

24

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

41

Item 4.

Controls and Procedures

41

Part II.

Other Information

42

Item 1.

Legal Proceedings

42

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

43

Item 3.

Defaults Upon Senior Securities

43

Item 4.

Mine Safety Disclosures

43

Item 5.

Other Information

44

Item 6.

Exhibits

45

Signatures

46

 

 


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

The Beachbody Company, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

94,063

 

 

$

104,054

 

Restricted cash

 

 

-

 

 

 

3,000

 

Inventory, net

 

 

67,993

 

 

 

132,730

 

Prepaid expenses

 

 

7,181

 

 

 

15,861

 

Other current assets

 

 

41,028

 

 

 

43,727

 

Total current assets

 

 

210,265

 

 

 

299,372

 

Property and equipment, net

 

 

82,030

 

 

 

113,098

 

Content assets, net

 

 

36,783

 

 

 

39,347

 

Goodwill and intangible assets, net

 

 

156,800

 

 

 

171,533

 

Other assets

 

 

12,727

 

 

 

14,262

 

Total assets

 

$

498,605

 

 

$

637,612

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

13,867

 

 

$

48,379

 

Accrued expenses

 

 

71,695

 

 

 

74,525

 

Deferred revenue

 

 

102,086

 

 

 

107,095

 

Current portion of Term Loan

 

 

1,250

 

 

 

-

 

Other current liabilities

 

 

3,879

 

 

 

6,233

 

Total current liabilities

 

 

192,777

 

 

 

236,232

 

Term Loan

 

 

39,474

 

 

 

-

 

Deferred tax liabilities

 

 

1,319

 

 

 

3,165

 

Other liabilities

 

 

12,702

 

 

 

12,830

 

Total liabilities

 

 

246,272

 

 

 

252,227

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 100,000,000 shares
   authorized,
none issued and outstanding at September 30, 2022
   and December 31, 2021

 

 

 

 

 

 

Common stock, $0.0001 par value, 1,900,000,000 shares
   authorized (
1,600,000,000 Class A, 200,000,000 Class X and
   
100,000,000 Class C);

 

 

 

 

 

 

Class A: 170,911,819 and 168,333,463 shares issued and
    outstanding at September 30, 2022 and December 31,
    2021, respectively;

 

 

17

 

 

 

17

 

Class X: 141,250,310 shares issued and outstanding at
    September 30, 2022 and December 31, 2021, respectively;

 

 

14

 

 

 

14

 

Class C: no shares issued and outstanding at
   September 30, 2022 and December 31, 2021

 

 

 

 

 

 

Additional paid-in capital

 

 

626,255

 

 

 

610,418

 

Accumulated other comprehensive income (loss)

 

 

349

 

 

 

(21

)

Accumulated deficit

 

 

(374,302

)

 

 

(225,043

)

Total stockholders’ equity

 

 

252,333

 

 

 

385,385

 

Total liabilities and stockholders’ equity

 

$

498,605

 

 

$

637,612

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3


 

The Beachbody Company, Inc.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

$

72,228

 

 

$

94,072

 

 

$

231,988

 

 

$

283,547

 

Nutrition and other

 

 

90,416

 

 

 

108,053

 

 

 

278,596

 

 

 

367,895

 

Connected fitness

 

 

3,331

 

 

 

5,927

 

 

 

33,449

 

 

 

5,937

 

Total revenue

 

 

165,975

 

 

 

208,052

 

 

 

544,033

 

 

 

657,379

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Digital

 

 

16,078

 

 

 

12,124

 

 

 

50,909

 

 

 

34,858

 

Nutrition and other

 

 

40,486

 

 

 

50,682

 

 

 

127,262

 

 

 

164,679

 

Connected fitness

 

 

4,745

 

 

 

10,261

 

 

 

80,910

 

 

 

10,417

 

Total cost of revenue

 

 

61,309

 

 

 

73,067

 

 

 

259,081

 

 

 

209,954

 

Gross profit

 

 

104,666

 

 

 

134,985

 

 

 

284,952

 

 

 

447,425

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

 

93,145

 

 

 

153,782

 

 

 

286,213

 

 

 

438,672

 

Enterprise technology and development

 

 

25,686

 

 

 

29,680

 

 

 

83,516

 

 

 

83,718

 

General and administrative

 

 

19,532

 

 

 

23,346

 

 

 

59,189

 

 

 

58,523

 

Restructuring

 

 

1,492

 

 

 

 

 

 

10,047

 

 

 

 

Impairment of intangible assets

 

 

1,000

 

 

 

 

 

 

1,000

 

 

 

 

Total operating expenses

 

 

140,855

 

 

 

206,808

 

 

 

439,965

 

 

 

580,913

 

Operating loss

 

 

(36,189

)

 

 

(71,823

)

 

 

(155,013

)

 

 

(133,488

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of warrant liabilities

 

 

2,362

 

 

 

30,274

 

 

 

4,696

 

 

 

35,664

 

Interest expense

 

 

(1,152

)

 

 

(62

)

 

 

(1,174

)

 

 

(490

)

Other income, net

 

 

571

 

 

 

202

 

 

 

696

 

 

 

3,155

 

Loss before income taxes

 

 

(34,408

)

 

 

(41,409

)

 

 

(150,795

)

 

 

(95,159

)

Income tax benefit

 

 

549

 

 

 

1,487

 

 

 

1,536

 

 

 

12,739

 

Net loss

 

$

(33,859

)

 

$

(39,922

)

 

$

(149,259

)

 

$

(82,420

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$

(0.11

)

 

$

(0.13

)

 

$

(0.49

)

 

$

(0.31

)

Weighted-average common shares outstanding, basic and diluted

 

 

307,949

 

 

 

304,599

 

 

 

307,178

 

 

 

265,117

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4


 

The Beachbody Company, Inc.

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(in thousands)

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(33,859

)

 

$

(39,922

)

 

$

(149,259

)

 

$

(82,420

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of derivative financial instruments, net of tax

 

 

555

 

 

 

(70

)

 

 

405

 

 

 

(278

)

Reclassification of losses (gains) on derivative financial instruments
  included in net loss

 

 

(2

)

 

 

142

 

 

 

141

 

 

 

481

 

Foreign currency translation adjustment

 

 

(129

)

 

 

(40

)

 

 

(176

)

 

 

14

 

Total other comprehensive income

 

 

424

 

 

 

32

 

 

 

370

 

 

 

217

 

Total comprehensive loss

 

$

(33,435

)

 

$

(39,890

)

 

$

(148,889

)

 

$

(82,203

)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5


 

The Beachbody Company, Inc.

Unaudited Condensed Consolidated Statements of Stockholders’ Equity

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

Retained

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

Earnings

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

(Accumulated)

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

(Deficit)

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2020

 

 

243,013

 

 

$

24

 

 

$

96,097

 

 

$

(202

)

 

$

3,339

 

 

$

99,258

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(30,058

)

 

 

(30,058

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

100

 

 

 

 

 

 

100

 

Equity-based compensation

 

 

 

 

 

 

 

 

2,573

 

 

 

 

 

 

 

 

 

2,573

 

Balances at March 31, 2021

 

 

243,013

 

 

$

24

 

 

$

98,670

 

 

$

(102

)

 

$

(26,719

)

 

$

71,873

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,440

)

 

 

(12,440

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

85

 

 

 

 

 

 

85

 

Equity-based compensation

 

 

 

 

 

 

 

 

2,522

 

 

 

 

 

 

 

 

 

2,522

 

Business Combination, net of redemptions
  and equity issuance costs of $
47.0 million

 

 

51,617

 

 

 

5

 

 

 

333,850

 

 

 

 

 

 

 

 

 

333,855

 

Common shares issued in connection with
   acquisition

 

 

13,546

 

 

 

2

 

 

 

162,556

 

 

 

 

 

 

 

 

 

162,558

 

Balances at June 30, 2021

 

 

308,176

 

 

$

31

 

 

$

597,598

 

 

$

(17

)

 

$

(39,159

)

 

$

558,453

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(39,922

)

 

 

(39,922

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

32

 

 

 

 

 

 

32

 

Equity-based compensation

 

 

 

 

 

 

 

 

5,744

 

 

 

 

 

 

 

 

 

5,744

 

Options exercised, net of tax withholdings

 

 

1,293

 

 

 

 

 

 

1,323

 

 

 

 

 

 

 

 

 

1,323

 

Balances at September 30, 2021

 

 

309,469

 

 

$

31

 

 

$

604,665

 

 

$

15

 

 

$

(79,081

)

 

$

525,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2021

 

 

309,584

 

 

$

31

 

 

$

610,418

 

 

$

(21

)

 

$

(225,043

)

 

$

385,385

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(73,533

)

 

 

(73,533

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(112

)

 

 

 

 

 

(112

)

Equity-based compensation

 

 

 

 

 

 

 

 

4,564

 

 

 

 

 

 

 

 

 

4,564

 

Options exercised, net of tax withholdings

 

 

1,132

 

 

 

 

 

 

1,923

 

 

 

 

 

 

 

 

 

1,923

 

Balances at March 31, 2022

 

 

310,716

 

 

$

31

 

 

$

616,905

 

 

$

(133

)

 

$

(298,576

)

 

$

318,227

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(41,867

)

 

 

(41,867

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

58

 

 

 

 

 

 

58

 

Equity-based compensation

 

 

210

 

 

 

 

 

 

3,001

 

 

 

 

 

 

 

 

 

3,001

 

Options exercised, net of tax withholdings

 

 

588

 

 

 

 

 

 

737

 

 

 

 

 

 

 

 

 

737

 

Balances at June 30, 2022

 

 

311,514

 

 

$

31

 

 

$

620,643

 

 

$

(75

)

 

$

(340,443

)

 

$

280,156

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(33,859

)

 

 

(33,859

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

424

 

 

 

 

 

 

424

 

Equity-based compensation

 

 

647

 

 

 

 

 

 

5,601

 

 

 

 

 

 

 

 

 

5,601

 

Options exercised, net of tax withholdings

 

 

159

 

 

 

 

 

 

194

 

 

 

 

 

 

 

 

 

194

 

Shares withheld for tax withholdings on vesting of restricted stock

 

 

(158

)

 

 

 

 

 

(183

)

 

 

 

 

 

 

 

 

(183

)

Balances at September 30, 2022

 

 

312,162

 

 

$

31

 

 

$

626,255

 

 

$

349

 

 

$

(374,302

)

 

$

252,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6


 

The Beachbody Company, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Nine months ended September 30,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(149,259

)

 

$

(82,420

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Impairment of intangible assets

 

 

1,000

 

 

 

 

Depreciation and amortization expense

 

 

58,858

 

 

 

40,557

 

Amortization of content assets

 

 

18,673

 

 

 

10,008

 

Provision for inventory and net realizable value adjustment

 

 

35,195

 

 

 

4,431

 

Realized losses on hedging derivative financial instruments

 

 

141

 

 

 

481

 

Gain on investment in convertible instrument

 

 

 

 

 

(3,114

)

Change in fair value of warrant liabilities

 

 

(4,696

)

 

 

(35,664

)

Equity-based compensation

 

 

13,166

 

 

 

10,839

 

Deferred income taxes

 

 

(1,754

)

 

 

(12,964

)

Amortization of debt issuance costs

 

 

262

 

 

 

 

Paid-in-kind interest expense

 

 

221

 

 

 

 

Other non-cash items

 

 

311

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Inventory

 

 

31,676

 

 

 

(68,765

)

Content assets

 

 

(16,111

)

 

 

(21,958

)

Prepaid expenses

 

 

8,681

 

 

 

(5,364

)

Other assets

 

 

4,496

 

 

 

(5,762

)

Accounts payable

 

 

(30,379

)

 

 

9,095

 

Accrued expenses

 

 

(209

)

 

 

(406

)

Deferred revenue

 

 

(3,690

)

 

 

27,041

 

Other liabilities

 

 

(3,525

)

 

 

(5,294

)

Net cash used in operating activities

 

 

(36,943

)

 

 

(139,259

)

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(23,236

)

 

 

(61,065

)

Investment in convertible instrument

 

 

 

 

 

(5,000

)

Other investment

 

 

 

 

 

(5,000

)

Cash paid for acquisition, net of cash acquired

 

 

 

 

 

(37,280

)

Net cash used in investing activities

 

 

(23,236

)

 

 

(108,345

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

3,162

 

 

 

4,477

 

Remittance of taxes withheld from employee stock awards

 

 

(308

)

 

 

(3,154

)

Borrowings under Credit Facility

 

 

 

 

 

42,000

 

Repayments under Credit Facility