Image Credit: Ignacio Ferre Pérez (Flickr)

When Did Humans Start Experimenting With Alcohol and Drugs?

 

Humans constantly alter the world. We burn fields, turn forests into farms, and breed plants and animals. But humans don’t just reshape our external world – we engineer our internal worlds, and reshape our minds.

One way we do this is by upgrading our mental “software”, so to speak, with myths, religion, philosophy and psychology. The other is to change our mental hardware – our brains. And we do that with chemistry.

Today, humans use thousands of psychoactive compounds to alter our experience of the world. Many derive from plants and fungi, others we manufacture. Some, like coffee and tea, increase alertness; others, like alcohol and opiates, decrease it.Psychiatric drugs affect mood, while psychedelics alter reality.

We alter brain chemistry for all kinds of reasons, using substances recreationally, socially, medicinally, and ritually. Wild animals sometimes eat fermented fruit, but there’s little evidence that they eat psychoactive plants. We’re unusual animals in our enthusiasm for getting drunk and high. But when, where and why did it all start?

 

High on Life in the Pleistocene

Given humanity’s love of drugs and alcohol, you might assume getting high is an ancient, even prehistoric tradition. Some researchers have suggested prehistoric cave paintings were made by humans experiencing altered states of consciousness. Others, perhaps inspired more by hallucinogens than hard evidence, suggest that drugs triggered the evolution of human consciousness. Yet there’s surprisingly little archaeological evidence for prehistoric drug use.

African hunter-gathers – Bushmen, Pygmies and the Hadzabe people – likely live their lives in ways similar to ancestral human cultures. The most compelling evidence for the use of drugs by such early humans is a potentially hallucinogenic plant, kaishe, used by Bushmen healers, which supposedly makes people “go mad for a while”. Yet how much Bushmen historically used drugs is debated, and otherwise, there’s little evidence for drug use in hunter-gatherers.

The implication is that, despite Africa’s diverse plants and fungi, early humans used drugs rarely, maybe to induce trances during rituals, if at all. Perhaps their lifestyle meant they rarely felt the need for escape. Exercise, sunlight, nature, time with friends and family – they’re powerful antidepressants. Drugs are also dangerous; just as you shouldn’t drive drunk, it’s risky to get high when lions lurk in the bush, or a hostile tribe waits one valley over.

Out of Africa

Migrating out of Africa 100,000 years ago, humans explored new lands and encountered new substances. People discovered opium poppies in the Mediterranean, and cannabis and tea in Asia.

 

Author Provided Map

 

Archaeologists have found evidence of opium use in Europe by 5,700 BC. Cannabis seeds appear in archaeological digs at 8,100 BC in Asia, and the ancient Greek historian Herodotus reported Scythians getting high on weed in 450 BC. Tea was brewed in China by 100 BC.

It’s possible our ancestors experimented with substances before the archaeological evidence suggests. Stones and pottery preserve well, but plants and chemicals decay quickly. For all we know, Neanderthals could have been the first to smoke pot. But archaeology suggests the discovery and intensive use of psychoactive substances mostly happened late, after the Neolithic Revolution in 10,000 BC, when we invented farming and civilization.

 

Evidence suggests human drug use came after the Neolithic Revolution, Author provided

The American Psychonauts

When hunters trekked across the Bering Land Bridge 30,000 years ago into Alaska and headed south, they found a chemical cornucopia. Here, the hunters discovered tobacco, coca and maté. But for some reason, indigenous Americans were especially fascinated with psychedelics.

American psychedelics included peyote cactus, San Pedro cactus, morning-glory, Datura, Salvia, Anadenanthera, Ayahuasca, and over 20 species of psychoactive mushrooms. It was a pre-Columbian Burning Man. Indigenous Americans also invented the nasal administration of tobacco and hallucinogens. They were the first to snort drugs – a practice Europeans later borrowed.

 

 A Mixtec Codex showing the ceremonial use of mushrooms. British Museum, CC BY-NC-SA

This American psychedelic culture is ancient. Peyote buttons have been carbon-dated to 4,000 BC, while Mexican mushroom statues hint at Psilocybe use in 500 BC. A 1,000 year-old stash found in Bolivia contained cocaine, Anadenanthera and ayahuasca – and must’ve been one hell of a trip.

Inventing Alcohol

A huge step in the evolution of debauchery was the invention of agriculture because farming made booze possible. It created a surplus of sugars and starches which, mashed and left to ferment, magically transformed into potent brews.

Humans invented alcohol many times independently. The oldest booze dates to 7,000 BC, in China. Wine was fermented in the Caucasus in 6,000 BC; Sumerians brewed beer in 3,000 BC. In the Americas, Aztecs made pulque from the same agaves used today for tequila; Incas brewed chicha, a corn beer.

While in America, psychedelics appear to have been particularly important, Eurasian and African civilizations seem to have preferred alcohol. Wine was central to ancient Greek and Roman cultures, was served at Plato’s Symposium and at the Last Supper, and remains incorporated in the Jewish Seder and Christian communion rituals.

 

Civilization and Intoxication

Archaeology suggests alcohol and drugs date back millennia to early agricultural societies. But there’s little evidence early hunter-gatherers used them. That implies something about agricultural societies and the civilizations they gave rise to promoted substance use. But why?

It’s possible large civilizations simply drive innovation of all kinds: in ceramics, textiles, metals – and psychoactive substances. Perhaps alcohol and drugs also promoted civilization – drinking can help people socialize, altered perspectives encourage creativity, and caffeine makes us productive. And it may just be safer to get drunk or high in a city than the savannah.

A darker possibility is that psychoactive substance use developed in response to civilization’s ills. Large societies create large problems – wars, plagues, inequalities in wealth and power – against which individuals are relatively powerless. Perhaps when people couldn’t change their circumstances, they decided to change their minds.

 

This article was republished with permission from The Conversation, a news site
dedicated to sharing ideas from academic experts. It represents the
research-based findings and opinions of Nicholas R. Longrich Senior
Lecturer in Evolutionary Biology and Paleontology, University of Bath.

 

 

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	Image Credit: Ignacio Ferre Pérez (Flickr)

When Did Humans Start Experimenting With Alcohol and Drugs?

 

Humans constantly alter the world. We burn fields, turn forests into farms, and breed plants and animals. But humans don’t just reshape our external world – we engineer our internal worlds, and reshape our minds.

One way we do this is by upgrading our mental “software”, so to speak, with myths, religion, philosophy and psychology. The other is to change our mental hardware – our brains. And we do that with chemistry.

Today, humans use thousands of psychoactive compounds to alter our experience of the world. Many derive from plants and fungi, others we manufacture. Some, like coffee and tea, increase alertness; others, like alcohol and opiates, decrease it.Psychiatric drugs affect mood, while psychedelics alter reality.

We alter brain chemistry for all kinds of reasons, using substances recreationally, socially, medicinally, and ritually. Wild animals sometimes eat fermented fruit, but there’s little evidence that they eat psychoactive plants. We’re unusual animals in our enthusiasm for getting drunk and high. But when, where and why did it all start?

 

High on Life in the Pleistocene

Given humanity’s love of drugs and alcohol, you might assume getting high is an ancient, even prehistoric tradition. Some researchers have suggested prehistoric cave paintings were made by humans experiencing altered states of consciousness. Others, perhaps inspired more by hallucinogens than hard evidence, suggest that drugs triggered the evolution of human consciousness. Yet there’s surprisingly little archaeological evidence for prehistoric drug use.

African hunter-gathers – Bushmen, Pygmies and the Hadzabe people – likely live their lives in ways similar to ancestral human cultures. The most compelling evidence for the use of drugs by such early humans is a potentially hallucinogenic plant, kaishe, used by Bushmen healers, which supposedly makes people “go mad for a while”. Yet how much Bushmen historically used drugs is debated, and otherwise, there’s little evidence for drug use in hunter-gatherers.

The implication is that, despite Africa’s diverse plants and fungi, early humans used drugs rarely, maybe to induce trances during rituals, if at all. Perhaps their lifestyle meant they rarely felt the need for escape. Exercise, sunlight, nature, time with friends and family – they’re powerful antidepressants. Drugs are also dangerous; just as you shouldn’t drive drunk, it’s risky to get high when lions lurk in the bush, or a hostile tribe waits one valley over.

Out of Africa

Migrating out of Africa 100,000 years ago, humans explored new lands and encountered new substances. People discovered opium poppies in the Mediterranean, and cannabis and tea in Asia.

 

Author Provided Map

 

Archaeologists have found evidence of opium use in Europe by 5,700 BC. Cannabis seeds appear in archaeological digs at 8,100 BC in Asia, and the ancient Greek historian Herodotus reported Scythians getting high on weed in 450 BC. Tea was brewed in China by 100 BC.

It’s possible our ancestors experimented with substances before the archaeological evidence suggests. Stones and pottery preserve well, but plants and chemicals decay quickly. For all we know, Neanderthals could have been the first to smoke pot. But archaeology suggests the discovery and intensive use of psychoactive substances mostly happened late, after the Neolithic Revolution in 10,000 BC, when we invented farming and civilization.

 

Evidence suggests human drug use came after the Neolithic Revolution, Author provided

The American Psychonauts

When hunters trekked across the Bering Land Bridge 30,000 years ago into Alaska and headed south, they found a chemical cornucopia. Here, the hunters discovered tobacco, coca and maté. But for some reason, indigenous Americans were especially fascinated with psychedelics.

American psychedelics included peyote cactus, San Pedro cactus, morning-glory, Datura, Salvia, Anadenanthera, Ayahuasca, and over 20 species of psychoactive mushrooms. It was a pre-Columbian Burning Man. Indigenous Americans also invented the nasal administration of tobacco and hallucinogens. They were the first to snort drugs – a practice Europeans later borrowed.

 

 A Mixtec Codex showing the ceremonial use of mushrooms. British Museum, CC BY-NC-SA

This American psychedelic culture is ancient. Peyote buttons have been carbon-dated to 4,000 BC, while Mexican mushroom statues hint at Psilocybe use in 500 BC. A 1,000 year-old stash found in Bolivia contained cocaine, Anadenanthera and ayahuasca – and must’ve been one hell of a trip.

Inventing Alcohol

A huge step in the evolution of debauchery was the invention of agriculture because farming made booze possible. It created a surplus of sugars and starches which, mashed and left to ferment, magically transformed into potent brews.

Humans invented alcohol many times independently. The oldest booze dates to 7,000 BC, in China. Wine was fermented in the Caucasus in 6,000 BC; Sumerians brewed beer in 3,000 BC. In the Americas, Aztecs made pulque from the same agaves used today for tequila; Incas brewed chicha, a corn beer.

While in America, psychedelics appear to have been particularly important, Eurasian and African civilizations seem to have preferred alcohol. Wine was central to ancient Greek and Roman cultures, was served at Plato’s Symposium and at the Last Supper, and remains incorporated in the Jewish Seder and Christian communion rituals.

 

Civilization and Intoxication

Archaeology suggests alcohol and drugs date back millennia to early agricultural societies. But there’s little evidence early hunter-gatherers used them. That implies something about agricultural societies and the civilizations they gave rise to promoted substance use. But why?

It’s possible large civilizations simply drive innovation of all kinds: in ceramics, textiles, metals – and psychoactive substances. Perhaps alcohol and drugs also promoted civilization – drinking can help people socialize, altered perspectives encourage creativity, and caffeine makes us productive. And it may just be safer to get drunk or high in a city than the savannah.

A darker possibility is that psychoactive substance use developed in response to civilization’s ills. Large societies create large problems – wars, plagues, inequalities in wealth and power – against which individuals are relatively powerless. Perhaps when people couldn’t change their circumstances, they decided to change their minds.

 

This article was republished with permission from The Conversation, a news site
dedicated to sharing ideas from academic experts. It represents the
research-based findings and opinions of Nicholas R. Longrich Senior
Lecturer in Evolutionary Biology and Paleontology, University of Bath.

 

 

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Will Federal Law Surrounding Cannabis be Changed?

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Travelzoo Reports Second Quarter 2021 Results

 

NEW YORK, 
July 21, 2021 (GLOBE NEWSWIRE) — 
Travelzoo® (NASDAQ: TZOO):

• Consolidated revenue of 
  $19.1 million, up 172% year-over-year and up 34% quarter-over-quarter
• Non-GAAP consolidated operating profit of 
  $4.9 million
• Earnings per share (EPS) of 
  $0.22 attributable to 
  Travelzoo from continuing operations
• Cash flow from operations of 
  $12.8 million

Travelzoo, a global Internet media company that publishes exclusive offers and experiences for members, today announced financial results for the second quarter ended 
June 30, 2021. Consolidated revenue was 
$19.1 million, up 172% from 
$7.0 million year-over-year and up 34% from 
$14.3 million in the prior quarter. Reported revenue excludes revenue from discontinued operations in 
Asia Pacific. 
Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by 
Travelzoo members.

The reported net income attributable to 
Travelzoo from continuing operations was 
$3.0 million for Q2 2021. At the consolidated level, including minority interests, the reported net income from continuing operations was 
$3.0 million. EPS from continuing operations was 
$0.22, compared to a loss per share of (
$0.48) in the prior-year period.

Non-GAAP operating profit was 
$4.9 million. The calculation of non-GAAP operating profit excludes amortization of intangibles (
$0.3 million), stock option expenses (
$0.9 million), and severance-related expenses (
$0.2 million). See section “Non-GAAP Financial Measures” below.

“We see continued improvement in our business. We seize the exceptional industry opportunities for providing 30 million 
Travelzoo members exclusive and irresistible travel, entertainment, and local offers and experiences. 
Travelzoo members are affluent, active, and open for new experiences. 75% say 
Travelzoo influences their travel destinations because they trust 
Travelzoo“, said  Holger Bartel, Global CEO.

Cash Position
As of 
June 30, 2021, consolidated cash, cash equivalents and restricted cash were 
$82.1 million. Cash flow from operations was 
$12.8 million. There were no significant capital expenditures.

Reserve
Reported revenues include a reserve of 
$3.7 million related to commissions to be earned from refundable vouchers sold. The reserve is booked as contra revenue. For Q2 2021, an adjustment to the reserve increased reported revenue by 
$286,000.

Travelzoo North America

North America business segment revenue increased 233% year-over-year to 
$14.0 million. Operating profit for Q2 2021 was 
$3.5 million, or 25% of revenue, compared to an operating loss of 
$4.7 million in the prior-year period.

Travelzoo Europe

Europe business segment revenue increased 128% year-over-year to 
$4.2 million. Operating loss for Q2 2021 was 
$227,000, compared to an operating loss of 
$1.7 million in the prior-year period.

Jack’s Flight Club
On 
January 13, 2020, 
Travelzoo acquired 60% of Jack’s 
Flight Club, a membership subscription service. Jack’s 
Flight Club revenue decreased 9% year-over-year to 
$860,000. Operating income for Q2 2021 was 
$170,000, compared to an operating loss of 
$248,000 in the prior-year period. After consolidation with 
Travelzoo, Jack’s 
Flight Club’s net income was 
$98,000, with 
$59,000 attributable to 
Travelzoo as a result of recording 
$275,000 of amortization of intangible assets related to the acquisition.

Licensing
In 
June 2020, 
Travelzoo sold its subsidiary in 
Japan, Travelzoo Japan K.K., to Mr.  Hajime Suzuki. In connection with the sale, 
Travelzoo and Travelzoo Japan K.K. entered into a royalty-bearing licensing agreement for the exclusive use of 
Travelzoo members in 
Japan. In 
August 2020, 
Travelzoo sold its 
Singapore subsidiary to Mr.  Julian Rembrandt and entered into a royalty-bearing licensing agreement for, among other things, the exclusive use of 
Travelzoo’s members in 
Australia, 
New Zealand, and 
Singapore. Under the licensing agreements, 
Travelzoo’s existing members in 
Australia, 
Japan, 
New Zealand, and 
Singapore will continue to be owned by 
Travelzoo as the licensor. Licensing revenue is booked with a lag of one quarter. 
Travelzoo did not record any licensing revenue from either subsidiary in Q2 2021.

Members and Subscribers
As of 
June 30, 2021, we had 31.3 million members worldwide. In 
North America, the unduplicated number of 
Travelzoo members was 17.7 million as of 
June 30, 2021, up 6% from 
June 30, 2020. In 
Europe, the unduplicated number of 
Travelzoo members was 8.5 million as of 
June 30, 2021, down 6% from 
June 30, 2020. Jack’s 
Flight Club had 1.7 million subscribers as of 
June 30, 2021, consistent with 1.7 million subscribers as of 
June 30, 2020.

Discontinued Operations
As announced in a press release on 
March 10, 2020, 
Travelzoo decided to exit its 
Asia Pacific business which in 2019 reduced EPS by 
$0.60. The 
Asia Pacific business has been classified as discontinued operations since 
March 31, 2020. Prior periods have been reclassified to conform with the current presentation. Certain reclassifications have been made for current and prior periods between the continued operations and the discontinued operations in accordance with 
U.S. GAAP.

Income Taxes
Income tax expense was 
$1.1 million in Q2 2021, compared to an income tax benefit of 
$1.3 million in the prior-year period.

Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit” in this press release and today’s earnings conference call, excludes the following items: impairment of intangibles and goodwill, amortization of intangibles, stock option expenses, and severance- related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in 
the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.

Looking Ahead
We currently expect for Q3 2021 to report higher revenue and profitability. We see a trend of recovery of our revenue. We have been able to reduce our operating expenses, and we believe we can continue the trend of lower fixed costs in the foreseeable future.

Conference Call

Travelzoo will host a conference call to discuss second quarter results today at 
11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to download the management presentation (PDF format) to be discussed in the conference call; and access the webcast.

About Travelzoo
Travelzoo® provides our 30 million members insider deals and one-of-a-kind experiences personally reviewed by one of our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. For over 20 years we have worked in partnership with more than 5,000 top travel suppliers—our long-standing relationships give 
Travelzoo members access to irresistible deals.

Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the 
SEC. We cannot guarantee any future levels of activity, performance or achievements. 
Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Travelzoo, Top 20, and 
Jack’s Flight Club are registered trademarks of 
Travelzoo.

Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

	Three months ended								Six months ended
	June 30,								June 30,
	2021				2020				2021				2020
Revenues	$	19,079			$	7,004			$	33,363			$	27,331
Cost of revenues	2,522				2,141				5,540				4,844
Gross profit	16,557				4,863				27,823				22,487
Operating expenses:
Sales and marketing	7,340				4,288				14,130				17,382
Product development	685				566				1,368				1,994
General and administrative	5,056				6,642				9,616				12,164
Impairment of intangible asset and goodwill	—				—				—				2,920
Total operating expenses	13,081				11,496				25,114				34,460
Operating income (loss)	3,476				(6,633		)		2,709				(11,973		)
Other income (loss), net	684				(179		)		518				(185		)
Income (loss) from continuing operations before income taxes	4,160				(6,812		)		3,227				(12,158		)
Income tax expense (benefit)	1,136				(1,309		)		1,878				(1,826		)
Income (loss) from continuing operations	3,024				(5,503		)		1,349				(10,332		)
Income (loss) from discontinued operations, net of tax	29				(795		)		14				(3,714		)
Net income (loss)	3,053				(6,298		)		1,363				(14,046		)
Net income (loss) attributable to non-controlling interest	39				(108		)		(9		)		(1,247		)
Net income (loss) attributable to  Travelzoo	$	3,014			$	(6,190	)		$	1,372			$	(12,799	)
Net income (loss) attributable to Travelzoo—continuing operations	$	2,985			$	(5,395	)		$	1,358			$	(9,085	)
Net income (loss) attributable to Travelzoo—discontinued operations	$	29			$	(795	)		$	14			$	(3,714	)
Income (Loss) per share—basic
Continuing operations	$	0.26			$	(0.48	)		$	0.12			$	(0.80	)
Discontinued operations	$	—			$	(0.07	)		$	—			$	(0.33	)
Net income (loss) per share —basic	$	0.26			$	(0.55	)		$	0.12			$	(1.13	)
Income (Loss) per share—diluted
Continuing operations	$	0.22			$	(0.48	)		$	0.10			$	(0.80	)
Discontinued operations	$	—			$	(0.07	)		$	—			$	(0.33	)
Net income (loss) per share—diluted	$	0.22			$	(0.55	)		$	0.10			$	(1.13	)
Shares used in per share calculation from continuing operations—basic	11,488				11,310				11,440				11,375
Shares used in per share calculation from discontinued operations—basic	11,488				11,310				11,440				11,375
Shares used in per share calculation from continuing operations—diluted	13,408				11,310				13,248				11,375
Shares used in per share calculation from discontinued operations—diluted	13,408				11,310				13,248				11,375

Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)

	June 30, 2021				December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	80,962			$	63,061
Accounts receivable, net	9,905				4,519
Prepaid income taxes	1,616				931
Deposits	105				137
Prepaid expenses and other	3,253				1,166
Assets from discontinued operations	84				230
Total current assets	95,925				70,044
Deposits and other	1,552				745
Deferred tax assets	3,647				5,067
Restricted cash	1,164				1,178
Operating lease right-of-use assets	8,559				8,541
Property and equipment, net	1,034				1,347
Intangible assets, net	3,975				4,534
Goodwill	10,944				10,944
Total assets	$	126,800			$	102,400
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	8,503			$	6,996
Merchant payables	82,236				57,104
Accrued expenses and other	8,222				8,649
Deferred revenue	2,213				2,688
Operating lease liabilities	3,751				3,587
PPP notes payable (current portion)	3,156				2,849
Income tax payable	98				326
Liabilities from discontinued operations	482				671
Total current liabilities	108,661				82,870
PPP notes payables	—				814
Deferred tax liabilities	38				357
Long-term operating lease liabilities	10,353				10,774
Other long-term liabilities	2,146				1,085
Total liabilities	121,198				95,900
Non-controlling interest	4,600				4,609
Common stock	115				114
Treasury stock (at cost)	(1,583		)		—
Additional paid-in capital	4,988				6,239
Retained earnings (accumulated deficit)	969				(403		)
Accumulated other comprehensive loss	(3,487		)		(4,059		)
Total stockholders’ equity	1,002				1,891
Total liabilities and stockholders’ equity	$	126,800			$	102,400

Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

	Three months ended								Six months ended
	June 30,								June 30,
	2021				2020				2021				2020
Cash flows from operating activities:
Net income (loss)	$	3,053			$	(6,298	)		$	1,363			$	(14,046	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	476				667				960				1,218
Stock-based compensation	934				4,031				1,816				4,054
Deferred income tax	599				(1,152		)		1,140				(1,761		)
Impairment of intangible assets and goodwill	—				—				—				2,920
Gain on notes payable settlement	—				(1,500		)		—				(1,500		)
Loss on long-lived assets	—				—				—				437
Loss on equity investment in WeGo	—				141				—				336
Gain on PPP notes payable forgiveness	(429		)		—				(429		)		—
Net foreign currency effects	(103		)		225				(255		)		(456		)
Provision (reversal) of loss on accounts receivable and other reserves	(417		)		986				(871		)		2,427
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(2,552		)		3,674				(4,781		)		6,183
Prepaid income taxes	(168		)		—				(713		)		989
Prepaid expenses and other	(418		)		558				(2,775		)		1,420
Accounts payable	(312		)		1,602				1,415				2,149
Merchant payables	11,973				15,100				25,185				8,160
Accrued expenses and other	321				(2,084		)		(320		)		(1,380		)
Income tax payable	(102		)		266				(228		)		(67		)
Other liabilities	(80		)		263				332				2,340
Net cash provided by operating activities	12,775				16,479				21,839				13,423
Cash flows from investing activities:
Acquisition of business, net of cash acquired	—				—				—				(679		)
Other investment	—				(430		)		—				(430		)
Purchases of property and equipment	(77		)		(72		)		(84		)		(203		)
Net cash used in investing activities	(77		)		(502		)		(84		)		(1,312		)
Cash flows from financing activities:
Repurchase of common stock	—				—				(1,583		)		(1,205		)
Payment of promissory notes	—				(6,800		)		—				(7,800		)
Proceeds from notes payable	—				3,663				—				3,663
Exercise of stock options and taxes paid for net share settlement	(3,066		)		—				(3,066		)		—
Net cash used in financing activities	(3,066		)		(3,137		)		(4,649		)		(5,342		)
Effect of exchange rate on cash, cash equivalents and restricted cash	427				(239		)		697				(511		)
Net increase in cash, cash equivalents and restricted cash	10,059				12,601				17,803				6,258
Cash, cash equivalents and restricted cash at beginning of period	72,129				14,367				64,385				20,710
Cash, cash equivalents and restricted cash at end of period	$	82,188			$	26,968			$	82,188			$	26,968

Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)

Three months ended June 30, 2021	Travelzoo North America				Travelzoo Europe				Jack’s Flight Club				Elimination					Consolidated
Revenue from unaffiliated customers	$	13,650			$	4,569			$	860			$	—				$	19,079
Intersegment revenue	335				(335		)		—				—					—
Total net revenues	13,985				4,234				860				—					19,079
Operating income (loss)	$	3,533			$	(227	)		$	170			$	—				$	3,476
Three months ended June 30, 2020	Travelzoo North America				Travelzoo Europe				Jack’s Flight Club				Elimination					Consolidated
Revenue from unaffiliated customers	$	4,254			$	1,805			$	945			$	—				$	7,004
Intersegment revenue	(52		)		52				—				—					—
Total net revenues	4,202				1,857				945				—					7,004
Operating loss	$	(4,702	)		$	(1,683	)		$	(248	)		$	—				$	(6,633	)

 

Six months ended June 30, 2021	Travelzoo North America				Travelzoo Europe				Jack’s Flight Club				Elimination				Consolidated
Revenue from unaffiliated customers	$	23,478			$	8,138			$	1,747			$	—			$	33,363
Intersegment revenue	326				(326		)		—				—				—
Total net revenues	23,804				7,812				1,747				—				33,363
Operating income (loss)	$	3,572			$	(923	)		$	60			$	—			$	2,709
Six months ended June 30, 2020	Travelzoo North America				Travelzoo Europe				Jack’s Flight Club				Elimination				Consolidated
Revenue from unaffiliated customers	$	16,803			$	8,908			$	1,628			$	(8	)		$	27,331
Intersegment revenue	96				(104		)		—				8				—
Total net revenues	16,899				8,804				1,628				—				27,331
Operating loss	$	(5,678	)		$	(3,024	)		$	(3,263	)		$	(8	)		$	(11,973	)

Travelzoo
Reconciliation of GAAP to Non-GAAP Information
(Unaudited)
(In thousands, except per share amounts)

	Three months ended								Six months ended
	June 30,								June 30,
	2021				2020				2021				2020
GAAP operating expense	$	13,081			$	11,496			$	25,114			$	34,460
Non-GAAP adjustments:
Impairment of intangible and goodwill (A)	—				—				—				2,920
Amortization of intangibles (B)	275				396				559				611
Stock option expenses (C)	934				4,031				1,816				4,054
Severance-related expenses (D)	175				67				398				284
Non-GAAP operating expense	11,697				7,002				22,341				26,591
GAAP operating income (loss)	3,476				(6,633		)		2,709				(11,973		)
Non-GAAP adjustments (A through D)	1,384				4,494				2,773				7,869
Non-GAAP operating income (loss)	4,861				(2,139		)		5,482				(4,104		)

Investor Relations:
Almira Pusch
[email protected]

Source: Travelzoo