424B3

 

Filed pursuant to Rule 424(b)(3)

Registration Statement No. 333-260839

Prospectus Supplement No. 7

(To Prospectus dated March 30, 2022)

https://cdn.kscope.io/49edf68a89b0fdc030683b93f717d8e2-img144800503_0.jpg 

VIVID SEATS INC.

This prospectus supplement updates, amends and supplements the prospectus dated March 30, 2022 (the “Prospectus”), which forms a part of our Registration Statement on Form S-1 (Registration No. 333-260839). Capitalized terms used in this prospectus supplement and not otherwise defined herein have the meanings specified in the Prospectus.

This prospectus supplement is being filed to update, amend, and supplement the information included in the Prospectus with the information contained in our Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission on November 8, 2022, which is set forth below.

This prospectus supplement is not complete without the Prospectus. This prospectus supplement should be read in conjunction with the Prospectus, which is to be delivered with this prospectus supplement, and is qualified by reference thereto, except to the extent that the information in this prospectus supplement updates or supersedes the information contained in the Prospectus. Please keep this prospectus supplement with your Prospectus for future reference.

Our shares of Class A common stock are listed on The Nasdaq Global Select Market under the symbol “SEAT.” On November 7, 2022, the closing sale price of our Class A common stock was $8.26 per share. Our Vivid Seats Public IPO Warrants are listed on the Nasdaq Global Select Market under the symbol “SEATW.” On November 7, 2022, the closing sale price of our public warrants was $2.30 per warrant.

Investing in shares of our Class A common stock or warrants involves risks that are described in the “Risk Factors” section beginning on page 5 of the Prospectus and under similar headings in any further amendments or supplements to the Prospectus.

Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities to be issued under the Prospectus or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus supplement is November 8, 2022

 

 

 

 


 

ma

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-40926

 

Vivid Seats Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

86-3355184

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

24 E. Washington Street

Suite 900

Chicago, Illinois

 

 

60602

(Address of principal executive offices)

(Zip Code)

(312) 291-9966

Registrant’s telephone number, including area code

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

Title of each class

 

Trading

Symbol(s)

 

 

Name of each exchange on which registered

 Class A common stock, par value $0.0001 per share

 

SEAT

 

The Nasdaq Stock Market LLC

Warrants to purchase one share of Class A common stock

 

SEATW

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

 

Smaller reporting company

 

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 31, 2022, the registrant had 81,296,366 shares of Class A common stock, $0.0001 par value per share, outstanding and 118,200,000 shares of Class B common stock, $0.0001 par value per share, outstanding.

 

 

 


table of contents

 

 

 

Page

 

 

 

 

Forward-Looking Statements

1

PART I.

FINANCIAL INFORMATION

3

 

 

 

Item 1.

Financial Statements (Unaudited)

3

 

Condensed Consolidated Balance Sheets

3

 

Condensed Consolidated Statements of Operations

4

 

Condensed Consolidated Statements of Comprehensive Income (Loss)

5

 

Condensed Consolidated Statements of Deficit

6

 

Condensed Consolidated Statements of Cash Flows

9

 

Notes to Condensed Consolidated Financial Statements

10

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

38

Item 4.

Controls and Procedures

39

 

 

 

PART II.

OTHER INFORMATION

40

 

 

 

Item 1.

Legal Proceedings

40

Item 1A.

Risk Factors

40

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

40

Item 3.

Defaults Upon Senior Securities

40

Item 4.

Mine Safety Disclosures

40

Item 5.

Other Information

40

Item 6.

Exhibits

41

Signatures

43

 

 


forward-looking statements

 

This Quarterly Report on Form 10-Q contains forward-looking statements regarding future events and the future results of Vivid Seats Inc. that are based on our current expectations, estimates, forecasts and projections about the industries in which we operate and the beliefs and assumptions of our management. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Words such as “expect,” “anticipate,” “target,” “goal,” “project,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “likely,” “may,” “designed,” “would,” “future,” “can,” “could,” and other similar expressions which are predictions of, indicate future events and trends or which do not relate to historical matters, are intended to identify such forward-looking statements. These statements involve a number of risks, uncertainties and assumptions that are difficult to predict.

For example, we may use forward-looking statements when addressing topics such as:

the COVID-19 pandemic, its duration, its impact on our business, results of operations, financial condition, liquidity, use of our borrowings, business practices, operations, suppliers, third-party service providers, customers, employees, industry, ability to meet future performance obligations and ability to efficiently implement advisable safety precautions;
our ability to raise financing in the future;
our future financial performance;
our success in retaining or recruiting, or changes required in, our officers, key employees or directors;
our ability to pay dividends on our Class A common stock on the terms currently contemplated or at all; and
factors relating to our business, operations and financial performance, including, but not limited to:
o
the impact of the pandemic on our business and the industries in which we operate;
o
our ability to compete in the ticketing industry;
o
our ability to maintain relationships with buyers, sellers and distribution partners;
o
our ability to continue to improve our platform and maintain and enhance our brand;
o
the impact of extraordinary events or adverse economic conditions on discretionary consumer and corporate spending or on the supply and demand of live events;
o
our ability to comply with domestic regulatory regimes;
o
our ability to successfully defend against litigation;
o
our ability to maintain the integrity of our information systems and infrastructure, and to mitigate possible cyber security risks;
o
our ability to generate sufficient cash flows or raise additional capital necessary to fund our operations; and
o
other factors detailed under the section entitled “Risk Factors.”

1


 

Actual results may differ materially and adversely from those expressed in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document, or in the case of statements incorporated by reference, on the date of the document incorporated by reference. While we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

Factors that might cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q, under the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2022, under the section entitled “Risk Factors,” in our press releases, and in our other filings with the SEC.

Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this Quarterly Report on Form 10-Q, whether as a result of new information, future events, or risks. New information, future events, or risks may cause the forward-looking events we discuss in this report not to occur.

2


VIVID SEATS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data) (Unaudited)

 

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

273,889

 

 

$

489,530

 

Restricted cash

 

 

511

 

 

 

280

 

Accounts receivable – net

 

 

40,494

 

 

 

36,124

 

Inventory – net

 

 

14,123

 

 

 

11,773

 

Prepaid expenses and other current assets

 

 

35,028

 

 

 

72,504

 

Total current assets

 

 

364,045

 

 

 

610,211

 

Property and equipment – net

 

 

8,843

 

 

 

1,082

 

Right-of-use assets – net

 

 

8,249

 

 

 

 

Intangible assets – net

 

 

81,600

 

 

 

78,511

 

Goodwill

 

 

715,258

 

 

 

718,204

 

Other non-current assets

 

 

2,526

 

 

 

787

 

Total assets

 

$

1,180,521

 

 

$

1,408,795

 

Liabilities and shareholders’ deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

165,355

 

 

$

191,201

 

Accrued expenses and other current liabilities

 

 

203,557

 

 

 

281,156

 

Deferred revenue

 

 

33,631

 

 

 

25,139

 

Current maturities of long-term debt

 

 

2,750

 

 

 

 

Total current liabilities

 

 

405,293

 

 

 

497,496

 

Long-term debt – net

 

 

265,405

 

 

 

460,132

 

Long-term lease liabilities

 

 

13,741

 

 

 

 

Other liabilities

 

 

16,133

 

 

 

25,834

 

Total long-term liabilities

 

 

295,279

 

 

 

485,966

 

Commitments and contingencies (Note 12)

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 

905,412

 

 

 

1,286,016

 

 

 

 

 

 

 

 

Shareholders' deficit

 

 

 

 

 

 

Class A common stock, $0.0001 par value; 500,000,000 shares authorized at September 30, 2022 and December 31, 2021; 82,041,142 and 79,091,871 issued and outstanding at September 30, 2022 and December 31, 2021, respectively

 

 

8

 

 

 

8

 

Class B common stock, $0.0001 par value; 250,000,000 shares authorized, 118,200,000 issued and outstanding at September 30, 2022 and December 31, 2021

 

 

12

 

 

 

12

 

Additional paid-in capital

 

 

601,784

 

 

 

182,091

 

Treasury stock, at cost, 397,551 shares at September 30, 2022; no shares at December 31, 2021

 

 

(3,050

)

 

 

 

Accumulated deficit

 

 

(1,024,217

)

 

 

(1,042,794

)

Total Shareholders' deficit

 

 

(425,463

)

 

 

(860,683

)

Total liabilities, Redeemable noncontrolling interests, and Shareholders' deficit

 

$

1,180,521

 

 

$

1,408,795

 

The accompanying notes are an integral part of these financial statements.

3


VIVID SEATS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except for per share data) (Unaudited)

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues

 

$

156,818

 

 

$

139,538

 

 

$

435,284

 

 

$

279,150

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (exclusive of depreciation and amortization shown separately below)

 

 

37,617

 

 

 

30,475

 

 

 

102,203

 

 

 

54,386

 

Marketing and selling

 

 

66,323

 

 

 

50,371

 

 

 

179,963

 

 

 

104,748

 

General and administrative

 

 

30,239

 

 

 

42,509

 

 

 

95,721

 

 

 

87,486

 

Depreciation and amortization

 

 

2,158

 

 

 

711

 

 

 

5,269

 

 

 

1,506

 

Change in fair value of contingent consideration

 

 

(1,220

)

 

 

 

 

 

(1,220

)

 

 

 

Income from operations

 

 

21,701

 

 

 

15,472

 

 

 

53,348

 

 

 

31,024

 

Other (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense – net

 

 

2,901

 

 

 

17,319

 

 

 

9,542

 

 

 

50,477

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

4,285

 

 

 

 

Other income

 

 

(65

)

 

 

 

 

 

(6,618

)

 

 

 

Income (loss) before income taxes

 

 

18,865

 

 

 

(1,847

)

 

 

46,139

 

 

 

(19,453

)

Income tax expense

 

 

118

 

 

 

 

 

 

194

 

 

 

 

Net income (loss)

 

 

18,747

 

 

 

(1,847

)

 

 

45,945

 

 

 

(19,453

)

Net loss attributable to Hoya Intermediate, LLC shareholders prior to reverse recapitalization

 

 

 

 

 

(1,847

)

 

 

 

 

 

(19,453

)

Net income attributable to redeemable noncontrolling interests

 

 

11,084

 

 

 

 

 

 

27,368

 

 

 

 

Net income attributable to Class A Common Stockholders

 

$

7,663

 

 

$

 

 

$

18,577

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per Class A Common Stock(1):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.09

 

 

 

 

 

$

0.23

 

 

 

 

Diluted

 

$

0.09

 

 

 

 

 

$

0.23

 

 

 

 

Weighted average Class A Common Stock outstanding(1):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

81,996,447

 

 

 

 

 

 

80,145,329

 

 

 

 

Diluted

 

 

82,023,463

 

 

 

 

 

 

198,709,769

 

 

 

 

(1) There were no shares of Class A Common Stock outstanding prior to October 18, 2021. Therefore, no income (loss) per share information has been presented for any period prior to that date.

The accompanying notes are an integral part of these financial statements.

4


VIVID SEATS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands) (Unaudited)

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income (loss)

 

$

18,747

 

 

$

(1,847

)

 

$

45,945

 

 

$

(19,453

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on derivative instruments

 

 

 

 

 

309

 

 

 

 

 

 

822

 

Comprehensive income (loss), net of taxes

 

$

18,747

 

 

$

(1,538

)

 

$

45,945

 

 

$

(18,631

)

Comprehensive loss attributable to Hoya Intermediate, LLC shareholders prior to reverse recapitalization

 

 

 

 

 

(1,538

)

 

 

 

 

 

(18,631

)

Comprehensive income attributable to redeemable noncontrolling interests

 

 

11,084

 

 

 

 

 

 

27,368

 

 

 

 

Comprehensive income attributable to Class A Common Stockholders

 

$

7,663

 

 

$

 

 

$

18,577

 

 

$

 

The accompanying notes are an integral part of these financial statements.

5


VIVID SEATS INC.

CONDENSED CONSOLIDATED STATEMENTS OF DEFICIT

(in thousands, except share/unit data) (Unaudited)
 

 

 

 

Redeemable Senior preferred units

 

 

Redeemable Preferred units

 

 

 

Common units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units

 

 

Amount

 

 

Units

 

 

Amount

 

 

 

Units

 

 

Amount

 

 

Additional paid-in capital

 

 

Accumulated deficit

 

 

Accumulated other comprehensive income (loss)

 

 

Total members' deficit

 

Balances at January 1, 2021

 

 

100

 

 

$

218,288

 

 

 

100

 

 

$

9,939

 

 

 

 

100

 

 

$

 

 

$

755,716

 

 

$

(1,026,675

)

 

$

(822

)

 

$

(271,781

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,251

)

 

 

 

 

 

(20,251

)

Unrealized gain on derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

243

 

 

 

243

 

Deemed contribution from former parent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,091

 

 

 

 

 

 

 

 

 

1,091

 

Accretion of senior preferred units

 

 

 

 

 

6,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,822

)

 

 

 

 

 

 

 

 

(6,822

)

Balances at March 31, 2021

 

 

100

 

 

$

225,110

 

 

 

100

 

 

$

9,939

 

 

 

 

100

 

 

$

 

 

$

749,985

 

 

$

(1,046,926

)

 

$

(579

)

 

$

(297,520

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,645

 

 

 

 

 

 

2,645

 

Unrealized gain on derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

270

 

 

 

270

 

Deemed contribution from former parent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,183

 

 

 

 

 

 

 

 

 

1,183

 

Accretion of senior preferred units

 

 

 

 

 

6,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,821

)

 

 

 

 

 

 

 

 

(6,821

)

Balances at June 30, 2021

 

 

100

 

 

$

231,931

 

 

 

100

 

 

$

9,939

 

 

 

 

100

 

 

$

 

 

$

744,347

 

 

$

(1,044,281

)

 

$

(309

)

 

$

(300,243

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,847

)

 

 

 

 

 

(1,847

)

Unrealized gain on derivative instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

309

 

 

 

309

 

Deemed contribution from former parent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,197

 

 

 

 

 

 

 

 

 

1,197

 

Accretion of senior preferred units

 

 

 

 

 

2,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,558

)

 

 

 

 

 

 

 

 

(2,558

)

Balances at September 30, 2021

 

 

100

 

 

$

234,489

 

 

 

100

 

 

$

9,939

 

 

 

 

100

 

 

$

 

 

$

742,986

 

 

$

(1,046,128

)

 

$

 

 

$

(303,142

)

 

6


VIVID SEATS INC.

CONDENSED CONSOLIDATED STATEMENTS OF DEFICIT

(in thousands, except share/unit data) (Unaudited)
 

 

 

 

 

 

Class A Common Stock

 

 

Class B Common Stock

 

 

 

 

 

Treasury Stock

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional paid-in capital

 

 

Shares

 

 

Amount

 

 

Accumulated deficit

 

 

Total shareholders' deficit

 

Balances at January 1, 2022

 

$

1,286,016

 

 

 

79,091,871

 

 

$

8

 

 

 

118,200,000

 

 

$

12

 

 

$

182,091

 

 

 

 

 

$

 

 

$

(1,042,794

)

 

$

(860,683

)

Net income

 

 

1,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,259

 

 

 

1,259

 

Issuance of shares

 

 

 

 

 

75,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deemed contribution from former parent

 

 

691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

463

 

 

 

 

 

 

 

 

 

 

 

 

463

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,443

 

 

 

 

 

 

 

 

 

 

 

 

2,443

 

Subsequent remeasurement of Redeemable noncontrolling interests

 

 

18,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18,706

)

 

 

 

 

 

 

 

 

 

 

 

(18,706

)

Balances at March 31, 2022

 

$

1,307,292

 

 

 

79,166,943

 

 

$

8

 

 

 

118,200,000

 

 

$

12

 

 

$

166,291

 

 

 

 

 

$

 

 

$

(1,041,535

)

 

$

(875,224

)

Net income

 

 

14,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,655

 

 

 

9,655

 

Issuance of shares

 

 

 

 

 

74,089