Filing summary
Important issuer mismatch: The supplied filing is Global Partner Acquisition Corp.’s Form 10-Q for the quarter ended March 31, 2016—not a filing by Purple Innovation, Inc. The summary below reflects the filing text provided.
Business context and reporting period
Global Partner Acquisition Corp. was a blank-check company formed to pursue a merger, acquisition, or similar business combination. It had not begun operations or generated operating revenue as of March 31, 2016. The unaudited report covers the three months ended March 31, 2016; it does not present a comparable prior-year quarterly income statement or cash-flow statement.
Financial results and position
| Metric | Q1 2016 / March 31, 2016 |
|---|---|
| Revenue | $0 |
| General and administrative expenses | $138,000 |
| Interest income from trust assets | $100,000 |
| Net loss | $38,000; basic and diluted loss per share was $0.01 |
| Operating cash flow | $(155,000); cash declined from $1.048 million to $893,000 |
| Cash and investments in trust | $155.393 million |
| Total assets | $156.436 million |
| Total liabilities | $4.859 million, including $4.658 million of deferred underwriting compensation |
| Debt | No long-term debt reported |
| Working capital cash outside trust | $893,000 |
Gross margin and operating margin are not meaningful for this pre-combination company. Management said available resources should fund operations for at least the next 12 months.
Changes, outlook, and risks
- Compared with December 31, 2015, cash outside the trust fell by $155,000; trust assets rose by $100,000, primarily reflecting trust interest. Total assets decreased by $36,000, while total liabilities and stockholders’ equity were broadly unchanged.
- Management expected to use funds outside the trust for acquisition-search costs and ongoing expenses. The company had 24 months from the August 4, 2015 offering to complete a business combination; otherwise it would wind up and redeem public shares under the stated terms.
- Trust funds were invested in short-term U.S. Treasury securities and related permitted holdings. Management said it did not believe interest-rate risk was material.
- A business combination could involve issuing stock or debt, potentially diluting shareholders or increasing leverage and related financial risks. Public-share redemptions were subject to a minimum net tangible asset threshold of $5,000,001.
- The filing reports 14.17 million shares issuable under outstanding warrants; warrants could expire worthless if no business combination is completed. The company also paid its sponsor $10,000 monthly for administrative services.
- No legal proceedings or material changes to previously disclosed risk factors were reported. Disclosure controls were assessed as effective.
Important facts for investors to verify
- Confirm the issuer and filing: the provided document names Global Partner Acquisition Corp., not Purple Innovation, Inc.
- Verify the trust balance, permitted uses and redemption terms, including the business-combination deadline and minimum net tangible asset condition.
- Review the warrant terms, potential dilution, deferred underwriting fee, and sponsor-related payments.
- Check subsequent filings for whether a business combination occurred and for any changes to liquidity, redemption rights, or the company’s status.