Business Context and Reporting Period
Purple Innovation, Inc. (PRPL) filed a Form 8-K on June 24, 2019, reporting a corporate governance event. The company is an emerging growth company incorporated in Delaware, with principal executive offices in Alpine, Utah.
Key Financial Metrics
This filing is a current report regarding a material definitive agreement and does not contain financial statements. Consequently, data regarding revenue, profit, cash flow, margins, debt, and liquidity are not provided in this document.
Material Changes
The primary material change reported is the termination of a Shared Services Agreement between Purple Innovation, LLC (a subsidiary) and EdiZONE, LLC. EdiZONE is an entity owned by Tony and Terry Pearce, the founders of Purple LLC. The termination was initiated because Purple LLC determined it no longer wished to provide the services covered under the agreement. The termination is effective July 24, 2019.
Guidance, Outlook, and Risks
The filing does not provide updated financial guidance, management commentary on future outlook, or specific risk factors beyond the operational change of ending the shared services arrangement. No unusual items or contingencies were disclosed in this report.
Investor Verification Checklist
- Verify the financial impact of terminating the Shared Services Agreement with EdiZONE, LLC in subsequent quarterly reports.
- Confirm the status of the relationship between Purple Innovation, Inc. and the founders (Tony and Terry Pearce) following the termination.
- Review the effective date of July 24, 2019, to ensure no transitional service costs were incurred unexpectedly.