Polished.com Inc.

CIK:0001810140|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Product sales, net	$ 77,818	$ 143,566	$ 261,018	$ 430,710
Cost of goods sold	62,513	122,431	204,987	355,788
Gross profit	15,305	21,135	56,031	74,922
Operating Expenses
Personnel	5,874	8,348	18,379	22,396
Advertising	5,061	7,534	14,694	18,475
Bank and credit card fees	2,557	5,932	8,935	15,121
Depreciation and amortization	1,061	2,882	3,199	8,588
General and administrative	6,747	7,260	16,619	15,078
Total Operating Expenses	21,300	31,956	61,826	79,658
LOSS FROM OPERATIONS	(5,995)	(10,821)	(5,795)	(4,736)
Other Income (Expenses)
Interest income	407	174	1,139	282
Adjustment in value of contingency				(2)
Interest expense	(1,886)	(1,351)	(4,821)	(2,594)
Gain on change in fair value of derivative instruments	446	4,476	1,020	3,540
Loss on settlement of debt				(3,241)
Other income (expense)	227	(50)	331	(140)
Total Other Income (Expenses)	(806)	3,249	(2,331)	(2,155)
NET LOSS BEFORE INCOME TAXES	(6,801)	(7,572)	(8,126)	(6,891)
INCOME TAX (EXPENSE) BENEFIT	167	2,388	(265)	3,234
NET LOSS	$ (6,634)	$ (5,184)	$ (8,391)	$ (3,657)
Income per common share
Basic (in Dollars per share)	$ (3.14)	$ (2.46)	$ (3.98)	$ (1.73)
Diluted (in Dollars per share)	$ (3.14)	$ (2.46)	$ (3.98)	$ (1.73)
Weighted average common shares outstanding
Basic (in Shares)	2,109,398	2,104,558	2,108,811	2,115,846
Diluted (in Shares)	2,109,398	2,104,558	2,108,811	2,115,846

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (8,391)	$ (3,657)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	3,199	8,588
Amortization of debt discount	163	460
Loss on settlement of debt		3,241
Loss on disposal of fixed assets	1,094
Stock-based compensation	72	193
Adjustment to contingent liability		2
Inventory reserve	(1,200)	557
Loss (Gain) on change in fair value of derivative instruments	(1,020)	(3,540)
Bad debt expense	(219)	411
Deferred tax expense (benefit)	263	(3,234)
Non-cash lease expense	2,516	2,425
Changes in operating assets and liabilities:
Accounts receivable	7,005	(1,772)
Deposits with vendors	(5,806)	(12,586)
Inventory	12,873	7,349
Prepaid expenses and other current assets	(410)	(3,846)
Accounts payable and accrued liabilities	(4,893)	(12,143)
Due to related party		2,413
Customer deposits	(2,762)	(20,860)
Operating lease liabilities	(2,874)	(2,694)
Net cash used in operating activities	(390)	(38,693)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(140)	(1,318)
Net cash used in investing activities	(140)	(1,318)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from notes payable		43,044
Repayment of notes payable	(4,682)	(4,580)
Repayments of financing lease liabilities	(85)	(78)
Purchase of treasury stock at cost		(2,000)
Net cash (used in) provided by financing activities	(4,767)	36,386
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(5,297)	(3,625)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	20,499	33,791
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	15,202	30,166
End of the period
Cash and cash equivalents	9,811	28,433
Restricted cash	5,391	1,733
Cash and cash equivalents and restricted cash total	15,202	30,166
Beginning of the period
Cash and cash equivalents	19,549	25,724
Restricted cash	950	8,067
Cash and cash equivalents and restricted cash total	20,499	33,791
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	4,821	2,731
Cash paid for income taxes		3,905
NON-CASH INVESTING AND FINANCING ACTIVITIES
Common stock issued in vesting of RSUs
Financed purchases of property and equipment	94	308
Common stock issued in connection with employment agreements	121
Debt discount on notes payable		1,104
Settlement of notes payable and interest through the issuance of a new note		$ 55,851

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 9,811	$ 19,549
Restricted cash	5,391	950
Receivables, net	19,864	26,650
Vendor deposits	30,828	25,022
Merchandise inventory, net	30,093	41,766
Prepaid expenses and other current assets	11,526	11,217
Total Current Assets	107,513	125,154
Property and equipment, net	3,275	5,075
Operating lease right-of-use assets	9,172	11,688
Derivative instruments	4,197	3,178
Goodwill	106,173	106,173
Intangible assets, net	8,036	10,296
Deferred tax asset		1
Other long-term assets	451	349
TOTAL ASSETS	238,817	261,914
Current Liabilities
Accounts payable and accrued expenses	76,524	81,537
Customer deposits	4,530	7,292
Current portion of notes payable, net	7,859	6,628
Current portion of finance lease liabilities	110	112
Current portion of operating lease liabilities	1,945	3,726
Total Current Liabilities	90,968	99,295
Notes payable, net of current portion	85,160	90,816
Finance lease liabilities, net of current portion	142	225
Operating lease liabilities, net of current portion	7,919	9,013
Deferred tax liability	262
TOTAL LIABILITIES	184,451	199,349
Stockholders’ Equity
Preferred stock, $0.0001 par value, 20,000,000 shares authorized; none issued and outstanding as of September 30, 2023 and December 31, 2022
Common stock, $0.0001 par value, 200,000,000 shares authorized; 2,109,398 and 2,104,558 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively	1	1
Additional paid-in capital	223,029	222,837
Accumulated deficit	(168,664)	(160,273)
TOTAL STOCKHOLDERS’ EQUITY	54,366	62,565
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 238,817	$ 261,914