QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Overstock.com, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except per share data) | |||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net of allowance for credit losses of $ | |||||||||||
Inventories | |||||||||||
Prepaids and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Deferred tax assets, net | |||||||||||
Goodwill | |||||||||||
Equity securities, including securities measured at fair value of $ | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other long-term assets, net | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Unearned revenue | |||||||||||
Operating lease liabilities, current | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Operating lease liabilities, non-current | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 8) | |||||||||||
Stockholders' equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Issued shares - | |||||||||||
Outstanding shares - | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock at cost - | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net revenue | $ | $ | |||||||||
Cost of goods sold | |||||||||||
Gross profit | |||||||||||
Operating expenses | |||||||||||
Sales and marketing | |||||||||||
Technology | |||||||||||
General and administrative | |||||||||||
Total operating expenses | |||||||||||
Operating income (loss) | ( | ||||||||||
Interest income (expense), net | ( | ||||||||||
Other expense, net | ( | ( | |||||||||
Income (loss) before income taxes | ( | ||||||||||
Provision (benefit) for income taxes | ( | ||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Net income (loss) per share of common stock: | |||||||||||
Basic | $ | ( | $ | ||||||||
Diluted | $ | ( | $ | ||||||||
Weighted average shares of common stock outstanding: | |||||||||||
Basic | |||||||||||
Diluted |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Other comprehensive income | |||||||||||
Unrealized gain on cash flow hedges, net of expense for taxes of $ | |||||||||||
Other comprehensive income | |||||||||||
Comprehensive income (loss) | $ | ( | $ | ||||||||
Overstock.com, Inc. Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (in thousands) | |||||||||||
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Equity attributable to stockholders of Overstock.com, Inc. | |||||||||||
Shares of common stock issued | |||||||||||
Balance at beginning of period | |||||||||||
Common stock issued upon vesting of restricted stock | |||||||||||
Common stock issued for ESPP purchases | |||||||||||
Balance at end of period | |||||||||||
Shares of treasury stock | |||||||||||
Balance at beginning of period | |||||||||||
Repurchases of common stock | |||||||||||
Tax withholding upon vesting of employee stock awards | |||||||||||
Balance at end of period | |||||||||||
Total shares of common stock outstanding | |||||||||||
Common stock | $ | $ | |||||||||
Shares of preferred stock issued | |||||||||||
Shares of Series A-1 preferred stock issued | |||||||||||
Shares of treasury stock | |||||||||||
Balance at beginning of period | |||||||||||
Repurchases of shares | |||||||||||
Balance at end of period | |||||||||||
Total shares of Series A-1 preferred stock outstanding | |||||||||||
Shares of Series B preferred stock issued and outstanding | |||||||||||
Preferred stock | $ | $ | |||||||||
Additional paid-in capital | |||||||||||
Balance at beginning of period | $ | $ | |||||||||
Stock-based compensation to employees and directors | |||||||||||
Common stock issued for ESPP purchases | |||||||||||
Balance at end of period | $ | $ | |||||||||
Accumulated deficit | |||||||||||
Balance at beginning of period | $ | ( | $ | ( | |||||||
Net income (loss) | ( | ||||||||||
Balance at end of period | $ | ( | $ | ( | |||||||
Accumulated other comprehensive loss | |||||||||||
Balance at beginning of period | $ | ( | $ | ( | |||||||
Net other comprehensive income | |||||||||||
Balance at end of period | $ | ( | $ | ( | |||||||
Treasury stock | |||||||||||
Balance at beginning of period | $ | ( | $ | ( | |||||||
Repurchases of common stock and Series A-1 preferred shares | ( | ||||||||||
Tax withholding upon vesting of employee stock awards | ( | ( | |||||||||
Balance at end of period | ( | ( | |||||||||
Total stockholders' equity | $ | $ |
Overstock.com, Inc. Consolidated Statements of Cash Flows (Unaudited) (in thousands) | |||||||||||
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Non-cash operating lease cost | |||||||||||
Stock-based compensation to employees and directors | |||||||||||
(Increase) decrease in deferred tax assets, net | ( | ||||||||||
Loss from equity method securities | |||||||||||
Other non-cash adjustments | ( | ( | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ( | |||||||||
Inventories | ( | ||||||||||
Prepaids and other current assets | |||||||||||
Other long-term assets, net | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued liabilities | |||||||||||
Unearned revenue | |||||||||||
Operating lease liabilities | ( | ( | |||||||||
Other long-term liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Disbursement for notes receivable | ( | ||||||||||
Purchase of equity securities | ( | ||||||||||
Capital distribution from investment | |||||||||||
Expenditures for property and equipment | ( | ( | |||||||||
Other investing activities, net | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Repurchase of shares | ( | ||||||||||
Payments of taxes withheld upon vesting of employee stock awards | ( | ( | |||||||||
Other financing activities, net | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | ( | ||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | $ | |||||||||
Fair Value Measurements at March 31, 2023 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents—Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Equity securities, at fair value | |||||||||||||||||||||||
Available-for-sale debt securities (1) | |||||||||||||||||||||||
Trading securities held in a "rabbi trust" (1) | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Deferred compensation accrual "rabbi trust" (2) | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Fair Value Measurements at December 31, 2022 | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents—Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Equity securities, at fair value | |||||||||||||||||||||||
Trading securities held in a "rabbi trust" (1) | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Deferred compensation accrual "rabbi trust" (2) | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
Amount | |||||
Level 3 investments at December 31, 2021 | $ | ||||
Increase due to purchases of Level 3 investments | |||||
Decrease in fair value of Level 3 investments | ( | ||||
Level 3 investments at December 31, 2022 | |||||
Increase due to purchases of Level 3 investments | |||||
Accrued interest on Level 3 investments | |||||
Level 3 investments at March 31, 2023 | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Computer hardware and software, including internal-use software and website development | $ | $ | |||||||||
Building | |||||||||||
Land | |||||||||||
Furniture and equipment | |||||||||||
Building machinery and equipment | |||||||||||
Land improvements | |||||||||||
Leasehold improvements | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Total property and equipment, net | $ | $ |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Capitalized internal-use software and website development | $ | $ | |||||||||
Depreciation of internal-use software and website development |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cost of goods sold | $ | $ | |||||||||
Technology | |||||||||||
General and administrative | |||||||||||
Total depreciation | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Equity securities accounted for under the equity method under ASC 323 | $ | $ | |||||||||
Equity securities accounted for under the equity method under the fair value option | |||||||||||
Equity securities under ASC 321 | |||||||||||
Total equity securities | $ | $ |
Ownership interest | |||||
Medici Ventures, L.P. | |||||
tZERO Group, Inc. | |||||
SpeedRoute, LLC | |||||
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net loss recognized on our proportionate share of the net assets of our equity method securities | $ | ( | $ | ( | |||||||
Increase in fair value of equity method securities held under fair value option |
Three months ended March 31, 2022 | |||||
Results of Operations | |||||
Revenues | $ | ||||
Pre-tax loss | ( | ||||
Net loss | ( |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Operating lease cost | $ | $ | |||||||||
Variable lease cost |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash payments included in operating cash flows from lease arrangements | $ | $ | |||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
Weighted-average remaining lease term—operating leases | |||||||||||
Weighted-average discount rate—operating leases | % | % |
Payments due by period | Amount | |||||||
2023 (Remainder) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total lease payments | ||||||||
Less interest | ||||||||
Present value of lease liabilities | $ |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cost of goods sold | $ | $ | |||||||||
Sales and marketing | |||||||||||
Technology | |||||||||||
General and administrative | |||||||||||
Total stock-based compensation | $ | $ |
Three months ended March 31, 2023 | |||||||||||
Units | Weighted Average Grant Date Fair Value | ||||||||||
Outstanding—beginning of year | $ | ||||||||||
Granted at fair value | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Outstanding—end of period | $ |
Amount | |||||
Unearned revenue at December 31, 2021 | $ | ||||
Increase due to deferral of revenue at period end, net | |||||
Decrease due to beginning contract liabilities recognized as revenue | ( | ||||
Unearned revenue at December 31, 2022 | |||||
Increase due to deferral of revenue at period end, net | |||||
Decrease due to beginning contract liabilities recognized as revenue | ( | ||||
Unearned revenue at March 31, 2023 | $ |
Amount | |||||
Allowance for returns at December 31, 2021 | $ | ||||
Additions to the allowance | |||||
Deductions from the allowance | ( | ||||
Allowance for returns at December 31, 2022 | |||||
Additions to the allowance | |||||
Deductions from the allowance | ( | ||||
Allowance for returns at March 31, 2023 | $ |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Numerator: | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Less: Preferred stock dividends—declared and accumulated | |||||||||||
Undistributed income (loss) | ( | ||||||||||
Less: Undistributed income (loss) allocated to participating securities | |||||||||||
Net income (loss) attributable to common stockholders | $ | ( | $ | ||||||||
Denominator: | |||||||||||
Weighted average shares of common stock outstanding—basic | |||||||||||
Effect of dilutive securities: | |||||||||||
Restricted stock awards | |||||||||||
Weighted average shares of common stock outstanding—diluted | |||||||||||
Net income (loss) per share of common stock: | |||||||||||
Basic | $ | ( | $ | ||||||||
Diluted | $ | ( | $ |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Restricted stock units | |||||||||||
Employee stock purchase plan |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net revenue | $ | 381,140 | $ | 536,037 | |||||||
Cost of goods sold | |||||||||||
Product costs and other cost of goods sold | 276,621 | 388,970 | |||||||||
Merchant fees, customer service, and other | 14,806 | 21,855 | |||||||||
Total cost of goods sold | 291,427 | 410,825 | |||||||||
Gross profit | $ | 89,713 | $ | 125,212 | |||||||
Year-over-year percentage changes | |||||||||||
Net revenue | (28.9) | % | |||||||||
Gross profit | (28.4) | % | |||||||||
Percent of total net revenue | |||||||||||
Cost of goods sold | |||||||||||
Product costs and other cost of goods sold | 72.6 | % | 72.6 | % | |||||||
Merchant fees, customer service, and other | 3.9 | % | 4.1 | % | |||||||
Total cost of goods sold | 76.5 | % | 76.6 | % | |||||||
Gross margin | 23.5 | % | 23.4 | % |
Three months ended March 31, 2023 | ||||||||||||||
Change in the Estimate of Average Transit Times (Days) | Increase (Decrease) Revenue | Increase (Decrease) Income Before Income Taxes | ||||||||||||
2 | $ | (14,597) | $ | (2,814) | ||||||||||
1 | $ | (5,491) | $ | (1,059) | ||||||||||
As reported | As reported | As reported | ||||||||||||
-1 | $ | 4,660 | $ | 899 | ||||||||||
-2 | $ | 9,259 | $ | 1,786 |
Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | ||||||||||||||||||||||||||||||
Gross margin | 23.4 | % | 22.9 | % | 23.3 | % | 22.1 | % | 23.0 | % | 23.5 | % | |||||||||||||||||||||||
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Sales and marketing expenses | $ | 47,048 | $ | 58,513 | |||||||
Advertising expense included in sales and marketing expenses | 44,806 | 55,712 | |||||||||
Year-over-year percentage changes | |||||||||||
Sales and marketing expenses | (19.6) | % | |||||||||
Advertising expense included in sales and marketing expenses | (19.6) | % | |||||||||
Percentage of net revenues | |||||||||||
Sales and marketing expenses | 12.3 | % | 10.9 | % | |||||||
Advertising expense included in sales and marketing expenses | 11.8 | % | 10.4 | % |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Technology expenses | $ | 30,546 | $ | 32,989 | |||||||
Year-over-year percentage change | |||||||||||
Technology expenses | (7.4) | % | |||||||||
Technology expenses as a percent of net revenues | 8.0 | % | 6.2 | % |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
General and administrative expenses | $ | 20,483 | $ | 21,256 | |||||||
Year-over-year percentage change | |||||||||||
General and administrative expenses | (3.6) | % | |||||||||
General and administrative expenses as a percent of net revenues | 5.4 | % | 4.0 | % |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash provided by (used in): | |||||||||||
Operating activities | $ | 20,007 | $ | 33,193 | |||||||
Investing activities | (14,831) | (13,795) | |||||||||
Financing activities | (1,705) | (29,286) |
Contractual Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||
Operating leases (1) | $ | 7,389 | $ | 4,203 | $ | 2,916 | $ | 270 | $ | — | ||||||||||||||||||||||
Loan agreements (2) | 48,015 | 4,607 | 2,968 | 2,972 | 37,468 | |||||||||||||||||||||||||||
Total contractual cash obligations | $ | 55,404 | $ | 8,810 | $ | 5,884 | $ | 3,242 | $ | 37,468 |
(a) | Exhibit Number | Exhibit Description | ||||||||||||
3.1 | ||||||||||||||
31.1* | ||||||||||||||
31.2* | ||||||||||||||
32.1** | ||||||||||||||
32.2** | ||||||||||||||
101 | Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Stockholders' Equity, and (vi) Notes to Consolidated Financial Statements. | |||||||||||||
104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL (included as Exhibit 101). |
Date: | May 2, 2023 | OVERSTOCK.COM, INC. | ||||||
/s/ ADRIANNE B. LEE | ||||||||
Adrianne B. Lee | ||||||||
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
Date: | May 2, 2023 | /s/ JONATHAN E. JOHNSON III | ||||||
Jonathan E. Johnson III | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | May 2, 2023 | /s/ ADRIANNE B. LEE | ||||||
Adrianne B. Lee | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer and Principal Accounting Officer) |
Date: | May 2, 2023 | /s/ JONATHAN E. JOHNSON III | ||||||
Jonathan E. Johnson III | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | May 2, 2023 | /s/ ADRIANNE B. LEE | ||||||
Adrianne B. Lee | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer and Principal Accounting Officer) |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 3,127 | $ 3,223 |
Equity securities at fair value | $ 82,811 | $ 82,823 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 51,438,000 | 51,102,000 |
Common stock, shares outstanding | 45,191,000 | 44,951,000 |
Treasury stock, shares | 6,247,000 | 6,151,000 |
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Income Statement [Abstract] | ||
Net revenue | $ 381,140 | $ 536,037 |
Cost of goods sold | 291,427 | 410,825 |
Gross profit | 89,713 | 125,212 |
Operating expenses | ||
Sales and marketing | 47,048 | 58,513 |
Technology | 30,546 | 32,989 |
General and administrative | 20,483 | 21,256 |
Total operating expenses | 98,077 | 112,758 |
Operating income (loss) | (8,364) | 12,454 |
Interest income (expense), net | 2,559 | (125) |
Other expense, net | (7,389) | (114) |
Income (loss) before income taxes | (13,194) | 12,215 |
Provision (benefit) for income taxes | (2,887) | 2,092 |
Net income (loss) | $ (10,307) | $ 10,123 |
Net income (loss) per share of common stock: | ||
Basic | $ (0.23) | $ 0.21 |
Diluted | $ (0.23) | $ 0.21 |
Weighted average shares of common stock outstanding: | ||
Basic | 45,067 | 43,052 |
Diluted | 45,067 | 43,282 |
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (10,307) | $ 10,123 |
Other comprehensive income | ||
Unrealized gain on cash flow hedges, net of expense for taxes of $0 and $0 | 4 | 4 |
Other comprehensive income | 4 | 4 |
Comprehensive income (loss) | $ (10,303) | $ 10,127 |
Consolidated Statements of Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain on cash flow hedges, tax expense | $ 0 | $ 0 |
DESCRIPTION OF BUSINESS |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS Overstock.com, Inc. is a leading online furniture and home furnishings retailer and technology-focused innovator that sells products at a smart value. Our online shopping site offers a wide selection of quality furniture, décor, area rugs, bedding and bath, home improvement, outdoor, and kitchen and dining items, among others. Overstock.com, which receives tens of millions of visits per month, provides customers access to millions of products from third-party partners. As used herein, "Overstock," "the Company," "we," "our" and similar terms include Overstock.com, Inc. and its wholly-owned subsidiaries, unless the context indicates otherwise. As used herein, the term "Website" refers to the Company's internet websites located at www.overstock.com, www.o.co, www.overstock.ca, and www.overstockgovernment.com and the Company's mobile app.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation We have prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") have been omitted in accordance with the rules and regulations of the SEC. These financial statements should be read in conjunction with our audited annual consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes to our significant accounting policies disclosed in Note 2—Accounting Policies, included in Part II, Item 8, Financial Statements and Supplementary Data, of our Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries and reflect all adjustments, consisting only of normal recurring adjustments, which are, in our opinion, necessary for a fair presentation of results for the interim periods presented. All intercompany account balances and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for any future period or the full fiscal year, due to seasonality and other factors. Use of estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in our consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, receivables valuation, revenue recognition, Club O and gift card breakage, sales returns, inventory valuation, depreciable lives, equity and debt securities valuation, income taxes, stock-based compensation, performance-based compensation, self-funded health insurance liabilities, and contingencies. Although these estimates are based on our best knowledge of current events and actions that we may undertake in the future, our accounting of these estimates may change from period to period. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected. Available-for-sale debt securities During the three months ended March 31, 2023, we invested $10 million in GrainChain, Inc. in the form of a convertible promissory note (the "Note"). The Note bears interest at an annual interest rate of 5% and accrued interest is recorded in Interest income (expense), net in our consolidated statements of operations. The Note has a maturity date of January 3, 2025 at which time the outstanding principal and any unpaid accrued interest will automatically convert into shares of a newly created series of preferred stock issued by GrainChain, Inc. unless converted earlier under limited circumstances. The carrying amount of the Note, including accrued interest, was $10.1 million at March 31, 2023, which is included in Other long-term assets, net on our consolidated balance sheets. Based on the nature of our indirect ownership interests in GrainChain, Inc. through Medici Ventures, L.P. and the extent of our contributed capital, we held a variable interest in GrainChain, Inc., which meets the definition of a variable interest entity; however, we are not the primary beneficiary of this entity for purposes of consolidation as we do not have the power (either explicit or implicit), through voting rights or otherwise, to direct the activities of GrainChain, Inc. that most significantly impact its economic performance. Our maximum exposure to loss in this variable interest entity totaled $30.3 million as of March 31, 2023, representing our direct and indirect interest in GrainChain, Inc.
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FAIR VALUE MEASURES AND DISCLOSURES |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | 3. FAIR VALUE MEASUREMENT The following tables summarize our assets and liabilities measured at fair value on a recurring basis using the following levels of inputs (in thousands):
(1) Included in Other long-term assets, net in the consolidated balance sheets. (2) Included in Accrued liabilities and Other long-term liabilities in the consolidated balance sheets. The following table provides activity for our Level 3 investments (in thousands):
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PROPERTY AND EQUIPMENT, NET |
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Property, Plant and Equipment, Policy [Policy Text Block] | 4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following (in thousands):
Capitalized costs associated with internal-use software and website development, both developed internally and acquired externally, and depreciation of costs for the same periods associated with internal-use software and website development consist of the following (in thousands):
Depreciation expense is classified within the corresponding operating expense categories on our consolidated statements of operations as follows (in thousands):
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EQUITY SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY SECURITIES | 5. EQUITY SECURITIES Equity securities consist of the following (in thousands):
Our equity securities accounted for under the equity method under ASC 323 include equity securities in which we can exercise significant influence, but not control, over these entities through holding more than a 20% voting interest in the entity. The following table includes our equity securities accounted for under the equity method and related ownership interest as of March 31, 2023:
The carrying amount of our equity method securities was $289.1 million at March 31, 2023, which is included in Equity securities on our consolidated balance sheets, of which $82.8 million is valued under the fair value option (tZERO and SpeedRoute). For our investments in Medici Ventures, tZERO, and SpeedRoute there is no difference in the carrying amount of the assets and liabilities and our maximum exposure to loss, and there is no difference between the carrying amount of our investment in Medici Ventures and the amount of underlying equity we have in the entity's net assets. The following table summarizes the net loss recognized on equity method securities recorded in Other expense, net in our consolidated statements of operations (in thousands):
Regulation S-X Rule 10-01(b)(1) In accordance with Rule 10-01(b)(1) of Regulation S-X, which applies to interim reports on Form 10-Q, the Company must determine if its equity method investees are considered "significant subsidiaries". Summarized income statement information of an equity method investee is required in an interim report if the significance criteria are met as defined under SEC guidance. For the period ended March 31, 2023, none of our equity method investees met the significance criteria. The following is the unaudited summarized financial information for those equity method securities that met the significance criteria for the period ended March 31, 2022 (in thousands):
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BORROWINGS |
3 Months Ended |
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Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | 6. BORROWINGS In March 2020, we entered into two loan agreements. The loan agreements provide a $34.5 million Senior Note, carrying interest at an annual rate of 4.242%, and a $13.0 million Mezzanine Note, carrying interest at an annual rate of 5.002%. The loans carry a blended annual interest rate of 4.45%. The Senior Note is for a 10-year term (stated maturity date is March 6, 2030) and requires interest only payments, with the principal amount and any then unpaid interest due and payable at the end of the 10-year term. The Mezzanine Note has a stated 10-year term, though the agreement requires principal and interest payments monthly over approximately a 46-month payment period. Our debt issuance costs and debt discount are amortized using the straight-line basis which approximates the effective interest method. As of March 31, 2023, the total outstanding debt on these loans was $37.1 million, net of $380,000 in capitalized debt issuance costs, and the total amount of the current portion of these loans included in Other current liabilities on our consolidated balance sheets was $2.9 million. Both loans include certain financial and non-financial covenants and are secured by our corporate headquarters and the related land and rank senior to stockholders. The financial covenants require that Overstock maintain a net worth in excess of $30 million and minimum liquid assets of $3 million for so long as the Mezzanine Note is outstanding and is reduced to maintaining a net worth in excess of $15 million and minimum liquid assets of $1 million for the remainder of the term that the Senior Note is outstanding. We are in compliance with our debt covenants and continue to monitor our ongoing compliance with our debt covenants.
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LEASES |
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Lessee, Operating Leases [Text Block] | 7. LEASES We have operating leases for warehouses, office space, and data centers. Our leases have remaining lease terms of one year to four years, some of which may include options to extend the leases perpetually, and some of which may include options to terminate the leases within one year. The components of lease expenses were as follows (in thousands):
The following table provides a summary of other information related to leases (in thousands):
The following table provides supplemental balance sheet information related to leases:
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES Legal proceedings and contingencies From time to time, we are involved in litigation concerning consumer protection, employment, intellectual property, claims under the securities laws, and other commercial matters related to the conduct and operation of our business and the sale of products on our Website. In connection with such litigation, we have been in the past and we may be in the future subject to significant damages. In some instances, other parties may have contractual indemnification obligations to us. However, such contractual obligations may prove unenforceable or non-collectible, and if we cannot enforce or collect on indemnification obligations, we may bear the full responsibility for damages, fees, and costs resulting from such litigation. We may also be subject to penalties and equitable remedies that could force us to alter important business practices. Such litigation could be costly and time consuming and could divert or distract our management and key personnel from our business operations. Due to the uncertainty of litigation and depending on the amount and the timing, an unfavorable resolution of some or all of such matters could materially affect our business, results of operations, financial position, or cash flows. The nature of the loss contingencies relating to claims that have been asserted against us are described below. As previously disclosed, in October 2019, we received a subpoena from the SEC requiring us to produce documents and other information related to the Series A-1 Preferred stock dividend we announced to stockholders in June 2019 and requesting copies of 10b5-1 plans entered into by certain officers and directors. In December 2019, we received a subpoena from the SEC requesting our insider trading policies and certain employment and consulting agreements. We also received requests from the SEC for our communications with our former Chief Executive Officer and Director, Patrick Byrne, and the matters referenced in the December 2019 subpoenas. In January 2021, we received a subpoena from the SEC requesting information regarding our retail guidance in 2019 and certain communications with current and former executives, board members, and investors. We continue to cooperate with the SEC on these matters. On September 27, 2019, a purported securities class action lawsuit was filed against us and our former Chief Executive Officer and former Chief Financial Officer in the United States District Court of Utah, alleging violations under Section 10(b), Rule 10b-5, Section 20(a), and Section 20A of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). On October 8, 2019, October 17, 2019, October 31, 2019, and November 20, 2019, four similar lawsuits were filed in the same court also naming us and the above referenced former executives as defendants, bringing similar claims under the Exchange Act, and seeking similar relief. These cases were consolidated into a single lawsuit in December 2019. The Court appointed The Mangrove Partners Master Fund Ltd. as lead plaintiff in January 2020. In March 2020, an amended consolidated complaint was filed against us, our President, our former Chief Executive Officer, and our former Chief Financial Officer. We filed a motion to dismiss and, on September 28, 2020, the court granted our motion and entered judgment in our favor. The plaintiffs filed a motion to amend their complaint on October 23, 2020. The United States District Court of Utah granted the plaintiffs' motion to amend their complaint on January 6, 2021. The plaintiffs filed their amended complaint on January 11, 2021. We filed a motion to dismiss plaintiffs' amended complaint, and on September 20, 2021, the court granted our motion and entered judgment in our favor. On October 18, 2021, the plaintiffs filed a Notice of Appeal, appealing the ruling of the district court to the United States Court of Appeals for the Tenth Circuit. We are awaiting a ruling from the Tenth Circuit that heard oral argument on the appeal on February 9, 2023. No estimates of the possible losses or range of losses can be made at this time. We intend to continue to vigorously defend this consolidated action. On November 22, 2019, a shareholder derivative suit was filed against us and certain past and present directors and officers of ours in the United States District Court for the District of Delaware, with allegations that include: (i) breach of fiduciary duties, (ii) unjust enrichment, (iii) insider selling and misappropriation of the Company's information, and (iv) contribution under Sections 10(b) and 21D of the Exchange Act. On December 17, 2019, a similar lawsuit was filed in the same court, naming the same defendants, bringing similar claims, and seeking similar relief. These cases were consolidated into a single lawsuit in January 2020. In March 2020, the court entered a stay on litigation, pending the outcome of the securities class action motion to dismiss. The case remains stayed pending the outcome of the plaintiffs' appeal to the Tenth Circuit in the securities class action. No estimates of the possible losses or range of losses can be made at this time. We intend to vigorously defend these actions. On April 23, 2020, a putative class action lawsuit was filed against us in the Circuit Court of the County of St. Louis, State of Missouri, alleging that we over-collected taxes on products sold into the state of Missouri. We removed the case to United States District Court, Eastern District of Missouri on May 22, 2020, and on February 9, 2021, the case against us was dismissed. On March 1, 2021, a putative class action lawsuit was filed against us in the Circuit Court of the County of St. Louis, State of Missouri, alleging similar allegations to the April 23, 2020 putative class action lawsuit that was dismissed, that we over-collected taxes on products sold into the state of Missouri. We filed a motion to compel arbitration, which was denied on October 13, 2021. We filed a motion to dismiss, which was denied on March 16, 2022. No estimates of the possible losses or range of losses can be made at this time. We intend to vigorously defend this action. We establish liabilities when a particular contingency is probable and estimable. At March 31, 2023 and December 31, 2022, our established liabilities were not material.
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INDEMNIFICATIONS AND GUARANTEES |
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Mar. 31, 2023 | |
INDEMNIFICATIONS AND GUARANTEES | |
INDEMNIFICATIONS AND GUARANTEES | 9. INDEMNIFICATIONS AND GUARANTEES During our normal course of business, we have made certain indemnities, commitments, and guarantees under which we may be required to make payments in relation to certain transactions. These indemnities include, but are not limited to, indemnities we entered into in favor of Loan Core Capital Funding Corporation LLC under our building loan agreements, various lessors in connection with facility leases for certain claims arising from such facility or lease, the environmental indemnity we entered into in favor of the lenders under our prior loan agreements, customary indemnification arrangements in underwriting agreements and similar agreements, and indemnities to our directors and officers to the maximum extent permitted under the laws of the State of Delaware. The duration of these indemnities, commitments, and guarantees varies, and in certain cases, is indefinite. In addition, the majority of these indemnities, commitments, and guarantees do not provide for any limitation of the maximum potential future payments we could be obligated to make. As such, we are unable to estimate with any reasonableness our potential exposure under these items. We have not recorded any liability for these indemnities, commitments, and guarantees in the accompanying consolidated balance sheets. We do, however, accrue for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is both probable and reasonably estimable.
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STOCKHOLDERS' EQUITY |
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Mar. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 10. STOCKHOLDERS' EQUITY Common stock Each share of common stock has the right to one vote. The holders of common stock are also entitled to receive dividends declared by the Board of Directors out of funds legally available, subject to prior rights of holders of all classes of stock outstanding having priority rights as to dividends. Preferred stock conversion Following the June 10, 2022 conversion of all outstanding Series A-1 and Series B preferred stock into shares of our common stock, the Company eliminated the Series A-1 and Series B preferred stock class by filing Certificates of Elimination with the Delaware Secretary of State. JonesTrading Sales Agreement During the three months ended March 31, 2023 and 2022, we did not sell any shares of our common stock pursuant to the "at the market" sales agreement with JonesTrading Institutional Services LLC and D.A. Davidson & Co. As of March 31, 2023, we had $150.0 million available under our "at the market" sales program. Stock Repurchase Program During the three months ended March 31, 2023, we did not repurchase any shares of our common stock under our stock repurchase program. During the three months ended March 31, 2022, we repurchased $24.9 million of our common stock and $256,000 of our Series A-1 preferred stock under the Repurchase Program at average prices of $48.18 and $45.24 per share, respectively. As of March 31, 2023, we had $19.9 million available for future share repurchases under our current repurchase authorization through December 31, 2023.
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED AWARDS | 11. STOCK-BASED AWARDS Stock-based compensation expense is classified within the corresponding operating expense categories on our consolidated statements of operations as follows (in thousands):
Overstock restricted stock awards The Overstock.com, Inc. Amended and Restated 2005 Equity Incentive Plan provides for the grant of restricted stock units to employees and directors of the Company and other types of equity awards of the Company. These restricted stock awards generally vest over three years at 33.3% at the end of the first year, 33.3% at the end of the second year and 33.4% at the end of the third year, subject to the recipient's continuing service to us. The following table summarizes restricted stock award activity (in thousands, except per share data):
Employee Stock Purchase Plan Purchases under the Overstock.com, Inc. 2021 Employee Stock Purchase Plan (the "ESPP") during the three months ended March 31, 2023 and 2022 were 68,011 shares and 41,918 shares, respectively, at an average purchase price per share of $16.46 and $48.37, respectively. At March 31, 2023, approximately 2.8 million shares of common stock remained available under the ESPP. For the three months ended March 31, 2023 and 2022, we recognized $548,000 and $627,000, respectively, in stock-based compensation expense related to the ESPP, which is included in the stock-based compensation expense table above combined with the expense associated with our restricted stock units.
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REVENUE AND CONTRACT LIABILITY |
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REVENUE AND CONTRACT LIABILITY [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue [Policy Text Block] | 12. REVENUE AND CONTRACT LIABILITY Unearned Revenue The following table provides information about unearned revenue from contracts with customers, including significant changes in unearned revenue balances during the periods presented (in thousands):
Our total unearned revenue related to outstanding Club O Reward dollars was $10.7 million and $10.9 million at March 31, 2023 and December 31, 2022, respectively. Breakage income related to Club O Reward dollars and gift cards is recognized in Net revenue in our consolidated statements of operations. Breakage included in revenue was $849,000 and $1.1 million for the three months ended March 31, 2023 and 2022. The timing of revenue recognition of these reward dollars is driven by actual customer activities, such as redemptions and expirations. Sales returns allowance The following table provides additions to and deductions from the sales returns allowance, which is included in our Accrued liabilities balance in our consolidated balance sheets (in thousands):
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NET INCOME LOSS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | 13. NET INCOME (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data):
The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands):
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We have prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") have been omitted in accordance with the rules and regulations of the SEC. These financial statements should be read in conjunction with our audited annual consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes to our significant accounting policies disclosed in Note 2—Accounting Policies, included in Part II, Item 8, Financial Statements and Supplementary Data, of our Annual Report on Form 10-K for the year ended December 31, 2022. The accompanying unaudited consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries and reflect all adjustments, consisting only of normal recurring adjustments, which are, in our opinion, necessary for a fair presentation of results for the interim periods presented. All intercompany account balances and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for any future period or the full fiscal year, due to seasonality and other factors.
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Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in our consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, receivables valuation, revenue recognition, Club O and gift card breakage, sales returns, inventory valuation, depreciable lives, equity and debt securities valuation, income taxes, stock-based compensation, performance-based compensation, self-funded health insurance liabilities, and contingencies. Although these estimates are based on our best knowledge of current events and actions that we may undertake in the future, our accounting of these estimates may change from period to period. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected.
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FAIR VALUE MEASURES AND DISCLOSURES (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | The following tables summarize our assets and liabilities measured at fair value on a recurring basis using the following levels of inputs (in thousands):
(1) Included in Other long-term assets, net in the consolidated balance sheets. (2) Included in Accrued liabilities and Other long-term liabilities in the consolidated balance sheets.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides activity for our Level 3 investments (in thousands):
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PROPERTY AND EQUIPMENT, NET (Tables) |
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Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | Property and equipment, net consist of the following (in thousands):
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Capitalization of Internal Costs, Policy [Policy Text Block] | Capitalized costs associated with internal-use software and website development, both developed internally and acquired externally, and depreciation of costs for the same periods associated with internal-use software and website development consist of the following (in thousands):
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Schedule of Depreciation and Amortization by Operating Expense Category [Table Text Block] | Depreciation expense is classified within the corresponding operating expense categories on our consolidated statements of operations as follows (in thousands):
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EQUITY SECURITIES (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities | Equity securities consist of the following (in thousands):
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Equity Securities Ownership Interest | The following table includes our equity securities accounted for under the equity method and related ownership interest as of March 31, 2023:
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Equity Method Investments | The following table summarizes the net loss recognized on equity method securities recorded in Other expense, net in our consolidated statements of operations (in thousands):
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Equity Method Investments, Summarized Financial Information | The following is the unaudited summarized financial information for those equity method securities that met the significance criteria for the period ended March 31, 2022 (in thousands):
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LEASES (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Costs and Other Operating Lease Information | The components of lease expenses were as follows (in thousands):
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Other Lease Information | The following table provides a summary of other information related to leases (in thousands):
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Leases, Additional Financial Information | The following table provides supplemental balance sheet information related to leases:
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Schedule of Maturities of Lease Liabilities under Operating Leases After Adoption of 842 | Maturity of lease liabilities under our non-cancellable operating leases as of March 31, 2023, are as follows (in thousands):
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STOCK-BASED AWARDS (Tables) |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Based Compensation | Stock-based compensation expense is classified within the corresponding operating expense categories on our consolidated statements of operations as follows (in thousands):
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Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following table summarizes restricted stock award activity (in thousands, except per share data):
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REVENUE AND CONTRACT LIABILITY (Tables) |
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REVENUE AND CONTRACT LIABILITY [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about unearned revenue from contracts with customers, including significant changes in unearned revenue balances during the periods presented (in thousands):
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Schedule of Sales Returns, Reserve For Sales Returns [Table Text Block] | The following table provides additions to and deductions from the sales returns allowance, which is included in our Accrued liabilities balance in our consolidated balance sheets (in thousands):
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NET INCOME LOSS PER SHARE (Tables) |
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Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands):
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions |
Mar. 31, 2023
USD ($)
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Debt Instrument [Line Items] | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 30.3 |
GrainChain, Inc. Convertible Promissory Note Due 2025 | Convertible Debt | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 10.0 |
Annual interest rate | 5.00% |
Carrying amount | $ 10.1 |
EQUITY SECURITIES - Summary Of Equity Securities (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
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Schedule of Equity Securities [Line Items] | ||
Equity securities accounted for under the equity method under ASC 323 | $ 206,313 | $ 213,494 |
Equity securities accounted for under the equity method under the fair value option | 82,811 | 82,823 |
Fair Value, Recurring | ||
Schedule of Equity Securities [Line Items] | ||
Equity securities accounted for under the equity method under the fair value option | 82,800 | |
Fair Value, Inputs, Level 3 | ||
Schedule of Equity Securities [Line Items] | ||
Equity securities accounted for under the equity method under the fair value option | 82,787 | 82,787 |
Fair Value, Inputs, Level 1 | ||
Schedule of Equity Securities [Line Items] | ||
Equity securities accounted for under the equity method under the fair value option | $ 24 | $ 36 |
EQUITY SECURITIES (Details) - Additional Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
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Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 206,313 | $ 213,494 |
Equity securities at fair value | 82,811 | 82,823 |
Fair Value, Recurring | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity securities at fair value | 82,800 | |
Fair Value, Inputs, Level 3 | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity securities at fair value | $ 82,787 | $ 82,787 |
EQUITY SECURITIES - Equity Securities Accounted Under ASC 323 And Ownership Interest (Details) - Overstock.com, Inc. |
3 Months Ended |
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Mar. 31, 2023 | |
Medici Ventures, L.P. | |
Schedule of Equity Method Investments [Line Items] | |
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 99.00% |
tZero.com, Inc. | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 29.00% |
SpeedRoute | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 49.00% |
EQUITY SECURITIES - Net Gain (Loss) Recognized On Equity Method Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Net gain (loss) recognized on our proportionate share of the net assets of our equity method securities | $ (7,181) | $ (1,464) |
Increase (decrease) in fair value of equity method securities held under fair value option | $ 0 | $ 1,165 |
EQUITY SECURITIES - Summarized Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Results of Operations | ||
Net income (loss) | $ (10,307) | $ 10,123 |
tZero.com, Inc. | ||
Results of Operations | ||
Revenues | 740 | |
Pre-tax loss | (5,380) | |
Net income (loss) | $ (4,380) |
LEASES - Additional Information (Details) |
Mar. 31, 2023 |
---|---|
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 4 years |
LEASES - Components of Lease Cost and Other Operating Lease Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Lease, Cost [Abstract] | |||
Operating lease cost | $ 1,406 | $ 1,509 | |
Variable lease cost | 364 | 498 | |
Cash payments included in operating cash flows from lease arrangements | $ 1,492 | $ 1,550 | |
Weighted-average remaining lease term—operating leases | 1 year 11 months 1 day | 2 years 14 days | |
Weighted-average discount rate—operating leases | 7.00% | 7.00% |
LEASES - Operating Lease Maturities and Future Minimum Payments (Details) $ in Thousands |
Mar. 31, 2023
USD ($)
|
---|---|
Operating Leases After Adoption of 842 | |
2023 (Remainder) | $ 3,487 |
2024 | 2,880 |
2025 | 689 |
2026 | 250 |
2027 | 83 |
Thereafter | 0 |
Total lease payments | 7,389 |
Less interest | 535 |
Present value of lease liabilities | $ 6,854 |
STOCKHOLDERS' EQUITY - Common Stock (Details) |
Mar. 31, 2023
vote
|
---|---|
Equity [Abstract] | |
Common Stock, Number of Votes | 1 |
STOCKHOLDERS' EQUITY - JonesTrading Agreements (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Equity [Abstract] | ||
Aggregate offering price | $ 150,000,000 | |
Proceeds from issuance of common stock | $ 0 | $ 0 |
STOCKHOLDERS' EQUITY - Stock Repurchase Program (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Class of Stock [Line Items] | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 19,900,000 | |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Payments for Repurchase of Common Stock | $ 0 | $ 24,900,000 |
Average price per share of shares repurchased (in dollars per share) | $ 48.18 | |
Series A-1 Preferred Stock | ||
Class of Stock [Line Items] | ||
Payments for Repurchase of Preferred Stock and Preference Stock | $ 256,000 | |
Average price per share of shares repurchased (in dollars per share) | $ 45.24 |
STOCK-BASED AWARDS - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 5,795 | $ 4,639 |
Cost of goods sold | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 19 | 54 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 190 | 345 |
Technology | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 2,422 | 1,840 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 3,164 | $ 2,400 |
STOCK-BASED AWARDS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Stock-Based Awards | ||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | 68,011 | 41,918 |
Stock Issued, Employee Stock Purchase Plan, Average Price Per Share | $ 16.46 | $ 48.37 |
Restricted Stock Awards | First year | ||
Stock-Based Awards | ||
Annual award vesting percentage | 33.30% | |
Restricted Stock Awards | Second year | ||
Stock-Based Awards | ||
Annual award vesting percentage | 33.30% | |
Restricted Stock Awards | Third year | ||
Stock-Based Awards | ||
Annual award vesting percentage | 33.40% | |
Employee Stock | ||
Stock-Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,800,000 | |
Employee Benefits and Share-based Compensation | $ 548 | $ 627 |
STOCK-BASED AWARDS - Restricted Stock Activity (Details) - Restricted Stock Awards shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
$ / shares
shares
| |
Units | |
Outstanding-beginning of year (in shares) | shares | 781 |
Granted at fair value (in shares) | shares | 1,033 |
Vested (in shares) | shares | (268) |
Forfeited (in shares) | shares | (57) |
Outstanding-end of period (in shares) | shares | 1,489 |
Weighted Average Grant Date Fair Value | |
Outstanding-beginning of year (in dollars per share) | $ / shares | $ 50.17 |
Granted at fair value (in dollars per share) | $ / shares | 20.92 |
Vested (in dollars per share) | $ / shares | 44.79 |
Forfeited (in dollars per share) | $ / shares | 39.50 |
Outstanding-end of period (in dollars per share) | $ / shares | $ 31.26 |
REVENUE AND CONTRACT LIABILITY Unearned Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Contract with Customer, Liability | $ 47,123 | $ 44,480 | $ 59,387 |
Increase (Decrease) in Contract with Customer, Liability | 25,052 | 32,993 | |
Contract with Customer, Liability, Revenue Recognized | $ (22,409) | $ (47,900) |
REVENUE AND CONTRACT LIABILITY Club O Reward Unearned Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue, Current | $ 47,123 | $ 44,480 | |
Gift Card and Club O Rewards Breakage | 849 | $ 1,100 | |
Club O Reward Points [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue, Current | $ 10,700 | $ 10,900 |
REVENUE AND CONTRACT LIABILITY Sales Return Allowance (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Sales returns allowance [Abstract] | |||
Sales Return, Reserve for Sales Returns, Current | $ 10,416 | $ 10,222 | $ 13,923 |
Sales Returns, Additions To Reserve For Sales Returns | 30,155 | 161,492 | |
Deductions From Sales Returns, Current | $ (29,961) | $ (165,193) |
NET INCOME LOSS PER SHARE - Income & Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (10,307) | $ 10,123 |
Less: Preferred stock dividends—declared and accumulated | 0 | 182 |
Undistributed income (loss) | (10,307) | 9,941 |
Less: Undistributed income (loss) allocated to participating securities | 0 | 952 |
Net income (loss) attributable to common stockholders | $ (10,307) | $ 8,989 |
Basic | 45,067 | 43,052 |
Restricted stock awards | 0 | 230 |
Diluted | 45,067 | 43,282 |
Basic | $ (0.23) | $ 0.21 |
Diluted | $ (0.23) | $ 0.21 |
NET INCOME LOSS PER SHARE (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Share-based Payment Arrangement | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,489 | 506 |
Employee Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 117 | 64 |
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