Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-49799 | |
Entity Registrant Name | OVERSTOCK.COM, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-0634302 | |
Entity Address, Address Line One | 799 West Coliseum Way | |
Entity Address, City or Town | Midvale | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84047 | |
City Area Code | 801 | |
Local Phone Number | 947-3100 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | OSTK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,006,587 | |
Entity Central Index Key | 0001130713 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 534,776 | $ 495,425 |
Restricted cash | 1,232 | 1,197 |
Accounts receivable, net of allowance for credit losses of $1,875 and $1,417 as of March 31, 2021 and December 31, 2020, respectively | 38,518 | 22,867 |
Inventories | 6,711 | 6,243 |
Prepaids and other current assets | 23,019 | 22,879 |
Current assets held for sale | 0 | 34,129 |
Total current assets | 604,256 | 582,740 |
Property and equipment, net | 110,804 | 113,767 |
Goodwill | 6,160 | 6,160 |
Operating lease right-of-use assets | 15,450 | 17,297 |
Other long-term assets, net | 3,692 | 4,095 |
Long-term assets held for sale | 153,362 | 106,155 |
Total assets | 893,724 | 830,214 |
Current liabilities: | ||
Accounts payable | 135,383 | 109,759 |
Accrued liabilities | 130,093 | 123,646 |
Unearned revenue | 96,308 | 72,165 |
Operating lease liabilities, current | 4,837 | 5,152 |
Other current liabilities | 3,372 | 2,935 |
Current liabilities held for sale | 0 | 13,924 |
Total current liabilities | 369,993 | 327,581 |
Long-term debt, net | 40,505 | 41,334 |
Operating lease liabilities, non-current | 11,572 | 13,206 |
Other long-term liabilities | 3,680 | 4,082 |
Long-term liabilities held for sale | 19,034 | 7,685 |
Total liabilities | 444,784 | 393,888 |
Stockholders' equity: | ||
Common stock, $0.0001 par value, authorized shares - 100,000 | 4 | 4 |
Additional paid-in capital | 951,615 | 970,873 |
Accumulated deficit | (509,140) | (525,233) |
Accumulated other comprehensive loss | (549) | (553) |
Treasury stock at cost - 3,589 and 3,563 | (78,048) | (71,399) |
Equity attributable to stockholders of Overstock.com, Inc. | 363,882 | 373,692 |
Equity attributable to noncontrolling interests | 85,058 | 62,634 |
Total stockholders' equity | 448,940 | 436,326 |
Total liabilities and stockholders' equity | 893,724 | 830,214 |
Series A-1 Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value, authorized shares - 5,000 | 0 | 0 |
Series B Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value, authorized shares - 5,000 | $ 0 | $ 0 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Allowance for credit losses | $ (1,875) | $ (1,417) |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
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 | 46,589,000 | 46,331,000 |
Common stock, shares outstanding | 43,000,000 | 42,768,000 |
Treasury stock, shares | 3,589,000 | 3,563,000 |
Series A-1 Preferred Stock | ||
Preferred stock, shares issued | 4,204,000 | 4,204,000 |
Preferred stock, shares outstanding | 4,204,000 | 4,204,000 |
Series B Preferred Stock | ||
Preferred stock, shares issued | 357,000 | 357,000 |
Preferred stock, shares outstanding | 357,000 | 357,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net revenue | $ 659,861 | $ 339,598 |
Cost of goods sold | 506,337 | 265,392 |
Gross profit | 153,524 | 74,206 |
Operating expenses | ||
Sales and marketing | 73,538 | 36,345 |
Technology | 30,523 | 27,281 |
General and administrative | 22,871 | 23,885 |
Total operating expenses | 126,932 | 87,511 |
Operating income (loss) | 26,592 | (13,305) |
Interest expense, net | (155) | (11) |
Other expense, net | (226) | (287) |
Income (loss) from continuing operations before income taxes | 26,211 | (13,603) |
Provision for income taxes | 193 | 163 |
Income (loss) from continuing operations | 26,018 | (13,766) |
Loss from discontinued operations, net of tax | (10,126) | (5,799) |
Consolidated net income (loss) | 15,892 | (19,565) |
Less: Net loss attributable to noncontrolling interests from discontinued operations | (201) | (3,232) |
Net income (loss) attributable to stockholders of Overstock.com, Inc. | $ 16,093 | $ (16,333) |
Net income (loss) per share of common stock: | ||
Net income (loss) attributable to common shares—basic | $ 0.34 | $ (0.40) |
Income (Loss) from Continuing Operations, Per Basic Share | 0.57 | (0.34) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | (0.23) | (0.06) |
Net income (loss) attributable to common shares—diluted | 0.33 | (0.40) |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.56 | (0.34) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | $ (0.23) | $ (0.06) |
Weighted average shares of common stock outstanding: | ||
Basic | 42,885 | 40,158 |
Diluted | 43,320 | 40,158 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Consolidated net income (loss) | $ 15,892 | $ (19,565) |
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) | 15,896 | (19,561) |
Less: Comprehensive loss attributable to noncontrolling interests—discontinued operations | (201) | (3,232) |
Comprehensive income (loss) attributable to stockholders of Overstock.com, Inc. | $ 16,097 | $ (16,329) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain on cash flow hedges, tax expense | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Treasury stock | Preferred stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Parent | Noncontrolling interest | Series A-1 Preferred Stock | Series A-1 Preferred StockPreferred stock | Series B Preferred Stock | Series B Preferred StockPreferred stock |
Common stock, beginning balance (in shares) at Dec. 31, 2019 | 42,790,000 | 3,326,000 | |||||||||||
Beginning balance at Dec. 31, 2019 | $ (68,807) | $ 764,845 | $ (580,390) | $ (568) | $ 62,771 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Preferred Stock, Shares, Dividends Declared | 4,085,445 | ||||||||||||
Stock-based compensation to employees and directors | 3,268 | ||||||||||||
Change in noncontrolling interest ownership | 0 | 0 | |||||||||||
Proceeds from Issuance of Common Stock | $ 2,848 | ||||||||||||
Proceeds from Sale of Treasury Stock | 0 | ||||||||||||
Other | (58) | 1,837 | |||||||||||
Adjustments To Additional Paid In Capital, Subsidiary Equity Award Tender Offer | 0 | ||||||||||||
Net income (loss) attributable to stockholders of Overstock.com, Inc. | (16,333) | (16,333) | |||||||||||
Net other comprehensive income | 4 | 4 | |||||||||||
Tax withholding upon vesting of restricted stock | (1,686) | ||||||||||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 0 | ||||||||||||
Net loss attributable to noncontrolling interests | (3,232) | ||||||||||||
Common stock issued upon vesting of restricted stock | 671,000 | ||||||||||||
Common stock sold through offerings | 416,000 | ||||||||||||
Tax withholding upon vesting of restricted stock | 225,000 | ||||||||||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 0 | ||||||||||||
Preferred stock, ending balance (in shares) at Mar. 31, 2020 | 4,210,000 | 357,000 | |||||||||||
Common stock, ending balance (in shares) at Mar. 31, 2020 | 43,877,000 | 3,551,000 | |||||||||||
Ending balance at Mar. 31, 2020 | 161,655 | $ (70,493) | 768,055 | (596,723) | (564) | $ 100,279 | 61,376 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Common stock, $0.0001 par value, authorized shares - 100,000 | $ 4 | ||||||||||||
Total shares of common stock outstanding | 40,326,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 0 | ||||||||||||
Common stock, $0.0001 par value, authorized shares - 100,000 | $ 4 | ||||||||||||
Total shares of common stock outstanding | 42,768,000 | ||||||||||||
Preferred Stock, Value, Issued | $ 0 | $ 0 | |||||||||||
Common stock, beginning balance (in shares) at Dec. 31, 2020 | 46,331,000 | 3,563,000 | |||||||||||
Beginning balance at Dec. 31, 2020 | $ 436,326 | $ (71,399) | 970,873 | (525,233) | (553) | 62,634 | |||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2020 | 4,204,000 | 357,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Stock-based compensation to employees and directors | 2,771 | ||||||||||||
Change in noncontrolling interest ownership | (22,625) | 22,625 | |||||||||||
Proceeds from Issuance of Common Stock | 0 | ||||||||||||
Proceeds from Sale of Treasury Stock | 2,726 | ||||||||||||
Other | 0 | 0 | |||||||||||
Adjustments To Additional Paid In Capital, Subsidiary Equity Award Tender Offer | (2,130) | ||||||||||||
Net income (loss) attributable to stockholders of Overstock.com, Inc. | 16,093 | 16,093 | |||||||||||
Net other comprehensive income | 4 | 4 | |||||||||||
Tax withholding upon vesting of restricted stock | (7,292) | ||||||||||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 643 | ||||||||||||
Net loss attributable to noncontrolling interests | (201) | ||||||||||||
Common stock issued upon vesting of restricted stock | 258,000 | ||||||||||||
Common stock sold through offerings | 0 | ||||||||||||
Tax withholding upon vesting of restricted stock | 73,000 | ||||||||||||
Stock Issued During Period, Shares, Treasury Stock Reissued | (47,000) | ||||||||||||
Preferred stock, ending balance (in shares) at Mar. 31, 2021 | 4,204,000 | 4,204,000 | 357,000 | 357,000 | |||||||||
Common stock, ending balance (in shares) at Mar. 31, 2021 | 46,589,000 | 3,589,000 | |||||||||||
Ending balance at Mar. 31, 2021 | 448,940 | $ (78,048) | $ 951,615 | $ (509,140) | $ (549) | $ 363,882 | $ 85,058 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Common stock, $0.0001 par value, authorized shares - 100,000 | $ 4 | $ 4 | |||||||||||
Total shares of common stock outstanding | 43,000,000 | 43,000,000 | |||||||||||
Preferred Stock, Value, Issued | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Consolidated net income (loss) | $ 15,892 | $ (19,565) |
Loss from discontinued operations, net of tax | (10,126) | (5,799) |
Adjustments to reconcile consolidated net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 5,146 | 5,569 |
Non-cash operating lease cost | 1,320 | 1,431 |
Stock-based compensation to employees and directors | 2,305 | 2,681 |
Other non-cash adjustments | 638 | 429 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (15,651) | (6,902) |
Inventories | (468) | 1,162 |
Prepaids and other current assets | 447 | 1,566 |
Other long-term assets, net | (448) | 457 |
Accounts payable | 25,589 | (1,708) |
Accrued liabilities | 6,693 | (3,663) |
Unearned revenue | 24,143 | 12,903 |
Operating lease liabilities | (1,379) | (1,626) |
Other long-term liabilities | (269) | (180) |
Net cash provided by (used in) continuing operating activities | 74,084 | (1,647) |
Net cash used in discontinued operating activities | (12,353) | (10,580) |
Net cash provided by (used in) operating activities | 61,731 | (12,227) |
Cash flows from investing activities: | ||
Expenditures for property and equipment | (2,395) | (2,638) |
Other investing activities, net | (367) | (99) |
Net cash used in continuing investing activities | (2,762) | (2,737) |
Net cash provided by (used in) discontinued investing activities | 5,737 | (3,262) |
Net cash provided by (used in) investing activities | 2,975 | (5,999) |
Cash flows from financing activities: | ||
Payments on long-term debt | (551) | 0 |
Proceeds from long-term debt | 0 | 47,500 |
Proceeds from sale of common stock, net of offering costs | 0 | 2,848 |
Payments of taxes withheld upon vesting of restricted stock | (7,292) | (1,686) |
Other financing activities, net | (1) | (2,325) |
Net cash provided by (used in) continuing financing activities | (7,844) | 46,337 |
Net cash provided by discontinued financing activities | 2,085 | 912 |
Net cash provided by (used in) financing activities | (5,759) | 47,249 |
Net increase in cash, cash equivalents, and restricted cash | 58,947 | 29,023 |
Cash, cash equivalents, and restricted cash, beginning of period, inclusive of cash balances classified as held for sale | 519,181 | 114,898 |
Cash, cash equivalents, and restricted cash, end of period, inclusive of cash balances classified as held for sale | 578,128 | 143,921 |
Less: Cash, cash equivalents, and restricted cash held for sale | 42,120 | 15,440 |
Cash, cash equivalents, and restricted cash, end of period | $ 536,008 | $ 128,481 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS Overstock.com, Inc. is an online retailer and technology company. Its leading e-commerce website sells a broad range of new home products at low prices, including furniture, décor, area rugs, bedding and bath, home improvement, outdoor, and more. The online shopping site, which receives tens of millions of visits per month, also features a marketplace providing customers access to millions of products from third-party sellers. As used herein, "Overstock," "the Company," "we," "our" and similar terms include Overstock.com, Inc. and its majority-owned subsidiaries, unless the context indicates otherwise. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES 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, 2020. 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, 2020, except as disclosed below. The accompanying unaudited consolidated financial statements 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. The results of operations for the three months ended March 31, 2021 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. On April 23, 2021, we entered into a Limited Partnership Agreement (the "Limited Partnership Agreement") with Medici Ventures, Inc. ("Medici Ventures"), Pelion MV GP, L.L.C. ("Pelion"), and Pelion, Inc., in connection with the closing (the "Medici Closing") of the Transaction Agreement dated January 25, 2021 between the Company, Medici Ventures, Pelion, and Pelion, Inc. (the "Transaction Agreement"). In connection with the execution of the Limited Partnership Agreement, Pelion acquired control over Medici Ventures and its blockchain assets. As a result of this transaction, we performed an assessment of control under the variable interest entity ("VIE") model and determined that effective as of the Medici Closing, we held a variable interest in both Medici Ventures and tZERO Group, Inc. ("tZERO") (collectively, the "Disposal Group"), both of which meet the definition of variable interest entities; however, we are not the primary beneficiary of either entity for purposes of consolidation. The Disposal Group met the criteria to be reported as held for sale and discontinued operations as of March 31, 2021. Therefore, the Disposal Group's assets and liabilities are reported as held for sale and the related operating results of the Disposal Group are reported as discontinued operations for all periods presented herein. The majority of the Disposal Group was previously included in the MVI and tZERO reportable segments, and the remainder was included in Other. Effective as of the first quarter of fiscal year 2021, the Company has one reportable segment: Retail. See Note 13—Business Segments for additional segment information. Unless otherwise specified, disclosures in these consolidated financial statements reflect continuing operations only. Certain prior period data, primarily related to discontinued operations, have been reclassified in the consolidated financial statements and accompanying notes to conform to the current period presentation. See Note 3—Discontinued Operations for further information. Principles of consolidation The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries and other subsidiaries over which we exercise control. All intercompany account balances and transactions have been eliminated in consolidation. 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, vendor incentive discount offers, inventory valuation, depreciable lives and valuation of property and equipment, and internally-developed software, goodwill valuation, intangible asset valuation, equity securities valuation, income taxes, stock-based compensation, performance-based compensation, self-funded health insurance liabilities, and contingencies. Our estimates involving, among other items, forecasted revenues, sales volume, pricing, cost and availability of inventory, consumer demand and spending habits, the continued operations of our supply chain and logistics network, and the overall impact of social distancing on our workforce are even more difficult to estimate as a result of uncertainties associated with the scope and duration of the global novel coronavirus ("COVID-19") pandemic and various actions taken by governmental authorities, private business and other third parties in response to the pandemic, the ultimate geographic spread of the virus, the ongoing economic effect of the pandemic and the post-pandemic economic recovery. Although these estimates are based on our best knowledge of current events and actions that we may undertake in the future, the variability of these factors depends on a number of conditions, including uncertainty associated with the COVID-19 pandemic, how long these conditions will persist, ongoing developments related to the production, approval and distribution of vaccines, what additional measures may be introduced or reintroduced by governments or private parties or what effect any such additional measures may have on our business and thus our accounting 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. Recently adopted accounting standards In December 2019, the FASB issued ASU 2019-12, Income Taxes ("Topic 740") — Simplifying the Accounting for Income Taxes , which removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. We adopted the changes under the new standard on January 1, 2021. The implementation of ASU 2019-12 did not have a material impact on our consolidated financial statements and disclosures. In January 2020, the FASB issued ASU 2020-01, Investments — Equity Securities (Topic 321), Investments — Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 , which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. We adopted the changes under the new standard on January 1, 2021. The implementation of ASU 2020-01 did not have a material impact on our consolidated financial statements and disclosures. In October 2020, the FASB issued ASU 2020-10, Codification Improvements , which amends and provides Codification improvements in order to either clarify the Codification or correct unintended application of guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. We adopted the changes under the new standard on January 1, 2021. The implementation of ASU 2020-10 did not have a material impact on our consolidated financial statements and disclosures. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 3. DISCONTINUED OPERATIONS On January 25, 2021, we entered into the Transaction Agreement with Medici Ventures, Pelion, and Pelion, Inc., pursuant to which the parties agreed, among other things, that: (i) Medici Ventures would convert to a Delaware limited partnership (the "Partnership"), (ii) pursuant to the terms and subject to the conditions of a Limited Partnership Agreement which was entered into on the date of the Medici Closing, Pelion would become the sole general partner of the Partnership, and we (along with any other stockholders of Medici Ventures at the time of the Medici Closing), would become the limited partners of the Partnership, (iii) prior to the Medici Closing, Overstock would convert the outstanding intercompany debt owed to us by Medici Ventures into shares of common stock in Medici Ventures; and (iv) prior to the Medici Closing, Overstock would convert the outstanding intercompany debt owed to us by tZERO into shares of common stock in tZERO, in each case, on the terms and subject to the conditions set forth in the Transaction Agreement and the relevant definitive agreements to be entered into in connection therewith. Pursuant to the terms of the Limited Partnership Agreement, we and any other limited partners subsequently admitted to the Partnership agreed to make a capital commitment of $45 million to the Partnership in proportion to our equity interest in the Partnership in order to fund the Partnership's capital needs. The capital commitments may be called in one or more cash installments as specified by the general partner upon 10 business days' prior written notice. The term of the Partnership is 8 years. The debt conversion outlined in (iii) and (iv) above was completed during the quarter ended March 31, 2021, following which Medici Ventures and Overstock held approximately 42% and 41%, respectively, of tZERO's outstanding common stock. The Medici Closing occurred on April 23, 2021. On April 23, 2021, we also made a $25.0 million capital contribution in fulfillment of a capital call by the general partner. The Transaction Agreement represents a strategic shift for Overstock and a substantive change in the purpose and design of Medici Ventures and its interplay with Overstock’s overall business objectives. The Overstock board of directors has determined that it is in the best interest of Overstock and its shareholders to have the Overstock management team focus on Overstock’s core e-commerce home furnishings business and strategies. Accordingly, after six years of committed effort to advance blockchain technology, Overstock has determined that the Medici Ventures businesses will be better served under the management of Pelion, a professional asset manager with technology expertise with early stage companies. From and after the Medici Closing, Pelion now has sole authority and responsibility regarding investing decisions, appointing board members of the portfolio companies, and exercising all shareholder rights for assets Medici Ventures currently holds. As of March 31, 2021, Medici Ventures holds an 84% ownership in Bitt Inc. (“Bitt”), a 42% ownership in tZERO, and minority equity interests in several blockchain-based companies. Additionally, Overstock holds a 41% direct interest in tZERO as of March 31, 2021. On April 23, 2021, we entered into the Limited Partnership Agreement with Medici Ventures, Pelion, and Pelion, Inc., as part of the Medici Closing, pursuant to which Pelion became the sole general partner, holding a 1% equity interest in the Partnership, and Overstock became a limited partner, holding a 99% equity interest in the Partnership. As a result of this transaction, we performed an assessment of control under the VIE model and determined that upon closing of the transaction, we held a variable interest in both Medici Ventures and tZERO which meet the definition of variable interest entities; however, we are not the primary beneficiary of either entity for purposes of consolidation as we do not have the power (either explicit or implicit), through voting rights or similar rights, to direct the activities of the Partnership or tZERO that most significantly impact its economic performance. Upon closing, our retained equity interest in the Partnership and tZERO were recognized as equity method investments. The Disposal Group met the criteria to be reported as held for sale and discontinued operations as of March 31, 2021. Accordingly, we have classified the assets and liabilities of the Disposal Group as held for sale in our consolidated balance sheets at the lower of carrying amount or fair value less cost to sell. We further classified the held for sale assets and liabilities as long-term in our consolidated balance sheets for the current period as a result of our expected retained equity method investments in the underlying Disposal Group upon closing. Classification for the assets and liabilities in comparative periods retained their previous classification as current or long-term. No losses were recognized upon classification of the Disposal Group's assets and liabilities as held for sale. Depreciation and amortization ceased on assets classified as held for sale. The operating results of the Disposal Group are reported as discontinued operations, for all periods presented, as the disposition reflects a strategic shift that has, or will have, a major effect on our operations and financial results. Results of discontinued operations were as follows (in thousands): Three months ended 2021 2020 Revenue, net $ 15,592 $ 11,975 Cost of goods sold 12,391 10,341 Gross profit 3,201 1,634 Operating expenses Sales and marketing 552 417 Technology 6,556 5,515 General and administrative 10,873 8,541 Total operating expenses 17,981 14,473 Operating loss from discontinued operations (14,780) (12,839) Interest income, net 187 83 Other income, net 4,479 6,970 Loss from discontinued operations before income taxes (10,114) (5,786) Provision for income taxes 12 13 Net loss from discontinued operations $ (10,126) $ (5,799) Less: Net loss attributable to noncontrolling interests from discontinued operations (201) (3,232) Net loss from discontinued operations attributable to stockholders of Overstock.com, Inc. $ (9,925) $ (2,567) Assets and liabilities of discontinued operations were as follows (in thousands): March 31, December 31, Cash and cash equivalents $ — $ 21,075 Restricted cash — 1,484 Accounts receivable, net — 7,258 Other current assets — 4,312 Total current assets held for sale $ — $ 34,129 Cash and cash equivalents $ 40,550 $ — Restricted cash 1,570 — Accounts receivable, net 6,293 — Property and equipment, net 8,670 8,783 Intangible assets, net 10,591 13,852 Goodwill 28,790 28,790 Equity securities 44,696 45,878 Operating lease right-of-use assets 7,716 7,226 Other long-term assets, net 4,486 1,626 Total long-term assets held for sale $ 153,362 $ 106,155 Accounts payable and accrued liabilities $ — $ 11,939 Other current liabilities — 1,985 Total current liabilities held for sale $ — $ 13,924 Accounts payable and accrued liabilities $ 9,704 $ — Operating lease liabilities, non-current 8,607 7,099 Other long-term liabilities 723 586 Total long-term liabilities held for sale $ 19,034 $ 7,685 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Policy [Policy Text Block] | 4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following (in thousands): March 31, December 31, 2020 Computer hardware and software, including internal-use software and website development $ 214,084 $ 213,124 Building 69,245 69,245 Furniture and equipment 11,876 12,165 Land 12,781 12,781 Leasehold improvements 2,712 3,049 Building machinery and equipment 9,793 9,793 Land improvements 7,010 7,010 327,501 327,167 Less: accumulated depreciation (216,697) (213,400) Total property and equipment, net $ 110,804 $ 113,767 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): Three months ended 2021 2020 Capitalized internal-use software and website development $ 1,705 $ 1,938 Depreciation of internal-use software and website development 1,808 2,386 Depreciation expense is classified within the corresponding operating expense categories on our consolidated statements of operations as follows (in thousands): Three months ended 2021 2020 Cost of goods sold $ 154 $ 190 Technology 3,875 3,741 General and administrative 1,094 1,604 Total depreciation $ 5,123 $ 5,535 |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
BORROWINGS | 5. BORROWINGS 2020 loan agreements 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, 2021, the total outstanding debt on these loans was $43.7 million, net of $575,000 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 $3.2 million. Further, Overstock serves as a guarantor under the Senior Note (the "Senior Note Guaranty") and the Mezzanine Note (the "Mezzanine Note Guaranty"). 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. Overstock has agreed under the Senior Note Guaranty to, among other things, maintain, until all of the obligations guaranteed by Overstock under the Senior Note Guaranty have been paid in full, (i) 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 (ii) a net worth in excess of $15 million and minimum liquid assets of $1 million from and after the date the Mezzanine Note has been paid in full. Overstock has also agreed under the Mezzanine Note Guaranty to, among other things, maintain a net worth in excess of $30 million and minimum liquid assets of $3 million until all obligations guaranteed by Overstock under the Mezzanine Note Guaranty have been paid in full. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 6. LEASES We have operating leases for warehouses, office space, and data centers. Our leases have remaining lease terms of 1 year to 6 years, some of which may include options to extend the leases perpetually, and some of which may include options to terminate the leases within 1 year. The components of lease expenses were as follows (in thousands): Three months ended 2021 2020 Operating lease cost $ 2,141 $ 1,758 Short-term lease cost 6 7 Variable lease cost 388 407 The following table provides a summary of other information related to leases (in thousands): Three months ended 2021 2020 Cash payments included in operating cash flows from lease arrangements $ 2,158 $ 1,953 Derecognition of right-of-use assets due to reassessment of lease term 527 — The following table provides supplemental balance sheet information related to leases: March 31, December 31, Weighted-average remaining lease term—operating leases 3.42 years 3.57 years Weighted-average discount rate—operating leases 7 % 7 % Payments due by period Amount 2021 (Remainder) $ 4,407 2022 5,675 2023 4,641 2024 2,776 2025 668 Thereafter 336 Total lease payments 18,503 Less interest 2,094 Present value of lease liabilities $ 16,409 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 7. 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. In September 2009, SpeedTrack, Inc. sued us along with 27 other defendants in the United States District Court in the Northern District of California, alleging that we infringed a patent covering search and categorization software. We believe that certain third-party vendors of products and services sold to us are contractually obligated to indemnify us, and we have tendered defense of the case to an indemnitor who accepted the defense. In April 2016, the court entered an order partially dismissing the claims against us. In May 2016, the plaintiff filed an amended complaint and we filed an answer. In March 2020, the court entered a judgment of non-infringement in our favor and against the plaintiff. In June 2020, the plaintiff filed an appeal to the United States District Court of Appeals for the Federal Circuit. We are currently waiting on a decision from the United States District Court of Appeals for the Federal Circuit. No estimate of the possible loss or range of loss can be made. We intend to vigorously defend this appeal. As previously disclosed, in February 2018, the Division of Enforcement of the SEC informed tZERO and subsequently informed us that it is conducting an investigation and requested that we and tZERO voluntarily provide certain information and documents related to tZERO and the tZERO security token offering in connection with its investigation. In December 2018, we received a follow-up request from the SEC relating to its investigation relating to GSR Capital Ltd., a Cayman Islands exempted company ("GSR"). On October 7, 2019, we received a subpoena from the SEC requesting documents and other information related to the Series A-1 preferred stock dividend to stockholders we announced in June 2019 (the "Dividend") (discussed below in Note 9—Stockholders' Equity) and requesting Rule 10b5-1 plans entered into by certain officers and directors that were in effect during the period of January 1, 2018 through October 7, 2019. In December 2019, we received a subpoena from the SEC requesting documents related to the GSR transaction and the alternative trading system run by tZERO ATS, LLC. We received another subpoena from the SEC in December 2019 requesting our insider trading policies as well as certain employment and consulting agreements. We have also previously received requests from the SEC regarding GSR and our communications with our former Chief Executive Officer and Director, Patrick Byrne, and the matters referenced in the December 2019 subpoenas. In May 2020, we received a subpoena from the SEC requesting additional information related to the ATS. 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 are cooperating with the SEC's investigations, have provided all documents requested in the voluntary requests and the 2019 and 2020 subpoenas, and continue to provide documents requested in the 2021 subpoena. 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), Section 20(A) of 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 the Company 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 and filed a notice of appeal on October 26, 2020. The United States District Court of Utah granted the plaintiffs' motion to amend their complaint on January 6, 2021 and the Tenth Circuit Court dismissed the plaintiffs' appeal on January 8, 2021. We filed a motion to dismiss on February 25, 2021 which has not yet been decided. No estimates of the possible losses or range of losses can be made at this time. We intend 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 the Company 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. 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 that was dismissed, that we over-collected taxes on products sold into the state of Missouri. We filed a motion to dismiss on April 15, 2021 which has not yet been decided. 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, 2021 and December 31, 2020, we have accrued $1.6 million and $1.8 million, respectively, which are included in Accrued liabilities in our consolidated balance sheets. It is reasonably possible that the actual losses may exceed our accrued liabilities. Legal proceedings and contingencies - discontinued operations tZERO's broker-dealer subsidiaries are subject to extensive regulatory requirements under federal and state laws and regulations and self-regulatory organization ("SRO") rules. Each of SpeedRoute LLC ("SpeedRoute"), tZERO Markets, LLC ("tZERO Markets") and tZERO ATS, LLC is registered with the SEC as a broker-dealer under the Securities Exchange Act of 1934 ("Exchange Act") and in the states in which it conducts securities business and is a member of FINRA and other SROs (as applicable). In addition, tZERO ATS, LLC owns and operates an alternative trading system. Each of SpeedRoute, tZERO Markets and tZERO ATS, LLC is subject to regulation, examination, investigation, and disciplinary action by the SEC, FINRA, and state securities regulators, as well as other governmental authorities and SROs with which it is registered or licensed or of which it is a member. Moreover, as a result of tZERO's projects seeking to apply distributed ledger technologies to the capital markets, tZERO's subsidiaries have been, and remain involved in, ongoing oral and written communications with regulatory authorities. As previously disclosed, tZERO's broker-dealer subsidiaries are currently undergoing various examinations, inquiries, and/or investigations undertaken by various regulatory authorities, which may result in financial and other settlements or penalties. tZERO's subsidiary, tZERO Crypto, Inc., is registered as or is applying to become a money transmitter (or its equivalent) in many states and is subject to extensive regulatory requirements applicable to money services businesses, |
INDEMNIFICATIONS AND GUARANTEES
INDEMNIFICATIONS AND GUARANTEES | 3 Months Ended |
Mar. 31, 2021 | |
INDEMNIFICATIONS AND GUARANTEES | |
INDEMNIFICATIONS AND GUARANTEES | 8. 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 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. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 9. 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. On May 19, 2020, we completed the distribution of our announced digital dividend (the "Dividend") payable in shares of our Series A-1 preferred stock. The Dividend was paid out at a ratio of 1:10, so that one share of Series A-1 preferred stock was issued for every ten shares of OSTK common stock, for every ten shares of Series A-1 preferred stock, and for every ten shares of Series B preferred stock held by all holders of such shares as of April 27, 2020, the record date for the Dividend. The number of shares of Series A-1 preferred stock declared as a stock dividend was 4,085,445 as of March 31, 2020 and the number of shares distributed was 4,079,030 on May 19, 2020. Preferred stock Each share of our Series A preferred stock, Series A-1 preferred stock, and our Series B preferred stock (collectively, the "preferred shares"), except as required by law, are intended to have voting and dividend rights similar to those of one share of common stock. Preferred shares rank senior to common stock with respect to dividends. Holders of the preferred shares are entitled to an annual cash dividend of $0.16 per share, in preference to any dividend payment to the holders of the common stock, out of funds of the Company legally available for payment of dividends and subject to declaration by our Board of Directors. Holders of the preferred shares are also entitled to participate in any cash dividends we pay to the holders of the common stock and are also entitled to participate in non-cash dividends we pay to holders of the common stock, subject to potentially different treatment if we effect a stock dividend, stock split, or combination of the common stock. There are no arrearages in cumulative preferred dividends. We declared and paid a cash dividend of $0.16 per share to the holders of our preferred stock during 2019 and 2020. Neither the Series A-1 preferred stock nor Series B preferred stock is required to be converted into or exchanged for shares of our common stock or any other entity; however, at our sole discretion, we may convert the Series A-1 preferred stock into Series B preferred stock at any time on a one-to-one basis. In the event of any liquidation, any amount available for distribution to stockholders after payment of all liabilities will be distributed proportionately, with each share of Series A-1 preferred stock and each share of Series B preferred stock being treated as though it were a share of our common stock. If we are party to any merger or consolidation in which our common stock is changed into or exchanged for stock or other securities of any other person (or the Company) or cash or any other property (or a right to receive the foregoing), we will use all commercially reasonable efforts to cause each outstanding share of the preferred stock to be treated as if such share were an additional outstanding share of common stock in connection with any such transaction. Neither the Series A-1 preferred stock nor the Series B preferred stock is registered under the Exchange Act. JonesTrading Sales Agreement We entered into an Amended and Restated Capital on Demand TM Sales agreement dated June 26, 2020 with JonesTrading Institutional Services LLC ("JonesTrading") and D.A. Davidson & Co. ("D.A. Davidson"), under which we may conduct "at the market" sales of our common stock. Under the sales agreement, JonesTrading and D.A. Davidson, acting as our agents, may offer our common stock in the market on a daily basis or otherwise as we request from time to time. We have no obligation to sell additional shares under the sales agreement, but we may do so from time to time. For the three months ended March 31, 2021, we did not sell any shares of our common stock pursuant to the sales agreement. For the three months ended March 31, 2020, we received $2.8 million of proceeds that was included in Accounts receivable, net on our consolidated balance sheet at December 31, 2019 for the sale of an aggregate of 415,904 shares of our common stock under the prior iteration of the agreement that were executed in late December 2019. As of March 31, 2021, we had $150.0 million available under our "at the market" sales program. |
STOCK-BASED AWARDS
STOCK-BASED AWARDS | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED AWARDS | 10. STOCK-BASED AWARDS We have equity incentive plans that provide for the grant to employees and board members of stock-based awards, including restricted stock. Employee accounting applies to awards granted by the Company to its own employees. Stock-based compensation expense is classified within the corresponding operating expense categories on our consolidated statements of operations as follows (in thousands): Three months ended 2021 2020 Cost of goods sold $ 11 $ 53 Sales and marketing 257 389 Technology 657 758 General and administrative 1,380 1,481 Total stock-based compensation $ 2,305 $ 2,681 When an award is forfeited prior to the vesting date, we recognize an adjustment for the previously recognized expense in the period of the forfeiture. Overstock restricted stock awards The Overstock.com, Inc. Amended and Restated 2005 Equity Incentive Plan (the "Plan") provides for the grant of incentive stock options to employees and directors of the Company, as well as restricted stock units 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 cost of restricted stock units is determined using the fair value of our common stock on the date of the grant and compensation expense is either recognized on a straight-line basis over the vesting schedule or on an accelerated schedule when vesting of restricted stock awards exceeds a straight-line basis. The cumulative amount of compensation expense recognized at any point in time is at least equal to the portion of the grant date fair value of the award that is vested at that date. The following table summarizes restricted stock award activity during the three months ended March 31, 2021 (in thousands, except per share data): Three months ended Units Weighted Outstanding—beginning of year 639 $ 17.98 Granted at fair value 297 87.92 Vested (258) 25.57 Forfeited (22) 28.90 Outstanding—end of period 656 $ 46.32 |
REVENUE AND CONTRACT LIABILITY
REVENUE AND CONTRACT LIABILITY | 3 Months Ended |
Mar. 31, 2021 | |
REVENUE AND CONTRACT LIABILITY [Abstract] | |
Revenue [Policy Text Block] | 11. 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): Amount Unearned revenue at December 31, 2019 $ 41,116 Increase due to deferral of revenue at period end 66,070 Decrease due to beginning contract liabilities recognized as revenue (35,021) Unearned revenue at December 31, 2020 72,165 Increase due to deferral of revenue at period end 80,146 Decrease due to beginning contract liabilities recognized as revenue (56,003) Unearned revenue at March 31, 2021 $ 96,308 Our total unearned revenue related to outstanding Club O Reward dollars was $9.1 million and $8.6 million at March 31, 2021 and December 31, 2020, 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 $1.4 million and $905,000 for the three months ended March 31, 2021 and 2020. 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 (in thousands), which is included in our Accrued liabilities balance in our consolidated balance sheets: Amount Allowance for returns at December 31, 2019 $ 11,106 Additions to the allowance 204,810 Deductions from the allowance (196,726) Allowance for returns at December 31, 2020 19,190 Additions to the allowance 58,106 Deductions from the allowance (54,737) Allowance for returns at March 31, 2021 $ 22,559 |
NET INCOME LOSS PER SHARE
NET INCOME LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | 12. NET INCOME (LOSS) PER SHARE Our Series A preferred stock, Series A-1 preferred stock, and Series B preferred stock (collectively, the "preferred shares") are considered participating securities, and as a result, net income (loss) per share is calculated using the two-class method. Under this method, we give effect to preferred dividends and then allocate remaining net income (loss) attributable to our stockholders to both common shares and participating securities (based on the percentages outstanding) in determining net income (loss) per common share. Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common shares (after allocating between common shares and participating securities) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common shares (after allocating between common shares and participating securities) by the weighted average number of common and potential common shares outstanding during the period (after allocating total dilutive shares between our common shares outstanding and our preferred shares outstanding). Potential common shares, comprising incremental common shares issuable upon the exercise of stock options, warrants, and restricted stock awards are included in the calculation of diluted net income (loss) per common share to the extent such shares are dilutive. Net income (loss) attributable to common shares is adjusted for options and restricted stock awards issued by our subsidiaries when the effect of our subsidiary's diluted earnings per share is dilutive. 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): Three months ended 2021 2020 Numerator: Income (loss) from continuing operations $ 26,018 $ (13,766) Less: Preferred stock dividends—declared and accumulated 182 19 Undistributed income (loss) from continuing operations 25,836 (13,785) Less: Undistributed income (loss) allocated to participating securities 1,529 (194) Net income (loss) from continuing operations attributable to common stockholders $ 24,307 $ (13,591) Loss from discontinued operations $ (9,925) $ (2,567) Net income (loss) attributable to common stockholders $ 14,382 $ (16,158) Denominator: Weighted average shares of common stock outstanding—basic 42,885 40,158 Effect of dilutive securities: Restricted stock awards 435 — Weighted average shares of common stock outstanding—diluted 43,320 40,158 Net income (loss) from continuing operations per share of common stock: Basic $ 0.57 $ (0.34) Diluted $ 0.56 $ (0.34) Net loss from discontinued operations per share of common stock: Basic $ (0.23) $ (0.06) Diluted $ (0.23) $ (0.06) Net income (loss) per share of common stock: Basic $ 0.34 $ (0.40) Diluted $ 0.33 $ (0.40) The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands): Three months ended 2021 2020 Restricted stock units 284 737 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 13. BUSINESS SEGMENTS Segment information has been prepared in accordance with ASC Topic 280 Segment Reporting . We determined our segments based on how we manage our business. We use income (loss) before income taxes as the measure to determine our reportable segments. As a result of the transactions discussed in Note 3—Discontinued Operations, our tZERO and MVI reportable segments became a part of the Disposal Group. Additionally, all corporate support costs (administrative functions such as finance, human resources, and legal) are now only allocated to our remaining reportable segment, Retail and are reported to our Chief Executive Officer (the chief operating decision maker) as one reportable segment. Our sole reportable segment, Retail, primarily consists of amounts earned through e-commerce product sales through our Website and the results of that segment are shown on our consolidated statements of operations as continuing operations. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020. 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, 2020, except as disclosed below. The accompanying unaudited consolidated financial statements 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. The results of operations for the three months ended March 31, 2021 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. On April 23, 2021, we entered into a Limited Partnership Agreement (the "Limited Partnership Agreement") with Medici Ventures, Inc. ("Medici Ventures"), Pelion MV GP, L.L.C. ("Pelion"), and Pelion, Inc., in connection with the closing (the "Medici Closing") of the Transaction Agreement dated January 25, 2021 between the Company, Medici Ventures, Pelion, and Pelion, Inc. (the "Transaction Agreement"). In connection with the execution of the Limited Partnership Agreement, Pelion acquired control over Medici Ventures and its blockchain assets. As a result of this transaction, we performed an assessment of control under the variable interest entity ("VIE") model and determined that effective as of the Medici Closing, we held a variable interest in both Medici Ventures and tZERO Group, Inc. ("tZERO") (collectively, the "Disposal Group"), both of which meet the definition of variable interest entities; however, we are not the primary beneficiary of either entity for purposes of consolidation. The Disposal Group met the criteria to be reported as held for sale and discontinued operations as of March 31, 2021. Therefore, the Disposal Group's assets and liabilities are reported as held for sale and the related operating results of the Disposal Group are reported as discontinued operations for all periods presented herein. The majority of the Disposal Group was previously included in the MVI and tZERO reportable segments, and the remainder was included in Other. Effective as of the first quarter of fiscal year 2021, the Company has one reportable segment: Retail. See Note 13—Business Segments for additional segment information. Unless otherwise specified, disclosures in these consolidated financial statements reflect continuing operations only. Certain prior period data, primarily related to discontinued operations, have been reclassified in the consolidated financial statements and accompanying notes to conform to the current period presentation. See Note 3—Discontinued Operations for further information. |
Principles of consolidation | Principles of consolidation |
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, vendor incentive discount offers, inventory valuation, depreciable lives and valuation of property and equipment, and internally-developed software, goodwill valuation, intangible asset valuation, equity securities valuation, income taxes, stock-based compensation, performance-based compensation, self-funded health insurance liabilities, and contingencies. Our estimates involving, among other items, forecasted revenues, sales volume, pricing, cost and availability of inventory, consumer demand and spending habits, the continued operations of our supply chain and logistics network, and the overall impact of social distancing on our workforce are even more difficult to estimate as a result of uncertainties associated with the scope and duration of the global novel coronavirus ("COVID-19") pandemic and various actions taken by governmental authorities, private business and other third parties in response to the pandemic, the ultimate geographic spread of the virus, the ongoing economic effect of the pandemic and the post-pandemic economic recovery. Although these estimates are based on our best knowledge of current events and actions that we may undertake in the future, the variability of these factors depends on a number of conditions, including uncertainty associated with the COVID-19 pandemic, how long these conditions will persist, ongoing developments related to the production, approval and distribution of vaccines, what additional measures may be introduced or reintroduced by governments or private parties or what effect any such additional measures may have on our business and thus our accounting 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. |
Recently adopted and issued accounting standards | Recently adopted accounting standards In December 2019, the FASB issued ASU 2019-12, Income Taxes ("Topic 740") — Simplifying the Accounting for Income Taxes , which removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. We adopted the changes under the new standard on January 1, 2021. The implementation of ASU 2019-12 did not have a material impact on our consolidated financial statements and disclosures. In January 2020, the FASB issued ASU 2020-01, Investments — Equity Securities (Topic 321), Investments — Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 , which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. We adopted the changes under the new standard on January 1, 2021. The implementation of ASU 2020-01 did not have a material impact on our consolidated financial statements and disclosures. In October 2020, the FASB issued ASU 2020-10, Codification Improvements , which amends and provides Codification improvements in order to either clarify the Codification or correct unintended application of guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. We adopted the changes under the new standard on January 1, 2021. The implementation of ASU 2020-10 did not have a material impact on our consolidated financial statements and disclosures. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Results of discontinued operations were as follows (in thousands): Three months ended 2021 2020 Revenue, net $ 15,592 $ 11,975 Cost of goods sold 12,391 10,341 Gross profit 3,201 1,634 Operating expenses Sales and marketing 552 417 Technology 6,556 5,515 General and administrative 10,873 8,541 Total operating expenses 17,981 14,473 Operating loss from discontinued operations (14,780) (12,839) Interest income, net 187 83 Other income, net 4,479 6,970 Loss from discontinued operations before income taxes (10,114) (5,786) Provision for income taxes 12 13 Net loss from discontinued operations $ (10,126) $ (5,799) Less: Net loss attributable to noncontrolling interests from discontinued operations (201) (3,232) Net loss from discontinued operations attributable to stockholders of Overstock.com, Inc. $ (9,925) $ (2,567) Assets and liabilities of discontinued operations were as follows (in thousands): March 31, December 31, Cash and cash equivalents $ — $ 21,075 Restricted cash — 1,484 Accounts receivable, net — 7,258 Other current assets — 4,312 Total current assets held for sale $ — $ 34,129 Cash and cash equivalents $ 40,550 $ — Restricted cash 1,570 — Accounts receivable, net 6,293 — Property and equipment, net 8,670 8,783 Intangible assets, net 10,591 13,852 Goodwill 28,790 28,790 Equity securities 44,696 45,878 Operating lease right-of-use assets 7,716 7,226 Other long-term assets, net 4,486 1,626 Total long-term assets held for sale $ 153,362 $ 106,155 Accounts payable and accrued liabilities $ — $ 11,939 Other current liabilities — 1,985 Total current liabilities held for sale $ — $ 13,924 Accounts payable and accrued liabilities $ 9,704 $ — Operating lease liabilities, non-current 8,607 7,099 Other long-term liabilities 723 586 Total long-term liabilities held for sale $ 19,034 $ 7,685 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, net consist of the following (in thousands): March 31, December 31, 2020 Computer hardware and software, including internal-use software and website development $ 214,084 $ 213,124 Building 69,245 69,245 Furniture and equipment 11,876 12,165 Land 12,781 12,781 Leasehold improvements 2,712 3,049 Building machinery and equipment 9,793 9,793 Land improvements 7,010 7,010 327,501 327,167 Less: accumulated depreciation (216,697) (213,400) Total property and equipment, net $ 110,804 $ 113,767 |
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): Three months ended 2021 2020 Capitalized internal-use software and website development $ 1,705 $ 1,938 Depreciation of internal-use software and website development 1,808 2,386 |
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): Three months ended 2021 2020 Cost of goods sold $ 154 $ 190 Technology 3,875 3,741 General and administrative 1,094 1,604 Total depreciation $ 5,123 $ 5,535 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Costs and Other Operating Lease Information | The components of lease expenses were as follows (in thousands): Three months ended 2021 2020 Operating lease cost $ 2,141 $ 1,758 Short-term lease cost 6 7 Variable lease cost 388 407 |
Other Lease Information | The following table provides a summary of other information related to leases (in thousands): Three months ended 2021 2020 Cash payments included in operating cash flows from lease arrangements $ 2,158 $ 1,953 Derecognition of right-of-use assets due to reassessment of lease term 527 — |
Leases, Additional Financial Information | The following table provides supplemental balance sheet information related to leases: March 31, December 31, Weighted-average remaining lease term—operating leases 3.42 years 3.57 years Weighted-average discount rate—operating leases 7 % 7 % |
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, 2021, are as follows (in thousands): Payments due by period Amount 2021 (Remainder) $ 4,407 2022 5,675 2023 4,641 2024 2,776 2025 668 Thereafter 336 Total lease payments 18,503 Less interest 2,094 Present value of lease liabilities $ 16,409 |
STOCK-BASED AWARDS (Tables)
STOCK-BASED AWARDS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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): Three months ended 2021 2020 Cost of goods sold $ 11 $ 53 Sales and marketing 257 389 Technology 657 758 General and administrative 1,380 1,481 Total stock-based compensation $ 2,305 $ 2,681 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following table summarizes restricted stock award activity during the three months ended March 31, 2021 (in thousands, except per share data): Three months ended Units Weighted Outstanding—beginning of year 639 $ 17.98 Granted at fair value 297 87.92 Vested (258) 25.57 Forfeited (22) 28.90 Outstanding—end of period 656 $ 46.32 |
REVENUE AND CONTRACT LIABILITY
REVENUE AND CONTRACT LIABILITY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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): Amount Unearned revenue at December 31, 2019 $ 41,116 Increase due to deferral of revenue at period end 66,070 Decrease due to beginning contract liabilities recognized as revenue (35,021) Unearned revenue at December 31, 2020 72,165 Increase due to deferral of revenue at period end 80,146 Decrease due to beginning contract liabilities recognized as revenue (56,003) Unearned revenue at March 31, 2021 $ 96,308 |
Schedule of Sales Returns, Reserve For Sales Returns [Table Text Block] | The following table provides additions to and deductions from the sales returns allowance (in thousands), which is included in our Accrued liabilities balance in our consolidated balance sheets: Amount Allowance for returns at December 31, 2019 $ 11,106 Additions to the allowance 204,810 Deductions from the allowance (196,726) Allowance for returns at December 31, 2020 19,190 Additions to the allowance 58,106 Deductions from the allowance (54,737) Allowance for returns at March 31, 2021 $ 22,559 |
NET INCOME LOSS PER SHARE (Tabl
NET INCOME LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 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): Three months ended 2021 2020 Numerator: Income (loss) from continuing operations $ 26,018 $ (13,766) Less: Preferred stock dividends—declared and accumulated 182 19 Undistributed income (loss) from continuing operations 25,836 (13,785) Less: Undistributed income (loss) allocated to participating securities 1,529 (194) Net income (loss) from continuing operations attributable to common stockholders $ 24,307 $ (13,591) Loss from discontinued operations $ (9,925) $ (2,567) Net income (loss) attributable to common stockholders $ 14,382 $ (16,158) Denominator: Weighted average shares of common stock outstanding—basic 42,885 40,158 Effect of dilutive securities: Restricted stock awards 435 — Weighted average shares of common stock outstanding—diluted 43,320 40,158 Net income (loss) from continuing operations per share of common stock: Basic $ 0.57 $ (0.34) Diluted $ 0.56 $ (0.34) Net loss from discontinued operations per share of common stock: Basic $ (0.23) $ (0.06) Diluted $ (0.23) $ (0.06) Net income (loss) per share of common stock: Basic $ 0.34 $ (0.40) Diluted $ 0.33 $ (0.40) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands): Three months ended 2021 2020 Restricted stock units 284 737 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Thousands | Apr. 23, 2021 | Mar. 31, 2021 | Jan. 25, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Equity Method Investment, Capital Commitments Required | $ 45,000 | ||
Subsequent Event | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Equity Method Investment, Capital Contribution | $ 25,000 | ||
Pelion MV GP, LLC | Medici Ventures, L.P. | Subsequent Event | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 1.00% | ||
Overstock.com, Inc. | tZero.com, Inc. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 41.00% | ||
Noncontrolling Interest, Ownership Percentage by Parent | 41.00% | ||
Overstock.com, Inc. | Medici Ventures, L.P. | Subsequent Event | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 99.00% | ||
Medici Ventures | tZero.com, Inc. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 42.00% | ||
Noncontrolling Interest, Ownership Percentage by Parent | 42.00% | ||
Medici Ventures | Bitt Inc. [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 84.00% | ||
Medici Ventures, L.P. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Partnership Term | 8 years |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedule of Discontiued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net loss from discontinued operations | $ (10,126) | $ (5,799) | |
Less: Net loss attributable to noncontrolling interests from discontinued operations | (201) | (3,232) | |
Cash and cash equivalents | 0 | $ 21,075 | |
Restricted cash | 0 | 1,484 | |
Accounts receivable, net | 0 | 7,258 | |
Other current assets | 0 | 4,312 | |
Total current assets held for sale | 0 | 34,129 | |
Cash and cash equivalents | 40,550 | 0 | |
Restricted cash | 1,570 | 0 | |
Accounts receivable, net | 6,293 | 0 | |
Property and equipment, net | 8,670 | 8,783 | |
Intangible assets, net | 10,591 | 13,852 | |
Goodwill | 28,790 | 28,790 | |
Equity securities | 44,696 | 45,878 | |
Operating lease right-of-use assets | 7,716 | 7,226 | |
Other long-term assets, net | 4,486 | 1,626 | |
Total long-term assets held for sale | 153,362 | 106,155 | |
Accounts payable and accrued liabilities | 0 | 11,939 | |
Other current liabilities | 0 | 1,985 | |
Total current liabilities held for sale | 0 | 13,924 | |
Accounts payable and accrued liabilities | 9,704 | 0 | |
Operating lease liabilities, non-current | 8,607 | 7,099 | |
Other long-term liabilities | 723 | 586 | |
Total long-term liabilities held for sale | 19,034 | $ 7,685 | |
Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue, net | 15,592 | 11,975 | |
Cost of goods sold | 12,391 | 10,341 | |
Gross profit | 3,201 | 1,634 | |
Sales and marketing | 552 | 417 | |
Technology | 6,556 | 5,515 | |
General and administrative | 10,873 | 8,541 | |
Total operating expenses | 17,981 | 14,473 | |
Operating loss from discontinued operations | (14,780) | (12,839) | |
Interest income, net | 187 | 83 | |
Other income, net | 4,479 | 6,970 | |
Loss from discontinued operations before income taxes | (10,114) | (5,786) | |
Provision for income taxes | 12 | 13 | |
Net loss from discontinued operations | (10,126) | (5,799) | |
Less: Net loss attributable to noncontrolling interests from discontinued operations | (201) | (3,232) | |
Net loss from discontinued operations attributable to stockholders of Overstock.com, Inc. | $ (9,925) | $ (2,567) |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 5,123 | $ 5,535 | |
Property, Plant and Equipment, Gross | 327,501 | $ 327,167 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (216,697) | (213,400) | |
Property, Plant and Equipment, Net | 110,804 | 113,767 | |
Cost of goods sold | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 154 | 190 | |
Technology | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 3,875 | 3,741 | |
General and administrative | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 1,094 | 1,604 | |
Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized Computer Software, Additions | 1,705 | 1,938 | |
Capitalized Computer Software, Amortization | 1,808 | $ 2,386 | |
Computer hardware and software, including internal-use software and website development | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 214,084 | 213,124 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 69,245 | 69,245 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 11,876 | 12,165 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 12,781 | 12,781 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 2,712 | 3,049 | |
Building machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 9,793 | 9,793 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 7,010 | $ 7,010 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Mar. 06, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 40,505 | $ 41,334 | |
Debt Issuance Costs, Net | 575 | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Minimum Net Worth Required for Compliance | 15,000 | ||
Minimum Liquid Assets | 1,000 | ||
Minimum Net Worth Required for Mezzanine Note Duration | 30,000 | ||
Minimum Liquid Assets Compliance for Duration of Mezzanine Note | 3,000 | ||
Mezzanine Note [Member] | |||
Debt Instrument [Line Items] | |||
Minimum Net Worth Required for Compliance | 30,000 | ||
Minimum Liquid Assets | 3,000 | ||
Loan Core Capital Funding Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Senior & Mezzanine Note Total Outstanding | 43,700 | ||
Other Liabilities, Current | $ 3,200 | ||
Loan Core Capital Funding Corporation [Member] | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 34,500 | ||
Annual interest rate | 4.242% | ||
Long-term Debt, Term | 10 years | ||
Loan Core Capital Funding Corporation [Member] | Mezzanine Note [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 13,000 | ||
Annual interest rate | 5.002% | ||
Long-term Debt, Term | 10 years | ||
Long-term Debt, Principal and Interest Only Payments | 46 months | ||
Loan Core Capital Funding Corporation [Member] | Senior and Mezzanine Blended Rate [Member] | |||
Debt Instrument [Line Items] | |||
Annual interest rate | 4.45% |
LEASES - Additional Information
LEASES - Additional Information (Details) | Mar. 31, 2021 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 6 years |
LEASES - Components of Lease Co
LEASES - Components of Lease Cost and Other Operating Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 2,141 | $ 1,758 | |
Short-term lease cost | 6 | 7 | |
Variable lease cost | 388 | 407 | |
Cash payments included in operating cash flows from lease arrangements | 2,158 | 1,953 | |
Derecognition of Right-of-Use Assets | $ 527 | $ 0 | |
Weighted-average remaining lease term—operating leases | 3 years 5 months 1 day | 3 years 6 months 25 days | |
Weighted-average discount rate—operating leases | 7.00% | 7.00% |
LEASES - Operating Lease Maturi
LEASES - Operating Lease Maturities and Future Minimum Payments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Operating Leases After Adoption of 842 | |
2021 (Remainder) | $ 4,407 |
2022 | 5,675 |
2023 | 4,641 |
2024 | 2,776 |
2025 | 668 |
Thereafter | 336 |
Total lease payments | 18,503 |
Less interest | 2,094 |
Present value of lease liabilities | $ 16,409 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Thousands | Sep. 23, 2009 | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Loss contingency, legal proceedings | |||
Accrued liabilities for contingencies | $ 1,600 | $ 1,800 | |
Speed Track Inc [Member] | |||
Loss contingency, legal proceedings | |||
Loss Contingency, Number of Defendants | 27 |
STOCKHOLDERS' EQUITY - Preferre
STOCKHOLDERS' EQUITY - Preferred Stock (Details) | May 19, 2020shares | Mar. 31, 2021vote$ / sharesshares | Mar. 31, 2020shares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / shares |
Class of Stock [Line Items] | |||||
Preferred Stock, Number of Votes | vote | 1 | ||||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ / shares | $ 0.16 | ||||
Dividend paid (in usd per share) | $ / shares | $ 0.16 | $ 0.16 | |||
Series A-1 Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares outstanding | 4,204,000 | 4,204,000 | |||
Preferred Stock Dividends, Shares | 4,085,445 | ||||
Preferred Stock Dividends, Shares | 4,079,030 | ||||
Number of convertible preferred shares upon conversion (in shares) | 1 | ||||
Preferred stock | Series A-1 Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares outstanding | 4,204,000 | 4,210,000 |
STOCKHOLDERS' EQUITY - JonesTra
STOCKHOLDERS' EQUITY - JonesTrading Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2021 | |
Class of Stock [Line Items] | ||
Noncash Or Part Noncash Acquisition, Proceeds From Sale Of Common Stock Included In Accounts Receivable | $ 2,800 | |
Common Stock, Aggregate Offering Price | $ 150,000 | |
At-The-Market Agreement [Member] | JonesTrading Institutional Services LLC [Member] | ||
Class of Stock [Line Items] | ||
Sale of Stock, Number of Shares Issued in Transaction | 415,904 |
STOCK-BASED AWARDS - Stock-base
STOCK-BASED AWARDS - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | $ 2,305 | $ 2,681 |
Cost of Sales [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | 11 | 53 |
Selling and Marketing Expense [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | 257 | 389 |
Technology [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | 657 | 758 |
General and Administrative Expense [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based Payment Arrangement, Expense | $ 1,380 | $ 1,481 |
STOCK-BASED AWARDS - Additional
STOCK-BASED AWARDS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Weighted Average Grant Date Fair Value | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares issued | 46,589,000 | 46,331,000 | |
Stock-based compensation expense | $ 2,305 | $ 2,681 | |
Restricted Stock Awards | |||
Units | |||
Outstanding-beginning of year (in shares) | 639,000 | ||
Granted at fair value (in shares) | 297,000 | ||
Vested (in shares) | (258,000) | ||
Forfeited (in shares) | (22,000) | ||
Outstanding-end of period (in shares) | 656,000 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding-beginning of year (in dollars per share) | $ 17.98 | ||
Granted at fair value (in dollars per share) | 87.92 | ||
Vested (in dollars per share) | 25.57 | ||
Forfeited (in dollars per share) | 28.90 | ||
Outstanding-end of period (in dollars per share) | $ 46.32 | ||
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% |
REVENUE AND CONTRACT LIABILIT_2
REVENUE AND CONTRACT LIABILITY Unearned Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Contract with Customer, Liability | $ 96,308 | $ 72,165 | $ 41,116 |
Increase (Decrease) in Contract with Customer, Liability | 80,146 | 66,070 | |
Contract with Customer, Liability, Revenue Recognized | $ (56,003) | $ (35,021) |
REVENUE AND CONTRACT LIABILIT_3
REVENUE AND CONTRACT LIABILITY Club O Reward Unearned Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue, Current | $ 96,308 | $ 72,165 | |
Gift Card and Club O Rewards Breakage | 1,400 | $ 905 | |
Club O Reward Points [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue, Current | $ 9,100 | $ 8,600 |
REVENUE AND CONTRACT LIABILIT_4
REVENUE AND CONTRACT LIABILITY Sales Return Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sales returns allowance [Abstract] | |||
Sales Return, Reserve for Sales Returns, Current | $ 22,559 | $ 19,190 | $ 11,106 |
Sales Returns, Additions To Reserve For Sales Returns | 58,106 | 204,810 | |
Deductions From Sales Returns, Current | $ (54,737) | $ (196,726) |
NET INCOME LOSS PER SHARE (Deta
NET INCOME LOSS PER SHARE (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 284 | 737 |
NET INCOME LOSS PER SHARE Incom
NET INCOME LOSS PER SHARE Income & Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | ||
Net Income (Loss) Attributable to Parent | $ 16,093 | $ (16,333) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 26,018 | (13,766) |
Preferred Stock Dividends, Income Statement Impact | 182 | 19 |
Net Income (Loss) Available To Common Stockholders, Before Undistributed Earnings (Loss) Allocated To Participating Securities, Basic | 25,836 | (13,785) |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 1,529 | (194) |
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic | 24,307 | (13,591) |
Net Income (Loss) from Discontinued Operations Available to Common Shareholders, Basic | (9,925) | (2,567) |
Net Income (Loss) Available to Common Stockholders, Basic | $ 14,382 | $ (16,158) |
Weighted Average Number of Shares Outstanding, Basic | 42,885 | 40,158 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 435 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 43,320 | 40,158 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.57 | $ (0.34) |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.56 | (0.34) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | (0.23) | (0.06) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | (0.23) | (0.06) |
Earnings Per Share, Basic | 0.34 | (0.40) |
Earnings Per Share, Diluted | $ 0.33 | $ (0.40) |