Purple Revenue Growth Strategy

42 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

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