Purple Innovation, Inc. current report, 12 March 2019

Full document

Business Context and Reporting Period

This Form 8-K was filed by Purple Innovation, Inc. on March 18, 2019, reporting events occurring on March 12, 2019. The filing addresses the departure of the previous Chief Financial Officer and the appointment of an interim replacement.

Key Financial Metrics

The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics. The only financial figure disclosed relates to the compensation arrangement for the new interim officer.

  • Interim CFO Fee Cap: $90,000 per month.
  • Additional Costs: Reasonable allocated and direct expenses billed by FTI Consulting, Inc.

Material Changes

The primary material change is the leadership transition in the finance department:

  • Departure: Mark A. Watkins resigned as Chief Financial Officer, Principal Financial Officer, and Principal Accounting Officer, effective March 15, 2019.
  • Appointment: Craig Phillips was appointed as Interim Chief Financial Officer, effective March 16, 2019. He will serve as the Principal Financial Officer and Principal Accounting Officer for SEC reporting purposes.
  • Contractual Arrangement: Mr. Phillips is engaged through FTI Consulting, Inc. under a Statement of Work dated March 12, 2019.

Guidance, Outlook, and Risks

The filing contains no financial guidance, outlook, or discussion of general business risks. The interim appointment is contingent upon the Board hiring a permanent Chief Financial Officer, at which point Mr. Phillips will resign from the interim role. The company intends to seek confidential treatment for certain terms of the Statement of Work.

Investor Verification Checklist

  • Verify the exact terms of the Statement of Work with FTI Consulting, Inc. once filed as an exhibit to the Form 10-Q for the quarter ending March 31, 2019.
  • Monitor future filings for the appointment of a permanent Chief Financial Officer to determine the duration of the interim arrangement.
  • Review the upcoming Form 10-Q for any financial impact of the transition or changes in accounting practices under the new interim leadership.