UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 13, 2018

 

 

 

THE LOVESAC COMPANY

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-38555   32-0514958

(State or other jurisdiction

of incorporation)

 

(Commission File Number)

 

(IRS Employer

Identification No.)

  

Two Landmark Square, Suite 300
Stamford, Connecticut
  06901
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (207) 273-9733

 

Not Applicable

(Former name or former address, if changed since last report.)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

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. ☒

 

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On September 13, 2018, The Lovesac Company, a Delaware corporation (the “Company”), issued a press release (the “Press Release”) announcing the Company’s financial results for the second quarter ended August 5, 2018 and held a conference call at 8:30 a.m. Eastern Time to discuss the Company’s second quarter financial results. A copy of the Press Release is attached to this current report on Form 8-K as Exhibit 99.1.

 

The Company will host a conference call on September 13, 2018 at 8:30 a.m. Eastern Time in connection with the release of the Company’s financial results for the second quarter ended August 5, 2018. Investors and analysts interested in participating in the call are invited to dial 877-407-3982 (international callers please dial 201-493-6780) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at investor.lovesac.com. A recorded replay of the conference call will be available within two hours of the conclusion of the call and can be accessed online at investor.lovesac.com for 90 days.

 

The information hereunder and Exhibit 99.1 hereto shall be deemed “furnished” and not “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit
Number

 

Description

99.1   Press release, dated September 13, 2018.

 

 1 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  THE LOVESAC COMPANY  
     
Date: September 13, 2018     By: /s/ Shawn Nelson
    Name: Shawn Nelson
    Title:   Chief Executive Officer

  

 

2

 

 

Exhibit 99.1

 

The Lovesac Company Announces Second Quarter Fiscal 2019 Financial Results

 

Second Quarter Net Sales Increased 60.3% to $33.2 million

Comparable Sales, Including Showroom and Internet Sales, Increased 41.0%

 

STAMFORD, Conn., September 13, 2018 (GLOBE NEWSWIRE) -- The Lovesac Company (Nasdaq:LOVE) today announced its financial results for the second quarter of fiscal 2019, which ended on August 5, 2018.

 

Shawn Nelson, Chief Executive Officer, stated, “We are very pleased to have delivered a strong second quarter with over 60% sales growth. Our performance in the second quarter speaks to the strength of our differentiated and disruptive direct-to-consumer business model that leverages both Internet and traditional media combined with small, highly productive showrooms along with shop-in-shop showrooms to drive a robust digital sales model. We ship our patent protected, premium, and durable sacs and sactionals furniture directly to our customer’s door for free, regardless of their path to purchase. We believe we have captured only a sliver of the addressable market to-date, and with extremely attractive customer acquisition costs to lifetime value economics that are unique to our hybrid business model, we are focused on investing in marketing to drive customer acquisition and market share gains.”

 

For the Thirteen Weeks Ended August 5, 2018

 

  Net sales increased 60.3% to $33.2 million in the second quarter of fiscal 2019 from $20.7 million in the second quarter of fiscal 2018, driven by strong showroom, Internet and shop-in-shop performance as a result of an increase in new customers combined with an increase in the total number of units sold and continued accelerated investments in marketing to increase brand awareness. Comparable sales, which includes showroom and Internet sales, increased 41.0%. Comparable showroom sales increased 34.2% and Internet sales increased 71.3%.
     
  The Company opened five new showrooms and closed one showroom in the second quarter of fiscal 2019 and ended the quarter with 72 showrooms in 30 states. This represents a unit increase of 16.1% over the same quarter in the prior year.
     
  Operating loss was $6.8 million in the second quarter of fiscal 2019 compared to an operating loss of $2.3 million in the second quarter of fiscal 2018.
     
  Net loss was $7.0 million and net loss attributable to common shares was $33.7 million including preferred dividends and deemed dividends in the second quarter of fiscal 2019, compared to a net loss of $2.4 million, or net loss attributable to common shares of $2.7 million including preferred dividends and deemed dividends in the second quarter in fiscal 2018. Adjusted net loss, which excludes the impact of the IPO and certain other non-recurring expenses, was $3.6 million in the second quarter of fiscal 2019 compared to $2.2 million in the second quarter of fiscal 2018 (see “GAAP and Non-GAAP Measures”).
     
  Net loss per share, including preferred dividends and deemed dividends, was ($3.71) in the second quarter of fiscal 2019 compared to ($0.45) in the second quarter of fiscal 2018. Adjusted net loss per common share, which is calculated by dividing adjusted net loss by adjusted weighted average common shares outstanding assuming the IPO related issuances occurred at the beginning of each period presented, was ($0.27) in the second quarter of fiscal 2019 compared to ($0.16) in the second quarter of fiscal 2018 (see “GAAP and Non-GAAP Measures”).
     
  Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), was ($1.9) million in the second quarter of fiscal 2019 compared to ($1.6) million in the second quarter of fiscal 2018 (see “GAAP and Non-GAAP Measures”).

 

Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.

 

 

 

 

For the Twenty-Six Weeks Ended August 5, 2018

 

  Net sales increased 56.4% to $60.0 million in the first half of fiscal 2019 from $38.4 million in the first half of fiscal 2018 driven by strong showroom, Internet and shop-in-shop performance as a result of an increase in new customers combined with an increase in the total number of units sold and continued accelerated investments in marketing to increase brand awareness. Comparable sales, which includes showroom and Internet sales, increased 34.5%. Comparable showroom sales increased 28.6% and Internet sales increased 60.7%.
     
  The Company opened eight new showrooms and closed two showrooms in the first half of fiscal 2019.
     
  Operating loss was $12.4 million in the first half of fiscal 2019 compared to an operating loss of $5.5 million in the first half of fiscal 2018.
     
  Net loss was $12.7 million, and net loss attributable to common shares was $40.1 million including preferred dividends and deemed dividends in the first half of 2019. This compares to a net loss of $5.8 million in the first half of fiscal 2018 and a net loss attributable to common shares of $6.0 million including preferred dividends and deemed dividends in the first half of fiscal 2018. Adjusted net loss, which excludes the impact of the IPO and certain other non-recurring expenses, was $9.0 million in the first half of fiscal 2019 compared to $5.3 million in the first half of fiscal 2018 (see “GAAP and Non-GAAP Measures”).
     
  Net loss per share, including preferred dividends and deemed dividends, was ($5.29) in the first half of fiscal 2019 compared to ($1.01) in the first half of fiscal 2018. Adjusted net loss per common share, which is calculated by dividing adjusted net loss by adjusted weighted average common shares outstanding assuming the IPO related issuances occurred at the beginning of each period presented, was ($0.67) in the first half of fiscal 2019 compared to ($0.39) in the first half of fiscal 2018 (see “GAAP and Non-GAAP Measures”).
     
  Adjusted EBITDA was ($6.0) million in the first half of fiscal 2019 compared to ($4.0) million in the first half of fiscal 2018 (see “GAAP and Non-GAAP Measures”).

 

Please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below for more information.

 

Recent Developments

 

On June 26, 2018, the Company completed its initial public offering (“IPO”), at an offering price to the public of $16.00 per share. The Company sold 4,025,000 shares of its common stock in the IPO, including the additional 525,000 shares purchased by the underwriters in the exercise of their overallotment option, resulting in total net proceeds of $59.2 million after deducting underwriters’ discounts, commissions and expenses as well as the Company’s IPO legal expenses. Immediately following the IPO, the Company paid down the balance on its asset-based loan in the amount of $4.7 million. The Company intends to use the remaining net proceeds from the IPO for additional IPO related expenses, opening or remodeling showrooms, marketing investments, product development, working capital and other general corporate purposes.

 

 2 

 

 

Conference Call Details

 

A conference call to discuss the second quarter fiscal 2019 financial results is scheduled for today, September 13, 2018, at 8:30 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 877-407-3982 (international callers please dial 201-493-6780) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at investor.lovesac.com.

 

A recorded replay of the conference call will be available within two hours of the conclusion of the call and can be accessed online at investor.lovesac.com for 90 days.

 

About The Lovesac Company

 

Based in Stamford, Connecticut, The Lovesac Company is a direct-to-consumer specialty furniture brand with 74 retail showrooms supporting its ecommerce delivery model. Lovesac’s name comes from its original Durafoam filled beanbags called Sacs. The Company derives a majority of its current sales from its proprietary platform called Sactionals, a washable, changeable, reconfigurable, and FedEx-shippable solution for large upholstered seating. Founder and CEO, Shawn Nelson’s, “Designed for Life” philosophy emphasizes sustainable products that are built to last a lifetime and designed to evolve with the customer’s needs, providing long-term utility and ultimately reducing the amount of furniture discarded into landfills.

 

Non-GAAP Information

 

This press release includes the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission (the “SEC”): adjusted net loss, adjusted diluted loss per share and Adjusted EBITDA. Adjusted net loss excludes the effect of one-time costs related to the Company’s IPO in June 2018 and fees associated with fundraising and reorganizing activities. Adjusted diluted loss per share is defined as adjusted net loss divided by a pro forma share count which assumes the IPO took place before the relevant time period. We define Adjusted EBITDA as net income plus interest expense, income tax expense, depreciation and amortization, sponsor fees, deferred rent, equity-based compensation, write-off of property and equipment, one-time IPO-related expenses, and fees associated with fundraising and reorganizing activities. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures under “GAAP and Non-GAAP Measures” in this release. The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company’s business and facilitate a more meaningful comparison of its diluted income per share and actual results on a period-over-period basis. The Company has provided this information as a means to evaluate the results of its ongoing operations. Other companies in the Company’s industry may calculate these items differently than the Company does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.

 

 3 

 

 

Cautionary Statement Concerning Forward Looking Statements

 

Certain statements either contained in or incorporated by reference into this communication, other than purely historical information, including estimates, projections and statements relating to Lovesac’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in or incorporated by reference into this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. Lovesac may not actually achieve the plans, carry out the intentions or meet the expectations disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors. Lovesac disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances that exist after the date on which they were made.

 

Investor Relations Contact:

Rachel Schacter, ICR

(203) 682-8200

InvestorRelations@lovesac.com

 

(Tables to Follow)

 

 4 

 

 

THE LOVESAC COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   August 5,
2018
   February 4,
2018
 
   (unaudited)     
         
Assets        
Current Assets          
Cash and cash equivalents  $48,212,163   $9,175,951 
Trade accounts receivable   4,034,273    2,805,186 
Merchandise inventories   20,239,919    11,641,482 
Prepaid expenses and other current assets   5,794,464    6,062,946 
           
Total Current Assets   78,280,819    29,685,565 
           
Property and Equipment, Net   15,714,513    11,037,289 
           
Other Assets          
Goodwill   143,562    143,562 
Intangible assets, net   691,283    526,370 
Deferred financing costs, net   255,583    48,149 
           
Total Other Assets   1,090,428    718,081 
           
Total Assets  $95,085,760   $41,440,935 
           
Liabilities and Stockholders’ Equity          
           
Current Liabilities          
Accounts payable  $15,299,930   $12,695,954 
Accrued expenses   1,738,475    784,340 
Payroll payable   1,354,069    1,454,193 
Customer deposits   2,199,619    909,236 
Sales taxes payable   950,292    894,882 
Line of credit   -    405 
           
Total Current Liabilities   21,542,385    16,739,010 
           
Deferred Rent   1,315,115    1,063,472 
           
Total Liabilities   22,857,500    17,802,482 
           
Stockholders’ Equity          
           
Preferred Stock $.00001 par value, 10,000,000 shares authorized, no shares issued as of August 5, 2018 and 1,018,600 shares issued as of February 4, 2018.   -    26 
Common Stock $.00001 par value, 40,000,000 shares authorized and 13,451,644  shares issued as of August 5, 2018, 6,064,500 shares issued as of February 4, 2018, respectively.   135    61 
           
Additional paid-in capital   141,134,426    79,891,819 
           
Accumulated deficit   (68,906,301)   (56,253,453)
           
Stockholders’ Equity   72,228,260    23,638,453 
           
Total Liabilities and Stockholders’ Equity  $95,085,760   $41,440,935 

 

 5 

 

 

THE LOVESAC COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

   Thirteen weeks ended   Twenty-six weeks ended 
   August 5,
2018
   July 30,
2017
   August 5,
2018
   July 30,
2017
 
                 
Net sales  $33,249,012   $20,745,349   $60,017,810   $38,377,588 
                     
Cost of merchandise sold   15,410,442    9,213,593    27,532,067    17,757,692 
                     
Gross profit   17,838,570    11,531,756    32,485,743    20,619,896 
                     
Operating expenses                    
   Selling, general and administrative expenses   23,899,447    13,528,187    43,501,738    25,456,781 
Depreciation and amortization   758,684    338,534    1,428,829    685,642 
                     
Total operating expenses   24,658,131    13,866,721    44,930,567    26,142,423 
                     
Operating loss   (6,819,561)   (2,334,965)   (12,444,824)   (5,522,527)
                     
Interest expense   (435)   (79,342)   (58,420)   (229,088)
                     
Net loss before taxes   (6,819,996)   (2,414,307)   (12,503,244)   (5,751,615)
                     
Provision for income taxes   (149,604)   -    (149,604)   - 
                     
Net loss  $(6,969,600)  $(2,414,307)  $(12,652,848)  $(5,751,615)
                     
Net loss per common share:                    
Basic and diluted  $(3.71)  $(0.45)  $(5.29)  $(1.01)
                     
Weighted average number of  common shares outstanding:                    
Basic and diluted   9,077,549    6,000,000    7,571,377    6,000,000 
                     
Numerator:                    
Net loss - Basic and diluted  $(6,969,600)  $(2,414,307)  $(12,652,848)  $(5,751,615)
Preferred dividends and deemed dividends   (26,731,079)   (287,032)   (27,424,079)   (287,032)
Net loss attributable to common shares   (33,700,679)   (2,701,339)   (40,076,927)   (6,038,647)
Denominator:                    
Weighted average number of common shares for basic and diluted net loss per share   9,077,549    6,000,000    7,571,377    6,000,000 
Basic and diluted net loss per share  $(3.71)  $(0.45)  $(5.29)  $(1.01)

 

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THE LOVESAC COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

   Twenty-six weeks ended 
   August 5,
2018
   July 30,
2017
 
         
Cash Flows from Operating Activities        
Net loss  $(12,652,848)  $(5,751,615)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization of property and equipment   1,350,493    573,011 
Amortization of other intangible assets   78,336    112,631 
Amortization of deferred financing fees   84,661    72,282 
Loss on disposal of property and equipment   6,139    - 
Equity based compensation   2,334,104    - 
Deferred rent   251,643    139,117 
Changes in operating assets and liabilities:          
Accounts receivable   (1,229,087)   (799,590)
Merchandise inventories   (8,598,437)   (3,476,143)
Prepaid expenses and other current assets   268,482    (1,073,893)
Accounts payable and accrued expenses   3,521,298    1,305,883 
Customer deposits   1,290,383    115,855 
           
Net Cash Used in Operating Activities   (13,294,833)   (8,782,462)
           
Cash Flows from Investing Activities          
Purchase of property and equipment   (6,033,856)   (2,986,051)
Payments for patents and trademarks   (243,249)   (103,749)
           
Net Cash Used in Investing Activities   (6,277,105)   (3,089,800)
           
Cash Flows from Financing Activities          
Proceeds from initial public offering, net   59,168,596    - 
Payments of initial public offering issuance costs   (260,044)   - 
Taxes paid for net share settlement of equity awards   (7,902)   - 
Proceeds from sale of equity   -    12,822,294 
Principal payments on note payable   -    (194,530)
Principal paydowns on the line of credit, net   (405)   (835,353)
Payments of deferred financing costs   (292,095)   (25,000)
Net Cash Provided by Financing Activities   58,608,150    11,767,411 
           
Net Change in Cash and Cash Equivalents   39,036,212    (104,851)
           
Cash and Cash Equivalents - Beginning   9,175,951    878,696 
           
Cash and Cash Equivalents - End  $48,212,163   $773,845 
           
Supplemental Cash Flow Disclosures          
Cash paid for interest  $38,803   $156,864 

 

 7 

 

 

THE LOVESAC COMPANY

Reconciliation of non-GAAP Financial Measures

(unaudited)

 

Reconciliation of adjusted EBITDA

 

   Thirteen Weeks Ended   Twenty-six Weeks Ended 
(dollars in thousands)  August 5, 2018   July 30, 2017   August 5, 2018   July 30, 2017 
Net loss  $(6,970)  $(2,414)  $(12,653)  $(5,752)
Interest expense   -    79    58    229 
Income taxes   150    -    150    - 
Depreciation and amortization   759    339    1,429    686 
EBITDA   (6,061)   (1,996)   (11,016)   (4,837)
Sponsor fees (a)   742    125    867    233 
Deferred rent (b)   128    72    252    139 
Equity-based compensation (c)   2,039    -    2,334    - 
Write-off of property and equipment (d)   -    -    6    - 
Other non-recurring expenses (e)(f)   1,292    239    1,538    488 
Adjusted EBITDA  $(1,860)  $(1,560)  $(6,019)  $(3,977)

 

(a)Represents management fees charged by our equity sponsors.
(b)Represents the difference between rent expense recorded and the amount paid by the Company.  In accordance with GAAP, the Company records the monthly rent expense equal to the total of the payments due over the term of the lease term, divided by the number of months a of the lease terms.
(c)Represents expenses associated with stock options, restricted stock units granted to our management and one-time stock bonus payable to Satori.
(d)Represents the net loss on disposal of fixed assets.
(e)Other expenses in the thirteen weeks ended August 5, 2018 are made up of: (1) $176 in fees and costs associated with our fundraising and reorganizing activities including the legal and professional services incurred in connection with such activities; (2) $73 in travel and logistical costs associated with the offering; (3) $88 in accounting fees related to the offering, (4) $450 in IPO bonuses paid to executives, (5) $446 in fees paid for investor relations and public relations relating to the IPO and (6) $59 in executive recruitment fees to build executive management team.  Other expenses in the thirteen weeks ended July 30, 2017 are made up of: (1) $180 in fees and costs associated with our fundraising and reorganizing activities including the legal and professional services incurred in connection with such activities; (2) $59 in accounting fees related to the offering.
(f)Other expenses in the twenty-six weeks ended August 5, 2018 are made up of (1) $231 in accounting fees related to the offering, (2) $84 in travel and logistical costs associated with the offering. (3) $198 in accounting fees related to the offering, (4) $450 in IPO bonuses paid to executives, (5) $479 in fees paid for investor relations and public relations relating to the IPO and (6) $96 in executive recruitment fees to build executive management team.  Other expenses in the twenty-six weeks ended July 30, 2017 are made up of: (1) $404 in fees and costs associated with our fundraising and reorganizing activities including the legal and professional services incurred in connection with such activities, (2) $25 in travel and logistical costs associated with the offering and (3) $59 in accounting fees related to the offering.

 

 8 

 

 

Reconciliation of net loss as reported to adjusted net loss

 

(dollars in thousands, except share and per-share data)  Thirteen weeks ended   Twenty -six weeks ended 
   August 5,
2018
   July 30,
2017
   August 5,
2018
   July 30,
2017
 
Net loss as reported  $(6,970)  $(2,414)  $(12,653)  $(5,752)
Adjustments:                    
Adjustments to selling, general and administrative expense:                    
Sponsor fees relating to the IPO(a)   625    -    625    - 
Equity-based compensation related to IPO (b)   1,442    -    1,442    - 
Other non-recurring expenses (c)(d)   1,292    239    1,538    488 
Adjusted  net loss  $(3,611)  $(2,176)  $(9,048)  $(5,264)
Adjusted basic and diluted weighted average shares outstanding - adjusted for IPO related share issuance (e)   13,444,748    13,359,671    13,434,838    13,359,671 
Adjusted net loss per common share  $(0.27)  $(0.16)  $(0.67)  $(0.39)

 

(a)$625 paid in sponsor monitoring fees paid as a result of the IPO
(b)$700 in executive restricted stock awards vested as a result of the IPO and $742 IPO bonus payable to Satori in common stock.

(c)Other expenses in the thirteen weeks ended August 5, 2018 are made up of: (1) $176 in fees and costs associated with our fundraising and reorganizing activities including the legal and professional services incurred in connection with such activities; (2) $73 in travel and logistical costs associated with the offering; (3) $88 in accounting fees related to the offering, (4) $450 in IPO bonuses paid to executives, (5) $446 in fees paid for investor relations and public relations relating to the IPO and (6) $59 in executive recruitment fees to build executive management team.  Other expenses in the thirteen weeks ended July 30, 2017 are made up of: (1) $180 in fees and costs associated with our fundraising and reorganizing activities including the legal and professional services incurred in connection with such activities; (2) $59 in accounting fees related to the offering,
(d)Other expenses in the twenty-six weeks ended August 5, 2018 are made up of (1) $231 in accounting fees related to the offering, (2) $84 in travel and logistical costs associated with the offering. (3) $198 in accounting fees related to the offering, (4) $450 in IPO bonuses paid to executives, (5) $479 in fees paid for investor relations and public relations relating to the IPO and (6) $96 in executive recruitment fees to build executive management team.  Other expenses in the twenty-six weeks ended July 30, 2017 are made up of: (1) $404 in fees and costs associated with our fundraising and reorganizing activities including the legal and professional services incurred in connection with such activities, (2) $25 in travel and logistical costs associated with the offering and (3) $59 in accounting fees related to the offering,
 (e)Adjusted basic and diluted weighted average shares outstanding – adjusted for IPO related share issuance was calculated assuming the IPO related issuances occurred at the beginning of each period presented.

 

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