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MERGER (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Fair Value of the Assets Acquired and Liabilities Assumed

The purchase consideration was allocated to the following assets and liabilities:

			Amount
Tangible assets acquired and liabilities assumed:
Cash and marketable securities			$	68,748
Accounts receivable			79,086
Prepaid expenses			7,807
Income tax receivable			4,566
Property, plant & equipment, net			1,551
Other assets			6,950
Accounts payable			(9,798)
Deferred revenue			(60,768)
Accrued expenses and other current liabilities			(110,004)
Income tax payable			(2,091)
Notes payable			(172,038)
Deferred tax liabilities			(138,613)
Other liabilities			(8,474)
Total tangible assets acquired and liabilities assumed			(333,078)
Intangible assets			562,100
Goodwill			821,277
Net assets acquired			$	1,050,299
Consideration:
Cash			$	440,155
Equity			411,453
Total consideration attributable to System1			851,608
Total consideration attributable to non-controlling interest			198,691
Total consideration			$	1,050,299

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

The intangible assets as of the closing date of the acquisition included:

			Amount						Weighted Average Useful Life (in Years)
Trademarks			$	246,400					10
Customer relationships			119,700						4
Technology			196,000						4
Total			$	562,100

Schedule of Pro Forma Net Revenue and Net Income

The following unaudited pro forma information reflects adjustments for additional amortization resulting from the fair value adjustments to assets acquired and liabilities assumed, adjustments for alignment of accounting policies, adjustments for transaction expenses, adjustments for certain stock-based compensation and equity related expenses incurred as a result of the transactions and the resulting tax effects, as if the Merger and acquisitions of Answers, CouponFollow and RoadWarrior (each as defined in Note 4—ACQUISITIONS) occurred January 1, 2021. The pro forma results do not include any anticipated cost synergies or other effects of the merged companies. Accordingly, pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed on the dates indicated, nor is it indicative of the future operating results of the combined company.

			Year ended
			December 31, 2022						December 31, 2021
Pro forma revenue			$	843,872					$	880,789
Pro forma net (loss)			$	(360,022)					$	(211,904)

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(2)
-URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(3)
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- Definition

Tabular disclosure of the characteristics, including initial carrying value, residual amount, weighted average useful life, of finite-lived intangible assets acquired during the period by major class. A major class is composed of intangible assets that can be grouped together because they are similar, either by nature or by their use in the operations of the company.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 1
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- Definition

Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

+ References

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