The composition of liabilities and stockholders’ equity exhibited several notable trends over the observed period. Current liabilities consistently represented a significant portion of the total, generally ranging between 25% and 33%. Long-term liabilities, excluding current portions, also constituted a substantial component, typically between 43% and 53%. Shareholders’ deficit remained a consistent negative value throughout the period, indicating accumulated losses exceeding equity contributions, and generally ranged between -17% and -31% of total liabilities and deficit. The proportion of stored value card liability and deferred revenue showed an increasing trend over the period, while the proportion of retained deficit showed a decreasing trend.
Current Liabilities
Current liabilities initially decreased from 31.28% in December 2019 to a low of 25.01% in September 2020, before fluctuating and increasing to 33.11% in March 2022. A slight decrease was observed through September 2024 (30.49%), followed by an increase to 32.97% in December 2024. The composition within current liabilities shifted, with accounts payable and accrued liabilities generally increasing as a percentage of the total, while short-term debt fluctuated and generally decreased.
Long-Term Liabilities
Long-term liabilities, excluding current portions, demonstrated relative stability, generally fluctuating between 43% and 53%. A peak was observed in March 2024 at 52.95%. Operating lease liabilities, excluding current portions, remained a substantial portion of long-term liabilities, consistently around 25-28%. Deferred revenue also consistently represented a significant portion, generally between 17% and 24%.
Shareholders’ Equity
The shareholders’ deficit consistently represented a negative portion of total liabilities and deficit, indicating a net loss position. The deficit showed a slight improvement, moving from -24.38% in December 2019 to -16.93% in September 2021, before fluctuating and increasing to -26.03% in December 2025. Additional paid-in capital remained a small positive percentage, while accumulated other comprehensive income (loss) fluctuated around zero, generally negative.
Stored Value Card Liability and Deferred Revenue
The percentage of total liabilities and deficit represented by stored value card liability and current portion of deferred revenue increased from 6.11% in December 2019 to 7.07% in July 2022, then decreased to 5.68% in April 2022, and ultimately reached 6.58% in December 2025. This suggests a growing reliance on customer prepayments and deferred revenue recognition.
Debt Composition
Short-term debt exhibited volatility, peaking at 4.03% in March 2020 and generally declining to low levels by late 2023 and early 2024. Current portion of long-term debt also showed fluctuations, with a notable increase in March 2022 (6.89%) and again in January 2023 (7.11%). The proportion of liabilities held for sale was negligible until December 2025, when it reached 5.44%.
Overall, the liability structure remained relatively stable, with current and long-term liabilities consistently representing the majority of the financing. The slight improvement in the shareholders’ deficit suggests some recovery in equity, but the company continued to operate with a net loss position as reflected in the deficit. The increasing trend in stored value card liability and deferred revenue warrants attention as it may indicate a shift in revenue recognition patterns.
