#1A purple Investor & Analyst Session June 29, 2021 purple. O purple PILLON#22 Forward Looking Statements Certain statements made in this release that are not historical facts are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements include but are not limited to statements relating to our expected continuing expansion of market share from investment in capacity, innovation and showrooms; expected future growth of revenue, average selling price, adjusted EBITDA, adjusted EBITDA margins, and earnings and anticipated growth rates and sources of growth; average sales and gross margins from our showrooms; our ability to successfully develop and introduce new products; changes to our digital capabilities and related impacts on our business; demand for our products; expectations regarding consumer behavior; our ability to expand our online, wholesale and showroom operations; expectations regarding channel mix; and the impact of our new manufacturing facility and related capacity expansion on our business. Statements based on historical data are not intended and should not be understood to indicate the Company's expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Factors that could influence the realization of forward-looking statements include, among others: uncertainties regarding the extent and duration of the impact of the COVID-19 pandemic on many aspects of our business, operations and financial performance; disruptions to our manufacturing processes; changes in economic, financial and end-market conditions in the markets in which we operate; fluctuations in raw material prices; the financial condition of our customers and suppliers; competitive pressures, including the need for technology improvement, successful new product development and introduction; and the risk factors outlined in the "Risk Factors" section of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 11, 2021, as amended by our Annual Report on Form 10-K/A filed with the SEC on May 10, 2021, and in our Quarterly Report on Form 10-Q filed with the SEC on May 17, 2021. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Financial Measures Adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures that remove the impact of certain non-cash and non-recurring costs. Management believes that the use of such non- GAAP financial measures provides investors with additional useful information with respect to the impact of various adjustments, which we view as a better measure of our operating performance. Refer to the Appendix to this presentation for the reconcilation of historical non-GAAP financial measure to the most comparable GAAP financial measure. With respect to the Company's adjusted EBITDA and adjusted EBITDA margin outlook for the next 3 to 5 year, a quantitative reconciliation to the corresponding GAAP information cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock based compensation. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results purple#3We are Purple. We are reinventing comfort.#4The mattress industry is strong and growing, with favorable future tailwinds US Mattress & Foundation Market Size, $M Favorable Tailwinds 20.7 +6% p.a. 19.7 17.5 17.2 16.2 purple Increased investment in home Focus on wellness Suburbanization and relocation Rising e-commerce adoption Shift to premium 2015 2016 2017 2018 2019 Source: UBS Mattress Sector Outlook, ISPA, Furniture Today, US Census Retail, Haver 4 4#5LO 5 Volume is shifting to the biggest addressable opportunity: mass premium and premium products U.S. mattress market share by price segment¹ Unit volume Retail revenues purple Premium 6% 7% 7% 8% 8% (>$2k) 24% Mass Premium 27% 25% 25% 29% 17% ($1k-$2k) 19% 20% 19% 22% 29% 30% 28% 31% Mass Market ($500-$1k) 41% 35% 32% 29% 36% 36% 30% 28% 29% 28% 27% Entry-level (<$500) 36% 38% 41% 37% 34% 18% 17% 16% 16% 14% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Source: ISPA Prices based on queen mattress 5#6We are the fastest growing major US mattress brand purple US Bedding Manufacturer Market Share, % 6% <1%—1%— 6% .2% — 1% 2% 3% 2% 7% 4% Casper purple 7% 8% sleep number. 14% 13% 11% 11% 13% TEMPUR-PEDIC 22% 19% 20% 18% 14% Serta 17% 17% 19% 17% 15% SIMMONS 17% 15% 17% Sealy 15% 17% 26% 26% 27% 26% Others 24% 2015 2016 2017 2018 2019 Source: Bank of America Global Research Hardlines Report, September 9 2020 (cited sources: Furniture Today, ISPA, Company Reports, BofA Global Research) 6#77 Our revenues have grown nearly 80% each year $65M +78% CAGR $428M $197M $286M purple $648M 2016 2017 2018 2019 2020#88 purple Why we're winning... . • Differentiated product with unique benefits and high customer satisfaction • Disruptive innovation in a sleepy category lacking differentiation Proprietary materials and manufacturing behind our differentiated product Digital-first model that enables rapid scale • Profit focused with favorable unit economics and growing efficiencies • Proven track-record of operational execution and transformation ...and will continue to win • Broadening assortment of premium, proprietary products • Expanding capacity and fulfilment Expanding distribution in wholesale and showrooms to address unmet demand • Growing margin while reinvesting for continued growth • • Revolutionizing sleep with next generation mattress solutions currently in development Long term growth opportunities in new markets and major non-sleep categories#9Quality sleep is a significant and recurring problem... purple 70 million Americans of all ages suffer from chronic sleep problems¹ 35% of adults do not get recommended 7 hours of sleep per night² 10-30% of adults suffer chronic insomnia Nearly 1 in 2 adults ages 25-55 report pain as the primary reason they look for a new mattress National Center for Chronic Disease Prevention and Health Promotion, Division of Population Health (2017) CDC, as of 2016 1234 1. 2. 3. 4. Purple research https://pubmed.ncbi.nlm.nih.gov/28348990/, published 2016#1010 ... and investors are betting big on future consumer spend in the category purple Technology $1.6B+ invested in sleep technology since 20172 Consumer Spending +$40B spent on sleep aids and therapies in 2016 in US alone, growing +6% per annum through Research ~$450M invested in sleep research in 2020, +90% increase from 20141 2020 However, most of these solutions are around the mattress, and often don't leverage the largest common component: the mattress itself 1. National Institute of Health 123 2. Crunchbase 3. Euromonitor#1111 The mattress industry has moved slowly on innovation, and the innovations launched all bring trade-offs A brief history of mattress category technology innovation purple Pocket coils (1950s) Waterbeds (1970s) Adjustable foundations (1980s) Memory foam (1990s) Adjustable mattresses + Comfort Less motion transfer Comfort Thermal management Adjustability Comfort Less motion transfer (1990s) Adjustability Durability Support Support Reliability Legislation Innovation excludes the mattress Thermal management Unresponsiveness Moves between trade-offs Improvements to date come with significant trade-offs Note: dates indicate when different technologies achieved market traction#12Industry standards of "soft" vs. "firm" disguise the inherent trade-off between comfort and support purple Comfort Soft surface to fall asleep quickly and soundly Optimal sleep requires both comfort and support 1 12 Support Firmness to maintain alignment and wake free from pain#1313 Our gel grid technology reframed the longstanding debate around "firm vs. soft" - offering the benefits of both purple Proprietary "buckling column" design accommodates specific pressure points better than the softest traditional mattress Continuous grid of columns provides exceptional support across large surface areas like the firmest traditional mattress#1414 As proven innovators, we used technology to tackle the problem head-on and "change the game" The Purple Difference purple Balance of comfort and support Proprietary gel grid technology provides both pressure point relief and joint support Responsiveness Grid responds immediately to movement, maintaining balance of comfort and support Thermal management Open grid structure minimizes points of contact and facilitates airflow and cooling#1515 We believe our gel grid is disrupting the sector as memory foam did - but more quickly with ecommerce & DTC Premium mattress mix by category purple Illustrative estimates 5% 5% 5% 10%+ Gel grid 20% 25% Hybrid 21% (coil + foam) 100% 95% 70% 1990 2000 35% 32% Foam 40% 37% Coil 2010 2020 2025 Forecast SOURCE: International Sleep Products Association, public company filings, Purple team analysis#1616 Approximately 90% of our revenue is from products comprised of materials we developed, made on machines we invented purple MADE IN USA Material science 8 Proprietary and manufacturing + Mattress Max™ expertise Decades of experience developing proprietary comfort technologies • Dozens of proprietary polymers and applications • Continued innovation on product and manufacturing efficiency Machines • Designed and built by Purple, the Mattress Max™ machine is a critical enabler • Revolutionary technology makes large-format injection molding possible • Unlike anything in the market - and extremely difficult to replicate Our competitive moat ~90% of 2020 revenue leverages proprietary technology (1) As of March 31, 2020#1717 Our product expansions are fueled by dozens of unique polymer and purple grid combinations purple Patents + Exclusive rights, 220+ granted or pending patents¹ Patents span products and manufacturing processes and equipment Polymers and grids Dozens of polymer and grid combinations designed explicitly to application Continued innovation 5 product extensions beyond the mattress 5 mattresses (1) As of March 31, 2020#1818 By going digital first, we have grown bigger, faster, and with better economics than any player to date purple Owned distribution Broad reach purple Favorable economics Smart social and digital campaigns generated consumer awareness and excitement across target audiences at favorable price point Distribution via owned website fostered rapid nation-wide reach, attracting and serving new fans without reliance on slower physical retail expansion Premium price point and vertically integrated manufacturing process solidified favorable economics on first digital transaction#19purple Customers are our most influential product advocates #1 In Customer Satisfaction 2-Years in a Row with mattresses online by J.D. Power +30% Of customers learn about Purple through word of mouth SATISFACTION GHEST CUSTOMER J.D.! GHEST CUSTOMERS MATTRES J.D.POWER AND ASSOCIATER E 2020 MATTRESSES ONLINE PRESENTED 70 PURPLE BD POWER AND ASSOCIATES 1. Report measures customer satisfaction with mattress purchases based on seven factors (in order of importance): comfort; price; support; durability; warranty; variety of features; and customer service. The report is based on responses from 2,348 customers who purchased a mattress in the 12 months prior to fielding the survey. The report was fielded in August through September 2020 SOURCE: J.D. Power website. 19#20Our success has given us the confidence to set bold goals for the next 3-5 years $2-2.5B in annual net revenue 14-15% Adj. EBITDA margin 20 20 purple#2121 We've developed a detailed strategic plan prioritizing three "big moves" to drive profitable growth 1. Elevate product offering Gain market share in premium mattress core with value-added high-end innovation Grow non-mattress revenue via mattress customer attachment and stand-alone sales initiatives Today ~$1,900 Mattress ASP¹ 4 Mattress families ~$140M in non-mattress revenue purple 3-5 years ~$2,400 Mattress ASP¹ 6+ Mattress families $400-500M in non-mattress revenue Accelerate owned showroom buildout 13 owned showrooms 2. Expand distribution ecosystem Scale wholesale with high- performing, premium partners ~2,300 3. Increase Margins +200 owned showrooms ~3,500 wholesale doors wholesale doors Optimize pricing and promotions, and drive 10.7% adj. EBITDA margin² 14-15% adj. EBITDA margin efficiencies in manufacturing and distribution, enabling growth and capturing benefits of scale 1. Represents average price paid by the consumer across all channels 2. Average of 2019 and 2020 adjusted EBITDA Margins which were 7.8% and 13.6%, respectively. COVID-related benefits contributed to an increase in adjusted EBITDA margin in 2020.#22Assortment elevation and distribution expansion combine to drive significant revenue growth purple Purple revenue growth over the next 3-5 years Illustrative Wholesale and showroom expansion drive top-line growth 2 $75+ $2-2.5B $400+ $400+ $600+ ~$650M 22 22 2020 Current Mattress New Mattress Higher unit volume and taking price on existing assortment 1a Introduction of 2+ new mattresses priced above $4,000 Non Mattress Attachment growth across assortment, particularly bases, plus strong standalone sales 1b Canada Exclusive partnership with Sleep Country Canada 3-5 years from now#231a. We will expand our mattress assortment to address opportunities at higher price points... Product and pricing architecture of select competitors¹ + $6,000 $5,000 $4,000 $3,000 Future innovation-led offerings up to $6,000 Purple Hybrid Premiere 4 $3,099 $3,999 purple $5,000 $5,099 $2,600 $2,000 $1,975 $2,000 $1,500 The Purple Mattress $1,199 $1,599 $1,000 $695 $610 $500 $1,000 $0 TUFT & NEEDLE Sealy Casper purple STEARNS & FOSTER" sleep number. TEMPUR-PEDIC 1. As of May 27, 2021, prices shown are original list prices excluding any discounts; based on queen model SOURCE: DTC listings, brand websites, retailer listings 23 23#2424 1b....and complement our core mattress offerings with differentiated comfort solutions Bases and Foundations that complement our growing mattress assortment purple Compelling Standalone Products that leverage proprietary Purple technologies Newly-launched $999 Ascent Adjustable Base Meaningful headroom for assortment expansion, premiumization, attachment Newly-launched $199 Harmony King Pillow Differentiated, premium products expand comfort categories, attract and retain customers to drive LTV#252. We will anchor our physical retail ecosystem on 200+ owned showrooms across the US 2020 US retail footprint across peer set, # Projected footprint trend 605 2025 Purple target show- room count 200+ 25 25 63 60 125 81 271 191 202 purple Purple showroom economics <15 months Payback period ~$600k Avg. showroom capital cost $100- 300K Annual rent 2,000- 3,000 Square feet Casper sleep number TEMPUR-PEDIC WARBY PARKER PELOTON Apple POTTERY WILLIAMS BARN SONOMA ~$2M Planned avg. sales per door¹ Mattress Peers DTC Peers Furniture Peers 1. Company estimates for target showroom locations, based on performance to date (limited actuals due to 2020 shutdowns) >50% Planned avg. gross margin#262. An expanded network of wholesale partners will allow us to meet customers wherever they shop purple Proposed Wholesale Footprint Expansion # of Doors 26 26 2,300 +1,200 3,500 Today 3-5 years Guiding principles for expansion • Achieve balance of speciality mattress, furniture, and department store retail • Prioritize wholesale partner quality over quantity, ensuring brand alignment and true partnership • Drive same store sales growth by sharing and leveraging best practices • Create a collaborative ecosystem and navigate channel conflicts#272. Selective expansion of our wholesale channel will protect Purple's premium brand positioning purple purple 27 27 Premium brand and store experience reinforcing Purple's premium product and brand positioning Moderate store count that will optimize ROI for identifying, onboarding and supporting partners Reach target consumer demographic willing to spend in the premium segment Consultative sales process by knowledgeable team members Merchandising freedom to deliver Purple-specific experience (e.g., displays) Flexible brand assortment policies granting Purple ability to alter assortment in doors#283. Mix shift, promotion optimization and operational efficiencies will drive margin expansion; some gains reinvested for growth purple Purple adj. EBITDA expansion over the next 3-5 years Illustrative 10.7% Adj. EBITDA today 1 14-15% Mix shift Smart promotions Towards new, higher margin products Favoring high margin products Manufacturing efficiency gains From new machines with higher throughput, automation, OEE initiatives Fixed cost spread Across higher revenue Scaled distribution Nationwide due to increased volumes (e.g., FTL vs. LTL) Input cost management With suppliers to optimize prices, protect from surges Reinvestments for growth Including R&D, showroom expansion, wholesale growth, people ops Adj. EBITDA 3-5 years from today 28 1. Average of 2019 and 2020 adjusted EBITDA Margins which were 7.8% and 13.6%, respectively. COVID-related benefits contributed to an increase in adjusted EBITDA margin in 2020. 3#29Our innovation in mattresses is just getting started purple 29 29 purple.4 X At Purple, we are committed to helping you: ZZz Fall asleep faster Stay asleep longer Wake up feeling better than ever#30We're uniquely positioned to innovate like a startup, and scale like an industry leader Agility ~6 years in mattress business +65% of 30 50 Scale revenue from DTC online purple +220 patents purple +1.5M sq. ft. of manufacturing ~2300 wholesale doors +10 new products brought to market#3131 Where others simply see a mattress, we see a platform for revolutionizing the future of better sleep... We continue to focus on the three core aspects of sleep Balance of comfort and support Today Proprietary gel grid technology provides both pressure point relief and joint support purple 3 to 5 years Products that naturally balance your body for your most comfortable sleep yet Thermal management Open grid structure minimizes points of contact and facilitates airflow and cooling Products that automatically assist in temperature optimization Responsive- ness Grid responds immediately to movement, maintaining balance of comfort and support Products that intuitively adjust to your position to maximize restful sleep#3232 32 ...with the Purple mattress as the central platform unifying the latest in sleep innovation .SLEEP- € purple purpl Adjustability purple AI/ Automation Monitoring וויויו purple#3333 In addition, we see further revenue opportunities on the horizon: new markets and new product categories purple $286M $428M $648M $2-2.5B New markets 2018 2019 2020 3-5 years from 5+ years from now now Strategy: Drive global expansion in premium markets Why we can win: Successful Canada expansion offers critical learnings New Strategy: Expand comfort tech into new categories categories Why we can win: Successful seat cushion line proves ability to innovate and play in adjacent categories 33#3434 We have built an experienced leadership team to help Purple realize its full potential purple Joe Megibow Craig Phillips John Legg Patrice Varni Casey McGarvey Tres White Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Marketing Officer Chief Legal Officer Chief Retail Officer AMERICAN EAGLE OUTFITTERS Expedia® F TI LI & FUNG EdiZONE CONSULTING TEMPUR-PEDIC* BLUE MEDICAL SUPPLY IRMIPMENT ARHAUS TRASKBRITT your home ZALE CORPORATION" LOVESAC Designed for Life Furniture Co. DOWNEAST#35purple Financial Results purple#36Purple Has Achieved High Growth and Expanded Into Wholesale Net Revenue $285.8 $428.4 $648.5 $122.4 purple Channel Net Revenue Q1'21 Product Net Revenue Q1'21 Wholesale 33.0% 67.0% DTC Mattress Average Selling Price Other 7.8% 92.2% Bedding $1,774.0 $1,842.0 $1,863.0 $1,913.0 $186.4 $1,484.0 2018 Growth 45.1% 2019 49.9% 2020 1Q '20 1Q '21 51.4% 46.3% 52.3% 2018 38.0% 2019 19.5% 2020 3.8% 1Q '20 1Q '21 7.6% 2.7% 36 Source: Company filings Note: Dollars in millions#3757 37 Margin Enhancing Profile Gross Profit Margin 47.0% 44.1% 43.5% 2019 2020 46.9% 1Q 20 1Q 21 Gross Margin levers include new, higher-price point products, channel mix shift, and operational efficiencies across inputs, labor, manufacturing and freight Source: Company filings Note: Dollars in millions (1) See Appendix for Non-GAAP Reconciliation Adj. EBITDA (1) $33.4 $88.1 $10.6 purple $22.8 2019 2020 1Q 20 1Q 21 7.8% 13.6% 8.7% 12.2% Adj. EBITDA levers include advertising costs, spend efficiencies, and reinvestments for growth#3838 38 Consistent Execution and Cost Management Marketing & Sales 36.3% 33.1% 30.0% 29.0% 29.2% General & Administrative purple 8.3% 7.8% 6.3% 6.2% 6.2% 2018 2019 2020 1Q 20 1Q 21 2018 2019 2020 1Q 20 1Q 21 Source: Company filings Note: Percentages calculated based on net revenue#3939 39 Non-GAAP Reconciliation purple Management believes that the use of adjusted EBITDA, which is a non-GAAP financial measure, provides investors with additional useful information with respect to the impact of various adjustments, which we view as a better measure of our operating performance. Other companies may calculate this non-GAAP measure differently than we do. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this information in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of GAAP net income (loss) to the non-GAAP measure of adjusted EBITDA is provided below. Adjusted EBITDA represents net income (loss) before interest expense, net other income and depreciation and amortization, excluding certain non-cash and non-recurring costs incurred. Fiscal year end December 31 ($ in 000's) 2019 2020 Restated Restated GAAP Net Income (Loss) Depreciation & amortization $(30,925) 1Q '20 Restated $(229,780) $ 28,001 4,308 7,899 Other income, net (545) 91 1Q '21 $ 20,939 1,778 1,549 68 Interest expense 5,180 4,654 1,389 Income tax expense (benefit) 400 (43,749) (284) (90) 570 4,651 EBITDA $ (21,582) $ (260,885) $ 30,794 $ 27,777 Debt extinguishment and warrant liability 41,603 305,855 (21,633) (9,147) Tax receivable agreement expense (income) 501 34,155 122 (174) Stock-based compensation expense 10,063 2,185 250 479 Vendor Impairment 1,660 Legal fees 809 1,544 231 1,112 New Production Facility Start-up Costs 1,237 2,062 Previous period sales tax liability 200 1,011 Product reserve 500 808 COVID-19 related expenses 311 38 Showroom Opening costs 222 80 Executive Search Costs & Severance 730 329 43 553 Intangible asset adjustment 404 Interim CFO costs 706 Merger transaction costs Adjusted EBITDA % Net Revenue $ 33,434 7.8% $ 88,124 13.6% $ 10,615 8.7% $ 22,780 12.2% NOTE: Restatements are a result of reclassifying certain warrants as expenses instead of equity due to the SEC's recent statement regarding how warrants issued in or after a SPAC company IPOs should be viewed for purposes of classification.#40Historical Balance Sheet ($ in 000's) Current Assets: 2019 Restated 2020 Restated 1Q '21 Cash and cash equivalents $ 33,478 Accounts receivable, net 28,692 Inventories, net 47,628 $122,955 29,111 65,726 $103,815 41,618 63,282 Prepaid inventory 879 Other current assets 3,442 826 10,453 1,337 Total current assets $114,119 $229,071 7,772 $217,824 Property and equipment, net 31,979 61,486 73,831 Operating lease right-of-use assets 41,408 52,972 Intangible assets, net Deferred income taxes 1,101 9,945 10,251 Other long-term assets Total assets Current Liabilities: Accounts payable Accrued sales returns Accrued compensation Customer prepayments Accrued sales tax Accrued rebates and allowances Other current liabilities Total current liabilities Long-term debt 525 $147,724 211,244 1,578 $554,732 210,380 1,510 $566,768 50,240 69,594 60,269 7,271 8,428 8,280 7,954 14,209 9,774 6,258 6,253 7,901 5,602 6,015 3,930 5,311 10,891 5,564 Operating lease obligations-current portion 3,235 3,632 4,229 13,583 15,318 $ 86,865 $132,208 $114,668 Long-term debt, related-party 35,399 41,410 40,906 Operating lease obligations, net of current portion Warrant liabilities 48,936 60,948 45,430 92,708 19,415 Tax receivable agreement liability, net of current portion Other long-term liabilities, net of current portion 165,426 $ 8,570 $ 6,503 $176,264 $487,191 166,029 $ 7,261 $409,227 purple Total liabilities Shareholders' equity (deficit): Class A common stock Class B common stock Additional paid-in capital Accumulated deficit Total stockholder's equity (deficit) Noncontrolling interest Total equity (deficit) Total liabilities and equity (deficit) 2,822 (28,989) $(26,162) 6 7 2 3 333,047 (265,856) 401,842 (245,032) (2,378) $ 67,197 344 $156,817 724 $(28,540) $147,724 $157,541 $ 67,541 $554,732 $566,768 NOTE: Restatements are a result of reclassifying certain warrants as expenses instead of equity due to the SEC's recent statement regarding how warrants issued in or after a SPAC company IPOs should be viewed for purposes of classification. 40 40#4141 Historical Income Statement purple ($ in 000's) Revenues, net Cost of revenues Gross Profit Marketing and sales General and administrative Research and development Operating income (Loss) 2019 Restated $428,358 2020 Restated $ 648,471 10 '20 Restated 10'21 $122,375 (239,387) (343,374) $188,971 $ 305,097 (69,193) $ 53,182 $186,429 (98,905) $ 87,524 (141,975) (187,991) (36,684) (54,368) (26,918) (39,925) (7,548) (14,526) (3,864) (5,955) (1,445) (1,723) $ 16,214 71,226 $ 7,505 $ 16,907 Other income (expense), net Interest expense 44 (34,246) (32) 106 (5,180) (4,654) (1,389) (570) Loss on extinguish me nt of de bt (6,299) (5,782) Change in fair value - warrant liabilities (35,304) (300,073) 21,633 9,147 Income tax bene fit (expense) Net income (loss) (400) 43,749 $(30,925) $(229,780) Net income (loss) attributable to non controlling interest Net income (loss) attributable to Purple Innovation, Inc. (8,352) $(22,573) 7,087 $(236,867) $ 16,835 (4,651) $ 20,939 115 $ 20,824 284 $ 28,001 11,166 Net income (loss) per common share - Basic $ (2.26) Net income (loss) per common share - Diluted Weighted average common shares outstanding - Basic Weighted average common shares outstanding - Dilute d 10,006 10,006 $ (2.26) 39,219 39,219 $ (6.04) $ 0.74 $ (6.04) $ 0.43 22,675 $ 0.32 0.17 64,592 25,327 68,372 NOTE: Restatements are a result of reclassifying certain warrants as expenses instead of equity due to the SEC's recent statement regarding how warrants issued in or after a SPAC company IPOs should be viewed for purposes of classification.#4242 Historical Cash Flow Statement ($ in 000's) Cash flows from operating activities: Net income (loss) Depreciation and amortization Non-cash interest Paid-in-kind interest 2019 2020 10'20 Restated Restated Restated 10'21 $(30,925) $(229,780) $ 28,001 $ 20,939 4,308 7,899 1,778 1,549 3,313 3,105 1,375 129 (6,616) Stock-based compensation 10,063 2,185 250 479 Loss on disposal of property and equipment Loss on extinguishment of debt 6,299 Loss/ (Gain) on change in fair value-warrant liabilities 35,304 Tax Receivable Agreement (income) expense 501 5,782 300,073 34,155 (21,633) (9,147) 122 (174) Non-cash lease expense 3,128 682 953 Deferred income taxes (45,812) 1,835 Operating lease obligations (1,732) (423) (809) Decrease (increase) in accounts receivable (18,451) (419) 5,422 (12,507) Decrease (increase) in inventories, net (24,688) (18,098) 5,516 2,444 Decrease (increase) in prepaid inventory and other asssets (2,557) (5,047) (2,399) 2,109 Increase (decrease) in accounts payable 25,132 16,049 (13,217) (10,408) Increase (decrease) in accrued sales retums 1,814 1,157 (534) (148) Increase (decrease) in accrued compensation 5,263 6,255 (801) (4,435) Increase (decrease) in customer prepayments Increase (decrease) in other accrued liabilities Net cash provided by (used in) operating activities Cash flows from investing activities: (1,264) (5) (2,720) 1,648 8,768 8,978 (1,683) (3,848) Purchase of property and equipment investment in intangible assets Net cash used in investing activities Cash flows from financing activities: Proceeds from the Business Combination Proceeds from related-party debt Proceeds from term loan Proceeds from exercise of warrants $ (264) $ (9,391) (27,878) (4,520) (12,285) (11,261) (2,328) (69) $(10,779) $ (39,139) $ (6,848) $(12,354) 10,000 45,000 46,359 12 116 $ 22,880 $ 81,257 (10,459) (320) Payments on line of credit Payments on related-party debt Payments on long-term obligations Payments for debt issuance costs Proceeds from exercise of warrants Member distributions (37,497) (563) (758) (2,460) 2,007 (5,487) (563) 83 (545) Tax receivable agreement payment (628) Proceeds from Inno Hold indemnification payment 4,142 Repurchase of stock options (97 Net cash provided by (used in) financing activities $ 9,145 $ 47,359 $ 12 Netincrease (decrease) in cash $ 21,246 $ 89,477 12,232 33,478 $ 2,605 $ (7,100) $(19,140) 33,478 122,955 103,815 Cash and cash equivalants, beginning of the period Cash and cash equivalants, end of the period 33,478 122,955 26,378 NOTE: Restatements are a result of reclassifying certain warrants as expenses instead of equity due to the SEC's recent statement regarding how warrants issued in or after a SPAC company IPOs should be viewed for purposes of classification. purple