BEACHBODY COMPANY, INC. Management report and analysis of the financial situation and operating results. (Form 10-Q)
The following discussion and analysis should be read in conjunction with our financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (this "Report") and the section entitled "Risk Factors." Unless otherwise indicated, the terms "Beachbody ," "we," "us," or "our" refer to TheBeachbody Company, Inc. , aDelaware corporation, together with its consolidated subsidiaries.
Forward-looking statements
This Report contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended ("Securities Act"), and Section
21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"),
including statements about and the financial condition, results of operations,
earnings outlook and prospects of the Company. Forward-looking statements are
typically identified by words such as "plan," "believe," "expect," "anticipate,"
"intend," "outlook," "estimate," "forecast," "project," "continue," "could,"
"may," "might," "possible," "potential," "predict," "should," "would" and other
similar words and expressions, but the absence of these words does not mean that
a statement is not forward-looking.
The forward-looking statements are based on our current expectations as
applicable and are inherently subject to uncertainties and changes in
circumstances and their potential effects and speak only as of the date of such
statement. There can be no assurance that future developments will be those that
have been anticipated. These forward-looking statements involve a number of
risks, uncertainties or other assumptions that may cause actual results or
performance to be materially different from those expressed or implied by these
forward-looking statements. These risks and uncertainties include, but are not
limited to the following:
•
our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit, operating expenses including changes in selling and marketing, general and administrative, and enterprise technology and development expenses (including any components of the foregoing), Adjusted EBITDA (as defined below) and our ability to achieve and maintain future profitability;
•
our expected growth rate and market opportunities;
•
our liquidity and ability to raise funding in the future;
•
our success in retaining or recruiting, or required changes in, officers, key employees or directors;
•
our warrants are accounted for as liabilities and changes in the value of these warrants could materially affect our financial results;
•
our ability to compete effectively in the fitness and nutrition industries;
•
our ability to successfully acquire and integrate new operations;
•
our dependence on a few key products;
•
market conditions and global and economic factors beyond our control;
•
intense competition and competitive pressures from other companies around the world in the industries in which we will operate;
•
litigation and the ability to adequately protect our intellectual property rights;
•
other risks and uncertainties discussed in this report under the heading “Risk Factors”.
Should one or more of these risks or uncertainties materialize or should any of the assumptions made by management prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.
Except to the extent required by applicable law or regulation, we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unforeseen events.
19 --------------------------------------------------------------------------------
Insight
Beachbody is a leading subscription health and wellness company. We focus primarily on digital content, supplements, connected fitness, and consumer health and wellness. Our goal is to continue to provide holistic health and wellness content and subscription-based solutions. We are the creator of some of the world's most popular fitness programs, including P90X, Insanity, and 21 Day Fix, which transformed the at-home fitness market and disrupted the global fitness industry by making it accessible for people to get results-anytime, anywhere. Our comprehensive nutrition-first programs, Portion Fix and 2B Mindset, teach healthy eating habits and promote healthy, sustainable weight loss. These fitness and nutrition programs are available through ourBeachbody On Demand and Beachbody On Demand Interactive streaming services, and inJanuary 2022 , we began the process of consolidating our Openfit streaming fitness offerings onto a singleBeachbody platform. We offer nutritional products such as Shakeology nutrition shakes, BEACHBAR snack bars, and Ladder premium supplements as well a professional-grade stationary cycle with a 360-degree touch screen tablet and connected fitness software. Leveraging our history of fitness content creation, nutrition innovation, and our network of micro-influencers, whom we call Coaches, we plan to continue market penetration into connected fitness to reach a wider health, wellness and fitness audience. Historically, our revenue has been generated primarily through our network of micro-influencers, social media marketing channels, and direct response advertising. Components of revenue include recurring digital subscription revenue, connected fitness revenue, and revenue from the sale of nutritional and other products. In addition to selling individual products on a one-time basis, we bundle digital and nutritional products together at discounted prices.
For the three months ended
•
The total turnover was
•
Digital revenues were
•
Connected fitness revenue was
•
Nutrition and other income were
•
The net loss was
•
Adjusted EBITDA was
See “Non-GAAP Information” below for more information on our use of Adjusted EBITDA and a reconciliation of net loss to Adjusted EBITDA.
Main operational and commercial indicators
We use the following key operational and business metrics to evaluate our business, measure our performance, develop financial forecasts and make strategic decisions.
March 31, 2022 March 31, 2021
Digital Subscriptions (millions) 2.46
2.74
Nutritional Subscriptions (millions) 0.30 0.42
Three Months Ended March 31,
2022 2021
Average Digital Retention 95.6 % 95.8 %
Total Streams (millions) 38.2 56.0
DAU/MAU 31.6 % 35.1 %
Revenue (millions) $ 198.9 $ 226.2
Gross profit (millions) $ 93.0 $ 158.1
Gross margin 47 % 70 %
Net loss (millions) $ (73.5 ) $ (30.1 )
Adjusted EBITDA (millions) $ (19.1 ) $ (11.7 )
20
--------------------------------------------------------------------------------
Please see the “Non-GAAP Information” section below for a reconciliation of net loss to Adjusted EBITDA and an explanation of why we consider Adjusted EBITDA to be a useful measure for investors.
Digital Subscriptions Our ability to expand the number of digital subscriptions is an indicator of our market penetration and growth. Digital subscriptions include BOD,BODi , and Openfit subscriptions. Digital subscriptions include paid and free-to-pay subscriptions, with free-to-pay subscriptions representing approximately 1% of total digital subscriptions on average. Digital subscriptions are inclusive of all billing plans, currently for annual, semi-annual, quarterly and monthly billing intervals.
Nutritional subscriptions
Nutrition subscriptions include monthly subscriptions to nutritional products such as Shakeology, Beachbody Performance, BEACHBAR, Bevvy and Ladder Supplements. We also package and bundle the content experience of digital subscriptions with nutrition subscriptions to optimize customer outcomes.
Average digital retention
We use month-over-month digital subscription retention, which we define as the average rate at which a subscription renews for a new billing cycle, to measure customer retention. Total Streams We use total streams to quantify the number of fitness or nutrition programs viewed per subscription, which is a leading indicator of customer engagement and retention. While the measure of a digital stream may vary across companies, to qualify as a stream on any of our digital platforms, a program must be viewed for a minimum of 25% of the total running time.
Daily Active Users to Monthly Active Users (DAU/MAU)
We use the ratio of daily active users to monthly active users to measure how frequently digital subscribers are utilizing our service in a given month. We define a daily active user as a unique user streaming content on our platform in a given day. We define a monthly active user as a unique user streaming content on our platform in that same month.
Non-GAAP Information
We use Adjusted EBITDA, which is a non-GAAP performance measure, to supplement our results presented in accordance with GAAP. We believe Adjusted EBITDA is useful in evaluating our operating performance, as it is similar to measures reported by our public competitors and is regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. We define and calculate Adjusted EBITDA as net income (loss) adjusted for depreciation and amortization, amortization of capitalized cloud computing implementation costs, amortization of content assets, interest expense, income tax provision (benefit), equity-based compensation, and other items that are not normal, recurring, operating expenses necessary to operate the Company's business as described in the reconciliation below. We include this non-GAAP financial measure because it is used by management to evaluateBeachbody's core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because they are non-cash (for example, in the case of depreciation and amortization, equity-based compensation, and net realizable value adjustment) or are not related to our underlying business performance (for example, in the case of interest income and expense). 21 --------------------------------------------------------------------------------
The table below presents our adjusted EBITDA reconciled to our net loss, the closest GAAP measure, for the periods indicated:
Three Months Ended March 31, (in thousands) 2022 2021 Net loss$ (73,533 ) $ (30,058 ) Adjusted for: Depreciation and amortization 21,587
13,726
Amortization of capitalized cloud computing implementation costs 168
168
Amortization of content assets 6,164 2,817 Interest expense 19 123 Income tax benefit (706 ) (395 ) Equity-based compensation 4,564 2,573 Inventory net realizable value adjustment (1) 14,934 - Transaction costs 2
633
Restructuring and platform consolidation costs (2) 7,887 - Change in fair value of warrant liabilities (264 ) - Non-operating (3) 70 (1,331 ) Adjusted EBITDA$ (19,108 ) $ (11,744 ) (1) Represents a non-cash expense to reduce the carrying value of our connected fitness inventory and related future commitments. This adjustment is included because of its unusual magnitude due to disruptions in the connected fitness market.
(2)
Includes restructuring costs and non-recurring personnel costs related to the consolidation of our digital platforms.
(3)
Includes interest income and, in the three months ended
22 --------------------------------------------------------------------------------
Operating results
We operate and manage our business in two operating segments,Beachbody and Other. For financial reporting purposes, we have one reportable segment,Beachbody . We identified the reportable segment based on the information used by management to monitor performance and make operating decisions. See Note 16, Segment Information, to our unaudited condensed consolidated financial statements included elsewhere in this Report for additional information regarding our reportable segment. The following discussion of our results and operations is on a consolidated basis as the Other non-reportable operating segment is not material to the understanding of our business taken as a whole. (in thousands) Three Months Ended March 31, 2022 2021 Revenue: Digital$ 81,745 $ 95,150 Connected fitness 19,513 - Nutrition and other 97,664 131,069 Total revenue 198,922 226,219 Cost of revenue: Digital 16,425 11,122 Connected fitness 44,706 - Nutrition and other 44,774 56,995 Total cost of revenue 105,905 68,117 Gross profit 93,017 158,102 Operating expenses: Selling and marketing 106,444 144,696 Enterprise technology and development 33,697 27,089 General and administrative 20,073 17,946 Restructuring 7,223 - Total operating expenses 167,437 189,731 Operating loss (74,420 ) (31,629 ) Other income (expense) Change in fair value of warrant liabilities 264 - Interest expense (19 ) (123 ) Other income (expense), net (64 ) 1,299 Loss before income taxes (74,239 ) (30,453 ) Income tax benefit 706 395 Net loss$ (73,533 ) $ (30,058 ) 23
--------------------------------------------------------------------------------
Revenue
Revenue includes digital subscriptions, nutritional supplement subscriptions,
one-time nutritional sales, connected fitness products, our Coach business
management online platform, preferred customer program memberships, and other
fitness-related products. Digital subscription revenue is recognized ratably
over the subscription period of up to 12 months. We often sell bundled products
that combine digital subscriptions, nutritional products, and/or other fitness
products. We consider these sales to be revenue arrangements with multiple
performance obligations and allocate the transaction price to each performance
obligation based on its relative stand-alone selling price. We defer revenue
when we receive payments in advance of delivery of products or the performance
of services.
Three Months Ended March 31,
2022 2021 $ Change % Change
(dollars in thousands)
Revenue
Digital $ 81,745 $ 95,150 $ (13,405 ) (14 %)
Connected fitness 19,513 - 19,513 NM
Nutrition and other 97,664 131,069 (33,405 ) (25 %)
Total revenue $ 198,922 $ 226,219 $ (27,297 ) (12 %)
NM = not meaningful
The decrease in digital revenue for the three months ended March 31, 2022 , as
compared to the three months ended March 31, 2021 , was primarily due to $8.7
million of revenue associated with our preferred customer membership program,
which is included in nutrition and other revenue since its Q4 2021 launch.
Previously, these customers were classified as Coaches and paid for access to
our proprietary Coach business management online platform, which was included in
digital revenue. The change in digital revenue was also due to a $3.0 million
decrease in revenue generated from our Coach business management platform as a
result of fewer coaches and a $1.6 million decrease in VIP early access revenue,
where subscribers pay for advanced access to programs not yet released to the
BOD library.
There were no connected fitness revenues for periods prior to the acquisition of Myx in
The decrease in nutrition and other revenue for the three months endedMarch 31, 2022 , as compared to the three months endedMarch 31, 2021 , was primarily due to$33.8 million decrease in revenue from nutritional products and a$4.5 million decrease in associated shipping revenue as we ended Q1 2022 with 29% fewer nutritional subscriptions compared to Q1 2021. These decreases were partially offset by the additional$8.7 million of revenue associated with our preferred customer membership program, which launched in Q4 2021.
Revenue cost
Cost of Digital Revenue
Digital cost of revenue includes costs associated with digital content creation including amortization and revision of content assets, depreciation of streaming platforms, digital streaming costs, and amortization of acquired digital platform intangible assets. It also includes customer service costs, payment processing fees, depreciation of production equipment, live trainer costs, facilities, and related personnel expenses.
Connected Fitness Revenue Cost
Connected fitness cost of revenue consists of product costs, including bike and
tablet hardware costs, duties and other applicable importing costs, shipping and
handling costs, warehousing and logistics costs, costs associated with service
calls and repairs of products under warranty, payment processing and financing
fees, customer service expenses, and personnel-related expenses associated with
supply chain and logistics.
24
--------------------------------------------------------------------------------
Nutrition and other income costs
Nutrition and other cost of revenue includes product costs, shipping and
handling, fulfillment and warehousing, customer service, and payment processing
fees. It also includes depreciation of nutrition-related e-commerce websites and
social commerce platforms, amortization of acquired formulae intangible assets,
facilities, and related personnel expenses.
Three Months Ended March 31,
2022 2021 $ Change % Change
(dollars in thousands)
Cost of revenue
Digital $ 16,425 $ 11,122 $ 5,303 48 %
Connected fitness 44,706 - 44,706 NM
Nutrition and other 44,774 56,995 (12,221 ) (21 %)
Total cost of revenue $ 105,905 $ 68,117 $ 37,788 55 %
Gross profit
Digital $ 65,320 $ 84,028 $ (18,708 ) (22 %)
Connected fitness (25,193 ) - (25,193 ) NM
Nutrition and other 52,890 74,074 (21,184 ) (29 %)
Total gross profit $ 93,017 $ 158,102 $ (65,085 ) (41 %)
Gross margin
Digital 80 % 88 %
Connected fitness (129 %) NM
Nutrition and other 54 % 57 %
The increase in digital cost of revenue for the three months ended March 31,
2022 , as compared to the three months ended March 31, 2021 , was primarily driven
by a $3.3 million increase in the amortization of content assets related to BODi
which launched in the fourth quarter of 2021 and content acquired from Myx in
June 2021 . The change in digital cost of revenue was also due to $3.2 million
increase in depreciation expense primarily related to a change in useful life of
certain assets in connection with our digital platform consolidation. These
increases were partially offset by a decrease in variable costs of digital
revenue as a result of the decrease in digital revenue. The decrease in digital
gross margin for the three months ended March 31, 2022 compared to the three
months ended March 31, 2021 was primarily the result of the deleveraging of
higher fixed content assets amortization and depreciation on digital revenue.
There was no connected fitness cost of revenue prior to the acquisition of Myx
in June 2021 . The negative connected fitness gross margin for the three months
ended March 31, 2022 was primarily due to a $14.9 million net realizable value
adjustment to inventory, higher product, freight, and shipping costs due to
supply chain surcharges and constraints, and lower pricing in line with a
highly-competitive connected fitness market. Despite the market pressure and
cost inflation we have experienced and which we expect to persist in the
near-term, we do not expect the negative connected fitness gross margin to
continue in the long-term.
The decrease in nutrition and other cost of revenue for the three months ended
March 31, 2022 , as compared to the three months ended March 31, 2021 , was
primarily due to $11.5 million decrease in product, freight, and shipping
expense as the result of the decrease in nutrition and other revenue and a $2.5
million decrease in customer service as nutrition and other comprises less of
our revenue. These were partially offset by a $2.1 million increase in
depreciation expense. Nutrition and other gross margin decreased primarily as a
result of the deleveraging of fixed depreciation expense.
25
--------------------------------------------------------------------------------
Operating Expenses
Selling and Marketing
Selling and marketing expenses primarily include the cost of Coach compensation,
advertising, royalties, promotions and events, and third-party sales commissions
as well as the related personnel expenses for employees and consultants. Selling
and marketing expense as a percentage of total revenue may fluctuate from period
to period based on total revenue, timing of new content and nutritional product
launches, and the timing of our media investments to build awareness around
launch activity.
Three Months Ended March 31,
2022 2021 $ Change % Change
(dollars in thousands)
Selling and marketing $ 106,444 $ 144,696 $ (38,252 ) (26 %)
As a percentage of total revenue 53.5 % 64.0 %
The decrease in selling and marketing expense for the three months ended March
31, 2022 , as compared to the three months ended March 31, 2021 , was primarily
due to a $29.7 million decrease in online and television media expense and a
$17.3 million decrease in Coach compensation, which was in line with the
decrease in commissionable revenue. These decreases were partially offset by a
$4.6 million increase in personnel-related expenses, a $2.9 million increase in
amortization of intangible assets due to the acquisition of Myx in June 2021 ,
and a $2.7 million increase in costs associated with Coach events.
Selling and marketing expense as a percentage of total revenue decreased by 1050
basis points primarily due to the decrease in media investments compared to the
three months ended March 31, 2021 . We have reduced our media as part of our
strategic realignment and in an effort to use our cash in the manner that has
the highest probability of return on investment.
Business technology and development
Enterprise technology and development expenses relate primarily to enterprise
systems applications, hardware, and software that serve as the technology
infrastructure for the Company and are not directly related to services provided
or tangible goods sold. This includes maintenance and enhancements of the
Company's enterprise resource planning system, which is the core of our
accounting, procurement, supply chain and other business support systems.
Enterprise technology and development also includes reporting and business
analytics tools, security systems such as identity management and payment card
industry compliance, office productivity software, research and development
tracking tools, and other non-customer facing applications. Enterprise
technology and development expenses include personnel-related expenses for
employees and consultants who create improvements to and maintain technology
systems and are involved in the research and development of new and existing
nutritional products, depreciation of enterprise technology-related assets,
software licenses, hosting expenses, and technology equipment leases.
Three Months Ended March 31,
2022 2021 $ Change % Change
(dollars in thousands)
Enterprise technology and
development $ 33,697 $ 27,089 $ 6,608 24 %
As a percentage of total
revenue 16.9 % 12.0 %
The increase in enterprise technology and development expense for the three
months ended March 31, 2022 , as compared to the three months ended March 31,
2021 , was primarily due to a $6.2 million increase in personnel-related expenses
related to certain technology initiatives.
Technology and business development spending as a percentage of total revenue increased 490 basis points due to deleveraging of higher fixed personnel costs.
26 --------------------------------------------------------------------------------
General and administrative
General and administrative expense includes personnel-related expenses and
facilities-related costs primarily for our executive, finance, accounting, legal
and human resources functions. General and administrative expense also includes
fees for professional services principally comprised of legal, audit, tax, and
insurance.
Three Months Ended March 31,
2022 2021 $ Change % Change
(dollars in thousands)
General and administrative $ 20,073 $ 17,946 $ 2,127 12 %
As a percentage of total revenue 10.1 % 7.9 %
The increase in general and administrative expense for the three months ended
March 31, 2022 , as compared to the three months ended March 31, 2021 , was
primarily due to a $2.4 million increase in personnel-related expenses ($1.2
million in equity-based compensation and $1.2 million in wages and benefits) and
a $1.9 million increase in insurance expense as a result of operating as a
public company. These increases were partially offset by a $1.5 million decrease
in rent expense due to our Santa Monica lease assignment, $0.6 million decrease
in transaction costs as there was no acquisition activity in Q1 2022, and a $0.5
million decrease in recruiting expenses due to fewer headcount additions in Q1
2022.
General and administrative expenses as a percentage of total revenue increased by 220 basis points due to the deleveraging of higher fixed costs on revenue.
Restructuring
Restructuring charges relate to our strategic alignment initiative to consolidate our fitness and nutrition offerings continuously into one
Three Months Ended March 31,
2022 2021 $ Change % Change
(dollars in thousands)
Restructuring $ 7,223 $ - $ 7,223 NM
Other Income (Expense)
The change in fair value of warrant liabilities consists of the fair value
changes of the public and private placement warrants. Interest expense primarily
consists of interest expense associated with our borrowings and amortization of
debt issuance costs for our Credit Facility in 2021. Other income (expense),
net, consists of interest income earned on investments and gains (losses) on
foreign currency.
Three Months Ended March 31,
2022 2021 $ Change % Change
(dollars in thousands)
Change in fair value of
warrant liabilities $ 264 $ - $ 264 NM
Interest expense (19 ) (123 ) 104 (85 %)
Other income (expense), net (64 ) 1,299 (1,363 ) (105 %)
The change in fair value of warrant liabilities of $0.3 million during the three
months ended March 31, 2022 primarily resulted from a decline in our stock price
from $2.37 to $2.27 during the quarter. The decrease in interest expense was due
to no borrowings outstanding during the three months ended March 31, 2022
compared to $20.0 million during the three months ended March 31, 2021 . The
decrease
27
--------------------------------------------------------------------------------
in other income (expense), the net amount was mainly attributable to the gain on the investment in the convertible instrument of Myx before
Tax benefit
Income tax benefit consists of income taxes related toU.S. federal and state jurisdictions as well as those foreign jurisdictions where we have business operations. Three Months Ended March 31, 2022 2021 $ Change % Change (dollars in thousands) Income tax benefit $ 706 $ 395$ 311 79 % The income tax benefit increase during the three months endedMarch 31, 2022 , as compared to the three months endedMarch 31, 2021 , was primarily driven by a change in our projected net deferred tax liabilities which resulted in a higher deferred income tax benefit.
Cash and capital resources
Three Months Ended March 31,
2022 2021
(dollars in thousands)
Net cash used in operating activities
Net cash used in investing activities
(12,403 ) (18,299 ) Net cash provided by financing activities 1,923
17,758
From
Net cash used in operating activities was$33.4 million for the three months endedMarch 31, 2022 compared to$8.9 million for the three months endedMarch 31, 2021 . The increase in cash used in operating activities during the three months endedMarch 31, 2022 , compared to the prior year quarter, was primarily due to the following: • an increase in net loss; •
payments for 2021 debts, including connected fitness inventory, freight and duties, and media;
•
a decrease in subscription revenue received from customers prior to delivery of the service or product; partially offset by
•
an increase in cash from inventory sold.
We expect to reduce our cash used in operating activities over the next year. During the three months endedMarch 31, 2022 , we returned to a performance marketing model which drives in-quarter or next-quarter payback and which reduced media spend by approximately$16.5 million in the quarter compared to the prior year. Beginning in the third quarter of 2022, we expect to achieve operating efficiencies and at least$29.0 million in annualized cost savings from the first quarter's 2022 strategic realignment and restructuring process. Net cash used in investing activities was$12.4 million and$18.3 million for the three months endedMarch 31, 2022 and 2021, respectively. The decrease was primarily due to a$0.9 million decrease in capital expenditures and a$5.0 million decrease in other investments. We continue to expect lower capital expenditures during the next 12 months compared to prior year due to the completion of significant projects at the end of 2021. Net cash provided by financing activities was$1.9 million and$17.8 million for the three months endedMarch 31, 2022 and 2021, respectively. The decrease was primarily due to borrowings outstanding on our Credit Facility during the three months endedMarch 31, 2021 ; we had no similar debt during the three months endedMarch 31, 2022 . Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our rate of revenue growth and overall economic conditions. See Note 9, Commitments and Contingencies, for discussion of our contractual commitments and purchase obligations that are primarily due in the next twelve months. We continue to assess and efficiently manage our working capital, and expect to generate additional liquidity through continued cost control initiatives. We are currently exploring 28 -------------------------------------------------------------------------------- additional equity or debt financing to supplement our anticipated working capital balances and further strengthen our financial position, but do not at this time know which form it will take or what the terms will be. The incurrence of debt financing would result in debt service obligations and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations. The sale of additional equity would result in additional dilution to our shareholders. There can be no assurances that we would be able to raise additional capital in amounts or on terms acceptable to us. We believe that existing cash and cash equivalents, cost control initiatives, and access to capital markets will provide the Company with sufficient liquidity to meet our anticipated cash needs for the next twelve months.
Significant Accounting Policies and Estimates
There have been no material changes to the Company's critical accounting policies and estimates discussed in the 2021 Annual Report on Form 10-K in Item 7 under the heading Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates.
Recent accounting pronouncements
See Note 1, Description of Business and Summary of Significant Accounting Policies, in the notes to our unaudited condensed consolidated financial statements included elsewhere in this report for recently adopted accounting pronouncements and recently issued accounting pronouncements not yet issued. adopted.
29
————————————————– ——————————
© Edgar Online, source