Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2023 | |
Document And Entity Information | ||
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2023 | |
Document Annual Report | true | |
Document Transition Report | false | |
Entity Registrant Name | eXp World Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-38493 | |
Entity Tax Identification Number | 98-0681092 | |
Entity Address, Address Line One | 2219 Rimland Drive, Suite 301 | |
Entity Address, City or Town | Bellingham | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98226 | |
City Area Code | 360 | |
Local Phone Number | 685-4206 | |
Title of 12(b) Security | Common Stock, par value $0.00001 per share | |
Trading Symbol | EXPI | |
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 | 154,669,037 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001495932 | |
Amendment Flag | false | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Entity Public Float | $ 1.3 | |
ICFR Auditor Attestation Flag | true | |
Auditor Name | Deloitte & Touche LLP | |
Auditor Firm ID | 34 | |
Auditor Location | San Francisco, California | |
Document Financial Statement Error Correction [Flag] | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 126,864 | $ 121,594 |
Restricted cash | 44,020 | 37,789 |
Accounts receivable, net of allowance for credit losses of $2,303 and $4,014, respectively | 85,969 | 87,262 |
Prepaids and other assets | 9,622 | 8,468 |
TOTAL CURRENT ASSETS | 266,475 | 255,113 |
Property, plant, and equipment, net | 12,978 | 18,151 |
Operating lease right-of-use assets | 10 | 2,127 |
Other noncurrent assets | 7,400 | 1,703 |
Intangible assets, net | 10,481 | 8,700 |
Deferred tax assets | 71,342 | 68,676 |
Goodwill | 16,982 | 27,212 |
TOTAL ASSETS | 385,668 | 381,682 |
CURRENT LIABILITIES | ||
Accounts payable | 8,898 | 10,391 |
Customer deposits | 44,550 | 37,789 |
Accrued expenses | 88,182 | 78,944 |
Current portion of lease obligation - operating lease | 10 | 175 |
TOTAL CURRENT LIABILITIES | 141,640 | 127,299 |
Long-term payable | 20 | 4,697 |
Long-term lease obligation - operating lease, net of current portion | 694 | |
TOTAL LIABILITIES | 141,660 | 132,690 |
EQUITY | ||
Common Stock, $0.00001 par value 900,000,000 shares authorized; 183,606,708 issued and 154,669,037 outstanding at December 31, 2023; 171,656,030 issued and 152,839,239 outstanding at December 31, 2022 | 2 | 2 |
Additional paid-in capital | 804,833 | 611,872 |
Treasury stock, at cost: 28,937,671 and 18,816,791 shares held, respectively | (545,559) | (385,010) |
Accumulated earnings | (16,769) | 20,723 |
Accumulated other comprehensive income | 332 | 236 |
Total eXp World Holdings, Inc. stockholders' equity | 242,839 | 247,823 |
Equity attributable to noncontrolling interest | 1,169 | 1,169 |
TOTAL EQUITY | 244,008 | 248,992 |
TOTAL LIABILITIES AND EQUITY | $ 385,668 | $ 381,682 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for credit losses and bad debt | $ 2,303 | $ 4,014 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 183,606,708 | 171,656,030 |
Common stock, shares outstanding | 154,669,037 | 152,839,239 |
Treasury stock, shares | 28,937,671 | 18,816,791 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||
Revenues | $ 4,281,105 | $ 4,598,161 | $ 3,771,170 |
Operating expenses | |||
Commissions and other agent-related costs | 3,957,054 | 4,231,262 | 3,475,139 |
General and administrative expenses | 319,153 | 346,132 | 249,699 |
Sales and marketing expenses | 12,156 | 15,359 | 12,180 |
Impairment expense | 9,203 | ||
Total operating expenses | 4,297,566 | 4,592,753 | 3,737,018 |
Operating (loss) income | (16,461) | 5,408 | 34,152 |
Other (income) expense | |||
Other (income) expense, net | (4,414) | (804) | 292 |
Equity in losses of unconsolidated affiliates | 1,388 | 1,624 | 188 |
Total other (income) expense, net | (3,026) | 820 | 480 |
Income (loss) before income tax expense | (13,435) | 4,588 | 33,672 |
Income tax (benefit) expense | (4,462) | (10,836) | (47,487) |
Net (loss) income | (8,973) | 15,424 | 81,159 |
Net (loss) income attributable to noncontrolling interest | 18 | 61 | |
Net (loss) income attributable to eXp World Holdings, Inc. | $ (8,973) | $ 15,442 | $ 81,220 |
(Loss) earnings per share - Basic | $ (0.06) | $ 0.10 | $ 0.56 |
(Loss) earnings per share - Diluted | $ (0.06) | $ 0.10 | $ 0.51 |
Weighted average shares outstanding - Basic | 153,232,129 | 151,036,110 | 146,170,871 |
Weighted average shares outstanding - Diluted | 153,232,129 | 156,220,165 | 157,729,374 |
Comprehensive (loss) income: | |||
Net (loss) income attributable to eXp World Holdings, Inc. | $ (8,973) | $ 15,424 | $ 81,159 |
Comprehensive loss attributable to noncontrolling interests | 18 | 61 | |
Net (loss) income attributable to eXp World Holdings, Inc. | (8,973) | 15,442 | 81,220 |
Other comprehensive (loss) income: | |||
Foreign currency translation gain (loss), net of tax | 96 | 48 | (59) |
Comprehensive (loss) income attributable to eXp World Holdings, Inc. | $ (8,877) | $ 15,490 | $ 81,161 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated earnings (deficit) | Accumulated other comprehensive income (loss) | Noncontrolling Interest | Total |
Beginning of period at Dec. 31, 2020 | $ 1 | $ (37,994) | $ 218,492 | $ (39,162) | $ 247 | $ 1,003 | |
Repurchase of common stock | (172,015) | ||||||
Net (loss) income attributable to eXp World Holdings, Inc. | 81,220 | (61) | $ 81,159 | ||||
Dividends declared and paid | (11,548) | ||||||
Shares issued for stock options exercised | 3,620 | ||||||
Agent growth incentive stock compensation | 21,828 | ||||||
Stock option compensation | 13,102 | 403 | |||||
Agent equity stock compensation | 144,437 | ||||||
Foreign currency translation gain (loss) | (59) | (59) | |||||
Transactions with noncontrolling interests | 19 | ||||||
Ending of period at Dec. 31, 2021 | 1 | (210,009) | 401,479 | 30,510 | 188 | 1,364 | 223,533 |
Repurchase of common stock | (179,473) | ||||||
Issuance of treasury stock | 4,472 | ||||||
Net (loss) income attributable to eXp World Holdings, Inc. | 15,442 | (18) | 15,424 | ||||
Dividends declared and paid | (25,229) | ||||||
Shares issued for stock options exercised | 612 | ||||||
Agent growth incentive stock compensation | 31,235 | ||||||
Stock option compensation | 14,442 | ||||||
Agent equity stock compensation | 1 | 164,104 | |||||
Foreign currency translation gain (loss) | 48 | 48 | |||||
Transactions with noncontrolling interests | (177) | ||||||
Ending of period at Dec. 31, 2022 | 2 | (385,010) | 611,872 | 20,723 | 236 | 1,169 | 248,992 |
Repurchase of common stock | (160,549) | ||||||
Net (loss) income attributable to eXp World Holdings, Inc. | (8,973) | (8,973) | |||||
Dividends declared and paid | (28,519) | ||||||
Shares issued for stock options exercised | 4,980 | ||||||
Agent growth incentive stock compensation | 41,995 | ||||||
Stock option compensation | 10,760 | ||||||
Agent equity stock compensation | 135,226 | ||||||
Foreign currency translation gain (loss) | 96 | 96 | |||||
Ending of period at Dec. 31, 2023 | $ 2 | $ (545,559) | $ 804,833 | $ (16,769) | $ 332 | $ 1,169 | $ 244,008 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||||
Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.05 | $ 0.05 | $ 0.045 | $ 0.045 | $ 0.04 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||
Net (loss) income | $ (8,973) | $ 15,424 | $ 81,159 |
Reconciliation of net income to net cash provided by operating activities: | |||
Depreciation expense | 8,352 | 7,934 | 4,974 |
Amortization expense - intangible assets | 2,540 | 1,904 | 1,274 |
Amortization expense - long-term payable | 94 | ||
Impairment expense | 9,203 | ||
Loss on disposition of business | 472 | 361 | |
Allowance for credit losses on receivables/bad debt on receivables | (1,711) | 1,816 | 319 |
Equity in loss of unconsolidated affiliates | 1,388 | 1,624 | 188 |
Agent growth incentive stock compensation expense | 43,178 | 30,861 | 24,493 |
Stock option compensation | 10,736 | 14,442 | 13,102 |
Agent equity stock compensation expense | 135,226 | 164,104 | 144,437 |
Deferred income taxes, net | (2,666) | (15,848) | (52,827) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,474 | 44,935 | (56,857) |
Prepaids and other assets | (1,263) | 1,652 | (2,623) |
Customer deposits | 6,761 | (30,998) | 39,892 |
Accounts payable | (1,491) | 2,432 | 3,173 |
Accrued expenses | 8,424 | (32,239) | 46,673 |
Long term payable | (4,677) | 1,983 | 828 |
Other operating activities | 158 | 148 | (1,407) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 209,131 | 210,535 | 246,892 |
INVESTING ACTIVITIES | |||
Purchases of property, plant, equipment | (5,363) | (12,051) | (13,423) |
Proceeds from sale of business | 330 | ||
Acquisition of businesses, net of cash acquired | (9,910) | (2,500) | |
Investments in unconsolidated affiliates | (5,876) | (500) | (3,000) |
Capitalized software development costs in intangible assets | (2,594) | ||
NET CASH USED IN INVESTING ACTIVITIES | (13,503) | (22,461) | (18,923) |
FINANCING ACTIVITIES | |||
Repurchase of common stock | (160,550) | (179,473) | (172,015) |
Proceeds from exercise of options | 4,980 | 612 | 3,620 |
Transactions with noncontrolling interests | (424) | 19 | |
Dividends declared and paid | (28,519) | (25,229) | (11,548) |
NET CASH USED IN FINANCING ACTIVITIES | (184,089) | (204,514) | (179,924) |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | (38) | (87) | (59) |
Net change in cash, cash equivalents and restricted cash | 11,501 | (16,527) | 47,986 |
Cash, cash equivalents and restricted cash, beginning balance | 159,383 | 175,910 | 127,924 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE | 170,884 | 159,383 | 175,910 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | |||
Cash paid for income taxes | 2,731 | $ 3,406 | 1,331 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Termination of lease obligation - operating lease | 859 | 375 | |
Issuance of treasury stock, for acquisition | 4,554 | ||
Lease liabilities arising from obtaining right-of-use assets | 2,370 | ||
Contingent consideration for disposition of business | 1,209 | ||
Property, plant and equipment increase due to transfer of right-of-use lease asset. | 1,100 | ||
Property, plant and equipment purchases in accounts payable | $ 63 | $ 63 | $ 174 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2023 | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION eXp World Holdings, Inc. (collectively with its subsidiaries, the “Company” or “eXp”) was incorporated in the State of Delaware on July 30, 2008. eXp owns and operates a diversified portfolio of service-based businesses whose operations benefit substantially from utilizing our enabling technology platform. Specifically, we operate a cloud-based real estate brokerage (in North America and other international locations), a Virbela business and related affiliated services that support the development and success of agents, entrepreneurs and businesses by leveraging innovative technologies and integrated services. Our North American and international real estate brokerage is now one of the largest and fastest-growing real estate brokerage companies, operating throughout the United States, most of the Canadian provinces, the U.K., Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland and Dubai. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and are expressed in U.S. dollars. The Company’s fiscal year end is December 31. We report operating results through four reportable segments: North American Realty, International Realty, Virbela and Other Affiliated Services, as further discussed in Note 10 – Segment Information to the consolidated financial statements included elsewhere in this Annual Report. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The accompanying consolidated financial statements include the accounts of eXp World Holdings, Inc., its wholly-owned subsidiaries and entities in which we have a variable interest of which we are the primary beneficiary. If the Company has a variable interest in an entity but it is not the primary beneficiary of the entity or exercises control over the operations and has less than 50% ownership, it will use the equity or cost method of accounting for investments. Entities in which the Company has less than a 20% investment and where the Company does not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. Variable interest entities (“VIEs”) A company is deemed to be the primary beneficiary of a VIE and must consolidate the entity if the company has both: (i) the power to direct a VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Joint ventures A joint venture is a contractual arrangement whereby the Company and other parties undertake an economic activity through a jointly controlled entity. Joint control exists when strategic, financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. Joint ventures are accounted for using the equity method and are recognized initially at cost. Joint ventures are typically included in the Other Affiliated Services unless the joint venture specifically supports one of the reportable segments. The Company has several joint venture investments. As of December 31, 2023, the operations of these joint ventures are not material to the Company’s financial position or results of operations. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for credit losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Reclassifications When necessary, the Company will reclassify certain amounts in prior period financial statements to conform to the current period’s presentation. In 2023, the Company reclassified certain amounts in the reconciliation of the provision for income taxes and deferred tax assets in Note 12 – Income Taxes . These reclassifications had no effect on the provision for tax or deferred tax assets that were previously reported. No other reclassifications occurred during the current period. Cash and cash equivalents Cash and cash equivalents include cash on hand, money market instruments and all other highly liquid investments purchased with an original or remaining maturity of three months or less at the date of acquisition. Restricted cash Restricted cash consists of cash held in escrow by the Company’s brokers and agents on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Once the cash is transferred from escrow, the Company reduces the respective customers’ deposit liability. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet that sum to the total of the same amounts shown on the statement of cash flows. December 31, 2023 December 31, 2022 Cash and cash equivalents $ 126,864 $ 121,594 Restricted cash 44,020 37,789 Total cash, cash equivalents, and restricted cash, ending balance $ 170,884 $ 159,383 Fair value measurements The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Input Level Definitions Level 1 Inputs are quoted market prices in active markets for identical assets or liabilities (these are observable market inputs). Level 2 Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability (includes quoted market prices for similar assets or identical or similar assets in markets in which there are few transactions, prices that are not current or prices that vary substantially). Level 3 Inputs are unobservable inputs that reflect the entity's own assumptions in pricing the asset or liability (used when little or no market data is available). The Company holds funds in a money market account. The Company values its money market funds at fair value on a recurring basis. Accounts receivable and allowance for expected credit losses The Company is exposed to credit losses primarily through trade and other financing receivables arising from revenue transactions. The Company uses the aging schedule method to estimate current expected credit losses (“CECL”) based on days of delinquency, including information about past events and current economic conditions. The Company’s accounts receivable is separated into three categories to evaluate an allowance under the CECL impairment model. The three categories include agent non-commission based fees, agent short-term advances and commissions receivable for real estate property settlements. The Company increases the allowance for expected credits losses when the Company determines all or a portion of a receivable is uncollectable. The Company recognizes recoveries as a decrease to the allowance for expected credit losses. In 2023, the Company has decreased its allowances for expected credit losses, for real estate transactions, due to a decrease of the aging receivable balances, as a result of improvement in accounts receivable management. As of December 31, 2023 and 2022, receivables from real estate property settlements totaled $81,004 and $79,135 , respectively, of which the Company recognized expected credit losses of $- and $3,127 as of December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022 agent non-commission based fees receivable and short-term advances totaled $7,268 and $12,141 , respectively of which the Company recognized expected credit losses of $2,303 and $887 , respectively. Foreign currency translation The Company’s functional and reporting currency is the United States dollar and the functional currency of the Company’s foreign subsidiaries is the local currency of their country of domicile. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the consolidated statements of operations in other (income) expense, net. The Company does not employ a hedging strategy to manage the impact of foreign currency fluctuations. Fixed assets Fixed assets are stated at historical cost and are depreciated on the straight-line method over the estimated useful lives. Useful lives are: Computer hardware and software: 3 to 5 years Furniture, fixtures and equipment: 5 to 7 years Maintenance and repairs are expensed as incurred. Expenditures that substantially increase an asset’s useful life or improve an asset’s functionality are capitalized. The Company capitalizes the costs associated with developing its internal-use cloud-based residential real-estate transaction system. Capitalized costs are primarily related to costs incurred in relation to internally created software during the application development stage including costs for upgrades and enhancements that result in additional functionality. Leases Leases are agreements, or terms within agreements, that convey the right to control the use of and receive substantially all of the economic benefit from an identified asset for a period of time in exchange for consideration. The Company currently only possesses office space leases . Right-of-use assets The Company recognizes right-of-use (“ROU”) assets at the commencement date of the lease. ROU assets are measured at cost, less accumulated depreciation and impairment losses and are adjusted concurrently with the remeasurement of corresponding lease liabilities resulting from a change in future lease payments or a change in the assessment of whether any purchase, extension, or termination options will be exercised. The cost of ROU assets includes the amount of lease liabilities recognized, initial direct costs incurred and lease payments made at or before the commencement date less any lease incentives received, if any. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the ROU assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Lease liabilities At the commencement date of a lease, the Company recognizes a lease liability measured at the present value of the lease payments to be made over the lease term. Variable lease payments are recognized as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the implicit interest rate in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced by the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Company applies the short-term lease recognition exemption to leases that have a lease term of 12 months or less from the commencement date and which do not contain a purchase option. The Company does not capitalize leases with a present value of below its minimum capitalization threshold as it would not materially affect the Company’s financial position or results of operations. Lease payments on short-term leases and low-value leases are recognized as expenses on a straight-line basis over the lease term. Goodwill Goodwill represents the excess of the consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. The Company evaluates goodwill for impairment on an annual basis in the fiscal fourth quarter or on an interim basis if an event occurs or circumstances change that would more likely than not indicate that the fair value of the reporting unit is less than its carrying amount. Generally, this evaluation begins with a qualitative assessment to determine if the fair value of the reporting unit is more likely than not less than its carrying value. The test for impairment requires management to make judgments relating to future cash flows, growth rates and economic and market conditions. In addition to the annual impairment evaluation, the Company evaluates at least quarterly whether events or circumstances have occurred in the period subsequent to the annual impairment testing which indicate that it is more likely than not an impairment loss has occurred. The Company recognized goodwill impairment of $8,248 for the year ended December 31, 2023 related to Virbela. The Company did no t recognize any impairment of goodwill for the years ended December 31, 2022 and 2021. Intangible assets The Company’s intangible assets are finite lived and consist primarily of trade name, technology and customer relationships. Each intangible asset is amortized on a straight-line basis over its useful life, ranging from 3 to 10 years . The Company evaluates its intangible assets for recoverability and potential impairment, or as events or changes in circumstances indicate the carrying value may be impaired. The Company recognized impairment related to the trade name and customer relationships of $955 for the year ended December 31, 2023, related to Virbela. The Company did no t recognize any impairment of intangible assets for the years ended December 31, 2022 and 2021. Software development costs The Company capitalizes software development costs related to products to be sold, leased, or marketed to external users and internal-use software. Business combinations The Company accounts for business combinations using the acquisition method of accounting, under which the consideration for the acquisition is allocated to the assets acquired and liabilities assumed. The Company recognizes identifiable assets acquired and liabilities assumed at the acquisition date fair values as determined by management as of the acquisition date. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates and market factors. These assumptions and estimates include projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates and other market factors. If current expectations of future growth rates are not met or market factors outside of the Company’s control change significantly, then goodwill or intangible assets may become impaired. Additionally, as goodwill and intangible assets associated with recently acquired businesses are recorded on the balance sheet at their estimated acquisition date fair values, those amounts are more susceptible to impairment risk if business operating results or macroeconomic conditions deteriorate. Acquisition-related costs, such as due diligence, legal and accounting fees, are expensed as incurred and not considered in determining the fair value of the acquired assets. Impairment of long-lived assets The Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. When assets are considered impaired, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Stock-based compensation Our stock-based compensation is comprised of employee equity incentives, agent growth incentive programs, agent equity program and stock option awards. Stock-based compensation is more fully disclosed in Note 9 – Stockholders’ Equity to the consolidated financial statements included elsewhere in this Annual Report. The Company accounts for stock-based compensation granted to employees and non-employees using a fair value method. Stock-based compensation awards are measured at the grant date fair value and are recognized over the requisite service period of the awards, usually the vesting period, on a straight-line basis, net of forfeitures. The Company reduces stock-based compensation for forfeitures when they occur. Recognition of compensation cost for an award with a performance condition is based on the probable outcome of that performance condition being met. Revenue recognition The Company generates substantially all of its revenue from North American Realty and International Realty segments and generates a de minimis portion of its revenues from software subscription (Virbela segment) and professional services. The Company does not have contracts with customers that provide variable consideration. North American Realty and International Realty The Company serves as a licensed broker in the areas in which it operates for the purpose of processing residential real estate transactions. The Company is contractually obligated to provide services for the fulfillment of transfers of residential real estate between buyers and sellers. The Company provides these services itself and controls the services necessary to legally transfer residential real estate. Correspondingly, the Company is defined as the principal. The Company, as principal, satisfies its obligation upon the closing of a residential real estate transaction. As principal and upon satisfaction of the performance obligation, the Company recognizes revenue in the gross amount of consideration to which the Company expects to be entitled. The Company estimates and accrues revenue to which it is entitled to for closed transactions but has yet to receive all the necessary closing documents. The accrual for estimated revenue was immaterial for the years ended December 31, 2023 and 2022. Revenue is derived from assisting homebuyers and sellers in listing, marketing, selling and finding residential real estate. Commissions earned on real estate transactions are recognized at the completion of a residential real estate transaction once the Company has satisfied the performance obligation. Agent-related fees charged by the Company are recorded as a reduction to commissions and other agent-related costs. Software Subscription and Professional Services Subscription revenue is derived from fees from customers to access the Company’s virtual reality software platform. The terms of subscriptions do not provide customers the right to take possession of the software. Subscription revenue is generally recognized ratably over the contract term. Professional services revenue is derived from implementation and consulting services. Professional services revenue is typically recognized over time as the services are rendered, using an efforts-expended (labor hours) input method. Disaggregated revenue The Company primarily operates as a real estate brokerage firm and discloses disaggregated revenue from services to customers across its four reportable segments to provide additional insight into the future recognition of revenue and cash flows. The vast majority of the Company’s revenue is derived from providing real estate brokerage services, to purchasers and sellers of homes in the U.S., Canada and internationally. See Note 10 – Segment Information to the consolidated financial statements included elsewhere in this Annual Report for details regarding segment and geographic information. Management provides disaggregation of revenue from its services to customers to provide additional insight into the future recognition of revenue and cash flows. Sustainable Revenue Share Plan expenses The Company’s costs incurred under the Revenue Share Plan are included as commissions and other agent-related costs in the consolidated statements of comprehensive income. Advertising and marketing costs Advertising and marketing costs are generally expensed in the period incurred. Advertising and marketing expenses are included in the sales and marketing expense line item on the accompanying consolidated statements of comprehensive income. For the years ended December 31, 2023, 2022 and 2021, the Company incurred advertising and marketing expenses of $12,156 , $15,359 and $12,180 , respectively. Income taxes The Company records income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are recorded based on the estimated future tax effects of differences between the financial statement and income tax basis of existing assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. The Company recognizes the effect on deferred income taxes of a change in tax rates in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions on the basis of a two-step process whereby: (i) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. Comprehensive (loss) income The Company’s only components of comprehensive (loss) income are net (loss) income and foreign currency translation adjustments. Earnings per share Basic earnings (loss) per share is computed by dividing the net (loss) income for the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing net (loss) income for the period by the weighted average number of shares of common stock outstanding plus, if potentially dilutive common shares outstanding during the period. The Company has paid dividends in 2023, 2022 and 2021. The Company does not have participating shares outstanding. Accounting pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting standards that have been issued that might have a material impact on its financial position and results of operations. In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 – Segment Reporting (Topic 280) (“ASU 2023-07”). ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosure about significant segment expenses. The amendments in this update require, among other things, that a public company disclose on an annual and interim basis significant segment expense, as well as other segment expenses, that are regularly provided to the CODM. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, early adoption is permitted. The Company is currently evaluating the effect the amendments in ASU 2023-07 will have on its segment disclosures. In December 2023, the FASB issued ASU 2023-09 – Income Taxes (Topic 740) (“ASU 2023-09”). ASU 2023-09 improves reporting for income taxes, primarily by requiring disclosure of specific categories in the tax rate reconciliation and providing additional annual information for reconciling items that meet a quantitative threshold. The amendments in ASU 2023-09 also require additional annual information regarding income taxes paid, as well as other additional disclosures. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, early adoption is permitted. The Company is currently evaluating the effect the amendments in ASU 2023-09 will have on its tax disclosures. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2023 | |
ACQUISITIONS | |
ACQUISITIONS | 3. ACQUISITIONS The Company did not complete any acquisitions during the year ended December 31, 2023. On July 1, 2022, the Company acquired Zoocasa Realty Inc. in a stock purchase transaction. The total consideration paid was $17,155 including net cash of $9,910 (net of cash acquired of $2,772 ), stock issued from treasury of $4,554 and a working capital adjustment. The Zoocasa acquisition has been accounted for using the acquisition method of accounting. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 4. FAIR VALUE MEASUREMENT The Company holds funds in a money market account, which are considered Level 1 assets. The Company values its money market funds at fair value on a recurring basis. As of December 31, 2023 and 2022, the fair value of the Company’s money market funds was $46,268 and $44,062 , respectively. There have been no transfers between Level 1, Level 2 and Level 3 in the periods presented. The Company did not have any Level 2 or Level 3 financial assets or liabilities in the periods presented. |
PREPAIDS AND OTHER ASSETS
PREPAIDS AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
PREPAIDS AND OTHER ASSETS | |
PREPAIDS AND OTHER ASSETS | 5. PREPAIDS AND OTHER ASSETS Prepaids and other assets consisted of the following: December 31, 2023 December 31, 2022 Prepaid expenses $ 5,726 $ 5,580 Prepaid insurance 2,471 2,293 Rent deposits - 15 Other assets (includes inventory) 1,425 580 Total prepaid expenses $ 9,622 $ 8,468 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
PLANT, PROPERTY AND EQUIPMENT, NET | |
PLANT, PROPERTY AND EQUIPMENT, NET | 6. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: December 31, 2023 December 31, 2022 Computer hardware and software $ 37,444 $ 34,206 Furniture, fixture, and equipment 2,254 20 Total depreciable property and equipment 39,698 34,226 Less: accumulated depreciation (27,733) (19,282) Depreciable property, net 11,965 14,944 Assets under development 1,013 3,207 Property, plant, and equipment, net $ 12,978 $ 18,151 For the years ended December 31, 2023, 2022 and 2021, depreciation expense was $8,352 , $7,934 and $4,974 , respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 7. GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill were: December 31, 2023 December 31, 2022 Goodwill $ 27,212 $ 12,945 Acquisitions - 14,156 Impairments (8,248) - Disposition (2,310) - Currency translation impact 328 111 Total goodwill $ 16,982 $ 27,212 During the fourth quarter of 2023, as part of the Company’s annual goodwill impairment assessment, the Company determined that the goodwill associated with Virbela, the Company’s technology segment was impaired. During the impairment evaluation, the Company determined that the projection for future cash flows associated with Virbela had declined significantly resulting from the post-COVID 19 work environment of return to the office and hybrid work initiatives globally, as well as the increase in the demand for artificial intelligence solutions. The Company determined the estimated fair value of Virbela using the market approach, which measures value based on what other purchasers in the market have paid for assets or business interests that can be considered reasonably similar to Virbela. Based on that approach, the estimated fair value was significantly lower than the book value of Virbela and the goodwill associated with Virbela was impaired. The Company recognized an impairment charge of $8,248 for the year ended December 31, 2023. During 2023, the Company disposed of its Showcase Web Sites LLC business, which resulted in a reduction of goodwill of $2,310 , this business was included in the North American Realty segment. Goodwill was recorded in connection with the acquisition of Zoocasa in July 2022 and represents fair value as of the acquisition date. The acquisition was accounted for using the acquisition method of accounting. Under the acquisition method of accounting, the Company allocated the total purchase price to the tangible and identifiable intangible assets acquired and assumed liabilities based on their estimated fair values as of the acquisition date, as determined by management. The excess of the purchase price over the aggregate fair values of the identifiable assets was recorded as goodwill. The Company has a risk of future impairment to the extent that individual reporting unit performance does not meet projections. Additionally, if current assumptions and estimates, including projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates and other market factors, are not met, or if valuation factors outside of the Company’s control change unfavorably, the estimated fair value of goodwill could be adversely affected, leading to a potential impairment in the future. Definite-lived intangible assets were as follows: December 31, 2023 December 31, 2022 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Amount Amortization Impairment Amount Amount Amortization Amount Trade name $ 3,257 ($ 1,030) $ (585) $ 1,642 $ 3,459 ($ 841) $ 2,618 Existing technology 9,410 (3,800) - 5,610 3,995 (2,458) 1,537 Non-competition agreements 468 (125) - 343 461 (125) 336 Customer relationships 1,655 (652) (370) 633 1,895 (551) 1,344 Licensing agreement 210 (210) - 0 210 (181) 29 Intellectual property 2,836 (583) - 2,253 2,836 - 2,836 Total intangible assets $ 17,836 ($ 6,400) ($ 955) $ 10,481 $ 12,856 ($ 4,156) $ 8,700 For the years ended December 31, 2023, 2022 and 2021, amortization expense for definite-lived intangible assets was $2,540 , $1,904 and $1,274 , respectively. As part of the Company’s annual assessment, the Company also reviews the useful lives of its amortizable intangible assets and determines if there should be any change to the amortization period. For the amortizable assets related to the Virbela segment, the Company determined that the trade name and the customer relationships that were recognized as part of the acquisition, should be fully amortized as of December 31, 2023. This assessment was made based on the future negative operating cash flows and the decline in the estimated fair value of Virbela. As a result, the Company recognized an impairment loss related the net book value of the trade name of $585 and customer relationships $370 . As of December 31, 2023, expected amortization related to definite-lived intangible assets will be: Expected amortization 2024 $ 2,702 2025 2,299 2026 1,275 2027 608 2028 and thereafter 3,597 Total $ 10,481 8. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES | |
ACCRUED EXPENSES | 8. ACCRUED EXPENSES Accrued expenses consisted of the following: December 31, 2023 December 31, 2022 Commissions payable $ 60,010 $ 56,786 Payroll payable 8,866 6,236 Taxes payable 1,225 2,124 Stock liability awards 4,999 3,885 Other accrued expenses 13,082 9,913 $ 88,182 $ 78,944 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 9. STOCKHOLDERS’ EQUITY Common Stock – As of December 31, 2023, our restated certificate of incorporation authorized us to issue 900,000,000 shares of common stock with a par value of $0.00001 per share. The following table represents a reconciliation of the Company’s issued common stock shares for the periods presented: Year Ended December 31, 2023 2022 2021 Common stock: Balance, beginning of year 171,656,030 155,516,284 146,677,786 Shares issued for stock options exercised 832,993 2,105,237 3,155,170 Agent growth incentive stock compensation 2,219,881 2,571,569 2,037,942 Agent equity stock compensation 8,897,804 11,462,940 3,645,386 Balance, end of year 183,606,708 171,656,030 155,516,284 The Company’s stockholder approved equity programs described below are administered under the 2015 Equity Incentive Plan. The purpose of the equity plan is to retain the services of valued employees, directors, officers, agents and consultants and to incentivize such persons to make contributions to the Company and motivate excellent performance. Agent Equity Program The Company provides agents and brokers the opportunity to elect to receive 5% of commissions earned from each completed residential real estate transaction in the form of common stock (the “Agent Equity Program” or “AEP”) at a 10% discount recognized by the Company. If agents and brokers elect to receive portions of their commissions in common stock, they are entitled to receive the equivalent number of shares of common stock, based on the fixed monetary value of the commission payable. For the years ended December 31, 2023, 2022 and 2021, the Company issued 8,897,804 , 11,462,940 and 3,645,386 shares of common stock, respectively, to agents and brokers for $135,226 , $164,104 and $144,437 , respectively, net of discount. Agent Growth Incentive Program The Company administers an equity incentive program whereby agents and brokers become eligible to receive awards of the Company’s common stock through agent attraction and performance benchmarks (the “Agent Growth Incentive Program” or “AGIP”). The incentive program encourages greater performance and awards agents with common stock based on achievement of performance milestones. Awards typically vest after performance benchmarks are reached and three years of subsequent service is provided to the Company. Share-based performance awards are based on a fixed-dollar amount of shares based on the achievement of performance metrics. As such, the awards are classified as liabilities until the number of share awards becomes fixed once the performance metric is achieved. For the years ended December 31, 2023, 2022 and 2021, the Company’s stock compensation attributable to the AGIP was $43,178 , $30,861 and $24,493 , respectively. The total amount of stock compensation attributable to liability classified awards was $3,832 , $2,056 and $4,977 for the years ended December 31, 2023, 2022 and 2021, respectively. The following table illustrates changes in the Company’s stock compensation liability for the periods presented: Amount Stock grant liability balance at December 31, 2021 $ 4,341 Stock grant liability increase year to date 2,056 Stock grants reclassified from liability to equity year to date (2,512) Balance, December 31, 2022 $ 3,885 Stock grant liability increase year to date 3,832 Stock grants reclassified from liability to equity year to date (2,717) Balance, December 31, 2023 $ 5,000 As of December 31, 2023, the Company had 6,706,280 unvested common stock awards and unrecognized compensation costs totaling $65,989 attributable to stock awards where the performance metric has been achieved and the number of shares awarded are fixed. The cost is expected to be recognized over a weighted average period of 1.92 years. The following table illustrates the Company’s stock activity for the Agent Growth Incentive Program for stock awards where the performance metric has been achieved for the following periods: Weighted Average Grant Date Shares Fair Value Balance, December 31, 2021 5,174,654 $ 13.92 Granted 3,829,990 15.29 Vested and issued (2,542,696) 6.28 Forfeited (762,951) 18.80 Balance, December 31, 2022 5,698,997 $ 17.68 Granted 4,642,035 15.04 Vested and issued (2,219,881) 11.73 Forfeited (1,245,862) 17.35 Balance, December 31, 2023 6,875,289 $17.80 Agent Thrive Program Announced in October 2023, the Thrive program provides a stock incentive to the individual team leaders of teams of culturally aligned teams that join the Company as part of the program. After affiliating with the Company, the team leader becomes eligible to receive an award of the Company’s common stock through team performance benchmarks. Awards typically vest after production benchmarks are reached and three years of subsequent service is provided to the Company. Share-based performance awards are based on a fixed-dollar amount of shares based on the achievement of production metrics. As such, the awards are classified as liabilities until the number of share awards becomes fixed once the production metric is achieved. Stock Option Awards Stock options are granted to directors, officers, certain employees and consultants with an exercise price equal to the fair market value of common stock on the grant date and the stock options expire 10 years from the date of grant. These options have time-based restrictions with equal and periodically graded vesting over a three-year period. The fair value of the options issued was calculated using a Black-Scholes-Merton option-pricing model with the following assumptions: 2023 2022 2021 Expected term 5 - 6 years 5 - 6 years 5 - 6 years Expected volatility 73.64% - 76.78% 72.84% - 76.49% 68.85% - 86.33% Risk-free interest rate 3.28% - 4.86% 1.49% - 4.10% 0.44% - 1.33% Dividend yield 0.72% - 1.64% 0.53% - 1.48% 0.00% - 0.00% The following table illustrates the Company’s stock option activity for the following periods: Weighted Average Weighted Remaining Average Contractual Term Options Exercise Price Intrinsic Value (Years) Balance December 31, 2021 7,038,660 $ 8.70 $ 25.45 6.26 Granted 1,234,847 19.25 - 9.37 Exercised (2,083,016) 0.68 18.10 — Forfeited (415,969) 13.68 8.74 — Balance at December 31, 2022 5,774,522 $ 13.56 $ 2.21 7.63 Granted 2,468,299 14.81 - 8.46 Exercised (832,993) 5.90 14.97 — Forfeited (1,198,706) 17.77 2.27 — Expired (12,578) 35.54 0.29 — Balance at December 31, 2023 6,198,544 $ 14.23 $ 3.62 7.29 Exercisable at December 31, 2023 3,623,819 $ 12.30 $ 5.31 6.11 Vested at December 31, 2023 3,623,819 $ 12.30 $ 5.31 6.11 Weighted Average Options Exercise Price Range of stock option exercise prices at December 31, 2023: $0.01 - $10.00 (average remaining life - 6.12 years) 2,573,627 $ 8.18 $10.01 - $30.00 (average remaining life - 8.20 years) 3,315,284 $ 16.59 $30.01 - $60.00 (average remaining life - 7.42 years) 309,633 $ 39.29 The grant date fair value of options to purchase common stock is recorded as stock-based compensation over the vesting period. As of December 31, 2023, unrecognized compensation cost associated with the Company’s outstanding stock options was $22,897 , which is expected to be recognized over a weighted-average period of approximately 1.32 years. Stock Repurchase Program In December 2018, the Company’s Board of Directors (the “Board”) approved a stock repurchase program authorizing the Company to purchase up to $25.0 million of its common stock, which was later amended in November 2019 increasing the authorized repurchase amount to $75.0 million. In December 2020, the Board approved another amendment to the repurchase plan, increasing the total amount authorized to be purchased from $75.0 million to $400.0 million. In May 2022, the Board approved an increase to the total amount of its buyback program from $400.0 million to $500.0 million. In June 2023, the Board approved an increase to the total amount of its buyback program from $500.0 million to $1.0 billion. Purchases under the repurchase program may be made in the open market or through a 10b5-1 plan and are expected to comply with Rule 10b-18 under the Exchange Act, as amended. The timing and number of shares repurchased depends upon market conditions. The repurchase program does not require the Company to acquire a specific number of shares. The cost of the shares that are repurchased is funded from cash and cash equivalents on hand. 10b5-1 Repurchase Plan The Company maintains an internal stock repurchase program with program changes subject to Board consent. From time to time, the Company adopts written trading plans pursuant to Rule 10b5-1 of the Exchange Act to conduct repurchases on the open market. On January 10, 2022, the Company and Stephens Inc. entered into a form of Issuer Repurchase Plan (“Issuer Repurchase Plan”) which authorized Stephens to repurchase up to $10.0 million of its common stock per month. On May 3, 2022, the Board approved a form of first amendment to the Issuer Repurchase Plan to increase monthly repurchases from $10.0 million of its common stock per month up to $20.0 million, which amendment was signed May 6, 2022. On September 27, 2022, the Board approved and the Company entered into, a form of second amendment to the Issuer Repurchase Plan, to decrease the monthly repurchases from $20.0 million of its common stock per month to $13.3 million, in anticipation of volume decreases in connection with the contraction in the real estate market. On December 27, 2022, the Board approved and the Company entered into, a form of third amendment to the Issuer Repurchase Plan, to decrease the monthly repurchases from $13.3 million of its common stock per month to $10.0 million, in connection with ongoing contractions in the real estate market. On May 10, 2023, the Board approved and, on May 11, 2023, the Company entered into, a form of fourth amendment to the Issuer Repurchase Plan, to increase the monthly repurchase amounts during 2023 due to actual and projected changes in the Company’s cash and cash equivalents; specifically, to permit purchases of up to: (i) $17.0 million during May 2023, (ii) $22.0 million during June 2023, (iii) $18.67 million during any calendar month commencing July 1, 2023 through and including September 30, 2023, and (iv) $12.0 million during any calendar month commencing October 1, 2023 through and including December 31, 2023. On June 26, 2023, the Board approved, and the Company entered into, a form of fifth amendment to the Issuer Repurchase Plan to increase the maximum aggregate buyback from $500.0 million to $1.0 billion in accordance with the repurchase program limit. On November 17, 2023, the Board approved, and the Company entered into, a form of sixth amendment to the Issuer Repurchase Plan to reduce the monthly repurchase from (i) $12.0 million to $8.0 million during November 2023, (ii) from $12.0 million to $6.0 million during any calendar month commencing December 1, 2023 through and including June 30, 2024. For accounting purposes, common stock repurchased under the stock repurchase programs is recorded based upon the settlement date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method. These shares are considered issued but not outstanding. The following table shows the changes in treasury stock shares for the periods presented: Year Ended December 31, 2023 2022 2021 Treasury stock: Balance, beginning of year 18,816,791 6,751,692 2,534,494 Repurchases of common stock 10,110,152 12,408,430 4,217,198 Forfeiture to treasury stock for acquisition 10,728 - - Issuance of treasury stock for acquisition - (343,331) - Balance, end of year 28,937,671 18,816,791 6,751,692 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 10. SEGMENT INFORMATION Segment information aligns with how the Chief Operating Decision Maker (“CODM”), Glenn Sanford, Chief Executive Officer of eXp World Holdings, Inc. and eXp Realty, LLC, a wholly owned subsidiary of the Company (“eXp Realty”) manages the business and allocates resources as four operating segments. The Company determines an operating segment if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has discrete financial information and is (iii) regularly reviewed by the CODM. Once operating segments are identified, the Company performs a quantitative analysis of the current and historic revenues and profitability for each operating segment, together with a qualitative assessment to determine if operating segments have similar operating characteristics. We have four operating segments and four reportable segments. The CODM uses revenues and Adjusted Segment EBITDA as key metrics to evaluate the operating and financial performance of a segment, identify trends affecting the segments, develop projections and make strategic business decisions. Adjusted Segment EBITDA for the reportable segments is defined as operating profit (loss) plus depreciation and amortization and stock-based compensation expenses. The Company’s four reportable segments as follows: ● North American Realty: includes real estate brokerage operations in the United States and Canada, as well as lead-generation and other real estate support services provided in North America. ● International Realty: includes real estate brokerage operations in all other international locations. ● Virbela: includes the enterprise application-based Virbela platform and web-based Frame platform and the support services offered by eXp World Technologies. ● Other Affiliated Services: includes our SUCCESS ® Magazine and other smaller ventures. The Company also reports corporate expenses, as further detailed below, as “Corporate and other” which include expenses incurred in connection with business development support provided to the agents as well as resources, including administrative, brokerage operations and legal functions. All segments follow the same basis of presentation and accounting policies as those described throughout the Notes to the Audited Consolidated Financial Statements included herein. The following table provides information about the Company’s reportable segments and a reconciliation of the total segment Revenues to consolidated Revenues and Adjusted Segment EBITDA to the consolidated operating profit (in thousands). Financial information for the comparable prior periods presented have been revised to conform with the current year presentation. Revenues Year Ended December 31, 2023 2022 2021 North American Realty $ 4,220,063 $ 4,552,938 $ 3,745,354 International Realty 53,931 35,924 17,804 Virbela 7,284 8,485 8,615 Other Affiliated Services 4,802 5,084 2,896 Revenues reconciliation: Segment eliminations (4,975) (4,270) (3,499) Consolidated revenues $ 4,281,105 $ 4,598,161 $ 3,771,170 Adjusted EBITDA Year Ended December 31, 2023 2022 2021 North American Realty $ 91,101 $ 103,255 $ 116,800 International Realty (13,657) (13,708) (9,138) Virbela (5,725) (9,642) (12,637) Other Affiliated Services (3,795) (2,600) (3,322) Corporate expenses and other (10,376) (16,756) (13,708) Consolidated Adjusted EBITDA $ 57,548 $ 60,549 $ 77,995 Operating (Loss) Profit Reconciliation: Depreciation and amortization expense 10,892 9,838 6,248 Impairment expense 9,203 - - Stock compensation expense 43,178 30,861 24,493 Stock option expense 10,736 14,442 13,102 Consolidated operating (loss) profit ($ 16,461) $ 5,408 $ 34,152 Goodwill December 31, 2023 December 31, 2022 North American Realty $ 14,595 $ 16,577 International Realty - - Virbela - 8,248 Other Affiliated Services 2,387 2,387 Segment total 16,982 27,212 Corporate and other - - Consolidated total $ 16,982 $ 27,212 Geographical information For the years ended December 31, 2023, 2022 and 2021 approximately 9% , 9% and 8% , respectively, of the Company’s total revenue was generated outside of the U.S. Long-lived assets held outside of the U.S. were 14% and 6% as of December 31, 2023 and 2022, respectively. The Company’s CODM does not use segment assets to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 11. EARNINGS PER SHARE Basic earnings per share is computed based on net income attributable to eXp stockholders divided by the basic weighted-average shares outstanding during the period. Dilutive earnings per share is computed consistently with the basic computation while giving effect to all dilutive potential common shares and common share equivalents that were outstanding during the period. The Company uses the treasury stock method to reflect the potential dilutive effect of unvested stock awards and unexercised options. The following table sets forth the calculation of basic and diluted earnings per share attributable to common stock during the periods presented: Year Ended December 31, 2023 2022 2021 Numerator: Net (loss) income attributable to eXp World Holdings, Inc. ($ 8,973) $ 15,442 $ 81,220 Denominator: Weighted average shares - basic 153,232,129 151,036,110 146,170,871 Dilutive effect of common stock equivalents - 5,184,055 11,558,503 Weighted average shares - diluted 153,232,129 156,220,165 157,729,374 Earnings per share: (Loss) earnings per share attributable to common stock- basic ($ 0.06) $ 0.10 $ 0.56 (Loss) earnings per share attributable to common stock- diluted ($ 0.06) $ 0.10 $ 0.51 For the years ended December 31, 2023, 2022 and 2021, total outstanding shares of common stock excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive were 4,361,775 , 1,000,421 and 102,880 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 12. INCOME TAXES The following table provides the components of income before provision for income taxes by domestic and foreign subsidiaries: Year Ended December 31, 2023 2022 2021 Domestic ($ 16,522) $ 1,029 $ 32,804 Foreign 3,087 3,559 929 Total ($ 13,435) $ 4,588 $ 33,733 The components of the provision for (benefit from) income tax expense are as follows: Year Ended December 31, 2023 2022 2021 Current: Federal $ 305 $ - $ - State 795 737 456 Foreign 1,788 2,312 1,650 Total current income tax provision 2,888 3,049 2,106 Deferred Federal (4,995) (11,444) (41,599) State (1,494) (1,674) (6,574) Foreign (861) (767) (1,420) Total deferred income tax benefit (7,350) (13,885) (49,593) Total provision (benefit) for income taxes ($ 4,462) ($ 10,836) ($ 47,487) The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows: Year Ended December 31, 2023 2022 2021 Statutory tax rate 21.00% 21.00% 21.00% State taxes 0.60% 17.52% 5.22% Permanent differences 1.03% (0.40)% (0.08)% Research & Development Credit 15.48% (49.64)% (6.04)% Unrecognized tax benefit (3.87)% 12.41% 1.51% Share-based compensation 24.64% (265.42)% (107.20)% Sec. 162m compensation limitation (21.23)% 47.85% 8.12% Foreign tax rate differential (1.02)% (1.65)% 0.27% Valuation allowance -% -% (65.54)% Prior year true up items (3.29)% (19.99)% (0.63)% Other net (0.13)% 2.13% 2.65% Total 33.21% (236.19)% (140.72)% The Company has made certain prior year reclassifications to research and development credit, unrecognized tax benefit, share-based compensation and other categories to ensure consistency with current year presentation. These reclassifications had no effect on total effective tax rate. Deferred tax assets and liabilities consist of the following for the periods presented: December 31, 2023 December 31, 2022 Deferred tax assets: Net operating loss carryforward $ 34,028 $ 41,192 Accruals and Reserves 3,127 3,129 Goodwill and Intangibles 1,782 257 Research and Experimental Costs 14,757 8,401 Research and Development Credit 4,632 3,826 Share-based compensation 15,872 11,871 Total gross deferred tax assets 74,198 68,676 Deferred tax liabilities: Property and equipment (2,779) (3,467) Intangibles/Goodwill - (656) Right of use lease asset (3) (519) Other (94) (55) Net deferred tax assets $ 71,322 $ 63,979 Certain prior year deferred asset amounts have been reclassified for consistency with the current year presentation. In prior year the Company reported nominal deferred tax asset balances for partnership basis difference, lease liability and legal settlement accruals, these balances were reported as part of accruals and reserves in 2023. Further, in prior year research and experimental costs were reported combined with intangible assets, these costs were stated separately in 2023. These reclassifications had no effect on gross and net deferred tax assets. The Company accounts for deferred taxes under ASC Topic 740 – Income Taxes (“ASC 740”), which requires a reduction of the carrying amount of deferred tax assets by a valuation allowance if, based on available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically based on the ASC 740 more-likely-than-not realization threshold criterion. This assessment considers matters such as future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The evaluation of the recoverability of the deferred tax assets requires that the Company weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax assets will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. As of December 31, 2023, based on its assessment of the realizability of its net deferred tax assets, we reached the conclusion that our US federal, US State and foreign net deferred tax assets more-likely-than-not will be fully realized and therefore no valuation allowance was recorded. As of December 31, 2023, the Company had federal, state and foreign net operating losses of approximately $125.8 million, $74.1 million and $12.9 million, respectively. The full amount of $125.8 million of federal net operating loss can be carried forward indefinitely and can offset 80% of future taxable income. Certain state and foreign net operating losses will carry forward for limited number of years and, if not utilized, will begin to expire in 2024. As of December 31, 2023, the Company conducted an IRC Section 382 analysis with respect to its net operating loss carryforward and determined there was an immaterial limitation. Undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested and accordingly, no provision for applicable income taxes has been provided thereon. Upon distribution of those earnings, the Company would be subject to withholding taxes payable to various foreign countries. As of December 31, 2023 the undistributed earnings of the Company's foreign subsidiaries could result in withholding taxes of approximately $0.8 million, if repatriated. As of December 31, 2023, the Company had federal and California Research and Development credits of approximately $5.8 million and $0.9 million, respectively. Federal credit can be carried forward 20 years and will begin to expire in 2039. California credit can be carried forward indefinitely. The Company maintains liabilities for uncertain tax positions. These liabilities involve considerable judgment and estimation and are continuously monitored by management based on the best information available, including changes in tax regulations, the outcome of relevant court cases, and other information. A reconciliation of the beginning and ending amount of gross unrecognized benefits is as follows: Year Ended December 31, 2023 2022 2021 Unrecognized tax benefits - beginning of year $ 1,309 $ 530 $ - Gross increase for tax positions of prior years 63 199 325 Gross increase for tax positions of current year 532 580 205 Unrecognized tax benefits - end of year $ 1,904 $ 1,309 $ 530 The unrecognized tax benefits relate to Federal and California research and development credits in 2023, 2022, and 2021. As of December 31, 2023, the total amount of unrecognized tax benefits that would affect the Company effective tax rate, if recognized, is $1,904 . The Company's policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2023, the Company accrued interest or penalties related to uncertain tax positions in the amount of $0 . The company does not expect of the uncertain tax position to reverse during the next 12 month. During 2022 the Company completed its federal examination for 2019 with no change to the original filing. There are no federal or state tax examinations in progress nor has it had any state tax examinations since its inception. Because the Company has net operating loss carryforwards, there are open statutes of limitations in which federal taxing authorities may examine the Company's tax returns for all years from December 31, 2011 through the current period. US State taxing authorities may examine the Company's tax return for all years from December 31, 2014 through the current period and foreign tax authorities may examine the Company’s tax return for all years from December 31, 2019 through the current period. The Company is subject to a wide variety of tax laws and regulations across the jurisdictions where it operates. Regulatory developments from the U.S. or international tax reform legislation could result in an impact to the Company's effective tax rate. The Company continues to monitor the Base Erosion and Profit Shifting (BEPS) Integrated Framework provided by the Organization for Economic Co-operation and Development (OECD) including the legislative adoption of Pillar II by countries, and all other tax regulatory changes, to evaluate the potential impact on future periods. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Contingencies From time to time, the Company is subject to potential liability under laws and government regulations and various claims and legal actions that may be asserted against us that could have a material adverse effect on the business, reputation, results of operations or financial condition. Such litigation may include, but is not limited to, actions or claims relating to sensitive data, including proprietary business information and intellectual property and that of clients and personally identifiable information of employees and contractors, cyber-attacks, data breaches and non-compliance with contractual or other legal obligations. Litigation and other legal matters are inherently unpredictable and subject to substantial uncertainties and adverse resolutions could occur. In addition, litigation and other legal matters, including class-action lawsuits, government investigations and regulatory proceedings can be costly to defend and, depending on the class size and claims, could be costly to settle. The Company believes that its defenses and assertions in pending legal proceedings have merit and the Company believes that it has adequately and appropriately accrued for legal matters that are estimable. However, substantial unanticipated judgments, penalties, sanctions, and fines do occur. As a result, the Company could from time to time incur judgments, enter into settlements, or revise its expectations regarding the outcome of certain matters, and such developments could have a material adverse effect on its results of operations in the period in which the amounts are accrued and/or its cash flows in the period in which the amounts are paid. For the cases described below, management is currently unable to reasonably estimate the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in preliminary stages, (ii) specific damage amounts have not been sought, (iii) damages sought are, in our opinion, unsupported and/or exaggerated, (iv) there is uncertainty as to the outcome of pending appeals or motions in these and similar lawsuits affecting the industry, (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories presented. For the matters described below, we have not recorded any accruals as of December 31, 2023. However, the Company has determined that a material loss is reasonably possible in the near term, and facts could emerge through the course of the lawsuits that lead the Company to determine that a loss is estimable, resulting in an accrued liability that could be material. Since October 31, 2023, the Company and/or its subsidiaries have been named as defendants in numerous putative class action complaints brought in various U.S. district courts and the Federal Court of Canada relating to antitrust matters, which lawsuits are described below. The following lawsuits, brought by putative classes of residential property sellers, allege that defendants participated in a system that resulted in sellers of residential property purportedly paying inflated buyer broker commissions in violation of federal and state antitrust laws, as applicable: Gibson et. al. v. National Association of Realtors et. al., Case No. 4:23-cv-00788-FJG (filed in the United States District Court for the Western District of Missouri, Western Division); 1925 Hooper LLC, et al. v. The National Association of Realtors et. al., Case No. 1:23-cv-05392- SEG (United States District Court for the Northern District of Georgia, Atlanta Division); Grace v. The National Association of Realtors, et al. , Case No. 3:23-cv-06352 (United States District Court for the Northern District of California, San Francisco Division); Umpa, et al. v. The National Association of Realtors et. al. , Case No. 4:23-cv-00945 (United States District Court for the Western District of Missouri, Western Division); Gael Fierro et al. v. The National Association of Realtors, et al. , Case No. 2:24-cv-00449 (United States District Court for the Central District of California); Willsim Latham, LLC, et al. v. MetroList Services, Inc., et al. , Case No. 2:24-at-00067 (United States District Court for the Eastern District of California, Sacramento Division); Kevin McFall v. Canadian Real Estate Association, et al. , Case No. T-119-24-ID 1 (Federal Court of Canada); and Nathaniel Whaley et al. v. The National Association of Realtors, et al. , Case No. 2:24-cv-00105 (United States District Court for the District of Nevada). The following lawsuit, brought by a putative class of residential property buyers, alleges that defendants participated in a system that resulted in buyers of residential property purportedly paying inflated home prices as a result of sellers purportedly paying inflated buyer broker commissions in violation of federal and Illinois antitrust laws: Batton v. Compass, Inc., et. al ., Case No. 1:23-cv-15618 (United States District Court for the Northern District of Illinois, Eastern Division). The plaintiffs in these lawsuits seek a permanent injunction enjoining the defendants from requiring home sellers to pay buyer-broker commissions or from otherwise restricting competition among brokers, an award of declaratory relief and damages or restitution on behalf of certain home sellers or buyers, as applicable, in those states or provinces, as applicable, as well as attorneys’ fees and costs of suit. Plaintiffs allege joint and several liability and seek treble or other multiple damages. Each antitrust lawsuit is in the pleadings phase and the Company intends to vigorously defend against all claims. The Company may become involved in additional litigation or other legal proceedings concerning the same or similar claims. Commitments In March and April 2022, an indirect subsidiary and unconsolidated joint venture of the Company, SUCCESS Lending, entered into Mortgage Warehouse Agreements and related ancillary agreements (the “Credit Agreements”) with Flagstar Bank FSB and Texas Capital Bank, which each provide SUCCESS Lending with a revolving warehouse credit line of up to $25 million. It is customary for mortgage businesses like SUCCESS Lending to obtain warehouse credit lines in order to enable them to close and fund residential mortgage loans for subsequent sale to investors. SUCCESS Lending will use the borrowing capacity under the Credit Agreements exclusively for such purposes and borrowings will generally be repaid with the proceeds received from the sale of mortgage loans. In connection with the Credit Agreements, the Company has entered into Capital Maintenance Agreements with each of Flagstar Bank FSB and Texas Capital Bank whereby the Company agrees to provide certain funds necessary to ensure that SUCCESS Lending is at all times in compliance with its financial covenants under the Credit Agreements. The Company’s capital commitment liability under the Capital Maintenance Agreement with Flagstar Bank FSB is limited to $2.0 million. The Company’s capital commitment liability under the Capital Maintenance Agreement with Texas Capital Bank is limited to $1.25 million. The Credit Agreements represent off-balance sheet arrangements for the Company. |
DEFINED CONTRIBUTION SAVINGS PL
DEFINED CONTRIBUTION SAVINGS PLAN | 12 Months Ended |
Dec. 31, 2023 | |
DEFINED CONTRIBUTION SAVINGS PLAN | |
DEFINED CONTRIBUTION SAVINGS PLAN | 14. DEFINED CONTRIBUTION SAVINGS PLAN The Company offers a defined contribution savings plan to provide eligible employees with a retirement benefit that permits eligible employees the opportunity to actively participate in the process of building a personal retirement fund. The Company sponsors the defined contribution savings plan. The Company matches a portion of contributions made by participating employees. For the years ended December 31, 2023, 2022 and 2021, the Company's costs for contributions to this plan were $4,763 , $4,720 , and $3,196 , respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS Quarterly Cash Dividend On February 14, 2024 , our Board of Directors approved a cash dividend of $0.05 per common share to be paid on March 29, 2024 to stockholders of record on March 8, 2024 .The ex-dividend date is expected to be on or around March 7, 2024. The dividend will be paid in cash. Antitrust Litigation The Company and certain of its subsidiaries were named in additional antitrust litigation after December 31, 2023; specifically, the Fierro Litigation, the McFall Litigation, the Latham Litigation, the Whaley Litigation, and the Boykin Litigation. The Boykin litigation was filed on February 16, 2024 as a putative class action complaint under the caption Boykin v. The National Association of Realtors, et al. (Case No. 2:24-cv-00340) in the United States District Court for the District of Nevada, naming as defendants the National Association of Realtors, certain regional Realtor associations, certain regional multiple listing services, certain real estate brokerages, and certain real estate brokerage owners, including eXp World Holdings, Inc. The Boykin Litigation complaint alleges that defendants conspired to restrain trade by causing certain home sellers to pay buyer broker fees and inflated commissions on the sale of homes all in violation of federal antitrust laws and Nevada unfair trade practices laws. The putative class representative seeks to represent a class of persons who paid a commission to a buyer’s broker in connection with the sale of a home from February 16, 2020, through the present. Plaintiff, on behalf of herself and the putative class, seeks a permanent injunction enjoining the defendants from engaging in the alleged unlawful acts described in the Boykin Litigation complaint. Plaintiff, on behalf of herself and the putative class, also seeks an award of declaratory relief, damages in an amount to be determined at trial, statutory interest and penalties, and attorneys’ fees, expenses and costs of suit. See Note 13 – Commitments and Contingencies to the consolidated financial statements included elsewhere in this Annual Report for additional information about such litigation and other proceedings. Agent Equity Program Beginning March 1, 2024, agents and brokers may receive 5% of commissions earned from each completed residential real estate transaction in the form of common stock at a 5% discount recognized by the Company (which was previously 10% discount on all AEP purchases before March 1, 2024). Under the AEP, agents and brokers that have elected to receive portions of their commissions in common stock are entitled to receive the equivalent number of shares of common stock, based on the fixed monetary value of the commission payable. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements include the accounts of eXp World Holdings, Inc., its wholly-owned subsidiaries and entities in which we have a variable interest of which we are the primary beneficiary. If the Company has a variable interest in an entity but it is not the primary beneficiary of the entity or exercises control over the operations and has less than 50% ownership, it will use the equity or cost method of accounting for investments. Entities in which the Company has less than a 20% investment and where the Company does not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. |
Variable interest entities and noncontrolling interests | Variable interest entities (“VIEs”) A company is deemed to be the primary beneficiary of a VIE and must consolidate the entity if the company has both: (i) the power to direct a VIE’s activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. |
Joint ventures | Joint ventures A joint venture is a contractual arrangement whereby the Company and other parties undertake an economic activity through a jointly controlled entity. Joint control exists when strategic, financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. Joint ventures are accounted for using the equity method and are recognized initially at cost. Joint ventures are typically included in the Other Affiliated Services unless the joint venture specifically supports one of the reportable segments. The Company has several joint venture investments. As of December 31, 2023, the operations of these joint ventures are not material to the Company’s financial position or results of operations. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for credit losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Reclassifications | Reclassifications When necessary, the Company will reclassify certain amounts in prior period financial statements to conform to the current period’s presentation. In 2023, the Company reclassified certain amounts in the reconciliation of the provision for income taxes and deferred tax assets in Note 12 – Income Taxes . These reclassifications had no effect on the provision for tax or deferred tax assets that were previously reported. No other reclassifications occurred during the current period. Cash and cash equivalents Cash and cash equivalents include cash on hand, money market instruments and all other highly liquid investments purchased with an original or remaining maturity of three months or less at the date of acquisition. |
Cash and cash equivalents | When necessary, the Company will reclassify certain amounts in prior period financial statements to conform to the current period’s presentation. In 2023, the Company reclassified certain amounts in the reconciliation of the provision for income taxes and deferred tax assets in Note 12 – Income Taxes . These reclassifications had no effect on the provision for tax or deferred tax assets that were previously reported. No other reclassifications occurred during the current period. |
Restricted cash | Restricted cash Restricted cash consists of cash held in escrow by the Company’s brokers and agents on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Once the cash is transferred from escrow, the Company reduces the respective customers’ deposit liability. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet that sum to the total of the same amounts shown on the statement of cash flows. December 31, 2023 December 31, 2022 Cash and cash equivalents $ 126,864 $ 121,594 Restricted cash 44,020 37,789 Total cash, cash equivalents, and restricted cash, ending balance $ 170,884 $ 159,383 |
Fair value measurements | Fair value measurements The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Input Level Definitions Level 1 Inputs are quoted market prices in active markets for identical assets or liabilities (these are observable market inputs). Level 2 Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability (includes quoted market prices for similar assets or identical or similar assets in markets in which there are few transactions, prices that are not current or prices that vary substantially). Level 3 Inputs are unobservable inputs that reflect the entity's own assumptions in pricing the asset or liability (used when little or no market data is available). The Company holds funds in a money market account. The Company values its money market funds at fair value on a recurring basis. |
Accounts receivable and allowance for expected credit losses | Accounts receivable and allowance for expected credit losses The Company is exposed to credit losses primarily through trade and other financing receivables arising from revenue transactions. The Company uses the aging schedule method to estimate current expected credit losses (“CECL”) based on days of delinquency, including information about past events and current economic conditions. The Company’s accounts receivable is separated into three categories to evaluate an allowance under the CECL impairment model. The three categories include agent non-commission based fees, agent short-term advances and commissions receivable for real estate property settlements. The Company increases the allowance for expected credits losses when the Company determines all or a portion of a receivable is uncollectable. The Company recognizes recoveries as a decrease to the allowance for expected credit losses. In 2023, the Company has decreased its allowances for expected credit losses, for real estate transactions, due to a decrease of the aging receivable balances, as a result of improvement in accounts receivable management. As of December 31, 2023 and 2022, receivables from real estate property settlements totaled $81,004 and $79,135 , respectively, of which the Company recognized expected credit losses of $- and $3,127 as of December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022 agent non-commission based fees receivable and short-term advances totaled $7,268 and $12,141 , respectively of which the Company recognized expected credit losses of $2,303 and $887 , respectively. |
Foreign currency translation | Foreign currency translation The Company’s functional and reporting currency is the United States dollar and the functional currency of the Company’s foreign subsidiaries is the local currency of their country of domicile. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the consolidated statements of operations in other (income) expense, net. The Company does not employ a hedging strategy to manage the impact of foreign currency fluctuations. |
Fixed assets | Fixed assets Fixed assets are stated at historical cost and are depreciated on the straight-line method over the estimated useful lives. Useful lives are: Computer hardware and software: 3 to 5 years Furniture, fixtures and equipment: 5 to 7 years Maintenance and repairs are expensed as incurred. Expenditures that substantially increase an asset’s useful life or improve an asset’s functionality are capitalized. The Company capitalizes the costs associated with developing its internal-use cloud-based residential real-estate transaction system. Capitalized costs are primarily related to costs incurred in relation to internally created software during the application development stage including costs for upgrades and enhancements that result in additional functionality. |
Leases | Leases Leases are agreements, or terms within agreements, that convey the right to control the use of and receive substantially all of the economic benefit from an identified asset for a period of time in exchange for consideration. The Company currently only possesses office space leases . Right-of-use assets The Company recognizes right-of-use (“ROU”) assets at the commencement date of the lease. ROU assets are measured at cost, less accumulated depreciation and impairment losses and are adjusted concurrently with the remeasurement of corresponding lease liabilities resulting from a change in future lease payments or a change in the assessment of whether any purchase, extension, or termination options will be exercised. The cost of ROU assets includes the amount of lease liabilities recognized, initial direct costs incurred and lease payments made at or before the commencement date less any lease incentives received, if any. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the ROU assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Lease liabilities At the commencement date of a lease, the Company recognizes a lease liability measured at the present value of the lease payments to be made over the lease term. Variable lease payments are recognized as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the implicit interest rate in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced by the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Company applies the short-term lease recognition exemption to leases that have a lease term of 12 months or less from the commencement date and which do not contain a purchase option. The Company does not capitalize leases with a present value of below its minimum capitalization threshold as it would not materially affect the Company’s financial position or results of operations. Lease payments on short-term leases and low-value leases are recognized as expenses on a straight-line basis over the lease term. |
Goodwill and Intangible Assets | Goodwill Goodwill represents the excess of the consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. The Company evaluates goodwill for impairment on an annual basis in the fiscal fourth quarter or on an interim basis if an event occurs or circumstances change that would more likely than not indicate that the fair value of the reporting unit is less than its carrying amount. Generally, this evaluation begins with a qualitative assessment to determine if the fair value of the reporting unit is more likely than not less than its carrying value. The test for impairment requires management to make judgments relating to future cash flows, growth rates and economic and market conditions. In addition to the annual impairment evaluation, the Company evaluates at least quarterly whether events or circumstances have occurred in the period subsequent to the annual impairment testing which indicate that it is more likely than not an impairment loss has occurred. The Company recognized goodwill impairment of $8,248 for the year ended December 31, 2023 related to Virbela. The Company did no t recognize any impairment of goodwill for the years ended December 31, 2022 and 2021. Intangible assets The Company’s intangible assets are finite lived and consist primarily of trade name, technology and customer relationships. Each intangible asset is amortized on a straight-line basis over its useful life, ranging from 3 to 10 years . The Company evaluates its intangible assets for recoverability and potential impairment, or as events or changes in circumstances indicate the carrying value may be impaired. The Company recognized impairment related to the trade name and customer relationships of $955 for the year ended December 31, 2023, related to Virbela. The Company did no t recognize any impairment of intangible assets for the years ended December 31, 2022 and 2021. |
Software development costs | Software development costs The Company capitalizes software development costs related to products to be sold, leased, or marketed to external users and internal-use software. |
Business Combinations | Business combinations The Company accounts for business combinations using the acquisition method of accounting, under which the consideration for the acquisition is allocated to the assets acquired and liabilities assumed. The Company recognizes identifiable assets acquired and liabilities assumed at the acquisition date fair values as determined by management as of the acquisition date. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates and market factors. These assumptions and estimates include projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates and other market factors. If current expectations of future growth rates are not met or market factors outside of the Company’s control change significantly, then goodwill or intangible assets may become impaired. Additionally, as goodwill and intangible assets associated with recently acquired businesses are recorded on the balance sheet at their estimated acquisition date fair values, those amounts are more susceptible to impairment risk if business operating results or macroeconomic conditions deteriorate. Acquisition-related costs, such as due diligence, legal and accounting fees, are expensed as incurred and not considered in determining the fair value of the acquired assets. |
Impairment of long-lived assets | Impairment of long-lived assets The Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. When assets are considered impaired, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. |
Stock-based compensation | Stock-based compensation Our stock-based compensation is comprised of employee equity incentives, agent growth incentive programs, agent equity program and stock option awards. Stock-based compensation is more fully disclosed in Note 9 – Stockholders’ Equity to the consolidated financial statements included elsewhere in this Annual Report. The Company accounts for stock-based compensation granted to employees and non-employees using a fair value method. Stock-based compensation awards are measured at the grant date fair value and are recognized over the requisite service period of the awards, usually the vesting period, on a straight-line basis, net of forfeitures. The Company reduces stock-based compensation for forfeitures when they occur. Recognition of compensation cost for an award with a performance condition is based on the probable outcome of that performance condition being met. |
Revenue recognition | Revenue recognition The Company generates substantially all of its revenue from North American Realty and International Realty segments and generates a de minimis portion of its revenues from software subscription (Virbela segment) and professional services. The Company does not have contracts with customers that provide variable consideration. North American Realty and International Realty The Company serves as a licensed broker in the areas in which it operates for the purpose of processing residential real estate transactions. The Company is contractually obligated to provide services for the fulfillment of transfers of residential real estate between buyers and sellers. The Company provides these services itself and controls the services necessary to legally transfer residential real estate. Correspondingly, the Company is defined as the principal. The Company, as principal, satisfies its obligation upon the closing of a residential real estate transaction. As principal and upon satisfaction of the performance obligation, the Company recognizes revenue in the gross amount of consideration to which the Company expects to be entitled. The Company estimates and accrues revenue to which it is entitled to for closed transactions but has yet to receive all the necessary closing documents. The accrual for estimated revenue was immaterial for the years ended December 31, 2023 and 2022. Revenue is derived from assisting homebuyers and sellers in listing, marketing, selling and finding residential real estate. Commissions earned on real estate transactions are recognized at the completion of a residential real estate transaction once the Company has satisfied the performance obligation. Agent-related fees charged by the Company are recorded as a reduction to commissions and other agent-related costs. Software Subscription and Professional Services Subscription revenue is derived from fees from customers to access the Company’s virtual reality software platform. The terms of subscriptions do not provide customers the right to take possession of the software. Subscription revenue is generally recognized ratably over the contract term. Professional services revenue is derived from implementation and consulting services. Professional services revenue is typically recognized over time as the services are rendered, using an efforts-expended (labor hours) input method. Disaggregated revenue The Company primarily operates as a real estate brokerage firm and discloses disaggregated revenue from services to customers across its four reportable segments to provide additional insight into the future recognition of revenue and cash flows. The vast majority of the Company’s revenue is derived from providing real estate brokerage services, to purchasers and sellers of homes in the U.S., Canada and internationally. See Note 10 – Segment Information to the consolidated financial statements included elsewhere in this Annual Report for details regarding segment and geographic information. Management provides disaggregation of revenue from its services to customers to provide additional insight into the future recognition of revenue and cash flows. |
Sustainable Revenue Share Plan expenses | Sustainable Revenue Share Plan expenses The Company’s costs incurred under the Revenue Share Plan are included as commissions and other agent-related costs in the consolidated statements of comprehensive income. |
Advertising and marketing costs | Advertising and marketing costs Advertising and marketing costs are generally expensed in the period incurred. Advertising and marketing expenses are included in the sales and marketing expense line item on the accompanying consolidated statements of comprehensive income. For the years ended December 31, 2023, 2022 and 2021, the Company incurred advertising and marketing expenses of $12,156 , $15,359 and $12,180 , respectively. |
Income taxes | Income taxes The Company records income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are recorded based on the estimated future tax effects of differences between the financial statement and income tax basis of existing assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. The Company recognizes the effect on deferred income taxes of a change in tax rates in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions on the basis of a two-step process whereby: (i) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. |
Comprehensive (loss) income | Comprehensive (loss) income The Company’s only components of comprehensive (loss) income are net (loss) income and foreign currency translation adjustments. |
Earnings per share | Earnings per share Basic earnings (loss) per share is computed by dividing the net (loss) income for the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing net (loss) income for the period by the weighted average number of shares of common stock outstanding plus, if potentially dilutive common shares outstanding during the period. The Company has paid dividends in 2023, 2022 and 2021. The Company does not have participating shares outstanding. |
Accounting pronouncements | Accounting pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting standards that have been issued that might have a material impact on its financial position and results of operations. In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 – Segment Reporting (Topic 280) (“ASU 2023-07”). ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosure about significant segment expenses. The amendments in this update require, among other things, that a public company disclose on an annual and interim basis significant segment expense, as well as other segment expenses, that are regularly provided to the CODM. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, early adoption is permitted. The Company is currently evaluating the effect the amendments in ASU 2023-07 will have on its segment disclosures. In December 2023, the FASB issued ASU 2023-09 – Income Taxes (Topic 740) (“ASU 2023-09”). ASU 2023-09 improves reporting for income taxes, primarily by requiring disclosure of specific categories in the tax rate reconciliation and providing additional annual information for reconciling items that meet a quantitative threshold. The amendments in ASU 2023-09 also require additional annual information regarding income taxes paid, as well as other additional disclosures. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, early adoption is permitted. The Company is currently evaluating the effect the amendments in ASU 2023-09 will have on its tax disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Cash | December 31, 2023 December 31, 2022 Cash and cash equivalents $ 126,864 $ 121,594 Restricted cash 44,020 37,789 Total cash, cash equivalents, and restricted cash, ending balance $ 170,884 $ 159,383 |
PREPAIDS AND OTHER ASSETS (Tabl
PREPAIDS AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREPAIDS AND OTHER ASSETS | |
Schedule of Prepaid and Other Current Assets | December 31, 2023 December 31, 2022 Prepaid expenses $ 5,726 $ 5,580 Prepaid insurance 2,471 2,293 Rent deposits - 15 Other assets (includes inventory) 1,425 580 Total prepaid expenses $ 9,622 $ 8,468 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PLANT, PROPERTY AND EQUIPMENT, NET | |
Schedule of plant, property and equipment | December 31, 2023 December 31, 2022 Computer hardware and software $ 37,444 $ 34,206 Furniture, fixture, and equipment 2,254 20 Total depreciable property and equipment 39,698 34,226 Less: accumulated depreciation (27,733) (19,282) Depreciable property, net 11,965 14,944 Assets under development 1,013 3,207 Property, plant, and equipment, net $ 12,978 $ 18,151 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of Goodwill | Changes in the carrying amount of goodwill were: December 31, 2023 December 31, 2022 Goodwill $ 27,212 $ 12,945 Acquisitions - 14,156 Impairments (8,248) - Disposition (2,310) - Currency translation impact 328 111 Total goodwill $ 16,982 $ 27,212 |
Schedule of Definite-Lived Assets | Definite-lived intangible assets were as follows: December 31, 2023 December 31, 2022 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Amount Amortization Impairment Amount Amount Amortization Amount Trade name $ 3,257 ($ 1,030) $ (585) $ 1,642 $ 3,459 ($ 841) $ 2,618 Existing technology 9,410 (3,800) - 5,610 3,995 (2,458) 1,537 Non-competition agreements 468 (125) - 343 461 (125) 336 Customer relationships 1,655 (652) (370) 633 1,895 (551) 1,344 Licensing agreement 210 (210) - 0 210 (181) 29 Intellectual property 2,836 (583) - 2,253 2,836 - 2,836 Total intangible assets $ 17,836 ($ 6,400) ($ 955) $ 10,481 $ 12,856 ($ 4,156) $ 8,700 |
Schedule of Definite-Lived Future Amortization Expense | As of December 31, 2023, expected amortization related to definite-lived intangible assets will be: Expected amortization 2024 $ 2,702 2025 2,299 2026 1,275 2027 608 2028 and thereafter 3,597 Total $ 10,481 8. |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES | |
Schedule of Accrued Expenses | December 31, 2023 December 31, 2022 Commissions payable $ 60,010 $ 56,786 Payroll payable 8,866 6,236 Taxes payable 1,225 2,124 Stock liability awards 4,999 3,885 Other accrued expenses 13,082 9,913 $ 88,182 $ 78,944 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of common stock issued roll forward | Year Ended December 31, 2023 2022 2021 Common stock: Balance, beginning of year 171,656,030 155,516,284 146,677,786 Shares issued for stock options exercised 832,993 2,105,237 3,155,170 Agent growth incentive stock compensation 2,219,881 2,571,569 2,037,942 Agent equity stock compensation 8,897,804 11,462,940 3,645,386 Balance, end of year 183,606,708 171,656,030 155,516,284 |
Schedule of Restricted stock activity | The following table illustrates the Company’s stock activity for the Agent Growth Incentive Program for stock awards where the performance metric has been achieved for the following periods: Weighted Average Grant Date Shares Fair Value Balance, December 31, 2021 5,174,654 $ 13.92 Granted 3,829,990 15.29 Vested and issued (2,542,696) 6.28 Forfeited (762,951) 18.80 Balance, December 31, 2022 5,698,997 $ 17.68 Granted 4,642,035 15.04 Vested and issued (2,219,881) 11.73 Forfeited (1,245,862) 17.35 Balance, December 31, 2023 6,875,289 $17.80 |
Schedule of stock options fair value assumptions | 2023 2022 2021 Expected term 5 - 6 years 5 - 6 years 5 - 6 years Expected volatility 73.64% - 76.78% 72.84% - 76.49% 68.85% - 86.33% Risk-free interest rate 3.28% - 4.86% 1.49% - 4.10% 0.44% - 1.33% Dividend yield 0.72% - 1.64% 0.53% - 1.48% 0.00% - 0.00% |
Schedule of stock option activity | Weighted Average Weighted Remaining Average Contractual Term Options Exercise Price Intrinsic Value (Years) Balance December 31, 2021 7,038,660 $ 8.70 $ 25.45 6.26 Granted 1,234,847 19.25 - 9.37 Exercised (2,083,016) 0.68 18.10 — Forfeited (415,969) 13.68 8.74 — Balance at December 31, 2022 5,774,522 $ 13.56 $ 2.21 7.63 Granted 2,468,299 14.81 - 8.46 Exercised (832,993) 5.90 14.97 — Forfeited (1,198,706) 17.77 2.27 — Expired (12,578) 35.54 0.29 — Balance at December 31, 2023 6,198,544 $ 14.23 $ 3.62 7.29 Exercisable at December 31, 2023 3,623,819 $ 12.30 $ 5.31 6.11 Vested at December 31, 2023 3,623,819 $ 12.30 $ 5.31 6.11 Weighted Average Options Exercise Price Range of stock option exercise prices at December 31, 2023: $0.01 - $10.00 (average remaining life - 6.12 years) 2,573,627 $ 8.18 $10.01 - $30.00 (average remaining life - 8.20 years) 3,315,284 $ 16.59 $30.01 - $60.00 (average remaining life - 7.42 years) 309,633 $ 39.29 |
Schedule of shares repurchased | Year Ended December 31, 2023 2022 2021 Treasury stock: Balance, beginning of year 18,816,791 6,751,692 2,534,494 Repurchases of common stock 10,110,152 12,408,430 4,217,198 Forfeiture to treasury stock for acquisition 10,728 - - Issuance of treasury stock for acquisition - (343,331) - Balance, end of year 28,937,671 18,816,791 6,751,692 |
Agent Growth Incentive Program | |
Changes in the Company's stock compensation liability | The following table illustrates changes in the Company’s stock compensation liability for the periods presented: Amount Stock grant liability balance at December 31, 2021 $ 4,341 Stock grant liability increase year to date 2,056 Stock grants reclassified from liability to equity year to date (2,512) Balance, December 31, 2022 $ 3,885 Stock grant liability increase year to date 3,832 Stock grants reclassified from liability to equity year to date (2,717) Balance, December 31, 2023 $ 5,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION | |
Schedule of segment's financial information | The following table provides information about the Company’s reportable segments and a reconciliation of the total segment Revenues to consolidated Revenues and Adjusted Segment EBITDA to the consolidated operating profit (in thousands). Financial information for the comparable prior periods presented have been revised to conform with the current year presentation. Revenues Year Ended December 31, 2023 2022 2021 North American Realty $ 4,220,063 $ 4,552,938 $ 3,745,354 International Realty 53,931 35,924 17,804 Virbela 7,284 8,485 8,615 Other Affiliated Services 4,802 5,084 2,896 Revenues reconciliation: Segment eliminations (4,975) (4,270) (3,499) Consolidated revenues $ 4,281,105 $ 4,598,161 $ 3,771,170 Adjusted EBITDA Year Ended December 31, 2023 2022 2021 North American Realty $ 91,101 $ 103,255 $ 116,800 International Realty (13,657) (13,708) (9,138) Virbela (5,725) (9,642) (12,637) Other Affiliated Services (3,795) (2,600) (3,322) Corporate expenses and other (10,376) (16,756) (13,708) Consolidated Adjusted EBITDA $ 57,548 $ 60,549 $ 77,995 Operating (Loss) Profit Reconciliation: Depreciation and amortization expense 10,892 9,838 6,248 Impairment expense 9,203 - - Stock compensation expense 43,178 30,861 24,493 Stock option expense 10,736 14,442 13,102 Consolidated operating (loss) profit ($ 16,461) $ 5,408 $ 34,152 Goodwill December 31, 2023 December 31, 2022 North American Realty $ 14,595 $ 16,577 International Realty - - Virbela - 8,248 Other Affiliated Services 2,387 2,387 Segment total 16,982 27,212 Corporate and other - - Consolidated total $ 16,982 $ 27,212 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER SHARE | |
Schedule of calculation of basic and diluted earnings per share | The following table sets forth the calculation of basic and diluted earnings per share attributable to common stock during the periods presented: Year Ended December 31, 2023 2022 2021 Numerator: Net (loss) income attributable to eXp World Holdings, Inc. ($ 8,973) $ 15,442 $ 81,220 Denominator: Weighted average shares - basic 153,232,129 151,036,110 146,170,871 Dilutive effect of common stock equivalents - 5,184,055 11,558,503 Weighted average shares - diluted 153,232,129 156,220,165 157,729,374 Earnings per share: (Loss) earnings per share attributable to common stock- basic ($ 0.06) $ 0.10 $ 0.56 (Loss) earnings per share attributable to common stock- diluted ($ 0.06) $ 0.10 $ 0.51 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of taxable income by domestic and foreign subsidiaries | Year Ended December 31, 2023 2022 2021 Domestic ($ 16,522) $ 1,029 $ 32,804 Foreign 3,087 3,559 929 Total ($ 13,435) $ 4,588 $ 33,733 |
Schedule of Income Tax Expense (Benefit) | Year Ended December 31, 2023 2022 2021 Current: Federal $ 305 $ - $ - State 795 737 456 Foreign 1,788 2,312 1,650 Total current income tax provision 2,888 3,049 2,106 Deferred Federal (4,995) (11,444) (41,599) State (1,494) (1,674) (6,574) Foreign (861) (767) (1,420) Total deferred income tax benefit (7,350) (13,885) (49,593) Total provision (benefit) for income taxes ($ 4,462) ($ 10,836) ($ 47,487) |
Federal Statutory Rate Reconciliation | Year Ended December 31, 2023 2022 2021 Statutory tax rate 21.00% 21.00% 21.00% State taxes 0.60% 17.52% 5.22% Permanent differences 1.03% (0.40)% (0.08)% Research & Development Credit 15.48% (49.64)% (6.04)% Unrecognized tax benefit (3.87)% 12.41% 1.51% Share-based compensation 24.64% (265.42)% (107.20)% Sec. 162m compensation limitation (21.23)% 47.85% 8.12% Foreign tax rate differential (1.02)% (1.65)% 0.27% Valuation allowance -% -% (65.54)% Prior year true up items (3.29)% (19.99)% (0.63)% Other net (0.13)% 2.13% 2.65% Total 33.21% (236.19)% (140.72)% |
Schedule of Deferred Tax Assets | December 31, 2023 December 31, 2022 Deferred tax assets: Net operating loss carryforward $ 34,028 $ 41,192 Accruals and Reserves 3,127 3,129 Goodwill and Intangibles 1,782 257 Research and Experimental Costs 14,757 8,401 Research and Development Credit 4,632 3,826 Share-based compensation 15,872 11,871 Total gross deferred tax assets 74,198 68,676 Deferred tax liabilities: Property and equipment (2,779) (3,467) Intangibles/Goodwill - (656) Right of use lease asset (3) (519) Other (94) (55) Net deferred tax assets $ 71,322 $ 63,979 |
Schedule of reconciliation of the beginning and ending amount of gross unrecognized benefits | Year Ended December 31, 2023 2022 2021 Unrecognized tax benefits - beginning of year $ 1,309 $ 530 $ - Gross increase for tax positions of prior years 63 199 325 Gross increase for tax positions of current year 532 580 205 Unrecognized tax benefits - end of year $ 1,904 $ 1,309 $ 530 |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
Number of reportable segments | 4 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounts receivable, allowance for credit losses and bad debt | $ 2,303,000 | $ 4,014,000 | |
Impairments of intangible assets | $ 955,000 | $ 0 | $ 0 |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Goodwill and Intangible Asset Impairment | Goodwill and Intangible Asset Impairment | Goodwill and Intangible Asset Impairment |
Accounts receivable, net | $ 85,969,000 | $ 87,262,000 | |
Advertising and marketing costs | $ 12,156,000 | 15,359,000 | $ 12,180,000 |
Number of reportable segments | segment | 4 | ||
Virbela, LLC | |||
Goodwill, impairment | $ 8,248,000,000 | 0 | $ 0 |
Impairments of intangible assets | 955,000 | ||
Real estate property settlements | |||
Accounts receivable, allowance for credit losses and bad debt | 3,127,000 | ||
Accounts receivable, allowance for credit losses (recovery) | 0 | ||
Accounts receivable, net | 81,004,000 | 79,135,000 | |
Agent non-commission based fees and short term advances receivable | |||
Accounts receivable, allowance for credit losses and bad debt | 2,303,000 | 887,000 | |
Accounts receivable, net | $ 7,268,000 | $ 12,141,000 | |
Minimum | |||
Useful life of intangible assets | 3 years | ||
Minimum | Computer hardware and software | |||
Property and equipment useful lives | 3 years | ||
Minimum | Furniture, fixtures and equipment | |||
Property and equipment useful lives | 5 years | ||
Maximum | |||
Useful life of intangible assets | 10 years | ||
Maximum | Computer hardware and software | |||
Property and equipment useful lives | 5 years | ||
Maximum | Furniture, fixtures and equipment | |||
Property and equipment useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Cash and cash equivalents | $ 126,864 | $ 121,594 | ||
Restricted cash | 44,020 | 37,789 | ||
Total cash, cash equivalents, and restricted cash | $ 170,884 | $ 159,383 | $ 175,910 | $ 127,924 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill | $ 14,156 | ||
Acquisition cash paid amount | $ 9,910 | $ 2,500 | |
Zoocasa Realty, Inc. | |||
Business acquisition, name of acquired entity | Zoocasa Realty Inc. | ||
Purchase price | $ 17,155 | ||
Cash acquired | 2,772 | ||
Stock issued from treasury | 4,554 | ||
Cash paid for acquisition | $ 9,910 |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Money Market Funds | ||
Money market funds | $ 46,268 | $ 44,062 |
PREPAIDS AND OTHER ASSETS (Sche
PREPAIDS AND OTHER ASSETS (Schedule of Prepaid and Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
PREPAIDS AND OTHER ASSETS | ||
Prepaid expenses | $ 5,726 | $ 5,580 |
Prepaid insurance | 2,471 | 2,293 |
Rent (charges) deposits | 15 | |
Other assets (includes inventory) | 1,425 | 580 |
Total prepaid expenses | $ 9,622 | $ 8,468 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PLANT, PROPERTY AND EQUIPMENT, NET | |||
Depreciation expense | $ 8,352 | $ 7,934 | $ 4,974 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET (Schedule of Fixed assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total depreciable property and equipment | $ 39,698 | $ 34,226 |
Less: accumulated depreciation | (27,733) | (19,282) |
Depreciable property, net | 11,965 | 14,944 |
Assets under development | 1,013 | 3,207 |
Property, plant, and equipment, net | 12,978 | 18,151 |
Computer hardware and software | ||
Total depreciable property and equipment | 37,444 | 34,206 |
Furniture, fixtures and equipment | ||
Total depreciable property and equipment | $ 2,254 | $ 20 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill | $ 16,982 | $ 27,212 | $ 12,945 |
Cumulative translation adjustment | 328 | 111 | |
Goodwill, impairment loss | 8,248 | ||
Amortization expense - intangible assets | 2,540 | $ 1,904 | $ 1,274 |
Goodwill reduction | 2,310 | ||
Virbela, LLC | |||
Goodwill, impairment loss | 8,248 | ||
Showcase | |||
Goodwill reduction | 2,310 | ||
Trade name | |||
Goodwill, impairment loss | 585 | ||
Customer relationships | |||
Goodwill, impairment loss | $ 370 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
GOODWILL AND INTANGIBLE ASSETS | ||
Goodwill, Beginning Balance | $ 27,212 | $ 12,945 |
Acquisitions | 14,156 | |
Impairment losses | (8,248) | |
Disposition | (2,310) | |
Currency translation impact | 328 | 111 |
Goodwill, Ending Balance | $ 16,982 | $ 27,212 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Schedule of Definite-Lived Assets) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 17,836,000 | $ 12,856,000 | |
Accumulated Amortization | (6,400,000) | (4,156,000) | |
Impairment | (955,000) | 0 | $ 0 |
Net Carrying Amount | 10,481,000 | 8,700,000 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 3,257,000 | 3,459,000 | |
Accumulated Amortization | (1,030,000) | (841,000) | |
Impairment | (585,000) | ||
Net Carrying Amount | 1,642,000 | 2,618,000 | |
Existing technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 9,410,000 | 3,995,000 | |
Accumulated Amortization | (3,800,000) | (2,458,000) | |
Net Carrying Amount | 5,610,000 | 1,537,000 | |
Non-competition agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 468,000 | 461,000 | |
Accumulated Amortization | (125,000) | (125,000) | |
Net Carrying Amount | 343,000 | 336,000 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 1,655,000 | 1,895,000 | |
Accumulated Amortization | (652,000) | (551,000) | |
Impairment | (370,000) | ||
Net Carrying Amount | 633,000 | 1,344,000 | |
Licensing agreement | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 210,000 | 210,000 | |
Accumulated Amortization | (210,000) | (181,000) | |
Net Carrying Amount | 0 | 29,000 | |
Intellectual property | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 2,836,000 | 2,836,000 | |
Accumulated Amortization | (583,000) | ||
Net Carrying Amount | $ 2,253,000 | $ 2,836,000 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS (Schedule of Definite-Lived Future Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
GOODWILL AND INTANGIBLE ASSETS | ||
2024 | $ 2,702 | |
2025 | 2,299 | |
2026 | 1,275 | |
2027 | 608 | |
2028 and thereafter | 3,597 | |
Net Carrying Amount | $ 10,481 | $ 8,700 |
ACCRUED EXPENSES (Schedule of A
ACCRUED EXPENSES (Schedule of Accrued Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ACCRUED EXPENSES | ||
Commissions payable | $ 60,010 | $ 56,786 |
Payroll payable | 8,866 | 6,236 |
Taxes payable | 1,225 | 2,124 |
Stock liability awards | 4,999 | 3,885 |
Other accrued expenses | 13,082 | 9,913 |
Accrued Liabilities, Current, Total | $ 88,182 | $ 78,944 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 01, 2024 | Feb. 29, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Agent Equity Award Program | |||||
Stock issued for services, shares | 8,897,804 | 11,462,940 | 3,645,386 | ||
Stock issued for services, value | $ 135,226 | $ 164,104 | $ 144,437 | ||
Percentage of commission potentially redeemed in common stock | 5% | ||||
Percentage of discount of market price, date of issuance | 5% | 10% | 10% | ||
Agent Equity Award Program | Subsequent Event | |||||
Percentage of commission potentially redeemed in common stock | 5% | ||||
Agent Growth Incentive Program | |||||
Stock issued for services, shares | 2,219,881 | 2,571,569 | 2,037,942 | ||
Stock based compensation | $ 43,178 | $ 30,861 | $ 24,493 | ||
Amount of stock compensation attributable to liability classified awards | $ 3,832 | $ 2,056 | $ 4,977 | ||
Stock Options | |||||
Vesting period | 3 years | ||||
Unrecognized compensation expense - recognition period | 1 year 3 months 25 days | ||||
Unrecognized compensation expense - options | $ 22,897 | ||||
Share-based award expiration period | 10 years | ||||
Restricted Stock | Agent Growth Incentive Program | |||||
Unvested shares, other than options | 6,706,280 | ||||
Unrecognized compensation expense - stock awards | $ 65,989 | ||||
Unrecognized compensation expense - recognition period | 1 year 11 months 1 day | ||||
Restricted stock, incentive program | 6,875,289 | 5,698,997 | 5,174,654 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of common stock issued) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock, Shares, Issued, Beginning of year | 171,656,030 | 155,516,284 | 146,677,786 |
Shares issued for stock options exercised, shares | 832,993 | 2,105,237 | 3,155,170 |
Common Stock, Shares, Issued, end of year | 183,606,708 | 171,656,030 | 155,516,284 |
Agent Equity Award Program | |||
Agent equity stock compensation, shares | 8,897,804 | 11,462,940 | 3,645,386 |
Agent Growth Incentive Program | |||
Agent equity stock compensation, shares | 2,219,881 | 2,571,569 | 2,037,942 |
STOCKHOLDERS' EQUITY (Changes i
STOCKHOLDERS' EQUITY (Changes in the Company's stock compensation liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
STOCKHOLDERS' EQUITY | ||
Balance, at beginning of period | $ 3,885 | $ 4,341 |
Stock grant liability increase year to date | 3,832 | 2,056 |
Stock grants reclassified from liability to equity year to date | (2,717) | (2,512) |
Balance, at end of period | $ 5,000 | $ 3,885 |
STOCKHOLDERS' EQUITY (Restricte
STOCKHOLDERS' EQUITY (Restricted Stock Activity) (Details) - Agent Growth Incentive Program - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restricted Stock Shares | ||
Restricted stock outstanding, beginning balance | 5,698,997 | 5,174,654 |
Restricted stock granted | 4,642,035 | 3,829,990 |
Restricted stock vested and issued | (2,219,881) | (2,542,696) |
Restricted stock forfeited | (1,245,862) | (762,951) |
Restricted stock outstanding, ending balance | 6,875,289 | 5,698,997 |
Weighted Average Fair Value | ||
Weighted average price - Restricted stock outstanding, beginning balance | $ 17.68 | $ 13.92 |
Weighted average price - Restricted stock granted | 15.04 | 15.29 |
Weighted average price - Restricted stock vested and issued | 11.73 | 6.28 |
Weighted average price - Restricted stock forfeited | 17.35 | 18.80 |
Weighted average price - Restricted stock outstanding, ending balance | $ 17.80 | $ 17.68 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of stock options fair value assumptions) (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Volatility rate - minimum | 73.64% | 72.84% | 68.85% |
Volatility rate - maximum | 76.78% | 76.49% | 86.33% |
Options award, risk free rate, minimum | 3.28% | 1.49% | 0.44% |
Options award, risk free rate, maximum | 4.86% | 4.10% | 1.33% |
Maximum | |||
Options award, expected term | 6 years | 6 years | 6 years |
Dividend yield | 1.64% | 1.48% | 0% |
Minimum | |||
Options award, expected term | 5 years | 5 years | 5 years |
Dividend yield | 0.72% | 0.53% | 0% |
STOCKHOLDERS' EQUITY (Stock Opt
STOCKHOLDERS' EQUITY (Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Options | |||
Exercised | (832,993) | (2,105,237) | (3,155,170) |
Stock Options | |||
Options | |||
Beginning balance | 5,774,522 | 7,038,660 | |
Granted | 2,468,299 | 1,234,847 | |
Exercised | (832,993) | (2,083,016) | |
Forfeited | (1,198,706) | (415,969) | |
Expired | (12,578) | ||
Ending balance | 6,198,544 | 5,774,522 | 7,038,660 |
Exercisable | 3,623,819 | ||
Vested | 3,623,819 | ||
Weighted Average Exercise Price | |||
Beginning balance | $ 13.56 | $ 8.70 | |
Granted | 14.81 | 19.25 | |
Exercised | 5.90 | 0.68 | |
Forfeited | 17.77 | 13.68 | |
Expired | 35.54 | ||
Ending balance | 14.23 | 13.56 | $ 8.70 |
Exercisable | 12.30 | ||
Vested | 12.30 | ||
Intrinsic Value | |||
Beginning balance | 2.21 | 25.45 | |
Exercised | 14.97 | 18.10 | |
Forfeited | 2.27 | 8.74 | |
Expired | 0.29 | ||
Ending balance | 3.62 | $ 2.21 | $ 25.45 |
Exercisable | 5.31 | ||
Vested | $ 5.31 | ||
Weighted Average Remaining Contractual Term | |||
Weighted average remaining contractual term | 7 years 3 months 14 days | 7 years 7 months 17 days | 6 years 3 months 3 days |
Weighted average remaining contractual term, granted | 8 years 5 months 15 days | 9 years 4 months 13 days | |
Weighted average remaining contractual term, exercisable | 6 years 1 month 9 days | ||
Weighted average remaining contractual term, vested | 6 years 1 month 9 days | ||
Stock Options | $0.01 - $10.00 | |||
Exercise Price Range | |||
Exercise price range, lower | $ 0.01 | ||
Exercise price range, upper | $ 10 | ||
Exercise price range, shares outstanding | 2,573,627 | ||
Exercise price range, weighted average exercise price | $ 8.18 | ||
Exercise price range, average remaining life | 6 years 1 month 13 days | ||
Stock Options | $10.01 - $30.00 | |||
Exercise Price Range | |||
Exercise price range, lower | $ 10.01 | ||
Exercise price range, upper | $ 30 | ||
Exercise price range, shares outstanding | 3,315,284 | ||
Exercise price range, weighted average exercise price | $ 16.59 | ||
Exercise price range, average remaining life | 8 years 2 months 12 days | ||
Stock Options | $30.01 - $60.00 | |||
Exercise Price Range | |||
Exercise price range, lower | $ 30.01 | ||
Exercise price range, upper | $ 60 | ||
Exercise price range, shares outstanding | 309,633 | ||
Exercise price range, weighted average exercise price | $ 39.29 | ||
Exercise price range, average remaining life | 7 years 5 months 1 day |
STOCKHOLDERS' EQUITY (Stock Rep
STOCKHOLDERS' EQUITY (Stock Repurchase Plan) (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Nov. 30, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Jun. 26, 2023 | May 31, 2023 | Dec. 27, 2022 | Sep. 27, 2022 | May 31, 2022 | May 06, 2022 | Jan. 10, 2022 | Dec. 31, 2020 | Nov. 30, 2019 | Dec. 31, 2018 |
STOCKHOLDERS' EQUITY | |||||||||||||||
Stock repurchase program authorized amount | $ 1,000,000 | $ 1,000,000 | $ 500,000 | $ 500,000 | $ 400,000 | $ 75,000 | $ 25,000 | ||||||||
Stock repurchase program authorized amount per month | $ 12,000 | $ 8,000 | $ 10,000 | $ 13,300 | $ 20,000 | $ 10,000 | |||||||||
Forecast [Member] | |||||||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||||
Stock repurchase program authorized amount per month | $ 6,000 | ||||||||||||||
Maximum | Scenario, Plan [Member] | |||||||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||||
Stock repurchase program authorized amount per month | $ 12,000 | $ 18,670 | $ 22,000 | $ 17,000 |
STOCKHOLDERS' EQUITY (Schedul_3
STOCKHOLDERS' EQUITY (Schedule of shares repurchased) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Treasury stock: | |||
Balance, beginning of year | 18,816,791 | 6,751,692 | 2,534,494 |
Repurchase of common stock, shares | 10,110,152 | 12,408,430 | 4,217,198 |
Forfeiture to treasury stock for acquisition | 10,728 | ||
Issuance of treasury stock for acquisition | (343,331) | ||
Balance, end of year | 28,937,671 | 18,816,791 | 6,751,692 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of operating Segments | 4 | ||
Number of reportable segments | 4 | ||
Non Domestic | Total Assets | Geographic Concentration Risk | |||
Concentration risk percentage | 14% | 6% | |
Non Domestic | Sales Revenue, Net | Geographic Concentration Risk | |||
Concentration risk percentage | 9% | 9% | 8% |
SEGMENT INFORMATION (Financial
SEGMENT INFORMATION (Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 4,281,105 | $ 4,598,161 | $ 3,771,170 |
Consolidated Adjusted EBITDA | 57,548 | 60,549 | 77,995 |
Depreciation and amortization expense | 10,892 | 9,838 | 6,248 |
Impairment expense | 9,203 | ||
Stock compensation expense | 43,178 | 30,861 | 24,493 |
Stock option expense | 10,736 | 14,442 | 13,102 |
Operating profit | (16,461) | 5,408 | 34,152 |
Goodwill | 16,982 | 27,212 | 12,945 |
Corporate expenses and other | |||
Segment Reporting Information [Line Items] | |||
Consolidated Adjusted EBITDA | (10,376) | (16,756) | (13,708) |
Operating segments | North American Realty | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,220,063 | 4,552,938 | 3,745,354 |
Consolidated Adjusted EBITDA | 91,101 | 103,255 | 116,800 |
Goodwill | 14,595 | 16,577 | |
Operating segments | International Realty | |||
Segment Reporting Information [Line Items] | |||
Revenues | 53,931 | 35,924 | 17,804 |
Consolidated Adjusted EBITDA | (13,657) | (13,708) | (9,138) |
Operating segments | Virbela | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,284 | 8,485 | 8,615 |
Consolidated Adjusted EBITDA | (5,725) | (9,642) | (12,637) |
Goodwill | 8,248 | ||
Operating segments | Other Affiliated Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,802 | 5,084 | 2,896 |
Consolidated Adjusted EBITDA | (3,795) | (2,600) | (3,322) |
Goodwill | 2,387 | 2,387 | |
Segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (4,975) | $ (4,270) | $ (3,499) |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of calculation of basic and diluted earnings (loss) per share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
EARNINGS PER SHARE | |||
Net (loss) income attributable to eXp World Holdings, Inc. | $ (8,973) | $ 15,442 | $ 81,220 |
Weighted average shares - basic | 153,232,129 | 151,036,110 | 146,170,871 |
Dilutive effect of common stock equivalents | 5,184,055 | 11,558,503 | |
Weighted average shares - diluted | 153,232,129 | 156,220,165 | 157,729,374 |
(Loss) earnings per share attributable to common stock- basic | $ (0.06) | $ 0.10 | $ 0.56 |
(loss) earnings per share attributable to common stock- diluted | $ (0.06) | $ 0.10 | $ 0.51 |
Shares excluded, anti-dilutive | 4,361,775 | 1,000,421 | 102,880 |
INCOME TAXES (Schedule of taxab
INCOME TAXES (Schedule of taxable income by domestic and foreign subsidiaries) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||
Domestic | $ (16,522) | $ 1,029 | $ 32,804 |
Foreign | 3,087 | 3,559 | 929 |
Income (loss) before income tax expense | $ (13,435) | $ 4,588 | $ 33,733 |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 305 | ||
State | 795 | $ 737 | $ 456 |
Foreign | 1,788 | 2,312 | 1,650 |
Total Current | 2,888 | 3,049 | 2,106 |
Deferred: | |||
Federal | (4,995) | (11,444) | (41,599) |
State | (1,494) | (1,674) | (6,574) |
Foreign | (861) | (767) | (1,420) |
Total deferred income tax benefit | (7,350) | (13,885) | (49,593) |
Total provision (benefit) for income taxes | $ (4,462) | $ (10,836) | $ (47,487) |
INCOME TAXES (Federal Statutory
INCOME TAXES (Federal Statutory Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||
Federal Statutory Tax Rate | 21% | 21% | 21% |
State taxes | 0.60% | 17.52% | 5.22% |
Permanent differences | 1.03% | (0.40%) | (0.08%) |
Research & Development Credit | 15.48% | (49.64%) | (6.04%) |
Unrecognized tax benefit | (3.87%) | 12.41% | 1.51% |
Share-based compensation | 24.64% | (265.42%) | (107.20%) |
Sec. 162m compensation limitation | (21.23%) | 47.85% | 8.12% |
Foreign tax rate differential | (1.02%) | (1.65%) | 0.27% |
Valuation allowance | (65.54%) | ||
Prior year true up | (3.29%) | (19.99%) | (0.63%) |
Other net | (0.13%) | 2.13% | 2.65% |
Total tax rate reconciliation | 33.21% | (236.19%) | (140.72%) |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 34,028 | $ 41,192 |
Accruals and reserves | 3,127 | 3,129 |
Goodwill and Intangibles | 1,782 | 257 |
Research and Experimental Costs | 14,757 | 8,401 |
Research and Development Credit | 4,632 | 3,826 |
Share-based compensation | 15,872 | 11,871 |
Total gross deferred tax assets | 74,198 | 68,676 |
Deferred tax liabilities | ||
Property and equipment | (2,779) | (3,467) |
Intangibles/Goodwill | (656) | |
Right of use lease asset | (3) | (519) |
Others | (94) | (55) |
Valuation allowance | 0 | |
Net deferred tax assets | $ 71,322 | $ 63,979 |
INCOME TAXES (Liabilities for U
INCOME TAXES (Liabilities for Uncertain tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 1,309 | $ 530 | |
Gross increase for tax positions of prior years | 63 | 199 | $ 325 |
Gross increase for tax positions of current year | 532 | 580 | 205 |
Unrecognized Tax Benefits, Ending Balance | $ 1,904 | $ 1,309 | $ 530 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred tax assets, valuation allowance | $ 0 | ||
Accrued interest or penalties related to uncertain tax positions | 0 | ||
Total amount of unrecognized tax benefits that would affect the Company effective tax rate | 1,904 | ||
Withholding taxes on undistributed earnings of foreign subsidiaries | 800 | ||
Income tax (benefit) expense | $ (4,462) | $ (10,836) | $ (47,487) |
Effective income tax rate | 33.21% | (236.19%) | (140.72%) |
Research and Development | |||
Tax credits, carried forward period | 20 years | ||
California | Research and Development | |||
Tax credits | $ 900 | ||
Federal | |||
Net operating loss carryforwards | 125,800 | ||
Federal | Research and Development | |||
Tax credits | 5,800 | ||
State | |||
Net operating loss carryforwards | 74,100 | ||
Foreign | |||
Net operating loss carryforwards | $ 12,900 |
COMMITMENT AND CONTINGENCIES (N
COMMITMENT AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Apr. 30, 2022 | Mar. 31, 2022 | |
Face Amount | $ 25,000 | |
Flagstar Bank FSB | ||
Investment Company, Committed Capital | 2,000 | $ 2,000 |
Texas Capital Bank | ||
Investment Company, Committed Capital | $ 1,250 | $ 1,250 |
DEFINED CONTRIBUTION SAVINGS _2
DEFINED CONTRIBUTION SAVINGS PLAN (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
DEFINED CONTRIBUTION SAVINGS PLAN | |||
Defined contribution plan, description | The Company offers a defined contribution savings plan to provide eligible employees with a retirement benefit that permits eligible employees the opportunity to actively participate in the process of building a personal retirement fund. The Company sponsors the defined contribution savings plan. The Company matches a portion of contributions made by participating employees. | ||
Defined contribution plan, cost | $ 4,763 | $ 4,720 | $ 3,196 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - $ / shares | 12 Months Ended | ||||
Mar. 01, 2024 | Feb. 29, 2024 | Feb. 14, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Common stock outstanding | 154,669,037 | 152,839,239 | |||
Agent Equity Award Program | |||||
Percentage Of Commission Potentially Redeemed In Common Stock | 5% | ||||
Percentage of discount of market price, date of issuance | 5% | 10% | 10% | ||
Subsequent Event | |||||
Dividends Payable, Amount Per Share | $ 0.05 | ||||
Dividends Payable, Date to be Paid | Mar. 29, 2024 | ||||
Dividends Payable, Date Declared | Feb. 14, 2024 | ||||
Dividends Payable, Date of Record | Mar. 08, 2024 | ||||
Subsequent Event | Agent Equity Award Program | |||||
Percentage Of Commission Potentially Redeemed In Common Stock | 5% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (8,973) | $ 15,442 | $ 81,220 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |