Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information Of Registrant

Note 19. Condensed Financial Information of Registrant

FIRST ADVANTAGE CORPORATION

(PARENT COMPANY ONLY)

CONDENSED BALANCE SHEETS

(in thousands, except share and per share data)


	As of December 31,
	2022			2021
ASSETS
Investments in subsidiaries	$	1,107,356		$	1,120,832
LIABILITIES AND EQUITY
Liabilities	$	—		$	—
EQUITY
Common stock - $0.001 par value; 1,000,000,000 shares authorized, 148,732,603 and 152,901,040 shares issued and outstanding as of December 31, 2022 and 2021, respectively		149			153
Additional paid-in-capital		1,156,901			1,153,757
Accumulated deficit		(27,363	)		(31,441	)
Accumulated other comprehensive income		(22,331	)		(1,637	)
Total equity		1,107,356			1,120,832
TOTAL LIABILITIES AND EQUITY	$	1,107,356		$	1,120,832

The accompanying note is an integral part of these condensed financial statements.

FIRST ADVANTAGE CORPORATION

(PARENT COMPANY ONLY)

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)

(in thousands, except share and per share data)


	For the Year Ended December 31, 2022			For the Year Ended December 31, 2021			For the Year Ended December 31, 2020
Equity in net income (loss) of subsidiaries	$	64,604		$	16,051		$	(47,492	)
NET INCOME (LOSS)		64,604			16,051			(47,492	)
Foreign currency translation adjustments		(20,694	)		(4,121	)		2,484
COMPREHENSIVE INCOME (LOSS)	$	43,910		$	11,930		$	(45,008	)

NET INCOME (LOSS)	$	64,604		$	16,051		$	(47,492	)
Basic net income (loss) per share	$	0.43		$	0.11		$	(0.37	)
Diluted net income (loss) per share	$	0.43		$	0.11		$	(0.37	)
Weighted average number of shares outstanding - basic		150,227,213			140,480,590			130,000,000
Weighted average number of shares outstanding - diluted		151,807,139			141,687,384			130,000,000

A statement of cash flows has not been presented as First Advantage Corporation (parent company) did not have any cash as of, or at any point in time during, the year ended December 31, 2022, 2021 or 2020.

The accompanying note is an integral part of these condensed financial statements.

Note to Condensed Financial Statements of Registrant (Parent Company Only)

Basis of Presentation

Fastball Intermediate, Inc. was formed on November 15, 2019. In March 2021, Fastball Intermediate, Inc. changed its name to First Advantage Corporation. Prior to the Silver Lake Transaction, the Company had no operations of its own and held no equity interest in any operating subsidiaries.

These condensed parent company-only financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of First Advantage Corporation (as defined in Rule 4-08(e)(3) of Regulation S-X) exceed the specified threshold amount of the consolidated net assets of the Company. Because we have a consolidated accumulated deficit, the 25% threshold described in Rule 4-08 does not apply and any restrictions of net assets at our subsidiaries trigger the requirement to present parent company-only financial information. The ability of First Advantage Corporation’s operating subsidiaries to pay dividends may be restricted due to the terms of the subsidiaries’ outstanding term loan and revolving credit facility borrowings under the Successor Credit Facilities, as described in Note 6 to the audited consolidated financial statements.

These condensed parent company-only financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the only exception being that the parent company accounts for its subsidiaries using the equity method. These condensed parent company-only financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this Annual Report.