KIDPIK Reports Second Quarter 2023 Financial Results
Second Quarter 2023 Highlights:
-
Revenue, net: was
$3.4 million 8.6% -
Gross margin: was
60.2% , a year over year decrease of 80 basis points from61.0% in the second quarter of 2022 - Shipped items: were 290,000 items, compared to 354,000 shipped items in the second quarter of 2022
-
Average shipment keep rate: increased to
75.1% , compared to69.2% in the second quarter of 2022 -
Net Loss: was
$2.0 million $0.26 -
Adjusted EBITDA: was a loss of
$1.7 million
“During the 2nd quarter, we continued to execute our plan to reduce inventory levels, while maintaining our gross margin of about
“We have elevated the look and feel of our brand for Back-to-School. Our creatives showcase the advancement, capturing the beauty of our collection and the confidence children feel while wearing Kidpik outfits. We invite you to visit kidpik.com and shop.kidpik.com to view our back-to-school collection and experience the technology that drives it,” concluded Mr. Dabah.
Kidpik Corp. Condensed Interim Statements of Operations (Unaudited) |
||||||||||||||||
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For the 13 weeks ended |
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For the 26 weeks ended |
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||||||||||
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July 1,
|
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July 2,
|
|
|
July 1,
|
|
|
July 2,
|
|
||||
Revenues, net |
|
$ |
3,448,919 |
|
|
$ |
3,774,668 |
|
|
$ |
7,478,397 |
|
|
$ |
8,100,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
1,372,563 |
|
|
|
1,473,380 |
|
|
|
2,991,789 |
|
|
|
3,207,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
2,076,356 |
|
|
|
2,301,288 |
|
|
|
4,486,608 |
|
|
|
4,893,371 |
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
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Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipping and handling |
|
|
949,734 |
|
|
|
959,141 |
|
|
|
2,138,956 |
|
|
|
2,091,225 |
|
Payroll and related costs |
|
|
1,094,135 |
|
|
|
1,346,744 |
|
|
|
2,205,236 |
|
|
|
2,945,980 |
|
General and administrative |
|
|
2,024,871 |
|
|
|
1,552,890 |
|
|
|
4,049,435 |
|
|
|
3,483,783 |
|
Depreciation and amortization |
|
|
12,426 |
|
|
|
6,654 |
|
|
|
23,113 |
|
|
|
12,319 |
|
Total operating expenses |
|
|
4,081,166 |
|
|
|
3,865,429 |
|
|
|
8,416,740 |
|
|
|
8,533,307 |
|
Operating loss |
|
|
(2,004,810 |
) |
|
|
(1,564,141 |
) |
|
|
(3,930,132 |
) |
|
|
(3,639,936 |
) |
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
24,415 |
|
|
|
7,925 |
|
|
|
49,605 |
|
|
|
29,600 |
|
Other (income) expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(286,795 |
) |
|
24,415 |
|
|
|
7,925 |
|
|
|
49,605 |
|
|
(257,195 |
) |
|||
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
(2,029,225 |
) |
|
|
(1,572,066 |
) |
|
|
(3,979,737 |
) |
|
|
(3,382,741 |
) |
|
|
|
|
|
|
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|
|
|
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|
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Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,029,225 |
) |
|
$ |
(1,572,066 |
) |
|
$ |
(3,979,737 |
) |
|
$ |
(3,382,741 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.26 |
) |
|
|
(0.21 |
) |
|
|
(0.52 |
) |
|
|
(0.44 |
) |
Diluted |
|
|
(0.26 |
) |
|
|
(0.21 |
) |
|
|
(0.52 |
) |
|
|
(0.44 |
) |
|
|
|
|
|
|
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Weighted average common shares outstanding: |
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|
|
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|
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|
|
|
|
|
|
|
|
|
Basic |
|
|
7,731,195 |
|
|
|
7,636,493 |
|
|
|
7,709,695 |
|
|
|
7,655,359 |
|
Diluted |
|
|
7,731,195 |
|
|
|
7,636,493 |
|
|
|
7,709,695 |
|
|
|
7,655,359 |
|
Kidpik Corp. Condensed Interim Balance Sheets |
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|
|
July 1, 2023 |
|
|
December 31, 2022 |
|
||
|
|
(Unaudited) |
|
|
(Audited) |
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
158,141 |
|
|
$ |
600,595 |
|
Restricted cash |
|
|
4,618 |
|
|
|
4,618 |
|
Accounts receivable |
|
|
156,396 |
|
|
|
336,468 |
|
Inventory |
|
|
9,755,705 |
|
|
|
12,625,948 |
|
Prepaid expenses and other current assets |
|
|
897,194 |
|
|
|
1,043,095 |
|
Total current assets |
|
|
10,972,054 |
|
|
|
14,610,724 |
|
|
|
|
|
|
|
|
|
|
Leasehold improvements and equipment, net |
|
|
120,965 |
|
|
|
67,957 |
|
Operating lease right-of-use assets |
|
|
1,201,105 |
|
|
|
1,469,665 |
|
Total assets |
|
$ |
12,294,124 |
|
|
$ |
16,148,346 |
|
|
|
|
|
|
|
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Liabilities and Stockholders’ Equity |
|
|
|
|
|
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|
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|
|
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|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,702,425 |
|
|
$ |
2,153,389 |
|
Accounts payable, related party |
|
|
1,538,902 |
|
|
|
1,107,665 |
|
Accrued expenses and other current liabilities |
|
|
419,683 |
|
|
|
587,112 |
|
Operating lease liabilities, current |
|
329,654 |
|
|
|
438,957 |
|
|
Short-term debt, related party |
|
|
2,050,000 |
|
|
|
2,050,000 |
|
Total current liabilities |
|
|
6,040,664 |
|
|
|
6,337,123 |
|
|
|
|
|
|
|
|
|
|
Operating lease liabilities, net of current portion |
|
|
925,014 |
|
|
|
1,061,469 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
6,965,678 |
|
|
|
7,398,592 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
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|
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|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Preferred stock, par value |
|
|
- |
|
|
|
- |
|
Common stock, par value |
|
|
7,770 |
|
|
|
7,688 |
|
Additional paid-in capital |
|
|
50,834,858 |
|
|
|
50,276,511 |
|
Accumulated deficit |
|
|
(45,514,182 |
) |
|
|
(41,534,445 |
) |
Total stockholders’ equity |
|
|
5,328,446 |
|
|
|
8,749,754 |
|
Total liabilities and stockholders’ equity |
|
$ |
12,294,124 |
|
|
$ |
16,148,346 |
|
Kidpik Corp. Condensed Interim Statements of Cash Flows (Unaudited) |
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|
|
26 Weeks Ended |
|
|||||
|
|
July 1, 2023 |
|
|
July 2, 2022 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3,979,737 |
) |
|
$ |
(3,382,741 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
23,113 |
|
|
|
12,319 |
|
Amortization of debt issuance costs |
|
|
- |
|
|
|
- |
|
Equity-based compensation |
|
|
558,429 |
|
|
|
1,051,088 |
|
Bad debt expense |
|
|
151,362 |
|
|
|
241,057 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
28,710 |
|
|
|
(69,959 |
) |
Inventory |
|
|
2,870,243 |
|
|
(1,180,833 |
) |
|
Prepaid expenses and other current assets |
|
|
145,901 |
|
|
|
57,175 |
|
Operating lease right-of-use assets and liabilities |
|
|
22,802 |
|
|
5,033 |
|
|
Accounts payable |
|
|
(450,965 |
) |
|
|
(1,061,068 |
) |
Accounts payable, related parties |
|
|
431,238 |
|
|
(129,753 |
) |
|
Accrued expenses and other current liabilities |
|
|
(167,429 |
) |
|
|
(345,378 |
) |
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(366,333 |
) |
|
|
(4,803,060 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Purchases of leasehold improvements and equipment |
|
|
(76,121 |
) |
|
|
(31,317 |
) |
Net cash used in investing activities |
|
|
(76,121 |
) |
|
|
(31,317 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Cash used to settle net share equity awards |
|
|
- |
|
|
|
(33,692 |
) |
Net proceeds from line of credit |
|
|
- |
|
|
|
- |
|
Net proceeds (repayments) from advance payable |
|
|
- |
|
|
|
(932,155 |
) |
Net proceeds (repayments) from loan payable |
|
|
- |
|
|
|
(150,000 |
) |
Net cash provided by (used in) financing activities |
|
- |
|
|
|
(1,115,847 |
) |
|
Net (decrease)/increase in cash and restricted cash |
|
|
(442,454 |
) |
|
|
(5,950,224 |
) |
|
|
|
|
|
|
|
|
|
Cash and restricted cash, beginning of period |
|
|
605,213 |
|
|
|
8,420,500 |
|
Cash and restricted cash, end of period |
|
$ |
162,759 |
|
|
$ |
2,470,276 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash and restricted cash: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
158,141 |
|
|
$ |
2,465,831 |
|
Restricted cash |
|
|
4,618 |
|
|
|
4,445 |
|
$ |
162,759 |
$ |
2,470,276 |
|||||
Supplemental disclosure of cash flow data: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
- |
|
|
$ |
20,577 |
|
Taxes paid |
|
$ |
- |
|
|
$ |
- |
|
Supplemental disclosure of non-cash flow data: |
|
|
|
|
|
|
|
|
Record right-of use asset and operating lease liabilities |
|
$ |
- |
|
|
|
1,857,925 |
|
Revenue by Channel |
||||||||||||||||
|
|
13 weeks ended
|
|
|
13 weeks ended
|
|
|
Change
|
|
|
Change
|
|
||||
Revenue by channel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription boxes |
|
$ |
2,607,543 |
|
|
$ |
2,974,550 |
|
|
$ |
(367,007 |
) |
|
|
(12.3 |
)% |
3rd party websites |
|
|
426,914 |
|
|
|
559,077 |
|
|
|
(132,163 |
) |
|
|
(23.6 |
)% |
Online website sales |
|
|
414,462 |
|
|
|
241,041 |
|
|
|
173,421 |
|
|
|
71.9 |
% |
Total revenue |
|
$ |
3,448,919 |
|
|
$ |
3,774,668 |
|
|
$ |
(325,749 |
) |
|
|
(8.6 |
)% |
|
|
26 weeks ended
|
|
|
26 weeks ended
|
|
|
Change
|
|
|
Change
|
|
||||
Revenue by channel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription boxes |
|
$ |
5,579,110 |
|
|
$ |
6,458,401 |
|
|
$ |
(879,291 |
) |
|
|
(13.6 |
)% |
3rd party websites |
|
|
863,212 |
|
|
|
1,108,577 |
|
|
|
(245,365 |
) |
|
|
(22.1 |
)% |
Online website sales |
|
|
1,036,075 |
|
|
|
533,687 |
|
|
|
502,388 |
|
|
|
94.1 |
% |
Total revenue |
|
$ |
7,478,397 |
|
|
$ |
8,100,665 |
|
|
$ |
(622,268 |
) |
|
|
(7.7 |
)% |
Subscription Boxes Revenue |
||||||||||||||||
|
|
13 weeks ended
|
|
|
13 weeks ended
|
|
|
Change
|
|
|
Change
|
|
||||
Subscription boxes revenue from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active subscriptions – recurring boxes |
|
$ |
2,177,298 |
|
|
$ |
2,650,324 |
|
|
$ |
(473,026 |
) |
|
|
(17.8 |
)% |
New subscriptions - first box |
|
|
430,245 |
|
|
|
324,226 |
|
|
|
106,019 |
|
|
32.7 |
% |
|
Total subscription boxes revenue |
|
$ |
2,607,543 |
|
|
$ |
2,974,550 |
|
|
$ |
(367,007 |
) |
|
|
(12.3 |
)% |
|
|
26 weeks ended
|
|
|
26 weeks ended
|
|
|
Change
|
|
|
Change
|
|
||||
Subscription boxes revenue from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active subscriptions – recurring boxes |
|
$ |
4,578,324 |
|
|
$ |
5,786,892 |
|
|
$ |
(1,208,568 |
) |
|
|
(20.9 |
)% |
New subscriptions - first box |
|
|
1,000,786 |
|
|
|
671,509 |
|
|
|
329,277 |
|
|
49.0 |
% |
|
Total subscription boxes revenue |
|
$ |
5,579,110 |
|
|
$ |
6,458,401 |
|
|
$ |
(879,291 |
) |
|
|
(13.6 |
)% |
Revenue by Product Line |
||||||||||||||||
|
|
13 weeks ended
|
|
|
13 weeks ended
|
|
|
Change
|
|
|
Change
|
|
||||
Revenue by product line |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Girls’ apparel |
|
$ |
2,636,965 |
|
|
$ |
2,762,669 |
|
|
$ |
(125,704 |
) |
|
|
(4.6 |
)% |
Boys’ apparel |
|
640,937 |
|
|
|
821,650 |
|
|
|
(180,713 |
) |
|
|
(22.0 |
)% |
|
Toddlers’ apparel |
|
|
171,017 |
|
|
|
190,349 |
|
|
|
(19,332 |
) |
|
|
(10.5 |
)% |
Total revenue |
|
$ |
3,448,919 |
|
|
$ |
3,774,668 |
|
|
$ |
(325,749 |
) |
|
|
(8.6 |
)% |
|
|
26 weeks ended
|
|
|
26 weeks ended
|
|
|
Change
|
|
|
Change
|
|
||||
Revenue by product line |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Girls’ apparel |
|
$ |
5,684,721 |
|
|
$ |
6,019,561 |
|
|
$ |
(334,840 |
) |
|
|
(5.6 |
)% |
Boys’ apparel |
|
|
1,428,096 |
|
|
|
1,689,445 |
|
|
|
(261,349 |
) |
|
|
(15.5 |
)% |
Toddlers’ apparel |
|
|
365,580 |
|
|
|
391,659 |
|
|
|
(26,079 |
) |
|
|
(6.7 |
)% |
Total revenue |
|
$ |
7,478,397 |
|
|
$ |
8,100,665 |
|
|
$ |
(622,268 |
) |
|
|
(7.7 |
)% |
Balance Sheet and Cash Flow
-
Cash at the end of the second quarter of 2023 totaled
$0.2 million $0.6 million -
Net cash used in operating activities was
$0.4 million $4.8 million -
As of July 1, 2023, we had
$11.0 million $6.0 million $4.9 million
RESULTS OF OPERATIONS
The Company’s revenue, net, is disaggregated based on the following categories:
|
|
For the 13 weeks ended |
|
|
For the 26 weeks ended |
|
||||||||||
|
|
July 1,
|
|
|
July 2,
|
|
|
July 1,
|
|
|
July 2,
|
|
||||
Subscription boxes |
|
$ |
2,607,543 |
|
|
$ |
2,974,550 |
|
|
$ |
5,579,110 |
|
|
$ |
6,458,401 |
|
3rd party websites |
|
|
426,914 |
|
|
|
559,077 |
|
|
|
863,212 |
|
|
|
1,108,577 |
|
Online website sales |
|
|
414,462 |
|
|
|
241,041 |
|
|
|
1,036,075 |
|
|
|
533,687 |
|
Total revenue |
|
$ |
3,448,919 |
|
|
$ |
3,774,668 |
|
|
$ |
7,478,397 |
|
|
$ |
8,100,665 |
|
Gross Margin |
||||||||||||||||
|
|
For the 13 weeks ended |
|
|
For the 26 weeks ended |
|
||||||||||
|
|
July 1, 2023 |
|
|
July 2, 2022 |
|
|
July 1, 2023 |
|
|
July 2, 2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross margin |
|
|
60.2 |
% |
|
|
61.0 |
% |
|
|
60.0 |
% |
|
|
60.4 |
% |
Gross profit is equal to our net sales less cost of goods sold. Gross profit as a percentage of our net sales is referred to as gross margin. Cost of sales consists of the purchase price of merchandise sold to customers and includes import duties and other taxes, freight in, returns from customers, inventory write-offs, and other miscellaneous shrinkage.
Shipped Items
We define shipped items as the total number of items shipped in a given period to our customers through our active subscription, Amazon and online website sales.
|
|
For the 13 weeks ended |
|
|
For the 26 weeks ended |
|
||||||||||
|
|
(in thousands) |
|
|
(in thousands) |
|
||||||||||
|
|
July 1, 2023 |
|
|
July 2, 2022 |
|
|
July 1, 2023 |
|
|
July 2, 2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Shipped Items |
|
|
290 |
|
354 |
|
|
|
630 |
|
|
|
725 |
|
||
Average Shipment Keep Rate
Average shipment keep rate is calculated as the total number of items kept by our customers divided by total number of shipped items in a given period.
|
|
For the 13 weeks ended |
|
|
For the 26 weeks ended |
|
||||||||||
|
|
July 1, 2023 |
|
|
July 2, 2022 |
|
|
July 1, 2023 |
|
|
July 2, 2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average Shipment Keep Rate |
|
|
75.1 |
% |
|
69.2 |
% |
|
|
71.3 |
% |
|
|
69.8 |
% |
|
Non-GAAP Financial Measures
We report our financial results in accordance with generally accepted accounting principles in
Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
- Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us;
- Adjusted EBITDA does not reflect certain non-routine items that may represent a reduction in cash available to us; and
- Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
We compensate for these limitations by providing a reconciliation of this non-GAAP measure to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view this non-GAAP measure in conjunction with the most directly comparable GAAP financial measure. For more information on these non-GAAP financial measure, please see the section titled “Unaudited Reconciliation of Net Loss to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)”, included below.
Unaudited Reconciliation of Net Loss to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
We define adjusted EBITDA as net loss excluding interest income, other (income) expense, net, provision for income taxes, depreciation and amortization, and equity-based compensation expense. The following table presents a reconciliation of net loss, the most comparable GAAP financial measure, to adjusted EBITDA for each of the periods presented:
|
|
For the 13 weeks ended |
|
|
For the 26 weeks ended |
|
||||||||||
|
|
July 1, 2023 |
|
|
July 2, 2022 |
|
|
July 1, 2023 |
|
|
July 2, 2022 |
|
||||
Net loss |
|
$ |
(2,029,225 |
) |
$ |
|
(1,572,066 |
) |
|
$ |
(3,979,737 |
) |
$ |
|
(3,382,741 |
) |
Add (deduct) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest expense |
|
|
24,415 |
|
|
|
7,925 |
|
|
|
49,605 |
|
|
|
29,600 |
|
Other (income)/expense, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(286,795 |
) |
Provision for income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Depreciation and amortization |
|
|
12,426 |
|
|
|
6,654 |
|
|
|
23,113 |
|
|
|
12,319 |
|
Equity-based compensation |
|
|
290,953 |
|
|
|
433,924 |
|
|
|
558,429 |
|
|
|
1,051,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
(1,701,431 |
) |
|
$ |
(1,123,563 |
) |
|
$ |
(3,348,590 |
) |
$ |
|
(2,576,529 |
) |
Earnings Call Information:
Today at 4:30pm ET, the Company will host a live teleconference call that is accessible over the internet at the company’s website, https://investor.kidpik.com and additionally by dialing at 1-877-407-9039 or at 1-201-689-8470 for international callers.
A replay of the conference call will be available approximately two hours after the conclusion of the call on the investor relations section of the KIDPIK website at https://investor.kidpik.com or by dialing 1-844-512-2921, or 1-412-317-6671, internationally, with the Replay Pin Number: 13738787. The replay will be available until August 25, 2023.
About Kidpik Corp.
Founded in 2016, KIDPIK (NASDAQ:PIK) is an online clothing subscription box for kids, offering mix & match, expertly styled outfits that are curated based on each member’s style preferences. KIDPIK delivers a surprise box monthly or seasonally, providing an effortless shopping experience for parents and a fun discovery for kids. Each seasonal collection is designed in-house by a team with decades of experience designing childrenswear. KIDPIK combines the expertise of fashion stylists with proprietary data and technology to translate kids’ unique style preferences into surprise boxes of curated outfits. We also sell our branded clothing and footwear through our e-commerce website, shop.kidpik.com. For more information, visit www.kidpik.com.
Forward-Looking Statements
This press release may contain statements that constitute “forward-looking statements” within the federal securities laws, including The Private Securities Litigation Reform Act of 1995, which provide a safe-harbor for forward-looking statements. In particular, when used in the preceding discussion, the words “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions are intended to identify forward-looking statements within the meaning of such laws, and are subject to the safe harbor created by such applicable laws. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of KIDPIK to be materially different than those expressed or implied in such statements. The forward-looking statements may include projections and estimates of KIDPIK’s corporate strategies, future operations and plans, including the costs thereof. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including our ability to obtain additional funding, the terms of such funding and potential dilution caused thereby; the continuing effect of rising interest rates and inflation on our operations, sales, and market for our products; deterioration of the global economic environment; rising interest rates and inflation and our ability to control our costs, including employee wages and benefits and other operating expenses; our history of losses; our ability to achieve profitability; our ability to execute our growth strategy and scale our operations and risks associated with such growth; our ability to maintain current members and customers and grow our members and customers; risks associated with the effect of global pandemics, and governmental responses thereto on our operations, those of our vendors, our customers and members and the economy in general; risks associated with our supply chain and third-party service providers, interruptions in the supply of raw materials and merchandise; increased costs of raw materials, products and shipping costs due to inflation; disruptions at our warehouse facility and/or of our data or information services; issues affecting our shipping providers; disruptions to the internet; risks that effect our ability to successfully market our products to key demographics; the effect of data security breaches, malicious code and/or hackers; increased competition and our ability to maintain and strengthen our brand name; changes in consumer tastes and preferences and changing fashion trends; material changes and/or terminations of our relationships with key vendors; significant product returns from customers, excess inventory and our ability to manage our inventory; the effect of trade restrictions and tariffs, increased costs associated therewith and/or decreased availability of products; our ability to innovate, expand our offerings and compete against competitors which may have greater resources; certain anti-dilutive, drag-along and tag-along rights which may be deemed to be held by a former minority stockholder; our significant reliance on related party transactions and loans; the fact that our Chief Executive Officer has majority voting control over the Company; if the use of “cookie” tracking technologies is further restricted, regulated, or blocked, or if changes in technology cause cookies to become less reliable or acceptable as a means of tracking consumer behavior; our ability to comply with the covenants of future loan and lending agreements and covenants; our ability to prevent credit card and payment fraud; the risk of unauthorized access to confidential information; our ability to protect our intellectual property and trade secrets, claims from third-parties that we have violated their intellectual property or trade secrets and potential lawsuits in connection therewith; our ability to comply with changing regulations and laws, penalties associated with any non-compliance (inadvertent or otherwise), the effect of new laws or regulations, and our ability to comply with such new laws or regulations; changes in tax rates; our reliance and retention of our current management; the outcome of future lawsuits, litigation, regulatory matters or claims; the fact that we have a limited operating history; the effect of future acquisitions on our operations and expenses; our significant indebtedness; and others that are included from time to time in filings made by KIDPIK with the Securities and Exchange Commission, many of which are beyond our control, including, but not limited to, in the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” sections in its Form 10-Ks and Form 10-Qs and in its Form 8-Ks, which it has filed, and files from time to time, with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20230815103964/en/
Investor Relations Contact:
ir@kidpik.com
Media:
press@kidpik.com
Source: Kidpik Corp.
