v3.22.2.2
Segment and geographic area information
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment and geographic area information Segment and geographic area information
The Company’s operating segments align with how the Company manages its business and interacts with its franchisees on a geographic basis. F45 is organized by geographic region based on the Company’s strategy to become a globally recognized brand. F45 has three reportable segments: United States, Australia and Rest of World. The Company refers to “United States” as the operations in the United States and South America. The Company refers to “Australia” as the operations in Australia, New Zealand and the immediately surrounding island nations. The Company refers to “Rest of World” as the operations in locations other than the United States and Australia. The Company’s Chief Operating Decision Maker (“CODM”) group is comprised of two executive officers, Messrs. Adam Gilchrist and Chris Payne. Subsequent to the Company entering into a Separation Agreement with Adam Gilchrist on July 26, 2022, the Company identified a change to the CODM group. The CODM group now consists of two executive officers, Messrs. Ben Coates and Chris Payne. The CODM reviews revenue and gross profit for each of the reportable segments. Gross profit is defined as revenue less cost of revenue incurred by the segment.

The Company does not allocate assets at the reportable segment level as these are managed on an entity wide group basis.

The following is key financial information by reportable segment which is used by management in evaluating performance and allocating resources (in thousands):
For the Three Months Ended
September 30, 2022		For the Three Months Ended
September 30, 2021
RevenueCost of revenueGross profitRevenueCost of revenueGross profit
United States:
Franchise$11,722 $1,158 $10,564 $11,856 $1,047 $10,809 
Equipment and merchandise4,805 3,796 1,009 4,162 2,239 1,923 
$16,527 $4,954 $11,573 $16,018 $3,286 $12,732 
Australia:
Franchise$3,302 $168 $3,134 $3,328 $158 $3,170 
Equipment and merchandise664 606 58 2,234 $1,992 242 
$3,966 $774 $3,192 $5,562 $2,150 $3,412 
Rest of World:
Franchise$3,541 $143 $3,398 $3,329 $281 $3,048 
Equipment and merchandise5,293 3,548 1,745 2,268 1,521 747 
$8,834 $3,691 $5,143 $5,597 $1,802 $3,795 
Consolidated:
Franchise$18,565 $1,469 $17,096 $18,513 $1,486 $17,027 
Equipment and merchandise10,762 7,950 2,812 8,664 5,752 2,912 
$29,327 $9,419 $19,908 $27,177 $7,238 $19,939 

For the Nine Months Ended
September 30, 2022		For the Nine Months Ended
September 30, 2021
RevenueCost of revenueGross profitRevenueCost of revenueGross profit
United States:
Franchise$36,268 $3,565 $32,703 $31,823 $3,377 $28,446 
Equipment and merchandise34,206 16,794 17,412 11,166 6,154 5,012 
$70,474 $20,359 $50,115 $42,989 $9,531 $33,458 
Australia:
Franchise$10,242 $473 $9,769 $9,319 $430 $8,889 
Equipment and merchandise3,893 $3,394 499 3,762 3,313 449 
$14,135 $3,867 $10,268 $13,081 $3,743 $9,338 
Rest of World:
Franchise$11,024 $352 $10,672 $11,108 $355 $10,753 
Equipment and merchandise13,735 7,384 6,351 5,022 3,205 1,817 
$24,759 $7,736 $17,023 $16,130 $3,560 $12,570 
Consolidated:
Franchise$57,534 $4,390 $53,144 $52,250 $4,162 $48,088 
Equipment and merchandise51,834 27,572 24,262 19,950 12,672 7,278 
$109,368 $31,962 $77,406 $72,200 $16,834 $55,366 
(1) Revenues for the three and nine months ended September 30, 2021 have been recast by management to reflect changes in inter-segment profit in order to conform to current year presentation.

Selling, general and administrative expenses, other expenses, and taxes are not allocated to individual segments as these are managed on an entity wide group basis. The reconciliation between reportable segment gross profit to condensed consolidated net loss is as follows (in thousands):
For the Three Months Ended
September 30,
20222021
Segment gross profit$19,908 $19,939 
Selling, general and administrative expenses53,913 110,492 
Change in fair value - warrant liabilities(3,192)— 
Interest expense, net12,620 41,897 
Other expense, net2,567 (2,035)
Provision (benefit) for income taxes14,010 (222)
Net loss$(60,010)$(130,193)

For the Nine Months Ended
September 30,
20222021
Segment gross profit$77,406 $55,366 
Selling, general and administrative expenses138,831 145,882 
Loss on derivative liabilities, net— 48,603 
Change in fair value - warrant liabilities(4,457)— 
Interest expense, net13,442 59,165 
Other expense (income), net1,953 (1,415)
Provision for income taxes20,061 693 
Net loss$(92,424)$(197,562)

As of September 30, 2022, the Company had property and equipment of $8.6 million and $1.7 million in the United States and Australia segments, respectively. As of December 31, 2021, the Company had property and equipment of $3.8 million and $1.8 million in the United States and Australia, respectively. No segment other than the United States and Australia segments accounted for more than 10% of total property and equipment, net as of September 30, 2022 and December 31, 2021.