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CONDENSED PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended
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Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract] |
CONDENSED PARENT COMPANY FINANCIAL INFORMATION | CONDENSED PARENT COMPANY FINANCIAL INFORMATION The Condensed Financial Statements of Olaplex Holdings, Inc. (parent company only) are presented below: OLAPLEX HOLDINGS, INC. SCHEDULE I - PARENT COMPANY CONDENSED BALANCE SHEET (amounts in thousands, except shares)
| December 31, 2024 |  | December 31, 2023
Assets |  |  |
Investment in subsidiaries | $ | 1,072,116 |  |  | $ | 1,058,308 |
Prepaid expenses | 54 |  |  | 146 |
Income tax receivable | 5,727 |  |  | — |
Deferred income tax asset | 466 |  |  | 446 |
Total assets | $ | 1,078,363 |  |  | $ | 1,058,900 |
Liabilities and stockholders' equity |  |  |
Current Liabilities: |  |  |
Accrued expenses and other current liabilities | $ | 1,119 |  |  | $ | 2,435 |
Due to affiliates | 13,531 |  |  | 13,326 |
Current portion of Related Party payable pursuant to Tax Receivable Agreement | 11,842 |  |  | 12,675 |
Total current liabilities | 26,492 |  |  | 28,436 |
Related Party payable pursuant to Tax Receivable Agreement | 177,469 |  |  | 185,496 |
Total liabilities | 203,961 |  |  | 213,932 |
Commitments and Contingencies (Note 5) |  |  |
Stockholders' equity: |  |  |
Common stock, $0.001 par value per share; 2,000,000,000 shares authorized, 664,224,893 and 660,731,935 shares issued and outstanding as of December 31, 2024 and 2023, respectively | 664 |  |  | 671 |
Additional paid-in capital | 487,128 |  |  | 475,079 |
Accumulated other comprehensive (loss) income | (765) |  |  | 1,365 |
Retained earnings | 387,375 |  |  | 367,853 |
Total stockholders' equity | 874,402 |  |  | 844,968 |
Total liabilities and stockholders' equity | $ | 1,078,363 |  |  | $ | 1,058,900 |
The accompanying notes are an integral part of Condensed Financial Information (Schedule I) OLAPLEX HOLDINGS, INC. SCHEDULE I - PARENT COMPANY CONDENSED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (amounts in thousands)
| Year Ended
| December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Operating expenses: |  |  |  |  |
Selling, general, and administrative expenses | $ | 7,377 |  |  | $ | 8,380 |  |  | $ | 5,683 |
Total operating expenses | 7,377 |  |  | 8,380 |  |  | 5,683 |
Interest expense | 2 |  |  | 195 |  |  | — |
Other expense (income), net |  |  |  |  |
Tax receivable agreement liability adjustment | 3,915 |  |  | (7,404) |  |  | (3,084) |
Equity in undistributed earnings | (29,263) |  |  | (60,768) |  |  | (245,001) |
Total other expense (income), net | (25,348) |  |  | (68,172) |  |  | (248,085) |
Income before benefit for income taxes | 17,969 |  |  | 59,597 |  |  | 242,402 |
Income tax benefit | (1,553) |  |  | (1,990) |  |  | (1,671) |
Net income | 19,522 |  |  | 61,587 |  |  | 244,073 |
Comprehensive income | $ | 19,522 |  |  | $ | 61,587 |  |  | $ | 244,073 |
The accompanying notes are an integral part of Condensed Financial Information (Schedule I) OLAPLEX HOLDINGS, INC. SCHEDULE I - PARENT COMPANY CONDENSED STATEMENT OF CASH FLOWS (amounts in thousands)
| Year Ended
| December 31, 2024 |  | December 31, 2023 |  | December 31, 2022
Cash flows from operating activities: |  |  |  |  |
Net income | $ | 19,522 |  |  | $ | 61,587 |  |  | $ | 244,073 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |  |  |  |  |
Equity in undistributed earnings | (29,263) |  |  | (60,768) |  |  | (245,001) |
Tax receivable agreement liability adjustment | 3,915 |  |  | (7,404) |  |  | (3,084) |
Share-based compensation expense | 1,965 |  |  | 1,800 |  |  | 960 |
Deferred income tax asset | (19) |  |  | (11) |  |  | (239) |
Changes in operating assets and liabilities: |  |  |  |  |
Prepaid expenses | 92 |  |  | (146) |  |  | — |
Income taxes | (6,828) |  |  | 5,754 |  |  | (9,369) |
Accrued and other current liabilities | (213) |  |  | 507 |  |  | (465) |
Due to affiliates | 9,363 |  |  | 20,598 |  |  | 6,262 |
Other assets and liabilities | — |  |  | (29) |  |  | (4,140) |
Net cash (used in) provided by operating activities | (1,466) |  |  | 21,888 |  |  | (11,003) |
Cash flows from financing activities: |  |  |  |  |
Distribution of earnings from subsidiaries | 13,326 |  |  | — |  |  | 9,901 |
Proceeds from exercise of stock options | 919 |  |  | 4,974 |  |  | 1,876 |
Payments made pursuant to Tax Receivable Agreement | (12,779) |  |  | (16,452) |  |  | — |
Payment related to shares withheld to cover tax withholding obligations for options | — |  |  | (10,346) |  |  | — |
Payment related to shares withheld to cover tax withholding obligation for SARs | — |  |  | (64) |  |  | (774) |
Net cash provided by (used in) financing activities | 1,466 |  |  | (21,888) |  |  | 11,003 |
Net increase (decrease) in cash and cash equivalents | — |  |  | — |  |  | — |
Cash and cash equivalents - beginning of year | — |  |  | — |  |  | — |
Cash and cash equivalents - end of year | $ | — |  |  | $ | — |  |  | $ | — |
The accompanying notes are an integral part of Condensed Financial Information (Schedule I) OLAPLEX HOLDINGS, INC. NOTES TO SCHEDULE I (amounts in thousands, except shares) 1. Basis of Presentation Olaplex Holdings, Inc. (“Olaplex Holdings”) was incorporated on June 8, 2021 as a Delaware corporation and is a holding company with no direct operations. Olaplex Holdings conducts substantially all of its operations through its investment in Olaplex, Inc., its wholly owned indirect subsidiary. These statements should be read in conjunction with Olaplex Holdings Consolidated Financial Statements and notes of this Annual Report on Form 10-K. There are significant restrictions over Olaplex Holdings’ ability to obtain funds from its subsidiaries through dividends, loans or advances as contained in the 2022 Credit Agreement. These condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of Olaplex Holdings subsidiaries under the 2022 Credit Agreement exceeds 25 percent of the consolidated net assets of Olaplex Holdings. See “Note 9 - Long-Term Debt” to the Company’s Consolidated Financial Statements of this Annual Report on Form 10-K. Reclassifications Certain amounts presented have been reclassified within the Parent Company Condensed Statement of Operations and Comprehensive Income for the year ended December 31, 2024 to conform with the current period presentation, including the prior years reclassification from Stock compensation expense to Selling, general, and administrative expenses. There was no change to the Parent Company Condensed Balance Sheet or Parent Company Condensed Statement of Cash Flows from the reclassification. 2. Investment in subsidiaries Olaplex Holdings records its investment in subsidiaries under the equity method of accounting. Such investment is presented as “Investment in subsidiaries” on the Condensed Balance Sheet, and Olaplex Holdings’ share of the subsidiaries profits is presented as “Equity in undistributed earnings” on the Condensed Statement of Operations. 3. Restricted net assets Olaplex Holdings’ subsidiaries are restricted in their ability to transfer certain of their net assets to Olaplex Holdings in the form of dividends, loans or advances under the 2022 Credit Agreement. The restricted net assets of Olaplex Holdings’ subsidiaries amount to $947.2 million and $915.5 million as of December 31, 2024 and 2023, respectively. 4. Tax receivable agreement liability adjustment Tax Receivable Agreement liability adjustment reflects adjustments due to an update to the blended state income tax rate and the effective federal tax rate used to measure the related party payable pursuant to Tax Receivable Agreement. 5. Commitments and contingencies Olaplex Holdings is party to a Tax Receivable Agreement with the Pre-IPO Stockholders that provides for the payment by Olaplex Holdings to the Pre-IPO Stockholders of 85% of the amount of any tax benefits that Olaplex Holdings actually realizes, or in some cases is deemed to realize, as a result of certain transactions. See further discussion in “Note 10 - Income Taxes” to the Company’s Consolidated Financial Statements of this Annual Report for more information regarding the Tax Receivable Agreement. As of December 31, 2024 and 2023, liabilities under the Tax Receivable Agreement totaled $189.3 million and $198.2 million, respectively, of which $11.8 million and $12.7 million, respectively, was a current liability. See “Note 14 - Commitments and Contingencies” to the Company’s Consolidated Financial Statements of this Annual Report for information regarding pending and threatened litigation.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 810 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481231/810-10-45-11 + Details
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