Annual report pursuant to Section 13 and 15(d)

Business Combinations (Tables)

v3.21.1
Business Combinations (Tables)
12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Schedule of Consideration Paid

 

 

 

 

 

Consideration Paid

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

    Cash

 

$

30,000

 

    Stock

 

 

103,680

 

    Contingent consideration

 

 

103,207

 

Total Consideration

 

$

236,887

 

 

Summary of Input Variables

The input variables are noted in the table below:

 

 

 

Successor

 

 

 

2020

 

Risk-free interest rate

 

 

0.37

%

Expected life in years

 

3

 

Expected volatility

 

 

60

%

Expected dividend yield (a)

 

 

0

%

 

 

(a)

The Monte Carlo method assumes a reinvestment of dividends.

The input variables are noted in the table below:

 

 

 

Successor

 

 

 

2020

 

Risk-free interest rate

 

 

0.18

%

Expected life in years

 

3

 

Expected volatility

 

 

65.9

%

Expected dividend yield (a)

 

 

0

%

 

(a)The Monte Carlo method assumes a reinvestment of dividends.

The input variables for the Black Scholes are noted in the table below:

 

 

 

Successor

 

 

 

2020

 

Risk-free interest rate

 

 

0.36

%

Expected life in years

 

5

 

Expected volatility

 

 

30.0

%

Expected dividend yield

 

 

0

%

 

 

Summary of Fair Values of Assets Acquired Net of Current Liabilities

The consideration was the fair value of the three loans at the Takeover Date and the assets are recorded based on the fair values of the assets acquired, net of current liabilities as of the Takeover Date as follows (in thousands):

 

Cash

 

$

39

 

Accounts Receivable

 

 

1

 

Inventory

 

 

28

 

Other current assets

 

 

24

 

Property & equipment

 

 

1,126

 

Other assets

 

 

4

 

Current liabilities

 

 

(330

)

Net tangible and identifiable intangible assets acquired

 

 

892

 

Goodwill

 

 

397

 

Net assets acquired

 

$

1,289

 

 

 

 

 

 

 

(in thousands)

 

Fair Value December 16, 2020

 

      Cash

 

$

2,179

 

      Cash - restricted

 

 

611

 

      Accounts receivable

 

 

378

 

      Inventory

 

 

260

 

      Other current assets

 

 

1,235

 

      Property and equipment

 

 

8,520

 

      Intangible assets

 

 

117,124

 

      Other assets

 

 

199

 

      Accounts payable - trade

 

 

(1,952

)

      Accrued expenses

 

 

(1,057

)

      Gift card liability

 

 

(292

)

      Revolving line of credit

 

 

(3,012

)

      Current portion of deferred franchise fees

 

 

(521

)

      Other deposit

 

 

(907

)

      Deferred initial franchise fees, net of current portion

 

 

(2,531

)

      Notes payable

 

 

(2,889

)

  Fair Value of Tangible and Identifiable Intangible assets and liabilities assumed

 

$

117,345

 

Consideration paid

 

 

236,887

 

Goodwill

 

$

119,542