SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2020

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

12.SUBSEQUENT EVENTS

In December 2019, a novel strain of coronavirus, COVID-19, was identified in Wuhan, China. COVID-19 has caused a global health emergency and was declared a pandemic by the World Health Organization in March 2020.  In an effort to slow and contain the spread of COVID-19, local, state, and national governments implemented various measures, which have impacted businesses worldwide. As of the date of issuance of this Form 10-Q, the magnitude and duration of the impact from COVID-19 are unknown and cannot be reasonably estimated.

On April 8, 2020, the Company announced that Chief Executive Officer and Chairman and Chief Financial Officer of eXp and the Chief Executive Officer of eXp Realty LLC had agreed to voluntarily reduce their annual base salaries by 50%. In addition, the Company reduced the cash compensation payable to each independent director by 50%. These steps were taken in light of the business uncertainty created by the evolving COVID-19 pandemic.

The Company also has implemented a series of cost-savings actions to preserve capital, including temporary employment furloughs and workforce reductions, temporary salary and work-week reductions for certain employees, marketing expense pullbacks, and delaying investments in certain strategic initiatives. These measures will be assessed on an ongoing basis and may be extended and/or expanded.

As of the date of this quarterly report, the Company’s results of operations, liquidity and financial condition have not been significantly impacted; however, the Company will continue to monitor events and/or changes in circumstances. While the Company is positioned to survive and thrive in a series of fluctuations in economic activity,  it is too early to determine the impact the current economic situation will have on the Company’s results of operations or financial condition, and management’s judgment regarding the situation could change in the future.