Bark, Inc 10-Q for FY2024 Q3

Bark, Inc. (BARK)

10-Q 2024-02-07 For: 2023-12-31

Added on April 09, 2026

About this 10-Q

Bark, Inc filed this 10-Q on February 7, 2024, covering the quarter ended December 31, 2023 (FY2024 Q3).

Headline figures

Quarter ended December 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $125.08M; down 6.9% from $134.33M a year earlier
Net loss: $10.11M; compared with a net loss of $21.27M a year earlier
Diluted EPS: -$0.06; compared with -$0.12 a year earlier

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Delaware		85-1872418
(State or Other Jurisdiction of Incorporation or Organization)		(IRS Employer Identification No.)

	120 Broadway, Floor 12
	New York, NY 10271


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Small reporting company	☐
		Emerging growth company	☐


			Page
PART I. Financial Information			1
ITEM 1. Financial Statements (Unaudited)			1
Condensed Consolidated Balance Sheets			1
Condensed Consolidated Statements of Operations and Comprehensive Loss			2
Condensed Consolidated Statements of Stockholders’ Equity			3
Condensed Consolidated Statements of Cash Flows			5
Notes to Condensed Consolidated Financial Statements			7
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk			37
ITEM 4. Controls and Procedures			37
PART II. Other Information			38
ITEM 1. Legal Proceedings			38
ITEM 1A. Risk Factors			38
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			52
ITEM 3. Defaults Upon Senior Securities			52
ITEM 4. Mine Safety Disclosures			52
ITEM 5. Other Information			52
ITEM 6. Exhibits			53
Signatures			55


	December 31,		March 31,
	2023		2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	131,284	$	177,911
Accounts receivable—net	6,458		6,554
Prepaid expenses and other current assets	4,430		3,552
Inventory	98,471		124,336
Total current assets	240,643		312,353
PROPERTY AND EQUIPMENT—NET	27,214		39,851
INTANGIBLE ASSETS—NET	11,786		4,090
OPERATING LEASE RIGHT-OF-USE ASSETS	33,772		36,892
OTHER NONCURRENT ASSETS	7,215		7,234
TOTAL ASSETS	$	320,630	$	400,420
LIABILITIES, AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	25,586	$	34,370
Operating lease liabilities, current	4,425		5,484
Accrued and other current liabilities	31,951		31,975
Deferred revenue	29,018		27,772
Total current liabilities	90,980		99,601
LONG-TERM DEBT	39,826		81,221
OPERATING LEASE LIABILITIES	44,778		47,240
OTHER LONG-TERM LIABILITIES	700		1,821
Total liabilities	176,284		229,883
COMMITMENTS AND CONTINGENCIES (Note 8)



STOCKHOLDERS’ EQUITY:
Common stock, par value $0.0001 per share—500,000,000 shares authorized; 179,786,374 and 177,647,754 shares issued	1		1
Treasury stock, at cost, 2,767,684 and 0 shares, respectively	(4,120)		—
Additional paid-in capital	490,421		480,370
Accumulated deficit	(341,956)		(309,834)
Total stockholders’ equity	144,346		170,537
TOTAL LIABILITIES, AND STOCKHOLDERS’ EQUITY	$	320,630	$	400,420


	Three Months Ended				Nine Months Ended
	December 31,		December 31,		December 31,		December 31,
	2023		2022		2023		2022
REVENUE	$	125,075	$	134,334	$	368,700	$	409,298
COST OF REVENUE	47,831		54,144		142,779		172,952
Gross profit	77,244		80,190		225,921		236,346
OPERATING EXPENSES:
General and administrative	66,119		80,192		204,467		233,937
Advertising and marketing	25,094		21,747		60,523		53,441
Total operating expenses	91,213		101,939		264,990		287,378
LOSS FROM OPERATIONS	(13,969)		(21,749)		(39,069)		(51,032)
INTEREST INCOME	1,718		78		5,851		78
INTEREST EXPENSE	(902)		(1,344)		(3,648)		(4,073)
OTHER INCOME—NET	3,045		1,745		4,758		7,710
NET LOSS BEFORE INCOME TAXES	(10,108)		(21,270)		(32,108)		(47,317)
PROVISION FOR INCOME TAXES	—		—		—		—
NET LOSS AND COMPREHENSIVE LOSS	$	(10,108)	$	(21,270)	$	(32,108)	$	(47,317)

Net loss per common share attributable to common stockholders—basic and diluted	$	(0.06)	$	(0.12)	$	(0.18)	$	(0.27)
Weighted average common shares used to compute net loss per share attributable to common stockholders—basic and diluted	175,540,096		177,672,036		176,611,729		176,546,378


Three months ended December 31, 2023
	Common Stock				Treasury Stock	Additional Paid-in Capital		Accumulated Deficit		Total Stockholders’ Equity
		Shares	Amount				Shares					Amount
Balance - September 30, 2023		179,190,106	$	1		(2,767,684)		$	(4,120)	$	486,845		$	(331,779)	$	150,947
Net loss		—	—			—		—		—			(10,108)		(10,108)
Issuance for stock options exercised		10,490	—			—		—		11			—		11
Issuance for common stock vested		433,355	—			—		—		—			—		—

Issuance of common stock in connection with the employee stock purchase plan		298,400	—			—		—		203			—		203
Common stock withheld for tax upon release		(145,977)	—			—		—		(192)			—		(192)

Excise tax from stock repurchases		—	—			—		—		(42)					(42)
Stock-based compensation		—	—			—		—		3,596			—		3,596
Cumulative translation adjustment		—	—			—		—		—			(69)		(69)
Balance - December 31, 2023		179,786,374	$	1		(2,767,684)		$	(4,120)	$	490,421		$	(341,956)	$	144,346


Nine months ended December 31, 2023
	Common Stock				Treasury Stock	Additional Paid-in Capital		Accumulated Deficit		Total Stockholders’ Equity
		Shares	Amount				Shares					Amount
Balance - March 31, 2023		177,647,754	$	1		—		$	—	$	480,370		$	(309,834)	$	170,537
Net loss		—	—			—		—		—			(32,108)		(32,108)
Issuance for stock options exercised		109,378	—			—		—		105			—		105
Common stock issued upon vesting of restricted stock units		2,198,388	—			—		—		—			—		—
Issuance of common stock in connection with the employee stock purchase plan		545,133	—			—		—		489			—		489
Common stock withheld for tax upon release		(714,279)	—			—		—		(1,011)			—		(1,011)
Repurchase of common stock		—	—			(2,767,684)		(4,120)		—			—		(4,120)
Excise tax from stock repurchases		—	—			—		—		(42)			—		(42)
Stock-based compensation		—	—			—		—		10,510			—		10,510
Cumulative translation adjustment		—	—			—		—		—			(14)		(14)
Balance - December 31, 2023		179,786,374	$	1		(2,767,684)		$	(4,120)	$	490,421		$	(341,956)	$	144,346


Three months ended December 31, 2022
	Common Stock				Additional Paid-in Capital	Accumulated Deficit	Total Stockholders’ Equity
		Shares	Amount
Balance - September 30, 2022		177,101,991	$	1			$	474,404	$	(274,298)	$	200,107
Net loss		—	—				—		(21,270)		(21,270)
Issuance for stock options exercised		86,455	—				84		—		84
Issuance for common stock vested		491,221	—				—		—		—
Issuance of common stock in connection with the employee stock purchase plan		109,186	—				145		—		145
Common stock withheld for tax upon release		(152,127)	—				(649)		—		(649)
Stock-based compensation		—	—				3,681		—		3,681
Cumulative translation adjustment		—	—				—		(20)		(20)
Balance - December 31, 2022		177,636,726	$	1			$	477,665	$	(295,588)	$	182,078


Nine months ended December 31, 2022
	Common Stock				Additional Paid-in Capital	Accumulated Deficit	Total Stockholders’ Equity
		Shares	Amount
Balance - March 31, 2022		175,290,143	$	1			$	465,313	$	(248,253)	$	217,061
Net loss		—	—				—		(47,317)		(47,317)
Issuance for stock options exercised		1,551,831	—				980		—		980
Issuance for common stock vested		991,315	—				—		—		—
Issuance of common stock in connection with the employee stock purchase plan		109,186	—				145		—		145
Common stock withheld for tax upon release		(305,749)	—				(649)		—		(649)
Stock-based compensation		—	—				11,876		—		11,876
Cumulative translation adjustment		—	—				—		(18)		(18)
Balance- December 31, 2022		177,636,726	$	1			$	477,665	$	(295,588)	$	182,078


Effect of exchange rate changes on cash	(14)		(18)

NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(46,647)		(35,208)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—BEGINNING OF PERIOD	183,068		201,679
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD	$	136,421	$	166,471

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Cash and cash equivalents	131,284		164,181
Restricted cash - Other noncurrent assets	5,137		2,290
Total cash, cash equivalents and restricted cash	$	136,421	$	166,471

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Purchases of property and equipment included in accounts payable and accrued liabilities	$	38	$	342
Cash paid for interest	$	2,237	$	275

NON-CASH INVESTING AND FINANCING ACTIVITIES:
Establishment of operating lease	$	—	$	24,576
Lease modification and termination	$	—	$	3,532


	As of December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets
Money market funds(1)	$	44,744	$	—	$	—	$	44,744
	$	44,744	$	—	$	—	$	44,744

Liabilities
Public warrant liability(2)	$	594	$	—	$	—	$	594
Private warrant liability(2)	—		319		—		319
	$	594	$	319	$	—	$	913


	As of March 31, 2023
	Level 1		Level 2		Level 3		Total
Assets
Money market funds(1)	$	155	$	—	$	—	$	155
	$	155	$	—	$	—	$	155
Liabilities
Public warrant liability(2)	$	2,035	$	—	$	—	$	2,035
Private warrant liability(2)	—		1,094		—		1,094
	$	2,035	$	1,094	$	—	$	3,129


	As of December 31,		As of March 31,
	2023		2023
2025 Convertible Notes	$	40,644	$	83,525
Less: deferred financing fees and debt discount	(818)		(2,304)
Total long-term debt	$	39,826	$	81,221


		As of		As of
Leases	Classification	December 31, 2023		March 31, 2023

Assets
Operating	Operating lease right-of-use assets	$	33,772	$	36,892
Total operating lease assets		$	33,772	$	36,892
Liabilities
Operating lease liabilities (current)	Operating lease liabilities, current	$	4,425	$	5,484
Operating lease liabilities (non-current)	Operating lease liabilities	$	44,778	$	47,240
Total operating lease liabilities		$	49,203	$	52,724


	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Other income—net:
Other income	$	435	$	181	$	714	$	1,187
Change in fair value of warrants	782		1,564		2,216		6,523
Gain on extinguishment of debt	1,828		—		1,828		—


	$	3,045	$	1,745	$	4,758	$	7,710


	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2023		2022		2023		2022
Revenue
Direct to Consumer:
Toys & Accessories(1)	$	71,183	$	78,383	$	210,433	$	232,396
Consumables(1)	39,720		41,692		116,666		123,622
Total Direct to Consumer	$	110,903	$	120,075	$	327,099	$	356,018
Commerce	14,172		14,259		41,601		53,280
Revenue	$	125,075	$	134,334	$	368,700	$	409,298


	Three Months Ended December 31,						Nine Months Ended December 31,

	2023			2022			2023			2022
Total Orders (in thousands)	3,504			3,721			10,425			11,278
Average Order Value	$	31.65		$	32.27		$	31.38		$	31.57
Direct to Consumer Gross Profit (in thousands)	$	70,801		$	74,197		$	208,062		$	217,057
Direct to Consumer Gross Margin	63.8		%	61.8		%	63.6		%	61.0		%


	Three Months Ended December 31,
	2023			2022			$ Change		% Change
	( in thousands)
Revenue
Direct to Consumer	$	110,903		$	120,075		$	(9,172)	(7.6)	%
Commerce	14,172			14,259			(87)		(0.6)	%
Total revenue	$	125,075		$	134,334		$	(9,259)	(6.9)	%
Percentage of Revenue
Direct to Consumer	88.7		%	89.4		%
Commerce	11.3		%	10.6		%


	Three Months Ended December 31,
	2023			2022			$ Change		% Change
	( in thousands)
Gross Profit
Direct to Consumer	$	70,801		$	74,197		$	(3,396)	(4.6)	%
Commerce	6,443			5,993			450		7.5	%
Total gross profit	$	77,244		$	80,190		$	(2,946)	(3.7)	%
Percentage of revenue	61.8		%	59.7		%


						BARK, Inc.

February 07, 2024						/s/ Matt Meeker
						Matt Meeker
						Chief Executive Officer
						(Principal Executive Officer)


						BARK, Inc.

February 07, 2024						/s/ Zahir Ibrahim
						Zahir Ibrahim
						Chief Financial Officer
						(Principal Financial Officer)


						BARK, Inc.

February 07, 2024						/s/ Brian Dostie
						Brian Dostie
						Vice President of Accounting, Controller
						(Principal Accounting Officer)