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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 9. Commitments and Contingencies Leases The Company is party to operating leases for real estate, and for certain equipment with a term of 12 months or less. The Company is currently not a party to any finance leases. The Company's real estate leases have remaining lease terms between approximately 5 to 7 years. As of December 31, 2023, the weighted average remaining lease term was 3.83 years and the weighted average discount rate was 6.25%. As of December 31, 2023, the Company leased approximately 29,600 square feet of office space at 1333 Broadway, 10th floor, New York, New York for its corporate offices and operations facility. This lease commenced on March 1, 2016 and expires on October 30, 2027. This lease requires the Company to pay additional rents related to increases in certain taxes and other costs on the property. The Company previously leased approximately 1,300 square feet of retail space for its former retail store location in Westchester, New York, which was closed in the Prior Year. In the Current Year, the Company successfully negotiated a settlement with the lessor resulting in the termination of this lease, and recognized a gain related to the settlement of $0.4 million within other operating costs and expenses (income) in the consolidated statement of operations. The Company had recorded an impairment charge of $0.7 million to fully impair the right-of-use asset for this lease in the Prior Year. The Company also previously leased certain office space in New York, New York, which was subleased to a third-party subtenant through February 27, 2022, and the Company's lease of this office space expired by its terms on February 28, 2022. For the years ended December 31, 2023 and 2022, total lease expense included in selling, general and administrative expenses on the Company's consolidated statements of operations was approximately $1.6 million for both periods. The Company’s total lease costs for the years ended December 31, 2023 and 2022 were comprised of the following:
​ | ​ | ​ | ​ | ​ | ​ | ​
($ in thousands) |  | 2023 |  | 2022
Operating lease cost | ​ | $ | 1,337 | ​ | $ | 1,474
Short-term lease cost | ​ |  | 62 | ​ |  | 55
Variable lease cost | ​ |  | 233 | ​ |  | 217
Sublease income | ​ |  | — | ​ |  | (104)
Total lease cost | ​ | $ | 1,632 | ​ | $ | 1,642
​ Cash paid for amounts included in the measurement of operating lease liabilities was $1.6 million and $1.7 million in the Current Year and Prior Year, respectively. Cash received from subleasing in the Prior Year was $0.1 million. ​ As of December 31, 2023, the maturities of lease liabilities were as follows:
​ | ​ | ​ | ​
​ | ​ | Amount
Year |  | (in thousands)
2024 | ​ | $ | 1,552
2025 | ​ | ​ | 1,552
2026 | ​ |  | 1,552
2027 | ​ |  | 1,294
Total lease payments | ​ | ​ | 5,950
Less: Discount | ​ | ​ | 671
Present value of lease liabilities | ​ | ​ | 5,279
Current portion of lease liabilities | ​ | ​ | 1,258
Non-current portion of lease liabilities | ​ | $ | 4,021
​ Employment Agreements ​ The Company has employment contracts with certain executives and key employees. The future minimum payments under these contracts are as follows: ​
​ | ​ | ​ | ​
​ | ​ | Employment
($ in thousands) | ​ | Contract
Year Ended December 31, |  | Payments
2024 | ​ | $ | 4,292
2025 | ​ |  | 2,150
2026 | ​ | ​ | 2,150
2027 | ​ | ​ | 2,150
2028 | ​ | ​ | 2,150
Thereafter | ​ |  | 4,837
Total future minimum employment contract payments | ​ | $ | 17,729
​ In addition to the employment contract payments stated above, the Company’s employment contracts with certain executives and key employees contain performance-based bonus provisions. These provisions include bonuses based on the Company achieving revenues in excess of established targets and/or on operating results. Certain of the employment agreements contain severance and/or change in control provisions. Aggregate potential severance compensation amounted to approximately $2.9 million as of December 31, 2023. Contingent Obligation – Halston Heritage Earn-Out In connection with the February 11, 2019 purchase of the Halston Heritage trademarks, the Company agreed to pay the seller additional consideration (the “Halston Heritage Earn-Out”) of up to an aggregate of $6.0 million, based on royalties earned from 2019 through December 31, 2022. The final royalty target year for the Halston Heritage Earn-Out ended on December 31, 2022, and the seller ultimately did not earn any additional consideration based on the formula set forth in the related asset purchase agreement. As such, during the Prior Year, the Company recorded a $0.9 million gain on the reduction of contingent obligations in the accompanying consolidated statement of operations. As of December 31, 2022, there were no amounts remaining under the Halston Heritage Earn-Out. Contingent Obligation – Lori Goldstein Earn-Out In connection with the April 1, 2021 purchase of the Lori Goldstein trademarks, the Company agreed to pay the seller additional cash consideration (the “Lori Goldstein Earn-Out”) of up to $12.5 million, based on royalties earned during the six calendar year period commencing in 2021. The Lori Goldstein Earn-Out was initially recorded as a liability of $6.6 million, based on the difference between the fair value of the acquired assets of the Lori Goldstein brand and the total consideration paid, in accordance with the guidance in ASC Subtopic 805-50. As of December 31, 2022, based on the performance of the Lori Goldstein brand to date, approximately $0.2 million of additional consideration was earned by the seller, and thus $0.2 million of the balance was recorded as a current liability and $6.4 million was recorded as a long-term liability. The $0.2 million of additional consideration was paid to the seller during the Current Year. Based on the performance of the Lori Goldstein through December 31, 2023, approximately $1.0 million of incremental additional consideration was earned by the seller, which will be paid out in 2024. Accordingly, as of December 31, 2023, $1.0 million of the remaining balance was recorded as a current liability and $5.4 million was recorded as a long-term liability. Contingent Obligation – Isaac Mizrahi Transaction In connection with the May 31, 2022 transaction related to the sale of a majority interest in the Isaac Mizrahi Brand (see Note 3), the Company agreed with WHP that, in the event that IM Topco receives less than $13.3 million in aggregate royalties for any four consecutive calendar quarters over a three-year period ending on May 31, 2025, WHP would be entitled to receive from Xcel up to $16 million, less all amounts of net cash flow distributed to WHP on an accumulated basis, as an adjustment to the purchase price previously paid by WHP. Such amount would be payable by the Company in either cash or equity interests in IM Topco held by the Company. In November 2023, this agreement was amended such that the purchase price adjustment provision was waived until the measurement period ending March 31, 2024. No amount has been recorded in the accompanying consolidated balance sheets related to this contingent obligation. The purchase price adjustment provision was subsequently further amended in April 2024 (see Note 12 for details). Legal Proceedings From time to time, the Company becomes involved in legal claims and litigation in the ordinary course of business. In the opinion of management, based on consultations with legal counsel, the disposition of litigation pending against the Company as of December 31, 2023 is unlikely to have, individually or in the aggregate, a materially adverse effect on the Company’s business, financial position, results of operations, or cash flows. The Company routinely assesses all its litigation and threatened litigation as to the probability of ultimately incurring a liability and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. See Note 12 for information related to certain legal matters which arose subsequent to December 31, 2023.

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