Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Document Information [Line Items] | |||
Document Type | 20-F | ||
Document Registration Statement | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Transition Report | false | ||
Document Shell Company Report | false | ||
Entity File Number | 001-35942 | ||
Entity Registrant Name | LightInTheBox Holding Co., Ltd. | ||
Entity Incorporation, State or Country Code | E9 | ||
Entity Address, Address Line One | 4 pandan crescent #03-03 | ||
Entity Address, City or Town | Singapore | ||
Entity Address, Postal Zip Code | 128475 | ||
Entity Address, Country | SG | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Document Accounting Standard | U.S. GAAP | ||
Entity Common Stock, Shares Outstanding | 223,250,577 | ||
Entity Central Index Key | 0001523836 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Marcum Asia CPAs LLP | Marcum Asia CPAs LLP | Ernst & Young Hua Ming LLP |
Auditor Firm ID | 5395 | 5395 | 1408 |
Auditor Location | New York, NY | New York, NY | Shanghai, The People’s Republic of China |
Business Contact | |||
Document Information [Line Items] | |||
Contact Personnel Name | Jian He | ||
Entity Address, Address Line One | 4 pandan crescent #03 -03 | ||
Entity Address, City or Town | Singapore | ||
Entity Address, Postal Zip Code | 128475 | ||
Entity Address, Country | SG | ||
City Area Code | 65 | ||
Local Phone Number | 6305 9667 | ||
Ordinary Shares | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Ordinary Shares, par value $0.000067 per share | ||
Trading Symbol | LITB | ||
Security Exchange Name | NYSE | ||
ADS | |||
Document Information [Line Items] | |||
Title of 12(b) Security | American Depositary Shares, each representing two Ordinary Shares |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 66,425 | $ 88,575 |
Restricted cash | 5,279 | 5,993 |
Accounts receivable, net of allowance for credit losses | 634 | 695 |
Inventories | 5,767 | 14,260 |
Prepaid expenses and other current assets | 6,875 | 6,452 |
Total current assets | 84,980 | 115,975 |
Property and equipment, net | 2,789 | 2,946 |
Intangible assets, net | 3,604 | 5,630 |
Goodwill | 27,393 | 28,177 |
Operating lease right-of-use assets | 6,559 | 10,874 |
Long-term rental deposits | 392 | 1,211 |
Other non-current assets | 592 | 0 |
TOTAL ASSETS | 126,309 | 164,813 |
Current Liabilities | ||
Accounts payable | 15,846 | 26,518 |
Advance from customers | 17,001 | 32,241 |
Operating lease liabilities | 5,046 | 4,993 |
Accrued expenses and other current liabilities | 94,622 | 90,357 |
Total current liabilities | 132,515 | 154,109 |
Operating lease liabilities | 1,915 | 6,576 |
Long-term payable | 0 | 34 |
Deferred tax liabilities | 154 | 111 |
Unrecognized tax benefits | 107 | 107 |
TOTAL LIABILITIES | 134,691 | 160,937 |
EQUITY / (DEFICIT) | ||
Ordinary shares ($0.000067 par value; 750,000,000 shares authorized; 244,895,045 and 244,955,045 shares issued as of December 31, 2022 and 2023 respectively; 226,569,381 and 223,250,577 shares outstanding as of December 31, 2022 and 2023, respectively) | 17 | 17 |
Additional paid-in capital | 283,137 | 282,722 |
Treasury shares (18,311,418 and 21,666,222 shares as of December 31, 2022 and 2023, respectively) | (30,359) | (28,615) |
Accumulated other comprehensive loss | (1,856) | (1,024) |
Accumulated deficit | (259,321) | (249,224) |
TOTAL EQUITY / (DEFICIT) | (8,382) | 3,876 |
TOTAL LIABILITIES AND EQUITY / (DEFICIT) | $ 126,309 | $ 164,813 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Ordinary shares, par value (in dollars per share) | $ 0.000067 | $ 0.000067 |
Ordinary shares, shares authorized | 750,000,000 | 750,000,000 |
Ordinary shares, shares issued | 244,955,045 | 244,895,045 |
Ordinary shares, shares outstanding | 223,250,577 | 226,569,381 |
Treasury stock, shares | 21,666,222 | 18,311,418 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Revenues | $ 629,428 | $ 503,568 | $ 446,103 |
Cost of revenues | |||
Cost of revenues | 269,496 | 228,490 | 239,393 |
Gross profit | 359,932 | 275,078 | 206,710 |
Operating expenses: | |||
Fulfillment | 34,916 | 30,617 | 29,588 |
Selling and marketing | 302,694 | 222,629 | 154,176 |
General and administrative | 34,078 | 36,295 | 39,733 |
Other operating income | (1,361) | (223) | (675) |
Total operating expenses | 370,327 | 289,318 | 222,822 |
Loss from operations | (10,395) | (14,240) | (16,112) |
Interest income | 350 | 57 | 59 |
Interest expense | (4) | (5) | (13) |
Other income, net | 499 | 982 | 39,322 |
Impairment loss on investment | 0 | (56,083) | 0 |
Total other income / (loss) | 845 | (55,049) | 39,368 |
Income / (loss) before income taxes | (9,550) | (69,289) | 23,256 |
Income tax (expense) / benefit | (40) | 12,707 | (9,802) |
Net income / (loss) | (9,590) | (56,582) | 13,454 |
Less: Net income attributable to non-controlling interests | 325 | ||
Net Income / (loss) attributable to LightInTheBox Holding Co., Ltd. | $ (9,590) | $ (56,582) | $ 13,129 |
Net income / (loss) per ordinary share - basic | $ (0.04) | $ (0.25) | $ 0.06 |
Net income / (loss) per ordinary share - diluted | $ (0.04) | $ (0.25) | $ 0.06 |
Product sales | |||
Revenues | |||
Revenues | $ 617,240 | $ 491,949 | $ 435,170 |
Cost of revenues | |||
Cost of revenues | 265,964 | 223,383 | 235,237 |
Gross profit | 351,276 | 268,566 | 199,933 |
Services and others | |||
Revenues | |||
Revenues | 12,188 | 11,619 | 10,933 |
Cost of revenues | |||
Cost of revenues | 3,532 | 5,107 | 4,156 |
Gross profit | $ 8,656 | $ 6,512 | $ 6,777 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) | |||
Net Income / (loss) | $ (9,590) | $ (56,582) | $ 13,454 |
Other comprehensive income / (loss): | |||
Foreign currency translation adjustment, net of nil income taxes | (832) | (3,761) | 942 |
Total comprehensive income / (loss) | (10,422) | (60,343) | 14,396 |
Less: comprehensive income attributable to non-controlling interests | 0 | 0 | 325 |
Comprehensive income / (loss) attributable to LightInTheBox Holding Co., Ltd. | $ (10,422) | $ (60,343) | $ 14,071 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) | |||
Foreign currency translation adjustment, net of income taxes | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY / (DEFICIT) - USD ($) $ in Thousands | Ordinary Shares | Additional Paid-in Capital | Treasury Stock, Common [Member] | Accumulated Other Comprehensive (Loss) / Income | Accumulated Deficit | Non-controlling Interests | Total |
Balance at Dec. 31, 2020 | $ 17 | $ 282,260 | $ 1,795 | $ (204,571) | $ 83 | $ 49,377 | |
Balance (in shares) at Dec. 31, 2020 | 224,038,611 | ||||||
Treasury Shares, Value, Beginning Balance at Dec. 31, 2020 | $ (30,207) | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of ordinary shares | 898 | (630) | 268 | ||||
Issuance of ordinary shares (in shares) | 346,570 | ||||||
Issuance of ordinary shares upon vesting of nonvested shares (in shares) | 1,695,200 | ||||||
Share-based compensation | 1,382 | 1,382 | |||||
Net income / (loss) | 13,129 | 325 | 13,454 | ||||
Acquisition of non-controlling interests | (1,260) | (284) | (1,544) | ||||
Foreign currency translation adjustment, net of nil income taxes | 942 | 942 | |||||
Balance at Dec. 31, 2021 | $ 17 | 282,382 | 2,737 | (192,072) | 124 | 63,879 | |
Balance (in shares) at Dec. 31, 2021 | 226,080,381 | ||||||
Treasury Shares, Value, Ending Balance at Dec. 31, 2021 | (29,309) | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of ordinary shares upon vesting of nonvested shares (in shares) | 212,000 | ||||||
Exercise of options and employee transactions | 694 | (694) | |||||
Exercise of options and employee transactions (in shares) | 277,000 | ||||||
Share-based compensation | 340 | 340 | |||||
Net income / (loss) | (56,582) | (56,582) | |||||
Disposal of subsidiaries with non-controlling interests | 124 | $ (124) | |||||
Foreign currency translation adjustment, net of nil income taxes | (3,761) | (3,761) | |||||
Balance at Dec. 31, 2022 | $ 17 | 282,722 | (1,024) | (249,224) | 3,876 | ||
Balance (in shares) at Dec. 31, 2022 | 226,569,381 | ||||||
Treasury Shares, Value, Ending Balance at Dec. 31, 2022 | (28,615) | 28,615 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of ordinary shares upon vesting of nonvested shares (in shares) | 36,000 | ||||||
Share-based compensation | 415 | 415 | |||||
Issuance of ordinary shares from treasury shares upon vesting of nonvested shares | 362 | (362) | |||||
Issuance of ordinary shares from treasury shares upon vesting of nonvested shares (in shares) | 142,000 | ||||||
Issuance of ordinary shares from treasury shares | 190 | (145) | 45 | ||||
Issuance of ordinary shares from treasury shares (in shares) | 74,656 | ||||||
Repurchase of ordinary shares | (2,296) | (2,296) | |||||
Repurchase of ordinary shares (in shares) | (3,571,460) | ||||||
Net income / (loss) | (9,590) | (9,590) | |||||
Foreign currency translation adjustment, net of nil income taxes | (832) | (832) | |||||
Balance at Dec. 31, 2023 | $ 17 | $ 283,137 | $ (1,856) | $ (259,321) | (8,382) | ||
Balance (in shares) at Dec. 31, 2023 | 223,250,577 | ||||||
Treasury Shares, Value, Ending Balance at Dec. 31, 2023 | $ (30,359) | $ 30,359 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY / (DEFICIT) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY / (DEFICIT) | |||
Foreign currency translation adjustment, net of income taxes | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income / (loss) | $ (9,590) | $ (56,582) | $ 13,454 |
Adjustments to reconcile net income to net cash provided by / (used in) operating activities: | |||
Depreciation and amortization | 3,177 | 3,371 | 3,299 |
Loss / (gain) on disposal of property and equipment | (1) | 17 | 3 |
Share-based compensation | 415 | 340 | 1,382 |
Impairment loss on investment | 0 | 56,083 | 0 |
Unrealized foreign exchange (gain) / loss | (1,114) | 2,383 | 1,132 |
Fair value change of equity investment without readily determinable fair values under the measurement alternative | 0 | (849) | (38,834) |
Allowance for credit losses | 0 | 83 | 407 |
Inventory write-down | 0 | 103 | 880 |
Interest income | (71) | 0 | 0 |
Reversal of unrecognized tax benefits | 0 | 12,302 | 0 |
Deferred income tax | 40 | (407) | 9,827 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 61 | 930 | (731) |
Inventories | 8,493 | (2,366) | (2,957) |
Prepaid expenses and other current assets | (423) | 1,412 | (2,837) |
Amounts due from related parties | 0 | 0 | 62 |
Long-term rental deposits | 819 | 7 | (511) |
Other non-current assets | (592) | 0 | 0 |
Accounts payable | (10,672) | 2,983 | 6,582 |
Amounts due to related parties | 0 | 0 | (167) |
Advance from customers | (15,240) | 7,452 | (8,490) |
Accrued expenses and other current liabilities | 4,276 | 32,537 | 15,808 |
Operating lease right-of-use assets | 5,414 | 5,506 | 660 |
Operating lease liabilities | (5,707) | (4,875) | (740) |
Net cash provided by / (used in) operating activities | (20,715) | 35,826 | (1,771) |
Cash flows from investing activities | |||
Purchase of property and equipment | (1,149) | (817) | (1,013) |
Purchase of intangible assets | 0 | 0 | (56) |
Interest received | 71 | 0 | 0 |
Loans to a third party | (2,824) | 0 | 0 |
Repayment of loans by a third party | 2,824 | 0 | 0 |
Capitalized internal use software | 0 | 0 | (827) |
Proceeds from disposal of property and equipment | 0 | 138 | 64 |
Proceeds from disposal of long-term investment | 0 | 2,730 | 89 |
Net cash (used in) / provided by investing activities | (1,078) | 2,051 | (1,743) |
Cash flows from financing activities | |||
Principal repayment of finance leases | (44) | (43) | (44) |
Issuance of ordinary shares from treasury shares | 45 | 0 | 268 |
Repurchase of ordinary shares | (2,296) | 0 | 0 |
Payment for acquisition of non-controlling interest | 0 | 0 | (1,544) |
Net cash used in financing activities | (2,295) | (43) | (1,320) |
Net (decrease) / increase in cash, cash equivalents and restricted cash | (24,088) | 37,834 | (4,834) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 1,224 | (2,868) | (1,093) |
Cash, cash equivalents and restricted cash at beginning of year | 94,568 | 59,602 | 65,529 |
Cash, cash equivalents and restricted cash at end of year | 71,704 | 94,568 | 59,602 |
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets | |||
Cash and cash equivalents | 66,425 | 88,575 | 55,942 |
Restricted cash | 5,279 | 5,993 | 3,660 |
Total cash and cash equivalents and restricted cash | 71,704 | 94,568 | 59,602 |
Supplemental cash flow information: | |||
Income taxes paid | 0 | (17) | (11) |
Interest expense paid | (4) | (5) | (13) |
Noncash investing activities: | |||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 862 | $ 5,498 | $ 4,655 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES LightInTheBox Holding Co., Ltd. (the “Company”), incorporated in the Cayman Islands in March 2008, together with its consolidated subsidiaries (collectively referred to the “Group”), is an online retailer that delivers products directly to consumers around the world. (1) History of the Group and corporate reorganization LightInTheBox Holding Co., Ltd. is a holding company with no material operations of its own. It conducts its operations primarily through its subsidiaries in Singapore, Hong Kong, the PRC, the United States and Netherlands. ● Avant Logistic Service PTE. LTD.(“Avant Logistic”), Avant E-commerce Service PTE. LTD. and Ching International Service PTE. LTD., the Company’s wholly owned subsidiaries incorporated under the laws of Singapore, that primarily focus on the marketing and customer service, warehouse management services and local delivery in Southeast Asia; ● Light In The Box Limited (“Light In The Box”), LightInTheBox International Logistic Co., Limited (“LightInTheBox Logistic”), Lanting International Holding Limited (“Lanting International”) and Ezbuy Holdings Limited (“Ezbuy HK”), the Company’s wholly owned subsidiaries incorporated in Hong Kong, that primarily engage in product sourcing, marketing and the operation of our websites and mobile applications and global distribution network; ● LITB Netherlands B.V., the company’s wholly owned subsidiary incorporated in the Netherlands that primarily engages in marketing in Europe; ● Ador E-commerce Inc., the company’s wholly owned subsidiary incorporated under the laws of the State of Oregon, the United States, that primarily engages in marketing and technology support; and ● PRC subsidiaries, that primarily engage in providing supplier chain management, research and development, customer service, marketing services, warehousing and fulfillment services to overseas affiliates. (2) Termination of the VIE arrangements As of December 31, 2023, there were no VIEs in the PRC. Historically, the Group conducted certain operations in the PRC through contractual arrangements with certain VIEs, that were incorporated in the PRC. To mitigate the uncertainties in the Group’s corporate structure and exert full control on its operating entities, the Group transferred operations in the VIEs to its wholly-owned entities and unwound the VIEs arrangements that were intended to support the operations of its PRC subsidiaries, which were no longer in operation. In 2021, Shenzhen Xuyi International logistics Co., Ltd. and Chongqing Xuyi E-Commerce Co., Ltd. were closed and the shares of Shenzhen Lanting Huitong Technologies Co., Ltd., Jiaxing Xuyang Logistics Co., Ltd. (“Jiaxing Xuyang”), Dongguan Herui Supply Chain Management Co., Limited (“Dongguan Herui”) and Shenzhen Ruizhihe Supply Chain Management Co., Limited (“Shenzhen Ruizhihe”) were transferred from its nominee shareholders to the Group’s wholly-owned subsidiaries at nominal value. In 2022, The Group liquidated the two remaining VIEs, namely, Beijing Lanting Gaochuang Technologies Co., Ltd. (“Lanting Gaochuang”) and Chongqing Ruizhihe E-Commerce Co., Ltd. (“Chongqing Ruizhihe”). As a result, the contractual arrangements between the wholly-owned entities and the relevant VIEs were terminated, which included Exclusive and Technical Support and Consulting Service Agreements, Powers of Attorney, Exclusive Option Agreements, Loan Agreements, Share Pledge Agreements and Spousal Consent Letters. Thereafter the Group conducts its operations exclusively through wholly-owned subsidiaries. The following condensed consolidated financial information of the Group’s VIEs and its subsidiary was included in the consolidated financial statements as of and for the years ended, after elimination of intercompany balances and transactions within the Group: December 31, 2022 2023 Total assets $ 126 $ — Total liabilities $ — $ — Years ended December 31, 2021 2022 2023 Revenues $ 790 $ — $ — Net loss $ (295) $ (424) $ — Years ended December 31, 2021 2022 2023 Net cash provided by / (used in) operating activities $ 3,758 $ (8,673) $ — Net cash provided by investing activities $ 381 $ 2,778 $ — Net cash used in financing activities $ — $ — $ — As of December 31, 2022, there was no pledge or collateralization of the consolidated VIEs’ assets that can only be used to settle the VIEs’ obligations. The creditors of the VIEs do not have recourse to the general recourse of the Company or its consolidated subsidiaries. |
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 (a) Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Basis of consolidation The consolidated financial statements include the financial statements of the Group, its subsidiaries, VIEs and the VIE’s subsidiary, in which the Company has a controlling financial interest. Equity interests of the Company’s subsidiaries that are not owned by the Company are referred to as non-controlling interests. All inter-company transactions and balances between the Company, its subsidiaries, VIEs and subsidiary of the VIE are eliminated upon consolidation. (c) Non-controlling Interests Non-controlling interests are classified as a separate component of equity in the consolidated balance sheets and consolidated statements of changes in equity. Additionally, net income attributable to non-controlling interests is reflected separately from consolidated net income in the consolidated statements of operations, comprehensive income / (loss) and changes in equity. The Company records the non-controlling interests’ share of income or loss based on the percentage of ownership interest retained by the respective non-controlling interest holders. The net income attributable to the Company is the total consolidated net income / (loss) less the net income attributable to the non-controlling interests. Changes in the Company’s ownership interest while the Company retains its controlling interest in its subsidiary shall be accounted for as equity transactions. Therefore, no gain or loss will be recognized in consolidated net income / (loss) or comprehensive income / (loss). The carrying amount of the non-controlling interest will be adjusted to reflect the change in its ownership interest in the subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the non-controlling interest is adjusted will be recognized in equity attributable to the Company. (d) 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 the reported amounts of revenues and expenses in the financial statements and accompanying notes. Actual results may differ from these estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include the allowance for credit losses of accounts receivables, inventory valuation, the useful lives of property and equipment and intangibles assets with definite lives, impairment of goodwill and long-lived assets, realization of deferred income tax assets, incremental borrowing rates for lease liabilities, the fair value of equity investment without readily determinable fair value accounted for using the measurement alternative, impairment of equity investment without readily determinable fair value, the fair value determination and estimated forfeiture rates for share-based compensation awards, and sales returns allowances. (e) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits, highly liquid investments and term deposits with an original maturity of three months or less and are readily convertible to known amount of cash. (f) Restricted cash Restricted cash consists of cash which is held under the Group’s name in escrow accounts as deposits withheld by third party payment processing agencies which fluctuate with the volume of payment processed, and the cash reserved in bank supervised accounts for performance guarantees to the Group’s vendors which will be released to cash within the next 12 months. (g) Accounts receivable, net of allowance for credit losses The Group maintains an allowance for credit losses in accordance with ASC Topic 326, Credit Losses (“ASC 326”) and records the allowance for credit losses as an offset to accounts receivable. The estimated credit losses charged to the allowance is classified as “General and administrative” in the consolidated statements of operations. The Group assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on similar business line, service or product offerings and on an individual basis when the Group identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Group considers historical collectability based on past due status, the age of the accounts receivable balances, credit quality of the Group’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Group’s ability to collect from customers. Accounts receivables are written off after all collection efforts have ceased. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when the Group has satisfied its performance obligation and has the unconditional right to payment. As of December 31, 2022 and 2023, accounts receivable included account receivables for cash collected by supplemental online outlets, accounts receivable for logistic services, and accounts receivable for cash collected by the delivery service providers on behalf of the Group. The Group considers many factors in assessing the collectability of its accounts receivable, such as the age of the amounts due, the customer’s payment history, creditworthiness, financial conditions of the customers and industry trend. As of December 31, 2022 and 2023, the allowance for credit losses for accounts receivable was $1,841 and $1,841, respectively. For the years ended December 31, 2021, 2022 and 2023, the recognized credit losses were $968, $nil and $nil, respectively. (h) Inventories Inventories represent products available for sale and are accounted for using the first-in-first-out method and specific identification method, and are valued at the lower of cost or net realizable value. Adjustments are recorded to write down the cost of inventory to the net realizable value due to slow-moving merchandise and broken assortments, which are dependent upon factors such as historical trends with similar merchandise, inventory aging, and historical and forecasted consumer demand. Write down of $880, $103 and $nil were recorded in cost of revenues in the consolidated statements of operations for the years ended December 31, 2021, 2022 and 2023, respectively. (i) Property and equipment, net Property and equipment, net is stated at cost less accumulated depreciation and impairment if any. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Useful lives Furniture, fixtures and office equipment 1 - 5 years Leasehold improvements Lesser of the lease term or estimated useful life of the assets Vehicles 4 - 10 years IT equipment 1 - 3 years (j) Acquired intangible assets, net Intangible assets, other than goodwill, resulting from the acquisitions of entities accounted for using the acquisition method of accounting are estimated by management based on the fair value of assets acquired at the acquisition date. Identifiable intangible assets are carried at cost less accumulated amortization and impairment if any. Amortization of the intangible assets with definite life are computed using the straight-line method over the estimated useful lives. Useful lives Domain name / Trade name Indefinite life Technology platform 1 year Non-compete agreement 2 years Customer base 4.3 years Technology 3-5 years Members 4 years Branding 10 years In-progress orders 0.1 year (k) Internal use software The Group capitalizes payroll costs incurred for the development of computer software for internal use pursuant to ASC Topic 350-40, Intangibles—Goodwill and Others—Internal use software (l) Long-term investment The Group’s long-term investment consists of an equity investment without readily determinable fair value. Equity investment without readily determinable fair value Equity investments, except for those accounted for under the equity method, those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the entity has to recognize an impairment loss in net income / (loss) equal to the difference between the carrying value and fair value. (m) Impairment of long-lived assets and definite-lived intangible assets Long-lived assets, such as property and equipment and definite-lived intangible assets, are stated at cost less accumulated depreciation or amortization and any impairment. The Group evaluates the recoverability of long-lived assets, including identifiable intangible assets with determinable useful lives, whenever events or changes in circumstances indicate that a long-lived asset’s carrying amount may not be recoverable. The Group compares the carrying amount of long-lived asset against the estimated undiscounted future cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the asset. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. (n) Impairment of goodwill and indefinite-lived intangible assets Goodwill and intangible assets deemed to have indefinite useful lives are not amortized, but tested for impairment annually as of December 31 or more frequently if events and circumstances indicate that they might be impaired. Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. The Group assesses goodwill for impairment in accordance with ASC 350-20, Intangibles – Goodwill and Other: Goodwill, which permits the Group to first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount, including goodwill, as a basis for determining whether it is necessary to perform the quantitative impairment test. If this is the case, the quantitative goodwill impairment test is required. If it is more likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the quantitative goodwill impairment test is not required. Quantitative goodwill impairment test is used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired. If the fair value of the reporting unit is less than its carrying amount, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company performs the annual goodwill and indefinite-lived intangible assets impairment assessment using qualitative impairment test on December 31 and no goodwill and indefinite-lived intangible assets impairment has been identified. An intangible asset that is not subject to amortization is tested for impairment at least annually or if events or changes in circumstances indicate that the asset might be impaired. Such impairment test compares the fair values of assets with their carrying value amounts and an impairment loss is recognized if and when the carrying amounts exceed the fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. (o) Treasury shares Treasury shares represent shares of the Company’s stock that have been issued, repurchased by the Company, and that have not been retired or canceled. These shares have no voting rights and are not entitled to receive dividends and are excluded from the weighted average outstanding shares in calculation of net income / (loss) per ordinary share. Treasury shares are recorded at cost. Gains on sales of treasury stock not previously accounted for as constructively retired shall be credited to additional paid-in capital; losses may be charged to additional paid-in capital to the extent that previous net gains from sales or retirements of the same class of stock are included therein, otherwise to retained earnings. (p) Revenue recognition The Group recognizes revenue (i) from product sales of apparel and other general merchandise to customers through its websites and other online platforms, and to third-party sellers that sell through the Group’s platforms utilizing the Group’s supply chain, and (ii) from logistics services to companies and to individual customers. The Group recognizes revenues upon the satisfaction of its performance obligation (upon transfer of control of promised goods or services to customers) in amounts that reflects the consideration to which the Group expects to be entitled to in exchange for those goods or services, excluding amounts collected on behalf of third parties (for example, value added taxes). For each performance obligation satisfied over time, the Group recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation. If the Group does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time. Product sales The Group identified one performance obligation for product sales to consumers which is to sell products to customers through its websites and other online platforms, and also product sales to third-party sellers. Revenues of product sales are recognized on a gross basis and presented as product sales on the consolidated statements of operations, because (i) the Group is primarily responsible for fulfilling the promise to provide the specified products; (ii) the Group bears the physical and general inventory risk once the products are delivered to its warehouses; and (iii) the Group has discretion in establishing price. The product sales to third-party sellers includes sales of products and fulfillment of orders. The Group considers that these elements are a series of combined promises in the context of the contract with third-party sellers that should be combined as one single performance obligation. Accordingly, the product sales together with the fulfillment services to third-party sellers are accounted for as one performance obligation. The Group established a membership program whereby a registered member earns certain points for visiting one of the Group’s websites. Points could only be redeemed in connection with a future purchase. Such points, when redeemed, were treated as a reduction of revenues at the time of future purchase. Since the points are not earned based a concurrent sales transaction, no accruals are made at the time when points are earned by the registered members. Prime membership revenues which are included in product sales, are amortized over the membership period on a straight-line basis. Prime is a subscription-based membership program. Items purchased from Prime shop enjoy flat international shipping per checkout. Prime membership revenues for the years ended December 31, 2021, 2022 and 2023 were $810, $479 and $1,899, respectively. Product sales, net of discounts, an allowance for sales return and VAT, are recognized at the point in time when customers accept the products upon delivery. Revenues are measured as the amount of consideration the Group expects to receive in exchange for transferring products to consumers or third - party sellers. Sales return allowances, which reduce revenues, are estimated utilizing the expected value method based on historical experience of returns. The Group allowed customers to return the goods with no quality-related issues within 7 days of receipt of shipment. The Group allows customers to return most goods with quality-related issues within 30 days of receipt of shipment, and to return lamps and faucets with quality-related issues within 12 months. Liabilities for sales return allowances are included in “Accrued expenses and other current liabilities” and were $2,348 and $1,376 as of December 31, 2022 and 2023, respectively. The allowance for sales return were $9,377, $14,950 and $15,732 for the years ended December 31, 2021, 2022 and 2023. The Group utilizes delivery service providers to deliver products to its consumers (“shipping activities”) but the delivery service for consumers is not considered as a separate obligation as the shipping activities are performed before the consumers obtain control of the products. Therefore, shipping activities for consumers and the third-party sellers are not considered a separate promised service to the consumers but rather are activities to fulfill the Group’s promise to transfer the products. Outbound shipping charges to customers are included as a part of the revenues and outbound shipping-related costs are recorded as cost of product sales. Shipping costs incurred for sales of products and recognized as cost of product sales were $90,576, $101,349 and $126,628 for the years ended December 31, 2021, 2022 and 2023, respectively. Services and others The Group derives services revenues mainly from provision of logistic services to companies and to individual customers. Revenues from logistic services are recognized over the delivery period since the customers simultaneously receive and consume benefits provided by the Group’s performance as the Group performs during the delivery period. Contract liabilities A contract liability is recognized when the Group has an obligation to transfer goods or services to a customer for which the Group has received consideration from the customer. It is included in advance from customers on the consolidated balance sheets. Changes in the Group’s contract liabilities are presented in the following table for the years ended December 31, 2022 and 2023: Years ended December 31, 2022 2023 Contract liabilities as of January 1 $ 18,239 $ 26,652 Cash received in advance, net of VAT 484,139 617,450 Revenue recognized from opening balance of contract liabilities (18,239) (26,652) Revenue recognized from contract liabilities arising during current year (457,487) (606,249) Contract liabilities as of December 31 $ 26,652 $ 11,201 The Company has elected the practical expedient not to disclose the information about remaining performance obligations which are part of contracts that have an original expected duration of one year or less. (q) Cost of revenues Product sales Cost of goods sold primarily consists of the purchase price of consumer products sold by the Group on its websites and to third-party sellers, inbound and outbound shipping charges, packaging supplies and inventory write-downs. Shipping charges to receive products from its suppliers are included in inventory cost and recognized as cost of sales upon sale of products to customers. Services Cost of services primarily consists of the shipping charges and cost of packaging supplies directly incurred relating to logistic services. (r) Fulfillment Fulfillment costs represent those costs incurred in operating and staffing the Group’s fulfillment and customer service centers, including (i) costs attributable to buying, receiving, inspecting, and warehousing inventories, (ii) picking, packaging, and preparing customer orders for shipment, and (iii) payment processing and related transaction costs. (s) Selling and marketing Selling and marketing expenses consist primarily of search engine marketing and advertising, affiliate market program expenditures, public relations expenditures; and payroll and related expenses for personnel engaged in selling, marketing and business development. The Group pays to use certain relevant key words relating to its business on major search engines and the fees charged to the Group are on a “cost-per-click” basis. Advertising expense includes fees paid to on-line advertisers who assist the Group to advertise at targeted websites. Such fees are charged at a fixed rate or calculated based on traffic directed to the Group’s websites. The advertising expenses for the years ended December 31, 2021, 2022 and 2023 were $142,397, $210,817 and $291,702, respectively. (t) General and administrative General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions such as accounting, finance, tax, legal, and human resources; costs associated with the use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees, provision for credit losses and other general corporate costs. Also included in general and administrative expenses are payroll and related expenses for employees involved in product research and development, and systems support, as well as server charges and costs associated with telecommunications. The research and development expenses for the years ended December 31, 2021, 2022 and 2023 were $20,338, $19,447 and $19,105, respectively. General and administrative expenses also include chargebacks relating to fraudulent credit card activities from the payment processing agencies. The Group estimates chargebacks based on historical experience. The estimation of chargebacks is adjusted to the extent that actual chargebacks differ or are expected to differ. The chargeback expenses for the years ended December 31, 2021, 2022 and 2023 were $1,352, $2,209 and $2,338, respectively. (u) Government subsidies Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. For the government subsidies with no further conditions to be met, the amounts are recorded as operating income in “Other operating income”, or as a reduction of specific cost or expenses if such subsidies are intended to compensate such amounts. The government subsidies with certain operating conditions are recorded as liabilities when received and will be recorded as “Other operating income” or as a reduction of specific cost or expenses when the conditions are met. (v) Fair value measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: ● Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. ● Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3-inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. (w) Financial instruments and fair value measurements Financial instruments of the Group primarily consist of cash and cash equivalents, restricted cash, accounts receivable, receivables from payment processing agencies, amounts due from related parties, long-term investments, long-term rental deposits, accounts payable, advance from customers, accrued expenses and other current liabilities and long-term payable. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, receivable from payment processing agencies, accounts payable, advance from customers, accrued expenses and other current liabilities as of December 31, 2022 and 2023 approximate their fair values due to short-term maturities. The carrying amount of long-term payable approximates fair value as the related interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities. Goodwill, long-term investment and long-lived assets are measured at fair value on a nonrecurring basis only when impairment is recognized. The Group estimates the fair value of a reporting unit using the discounted cash flow method under the income approach. The discounted cash flows are based on a five-year financial forecasts developed by management for planning purposes. Cash flows beyond the forecasted period are estimated using a terminal value calculation. The fair values of long-lived assets are determined based on various valuation methods, including the replacement cost method, the relief from royalty method and the excess earning method. The fair value measurement of long-term investment is described in (l) Long-term investment The following table present the fair value hierarchy for the asset at December 31, 2022 and 2023: Fair value measurement at December 31, 2022 using Quoted prices in Significant Significant Carrying Value at active markets observable unobservable December 31, 2022 (Level 1) inputs (Level 2) inputs (Level 3) Total losses Non-recurring fair value measurements for: Long-term investment $ — $ — $ — $ — $ 55,234 Fair value measurement at December 31, 2023 using Quoted prices in Significant Significant Carrying Value at active markets observable unobservable December 31, 2023 (Level 1) inputs (Level 2) inputs (Level 3) Total losses Non-recurring fair value measurements for: Long-term investment $ — $ — $ — $ — $ — For long-term investments which consists of an equity security accounted for under the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investment is re-measured to fair value (Note 8). The non-recurring fair value measurements for this investment requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Group. These non-recurring fair value measurements were measured as of the observable transaction dates. The Company uses valuation methodologies including the back-solve method and an equity allocation model which requires management to use the observable transaction price at the transaction date and other unobservable inputs (level 3) such as expected volatility, discount for lack of marketability and probability of exit events as it relates to an initial public offering, liquidation and redemption preferences. (x) Foreign currency translation The Company’s functional currency is the U.S. dollar (“US$”). The Company’s subsidiaries, VIEs and its VIEs’ subsidiary determine their functional currencies based on the criteria of ASC Topic 830, Foreign Currency Matters Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange prevailing at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations. The Group’s entities with functional currency of Renminbi (“RMB”), Euro (“EUR”), Singapore Dollar (“SGD”), Malaysian Ringgit (“RM”) and Pound (“GBP”), translate their operating results and financial position into the US$, the Group’s reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income / (loss). (y) Income taxes Income taxes are provided using the asset and liability method. Under this method, deferred income taxes are recognized for tax credits and net operating losses available for carry forwards and significant temporary differences. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group’s estimated liability for unrecognized tax benefits is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and / or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from the Group’s estimates. As each audit is concluded, adjustments, if any, are recorded in the Group’s consolidated financial statements. Additionally, in future per |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET | 3. PREPAID EXPENSES AND OTHER CURRENT ASSETS The components of prepaid expenses and other current assets are as follows: As of December 31, 2022 2023 Prepayments to suppliers (1) $ 4,711 $ 4,441 Deferred expenses 659 546 Rental deposits and prepaid rents 129 969 Others 953 919 Total $ 6,452 $ 6,875 (1) The prepayments primarily consist of shipping costs and advertising fee paid in advance. As of December 31, 2022 and 2023, the allowance of credit losses for other current assets are $192 and $192, respectively. Impairment losses are $nil, $83 and $nil for the years ended December 31, 2021, 2022 and 2023, respectively. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 4. PROPERTY AND EQUIPMENT, NET The components of property and equipment are as follows: As of December 31, 2022 2023 Leasehold improvements $ 1,451 $ 1,466 Furniture, fixtures and office equipment 3,069 3,386 IT equipment 2,393 2,437 Vehicles 1,362 1,739 Property and equipment, gross 8,275 9,028 Less: Accumulated depreciation (5,329) (6,239) Property and equipment, net $ 2,946 $ 2,789 Depreciation expenses incurred for the years ended December 31, 2021, 2022 and 2023 are $1,217, $1,223 and $1,280, respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill Disclosure [Abstract] | |
GOODWILL | 5. GOODWILL All goodwill are allocated to the product sales reporting unit. The changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2023, are as follows: Ador Ezbuy Total Balance at January 1, 2022 $ 690 $ 29,750 $ 30,440 Effect of exchange rate changes on goodwill — (2,263) (2,263) Balance at December 31, 2022 $ 690 $ 27,487 $ 28,177 Effect of exchange rate changes on goodwill — (784) (784) Balance at December 31, 2023 $ 690 $ 26,703 $ 27,393 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 6. INTANGIBLE ASSETS, NET The carry amounts of intangible assets, as of December 31, 2022 and 2023, consists of the below: December 31, 2022 December 31, 2023 Gross Accumulated Net Gross Accumulated Net carrying Accumulated impairment carrying carrying Accumulated impairment carrying amount amortization loss amount amount amortization loss amount Intangible assets not subject to amortization: Trademark/domain name $ 1,220 $ — $ (1,010) $ 210 $ 1,220 $ — $ (1,010) $ 210 Intangible assets subject to amortization: - Technology platform 90 (90) — — 90 (90) — — - Non-compete agreement 9 (7) (2) — 9 (7) (2) — - Customer base 32 (22) (10) — 32 (22) (10) — - Technology 2,906 (2,372) — 534 2,823 (2,823) — — - Branding 6,849 (2,797) — 4,052 6,654 (3,382) — 3,272 - In-progress orders 192 (192) — — 186 (186) — — - Members 20 (20) — — 20 (20) — — - Software 76 (42) — 34 74 (66) — 8 - Internal use software 2,474 (1,674) — 800 2,474 (2,360) — 114 $ 13,868 $ (7,216) $ (1,022) $ 5,630 $ 13,582 $ (8,956) $ (1,022) $ 3,604 The total amortization expenses incurred for the years ended December 31, 2021, 2022 and 2023 were $2,082, $2,148 and $1,897, respectively.The estimated amortization expense for intangible assets in each of the next five years and thereafter are $788, $665, $665, $665 and $611, respectively. There was no impairment for the years ended December 31, 2021, 2022 and 2023. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
LEASES | 7. LEASES The Group has operating leases for office space, warehouses and servers and finance leases for vehicles as a lessee. The Group’s lease agreements include lease payments that are fixed, do not contain material residual value guarantees or variable lease payments. The leases have terms ranging from one The components of lease costs were as follows: Years ended December 31, 2021 2022 2023 Operating lease costs $ 5,089 $ 5,434 $ 5,359 Short-term lease costs 1,115 652 309 Financing lease costs: Amortization of ROU assets 28 27 28 Interests 13 5 4 Total lease costs $ 6,245 $ 6,118 $ 5,700 Years ended December 31, Other information 2021 2022 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 5,132 4,932 5,707 Operating cash flows from financing leases 44 43 44 Financing cash flows from financing leases 13 5 4 ROU assets obtained in exchange for new operating lease liabilities 4,655 5,498 862 Weighted-average remaining lease term (in years): Operating leases 3.13 2.30 1.39 Financing leases 2.72 1.72 0.72 Weighted-average discount rate: Operating leases 4.79 % 3.90 % 3.95 % Financing leases 5.70 % 5.70 % 5.70 % For the year ended December 31, 2021, total costs on operating lease and short-term lease of $3,299, $1,042, and $1,863 were recorded in fulfillment, selling and marketing, and general and administrative, respectively. For the year ended December 31, 2022, total costs on operating lease and short-term lease of $3,344, $1,288, and $1,454 were recorded in fulfillment, selling and marketing, and general and administrative, respectively. For the year ended December 31, 2023, total costs on operating lease and short-term lease of $3,360, $947, and $1,361 were recorded in fulfillment, selling and marketing, and general and administrative, respectively. Future minimum lease payments for operating and financing leases as of December 31, 2023 are as follows: Operating Leases Finance Leases 2024 $ 5,321 $ 34 2025 1,883 — 2026 43 — Total minimum lease payments 7,247 34 Less: Imputed interest (286) — Total lease liability balance $ 6,961 $ 34 Minimum payments related to leases not yet commenced as of December 31, 2023 — — |
LONG-TERM INVESTMENT
LONG-TERM INVESTMENT | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM INVESTMENT | |
LONG-TERM INVESTMENT | 8. LONG-TERM INVESTMENT Equity investments without readily determinable fair value In 2017, the Group entered into an agreement with Shenzhen Maikailai Technologies Co., Ltd (“Maikailai”) to acquire 10.53% equity interest of Maikailai for a total cash consideration of $2,950. The Group does not have significant influence over Maikailai. In accordance with ASU 2016-01, as readily determinable fair value is not available for Maikailai, the Group elected to use the measurement alternative to measure such investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. As of December 31, 2022 and 2023, the carrying amount of the Group’s equity investments in Maikailai was $nil and $nil, respectively, net of $56,083 and $56,083 in accumulated impairment and downward adjustments, respectively. Unrealized gains (upward adjustments) for the years ended December 31, 2021, 2022 and 2023 were $38,834, $849 and $nil, respectively, which were recognized in other income, net. Unrealized losses (downward adjustments and impairment) for the years ended December 31, 2021, 2022 and 2023 were $nil, $56,083 and $nil, respectively, which were recognized in impairment loss on investment. As of December 31, 2022 and 2023, cumulative upward/(downward) adjustments for the equity security held were negative $2,950 and negative $2,950, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2022 2023 Accrued advertising fees (1) $ 48,445 $ 51,143 VAT and other taxes payable 28,680 29,194 Accrued payroll and staff welfare 6,971 3,524 Accrued sales return (2) 2,348 1,376 Accrued professional fees 1,153 1,101 Individual income tax withheld 598 142 Credit card processing charges 106 42 Current portion of finance lease liabilities 44 34 Deposits received from a merchant — 5,624 Others (3) 2,012 2,442 Total $ 90,357 $ 94,622 (1) During the year ended December 31, 2023, the Group recognized advertising fees of $ 291,702 and paid the advertising fees of $ 289,004 . (2) Accrued sales return represents the estimated sales return at the end of each of the respective year. Movements during the respective years are as follows: Years ended December 31, 2022 2023 Balance at January 1 $ 680 $ 2,348 Allowance for sales return accrued in the year 14,950 15,732 Utilization of accrued sales return allowance (13,282) (16,704) Balance at December 31 $ 2,348 $ 1,376 (3) |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2023 | |
Common Stock Disclosure [Abstract] | |
ORDINARY SHARES | 10. ORDINARY SHARES The Company sold 173,285 ADSs during the year ended December 31, 2021, representing 346,570 ordinary shares with a total consideration of approximately $898. The Company sold 37,328 ADSs during the year ended December 31, 2023, representing 74,656 ordinary shares from its treasury shares with a total consideration of approximately $190. On June 29, 2023, the Company announced the implementation and the execution of a share repurchase program of up to US$10 million of the ordinary shares in the form of American Depositary Shares through December 31, 2023. Pursuant to the share repurchase plan, the Company repurchased 1,785,730 ADSs during the year ended December 31, 2023, representing 3,571,460 ordinary shares with a total consideration of approximately $2,296. |
SHARE OPTIONS
SHARE OPTIONS | 12 Months Ended |
Dec. 31, 2023 | |
SHARE OPTIONS | |
SHARE OPTIONS | 11. SHARE OPTIONS In 2008, the Company adopted the Amended and Reinstated 2008 Share Incentive Plan, or the 2008 Plan. The 2008 Plan is intended to promote the Company’s success and to increase shareholder value by providing an additional means to attract, motivate, retain and reward selected directors, officers, employees and other eligible persons. An aggregate of 4,444,444 ordinary shares were reserved for issuance under the 2008 Plan. On June 9, 2014, the 2008 Plan was amended to increase the maximum aggregate number of ordinary shares reserved for issuance under the 2008 Plan to 11,344,444. In 2019, the Company adopted the 2019 Share Incentive Plan, or the 2019 plan. Pursuant to the 2019 Plan, total shares that the 2019 Plan was authorized to grant were 2,867,382 ordinary shares. Subsequently, the 2019 plan was amended to be authorized to grant a total of 10,667,382 ordinary shares. The 2008 Plan and 2019 Plan are collectively referred to as the Plans. In 2020, the Company granted 3,000,000 share options under the Plans to an officer at exercise prices of $0.40 per share. These share options vest immediately. Subsequently, on October 1, 2021, the exercise expiration period of the vested share options was amended and extended from October 1, 2021 to October 1, 2030. The incremental share-based compensation expense resulting from the modification of $425 was recognized in general and administrative expenses in 2021. In 2021, the Company granted 80,000 share options under the Plans to employees at exercise prices of $0.40 per share. These share options vest immediately. In 2022, the Company granted 1,300,000 share options under the Plans to employees at exercise prices of $0.25 per share. These share options vest immediately. In 2023, the Company granted 44,444 share options at exercise prices of $0.01 per share, 77,036 share options at exercise prices of $0.81 per share and 1,200,000 share options at exercise prices of $0.30 per share under the Plans. These share options vest immediately. The fair value of each option granted was estimated on the date of grant using a binomial option pricing model with the following assumptions during the applicable periods: Years ended December 31, 2021 2022 2023 Risk-free interest rate per annum 1.56 % 4.43 % 3.85 % Exercise multiple 2.8 2.8 2.8 Expected volatility 79.5 % 79.0 % 78.0 % Expected dividend yield 0 % 0 % 0 % Fair value of ordinary shares $ 0.45 $ 0.369 $ 0.52 Expected terms (in years) 10 10 10 (1) Risk-free interest rates Risk-free interest rates were estimated based on the yield to maturity of US treasury bonds with a maturity period close to the contractual term of the options for the years ended December 31, 2021, 2022 and 2023, respectively. (2) Exercise multiple Exercise multiple represents the value of the underlying share as a multiple of exercise price of the option which, if achieved, results in exercise of the option. (3) Volatility The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of the Company’s publicly traded stock. (4) Dividend yield The dividend yield was estimated by the Group based on its expected dividend policy over the contractual term of the options. (5) Fair value of underlying ordinary shares The fair value of the underlying ordinary shares is determined based on the closing market price of the ADS of the Company as of the grant date. A summary of the share option activities under the Plans as of December 31, 2023, and changes during the year then ended is presented below: Weighted average exercise price Options granted per option Outstanding at January 1, 2023 4,423,900 $ 0.38 Granted 1,321,480 $ 0.32 Exercised — $ — Forfeited (11,300) $ 2.65 Outstanding at December 31, 2023 5,734,080 $ 0.36 The following table summarizes information regarding the share options granted under the Plans as of December 31, 2023: As of December 31, 2023 Weighted- Weighted- average remaining Weighted- average exercise contractual Average Options Number price per option life (years) intrinsic value Options Outstanding 5,734,080 $ 0.36 7.95 $ 0.19 Exercisable 5,734,080 $ 0.36 7.95 $ 0.19 Expected to vest — $ — — $ — The total intrinsic value of options exercised were $nil, $nil and $nil for the years ended December 31, 2021, 2022 and 2023. The weighted average grant date fair value of options granted during the years ended December 31, 2021, 2022 and 2023 was $0.05, $0.12 and $0.21, respectively. The total fair value of the equity awards vested during the years ended December 31, 2021, 2022 and 2023 were $4, $154 and $281, respectively. For the years ended December 31, 2021, 2022 and 2023, the Group recorded share-based compensation expense of $429, $154 and $281 related to the options under the Plans, respectively. As of December 31, 2023, there was no unrecognized compensation cost related to the options. |
NONVESTED SHARES
NONVESTED SHARES | 12 Months Ended |
Dec. 31, 2023 | |
Nonvested Shares Disclosure [Abstract] | |
NONVESTED SHARES | 12. NONVESTED SHARES In 2021, the Company granted 1,275,200 nonvested shares to certain officers and employees. The nonvested shares of 60,000 vested over a period of two years, nonvested shares of 40,000 vested over a period of one year and nonvested shares of 1,235,200 vested immediately. In 2022, the Company granted 313,000 nonvested shares to certain officers and employees. These nonvested shares of 277,000 vested immediately, nonvested shares of 16,000 vested over a period of one year and nonvested shares of 20,000 vested over a period of two years. In 2023, the Company granted 298,000 nonvested shares to certain employees. 126,000 of these shares vested immediately, 20,000 of these shares vest over a period of one year and 152,000 of these shares vest over a period of two years. The holders of the nonvested shares are entitled to voting rights, but shall not be entitled to dividends before vesting. The following table summarizes information regarding the nonvested shares granted and vested: Weighted average grant date Number of Shares fair value Outstanding at January 1, 2023 46,000 $ 0.55 Granted 298,000 $ 0.45 Forfeited (16,000) $ 0.60 Vested (178,000) $ 0.57 Outstanding at December 31, 2023 150,000 $ 0.33 The total fair value of shares vested during the years ended December 31, 2021, 2022 and 2023 was $910, $186 and $134 respectively. For the years ended December 31, 2021, 2022 and 2023, the Group recorded share-based compensation expenses of $953, $186 and $134 related to the nonvested shares, respectively. As of December 31, 2023, there was $68 of unrecognized compensation costs related to nonvested shares, which are expected to be recognized over a weighted average period of 1.1 years. Total share-based compensation expenses for share options and nonvested shares for the years ended December 31, 2021, 2022 and 2023 were as follows: Years ended December 31, 2021 2022 2023 Fulfillment $ 15 $ 12 $ — Selling and marketing 142 99 34 General and administrative 1,225 229 381 Total $ 1,382 $ 340 $ 415 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 13. INCOME TAXES Cayman Islands The Company and Ezbuy Holding Co., Limited (“Ezbuy”) are two tax-exempted companies incorporated in the Cayman Islands and are not subject to tax on income or capital gains. Hong Kong Light In The Box, Lanting International, LightInTheBox Logistic, and Ezbuy HK are located in Hong Kong and subject to Hong Kong profits tax at 16.5% with respect to the profit generated from Hong Kong. It is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. A two-tiered profits tax rates regime was introduced since year 2018 where the first HK$2,000 of assessable profits earned by a company will be taxed at half of the current tax rate (8.25%) whilst the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to nominate only one company in the group to benefit from the progressive rates. The Group did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong for any of the years presented. PRC The Company’s subsidiaries and VIEs in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the ‘‘EIT Law’’), which was effective since January 1, 2008, except for the following entities eligible for preferential tax rates. Under the EIT Law, if an entity is certified as a “High and New Technology Enterprise” (“HNTE”), it is entitled to a preferential income tax rate of 15%. Lanting Gaochuang obtained the certificate of HNTE in 2016 and renewed it in 2019, and Shanghai Light In The Box Information Technology Co., Limited (“Shanghai Lanting”) obtained the certificate in 2022. Therefore,Lanting Gaochuang was eligible to a tax rate of 15% from from Chengdu Light In The Box Information Technology Co., Limited was qualified as a software enterprise which allows it to utilize a two-year 100% exemption for 2018 and 2019 followed by a three-year half-reduced EIT rate effective for years from 2020 to 2022. In addition, Beijing Light In The Box Information Technology Co., Limited and Shenzhen Light In The Box Information Technology Co., Limited qualified as Small and Micro-Sized Enterprises with low profits (“SMEs”) in 2021, Shenzhen Ruizhihe, Dongguan Herui and Jiaxing Ruili Supply Chain Management Co., Limited qualified as SMEs in 2021, 2022 and 2023, Light In The Box Trading (Shenzhen) Co., Limited, and Chongqing Ruizhihe qualified as SMEs in 2021 and 2022. Therefore their taxable income will be taxed at 20% subject to certain taxable income exemptions for the respective years. Singapore Ching International service PTE.LTD, Avant E-Commerce Service PTE.LTD Avant Logistic Service PTE.LTD The components of income / (loss) before income taxes are as follows: Years ended December 31, 2021 2022 2023 Cayman Islands $ (5,219) $ (2,411) $ (1,635) Hong Kong SAR (12,136) (66,872) (9,307) PRC, excluding Hong Kong SAR, and other countries 40,611 (6) 1,392 Total $ 23,256 $ (69,289) $ (9,550) The income tax expense / (benefit) comprises: Years ended December 31, 2021 2022 2023 Current income tax expense / (benefit) $ 9,517 $ (12,300) $ — Deferred tax expense / (benefit) 285 (407) 40 Total $ 9,802 $ (12,707) $ 40 The principal components of the deferred tax assets and liabilities are as follows: As of December 31, 2022 2023 Deferred tax assets: Allowance for credit losses $ 156 $ 154 Write-down for inventory 162 111 Lease liabilities 2,154 876 Net operating loss carry forwards 30,677 34,665 Gross deferred tax assets 33,149 35,806 Less: Valuation allowance (30,324) (34,500) Total deferred tax assets, net $ 2,825 $ 1,306 Deferred tax liabilities: Property and equipment, net $ (87) $ (151) Acquired intangible assets (695) (433) Operating lease ROU assets (2,154) (876) Total deferred tax liabilities $ (2,936) $ (1,460) Net deferred tax assets — — Net deferred tax liabilities $ (111) $ (154) As of December 31, 2023, the accumulated tax losses of subsidiaries incorporated in PRC, Hong Kong SAR, Singapore and other regions, subject to the agreement of the relevant tax authorities, of $30,916, $162,999, $7,399 and $643, respectively, are allowed to be carried forward to offset future taxable profits. The carry forward of tax losses in Hong Kong and Singapore generally have no time limit, while the tax loss in PRC will expire, if unused, in the years ending December 31, 2024 through 2028, and for the entity qualified as HNTE will expire, if unused, in the years ending December 31, 2024 through 2033. The Group plans to indefinitely reinvest the undistributed earnings of its subsidiaries. As of December 31, 2023, all of the earnings distributable by our subsidiaries in China were reserved for permanent reinvestment in China, and no withholding tax has been accrued. The Group’s valuation allowance is considered on each individual subsidiary. The Group has recognized the valuation allowance against deferred tax assets as the Group believes that it is more likely than not that its deferred tax assets will not be realized as it does not expect to generate sufficient taxable income in the near future. Movement of valuation allowance Years ended December 31, 2022 2023 Balance at beginning of the period $ 28,195 $ 30,324 Additions 3,145 4,210 Decrease related to subsidiaries’ cancellation (1,016) (34) Balance at end of the period $ 30,324 $ 34,500 Reconciliation between the expense or benefit of income taxes computed by applying the PRC tax rate to income / (loss) before income taxes and the actual provision for income taxes is as follows: Years ended December 31, 2021 2022 2023 Income/(loss) before provision of income tax $ 23,256 $ (69,289) $ (9,550) Statutory tax rate in the PRC 25 % 25 % 25 % Income tax expense / (benefit) at statutory tax rate 5,814 (17,322) (2,387) Non-deductible expenses 346 982 129 Non-deducible impairment loss — 14,021 — Statutory expense (655) (203) (293) R&D super deduction (2,664) (2,392) (2,904) Effect of preferential tax rates 122 344 (86) Effect of income tax rate differences in jurisdictions other than the PRC (892) 1,311 1,151 Deferred tax expense 381 (415) — Prior year true up (594) (157) (71) Unrecognized tax benefits-Fin 48 9,576 (12,302) — Changes in valuation allowances (1,632) 3,426 4,501 Income tax expense/(benefit) $ 9,802 $ (12,707) $ 40 Unrecognized Tax Benefits As of December 31, 2022 and 2023, there were unrecognized tax benefits of $107 and $107, respectively. As of December 31, 2021, the unrecognized tax benefits are primarily related to an investment transfer. During the year ended December 31, 2022, the corresponding unrecognized tax benefits was reversed as the subsidiary that transferred the investment had been closed and received the tax clearance certificate. A roll-forward of unrecognized tax benefits is as follows: Years ended December 31, 2021 2022 2023 Beginning balance $ — $ 13,101 $ 107 Additions 13,101 73 — Decreases — (13,067) — Ending balance $ 13,101 $ 107 $ 107 During the years ended December 31, 2021, 2022 and 2023, the Group recorded insignificant late payment interest expense as part of income tax expense and did not incur any penalties. As of December 31, 2022 and 2023, accumulated interest expense recorded by the Group was $107 and $107, respectively. The Company and its subsidiaries’ major tax jurisdictions are Hong Kong, PRC, and Singapore. Income tax returns of the Company and its subsidiaries remain open and subject to examination by the local tax authorities of Hong Kong, PRC and Singapore until the statute of limitations expire in each corresponding jurisdiction. The statute of limitations in Hong Kong, PRC and Singapore are between four |
INCOME_ (LOSS) PER SHARE
INCOME/ (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
INCOME/ (LOSS) PER SHARE | |
INCOME/ (LOSS) PER SHARE | 14. INCOME/ (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net income / (loss) per ordinary share for the following years: Years ended December 31, 2021 2022 2023 Numerator: Net income / (loss) attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd. $ 13,129 $ (56,582) $ (9,590) Adjusted net income / (loss) attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd. used in calculating net income/ (loss) per ordinary share —diluted 13,129 (56,582) (9,590) Denominator: Weighted average number of shares used in calculating net income/ (loss) per ordinary share —basic 224,306,117 226,248,599 225,940,602 Weighted average number of shares used in calculating net income / (loss) per ordinary share —diluted 226,568,979 226,248,599 225,940,602 Net income / (loss) per ordinary share — basic $ 0.06 $ (0.25) $ (0.04) Net income / (loss) per ordinary share — diluted $ 0.06 $ (0.25) $ (0.04) For the year ended December 31, 2021, certain outstanding options and nonvested shares were excluded from the computation of diluted net income per share as their inclusion would have been anti-dilutive. For the year ended December 31, 2022, outstanding options of 4,423,900 and nonvested shares of 46,000 were excluded from the computation of diluted net loss per share as their inclusion would have been anti-dilutive. For the year ended December 31, 2023, outstanding options of 5,734,080 and nonvested shares of 150,000 were excluded from the computation of diluted net loss per share as their inclusion would have been anti-dilutive. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 15. EMPLOYEE BENEFIT PLANS Full time employees in the PRC, Singapore and Malaysia participate in government-mandated defined contribution plans pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The PRC labor regulations require the Group to make contributions based on certain percentages of the employees’ basic salaries. Other than the contribution, there is no further obligation under these plans. The total contribution for such employee benefits, which were expenses as incurred, was $7,072, $6,646 and $6,832 for the years ended December 31, 2021, 2022 and 2023, respectively. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 16. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the Group is required to provide for certain statutory reserves, namely general reserve, enterprise expansion reserve, and staff welfare and bonus reserve, all of which are appropriated from net profit as reported in their PRC statutory accounts. The Group’s subsidiaries are required to allocate at least 10% of their after-tax profits to the general reserve until such reserve has reached 50% of their respective registered capital. Appropriations to the enterprise expansion reserve and the staff welfare and bonus reserve are to be made at the discretion of the board of directors of each of the Group’s subsidiaries. There are no appropriations to these reserves by the Group’s PRC (mainland) subsidiaries for the years ended December 31, 2021, 2022 and 2023. As a result of these PRC laws and regulations and the requirement that distributions by the PRC entities can only be paid out of distributable profits computed in accordance with the PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid-in capital and the statutory reserves of the Company’s PRC subsidiaries and VIEs. As of December 31, 2023, the amounts of capital represented the amount of net assets of the relevant subsidiaries in the Group not available for distribution amounted to $2,398. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 17. SEGMENT REPORTING The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. The Group uses the management approach to determine the operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker for making decisions, allocating resources and assessing the performance. The Group operated and reviewed its performance in two segments: (i) Product sales which consisted of online retailing of consumer products and sales to third-party sellers, and (ii) Services which consisted of provision of logistic services to companies and to individual customers. Furthermore, the Group’s chief operating decision maker evaluates performance based on each reporting segment’s revenues, costs and gross profit. There were no separate segment assets and segment liabilities information provided to the Group’s Chief Executive Officer, as he does not use this information to allocate resources to or evaluate the performance of the segments. The following table presents selected financial information relating to the Group’s segments: Year ended December 31, 2023 Product sales Services Consolidated Revenues $ 617,240 $ 12,188 $ 629,428 Cost of revenues 265,964 3,532 269,496 Gross profit 351,276 8,656 359,932 Unallocated operating expenses 370,327 Loss from operations (10,395) Interest income 350 Interest expense (4) Other income, net 499 Loss before income taxes $ (9,550) Year ended December 31, 2022 Product sales Services Consolidated Revenues $ 491,949 $ 11,619 $ 503,568 Cost of revenues 223,383 5,107 228,490 Gross profit 268,566 6,512 275,078 Unallocated operating expenses 289,318 Loss from operations (14,240) Interest income 57 Interest expense (5) Other income, net 982 Impairment loss on investment (56,083) Loss before income taxes $ (69,289) Year ended December 31, 2021 Product sales Services Consolidated Revenues $ 435,170 $ 10,933 $ 446,103 Cost of revenues 235,237 4,156 239,393 Gross profit 199,933 6,777 206,710 Unallocated operating expenses 222,822 Loss from operations (16,112) Interest income 59 Interest expense (13) Other income, net 39,322 Income before income taxes $ 23,256 Years ended December 31, 2021 2022 2023 Apparel $ 274,212 $ 399,518 $ 518,272 Other general merchandises (1) 160,958 92,431 98,968 Total product sales revenues $ 435,170 $ 491,949 $ 617,240 (1) Other general merchandises mainly include products such as small accessories and gadgets, home garden, electronics and communication devices and others. The following table summarizes the Group’s total revenues generated in different geographic locations and as a percentage of total revenues. Years ended December 31, 2021 2022 2023 Revenues % Revenues % Revenues % Europe $ 218,915 49.1 $ 232,954 46.3 $ 313,559 49.8 North America 91,520 20.5 171,553 34.1 235,974 37.5 Other countries 135,668 30.4 99,061 19.6 79,895 12.7 Total revenues $ 446,103 100.0 $ 503,568 100.0 $ 629,428 100.0 As of December 31, 2022 and 2023, substantially all of the Group’s long-lived assets of the Group are located in the PRC and Singapore. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS The Group signed a share transfer agreement with Yew Tee Global Investment Pte. Ltd., a company controlled by the Group’s managements, in 2021, to acquire the remaining 20% of the issued share capital of Avant Logistic. Upon the share transfer, Avant Logistic became a wholly-owned subsidiary of Ezbuy. The total purchase price was $1,544 and was fully settled as of December 31, 2021. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
CONTINGENCIES | |
CONTINGENCIES | 19. CONTINGENCIES Prior to 2020, some of the Group’s PRC subsidiaries and VIEs, have not fully paid the contributions for employee benefit plans as required by applicable PRC regulations. While the Group believes it has made adequate provision of such outstanding amounts in the consolidated financial statements, prior failure to make payments may be in violation of applicable PRC labor-related laws and the Group may be required to settle the unpaid contributions amounted to $403 for employee benefit plans as of December 31, 2023, and there had been no actions initiated by the relevant authorities. The Group is unable to reasonably estimate the actual amount of fines and penalties that may rise if the authorities were to become aware of the non-compliance and were to take action. The Group is subject to periodic legal or administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of issuance of the consolidated financial statements and does not identify any events with material financial impact on the Company’s consolidated financial statements. |
PARENT ONLY INFORMATION
PARENT ONLY INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
PARENT ONLY INFORMATION | |
PARENT ONLY INFORMATION | 21. PARENT ONLY INFORMATION Basis of presentation Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the parent company used the equity method to account for its investment in its subsidiaries and VIEs. Investments in subsidiaries and VIEs The Company and its subsidiaries and VIEs were included in the consolidated financial statements where the intercompany transactions and balances were eliminated upon consolidation. For purpose of the Company’s standalone financial statements, its investments in subsidiaries were reported using the equity method of accounting. The Company’s deficit in subsidiaries were reported as equity in losses of subsidiaries in the accompanying parent company financial statements. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to $nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this parent only information, the Parent Company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries, VIEs and VIEs’ subsidiary regardless of the carrying value of the investment even though the Parent Company is not obligated to provide continuing support or fund losses. The following represents condensed unconsolidated financial information of LightInTheBox Holding Co., Ltd. a. Condensed Balance Sheets: December 31, 2022 2023 ASSETS Current assets Cash and cash equivalents $ 82 $ 772 Prepaid expenses and other current assets 186 156 Amounts due from subsidiaries 153,746 149,541 TOTAL ASSETS $ 154,014 $ 150,469 LIABILITIES AND EQUITY Current Liabilities Accrued expenses and other current liabilities $ 739 $ 667 Deficit of investment in subsidiaries 149,399 158,184 TOTAL LIABILITIES $ 150,138 $ 158,851 EQUITY / (DEFICIT ) Ordinary shares $ 17 $ 17 Additional paid-in capital 282,722 283,137 Treasury shares, at cost (28,615) (30,359) Accumulated deficit (249,224) (259,321) Accumulated other comprehensive income (1,024) (1,856) TOTAL EQUITY / (DEFICIT ) 3,876 (8,382) TOTAL LIABILITIES AND EQUITY $ 154,014 $ 150,469 b. Condensed Statements of Operations and Comprehensive Loss: Years ended December 31 2021 2022 2023 General and administrative $ 3,050 $ 2,234 $ 1,222 Operating loss (3,050) (2,234) (1,222) Share of income / (loss) from subsidiaries and VIEs 16,179 (54,348) (8,368) Income / (loss) before income taxes 13,129 (56,582) (9,590) Income tax expense — — — Net income / (loss) 13,129 (56,582) (9,590) Other comprehensive income / (loss): Foreign currency translation adjustment, net of nil income taxes 942 (3,761) (832) Total comprehensive income / (loss) $ 14,071 $ (60,343) $ (10,422) (2) Years ended December 31, 2021 2022 2023 Net income / (loss) $ 13,129 $ (56,582) $ (9,590) Share of (loss) / income from subsidiaries and VIEs (16,179) 54,348 8,368 Prepaid expenses and other current assets 5 101 30 Accrued expenses and other current liabilities (465) (95) (72) Net cash used in operating activities (3,510) (2,228) (1,264) Changes in amounts due from subsidiaries and VIEs 3,230 2,244 4,205 Net cash provided by investing activities 3,230 2,244 4,205 Issuance of ordinary shares from treasury shares 268 — 45 Repurchase of ordinary shares — — (2,296) Net cash provided by / (used in) financing activities 268 — (2,251) Net (decrease) / increase in cash and cash equivalents (12) 16 690 Cash and cash equivalents at beginning of the year 78 66 82 Cash and cash equivalents at end of the year $ 66 $ 82 $ 772 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Basis of consolidation | (b) Basis of consolidation The consolidated financial statements include the financial statements of the Group, its subsidiaries, VIEs and the VIE’s subsidiary, in which the Company has a controlling financial interest. Equity interests of the Company’s subsidiaries that are not owned by the Company are referred to as non-controlling interests. All inter-company transactions and balances between the Company, its subsidiaries, VIEs and subsidiary of the VIE are eliminated upon consolidation. |
Non-controlling Interests | (c) Non-controlling Interests Non-controlling interests are classified as a separate component of equity in the consolidated balance sheets and consolidated statements of changes in equity. Additionally, net income attributable to non-controlling interests is reflected separately from consolidated net income in the consolidated statements of operations, comprehensive income / (loss) and changes in equity. The Company records the non-controlling interests’ share of income or loss based on the percentage of ownership interest retained by the respective non-controlling interest holders. The net income attributable to the Company is the total consolidated net income / (loss) less the net income attributable to the non-controlling interests. Changes in the Company’s ownership interest while the Company retains its controlling interest in its subsidiary shall be accounted for as equity transactions. Therefore, no gain or loss will be recognized in consolidated net income / (loss) or comprehensive income / (loss). The carrying amount of the non-controlling interest will be adjusted to reflect the change in its ownership interest in the subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the non-controlling interest is adjusted will be recognized in equity attributable to the Company. |
Use of estimates | (d) 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 the reported amounts of revenues and expenses in the financial statements and accompanying notes. Actual results may differ from these estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s consolidated financial statements include the allowance for credit losses of accounts receivables, inventory valuation, the useful lives of property and equipment and intangibles assets with definite lives, impairment of goodwill and long-lived assets, realization of deferred income tax assets, incremental borrowing rates for lease liabilities, the fair value of equity investment without readily determinable fair value accounted for using the measurement alternative, impairment of equity investment without readily determinable fair value, the fair value determination and estimated forfeiture rates for share-based compensation awards, and sales returns allowances. |
Cash and cash equivalents | (e) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits, highly liquid investments and term deposits with an original maturity of three months or less and are readily convertible to known amount of cash. |
Restricted cash | (f) Restricted cash Restricted cash consists of cash which is held under the Group’s name in escrow accounts as deposits withheld by third party payment processing agencies which fluctuate with the volume of payment processed, and the cash reserved in bank supervised accounts for performance guarantees to the Group’s vendors which will be released to cash within the next 12 months. |
Accounts receivable, net of allowance for credit losses | (g) Accounts receivable, net of allowance for credit losses The Group maintains an allowance for credit losses in accordance with ASC Topic 326, Credit Losses (“ASC 326”) and records the allowance for credit losses as an offset to accounts receivable. The estimated credit losses charged to the allowance is classified as “General and administrative” in the consolidated statements of operations. The Group assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on similar business line, service or product offerings and on an individual basis when the Group identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Group considers historical collectability based on past due status, the age of the accounts receivable balances, credit quality of the Group’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Group’s ability to collect from customers. Accounts receivables are written off after all collection efforts have ceased. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when the Group has satisfied its performance obligation and has the unconditional right to payment. As of December 31, 2022 and 2023, accounts receivable included account receivables for cash collected by supplemental online outlets, accounts receivable for logistic services, and accounts receivable for cash collected by the delivery service providers on behalf of the Group. The Group considers many factors in assessing the collectability of its accounts receivable, such as the age of the amounts due, the customer’s payment history, creditworthiness, financial conditions of the customers and industry trend. As of December 31, 2022 and 2023, the allowance for credit losses for accounts receivable was $1,841 and $1,841, respectively. For the years ended December 31, 2021, 2022 and 2023, the recognized credit losses were $968, $nil and $nil, respectively. |
Inventories | (h) Inventories Inventories represent products available for sale and are accounted for using the first-in-first-out method and specific identification method, and are valued at the lower of cost or net realizable value. Adjustments are recorded to write down the cost of inventory to the net realizable value due to slow-moving merchandise and broken assortments, which are dependent upon factors such as historical trends with similar merchandise, inventory aging, and historical and forecasted consumer demand. Write down of $880, $103 and $nil were recorded in cost of revenues in the consolidated statements of operations for the years ended December 31, 2021, 2022 and 2023, respectively. |
Property and equipment, net | (i) Property and equipment, net Property and equipment, net is stated at cost less accumulated depreciation and impairment if any. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Useful lives Furniture, fixtures and office equipment 1 - 5 years Leasehold improvements Lesser of the lease term or estimated useful life of the assets Vehicles 4 - 10 years IT equipment 1 - 3 years |
Acquired intangible assets, net | (j) Acquired intangible assets, net Intangible assets, other than goodwill, resulting from the acquisitions of entities accounted for using the acquisition method of accounting are estimated by management based on the fair value of assets acquired at the acquisition date. Identifiable intangible assets are carried at cost less accumulated amortization and impairment if any. Amortization of the intangible assets with definite life are computed using the straight-line method over the estimated useful lives. Useful lives Domain name / Trade name Indefinite life Technology platform 1 year Non-compete agreement 2 years Customer base 4.3 years Technology 3-5 years Members 4 years Branding 10 years In-progress orders 0.1 year |
Internal use software | (k) Internal use software The Group capitalizes payroll costs incurred for the development of computer software for internal use pursuant to ASC Topic 350-40, Intangibles—Goodwill and Others—Internal use software |
Long-term investment | (l) Long-term investment The Group’s long-term investment consists of an equity investment without readily determinable fair value. Equity investment without readily determinable fair value Equity investments, except for those accounted for under the equity method, those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the entity has to recognize an impairment loss in net income / (loss) equal to the difference between the carrying value and fair value. |
Impairment of long-lived assets and definite-lived intangible assets | (m) Impairment of long-lived assets and definite-lived intangible assets Long-lived assets, such as property and equipment and definite-lived intangible assets, are stated at cost less accumulated depreciation or amortization and any impairment. The Group evaluates the recoverability of long-lived assets, including identifiable intangible assets with determinable useful lives, whenever events or changes in circumstances indicate that a long-lived asset’s carrying amount may not be recoverable. The Group compares the carrying amount of long-lived asset against the estimated undiscounted future cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the asset. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. |
Impairment of goodwill and indefinite-lived intangible assets | (n) Impairment of goodwill and indefinite-lived intangible assets Goodwill and intangible assets deemed to have indefinite useful lives are not amortized, but tested for impairment annually as of December 31 or more frequently if events and circumstances indicate that they might be impaired. Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. The Group assesses goodwill for impairment in accordance with ASC 350-20, Intangibles – Goodwill and Other: Goodwill, which permits the Group to first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount, including goodwill, as a basis for determining whether it is necessary to perform the quantitative impairment test. If this is the case, the quantitative goodwill impairment test is required. If it is more likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the quantitative goodwill impairment test is not required. Quantitative goodwill impairment test is used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired. If the fair value of the reporting unit is less than its carrying amount, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company performs the annual goodwill and indefinite-lived intangible assets impairment assessment using qualitative impairment test on December 31 and no goodwill and indefinite-lived intangible assets impairment has been identified. An intangible asset that is not subject to amortization is tested for impairment at least annually or if events or changes in circumstances indicate that the asset might be impaired. Such impairment test compares the fair values of assets with their carrying value amounts and an impairment loss is recognized if and when the carrying amounts exceed the fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. |
Treasury shares | (o) Treasury shares Treasury shares represent shares of the Company’s stock that have been issued, repurchased by the Company, and that have not been retired or canceled. These shares have no voting rights and are not entitled to receive dividends and are excluded from the weighted average outstanding shares in calculation of net income / (loss) per ordinary share. Treasury shares are recorded at cost. Gains on sales of treasury stock not previously accounted for as constructively retired shall be credited to additional paid-in capital; losses may be charged to additional paid-in capital to the extent that previous net gains from sales or retirements of the same class of stock are included therein, otherwise to retained earnings. |
Revenue recognition | (p) Revenue recognition The Group recognizes revenue (i) from product sales of apparel and other general merchandise to customers through its websites and other online platforms, and to third-party sellers that sell through the Group’s platforms utilizing the Group’s supply chain, and (ii) from logistics services to companies and to individual customers. The Group recognizes revenues upon the satisfaction of its performance obligation (upon transfer of control of promised goods or services to customers) in amounts that reflects the consideration to which the Group expects to be entitled to in exchange for those goods or services, excluding amounts collected on behalf of third parties (for example, value added taxes). For each performance obligation satisfied over time, the Group recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation. If the Group does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time. Product sales The Group identified one performance obligation for product sales to consumers which is to sell products to customers through its websites and other online platforms, and also product sales to third-party sellers. Revenues of product sales are recognized on a gross basis and presented as product sales on the consolidated statements of operations, because (i) the Group is primarily responsible for fulfilling the promise to provide the specified products; (ii) the Group bears the physical and general inventory risk once the products are delivered to its warehouses; and (iii) the Group has discretion in establishing price. The product sales to third-party sellers includes sales of products and fulfillment of orders. The Group considers that these elements are a series of combined promises in the context of the contract with third-party sellers that should be combined as one single performance obligation. Accordingly, the product sales together with the fulfillment services to third-party sellers are accounted for as one performance obligation. The Group established a membership program whereby a registered member earns certain points for visiting one of the Group’s websites. Points could only be redeemed in connection with a future purchase. Such points, when redeemed, were treated as a reduction of revenues at the time of future purchase. Since the points are not earned based a concurrent sales transaction, no accruals are made at the time when points are earned by the registered members. Prime membership revenues which are included in product sales, are amortized over the membership period on a straight-line basis. Prime is a subscription-based membership program. Items purchased from Prime shop enjoy flat international shipping per checkout. Prime membership revenues for the years ended December 31, 2021, 2022 and 2023 were $810, $479 and $1,899, respectively. Product sales, net of discounts, an allowance for sales return and VAT, are recognized at the point in time when customers accept the products upon delivery. Revenues are measured as the amount of consideration the Group expects to receive in exchange for transferring products to consumers or third - party sellers. Sales return allowances, which reduce revenues, are estimated utilizing the expected value method based on historical experience of returns. The Group allowed customers to return the goods with no quality-related issues within 7 days of receipt of shipment. The Group allows customers to return most goods with quality-related issues within 30 days of receipt of shipment, and to return lamps and faucets with quality-related issues within 12 months. Liabilities for sales return allowances are included in “Accrued expenses and other current liabilities” and were $2,348 and $1,376 as of December 31, 2022 and 2023, respectively. The allowance for sales return were $9,377, $14,950 and $15,732 for the years ended December 31, 2021, 2022 and 2023. The Group utilizes delivery service providers to deliver products to its consumers (“shipping activities”) but the delivery service for consumers is not considered as a separate obligation as the shipping activities are performed before the consumers obtain control of the products. Therefore, shipping activities for consumers and the third-party sellers are not considered a separate promised service to the consumers but rather are activities to fulfill the Group’s promise to transfer the products. Outbound shipping charges to customers are included as a part of the revenues and outbound shipping-related costs are recorded as cost of product sales. Shipping costs incurred for sales of products and recognized as cost of product sales were $90,576, $101,349 and $126,628 for the years ended December 31, 2021, 2022 and 2023, respectively. Services and others The Group derives services revenues mainly from provision of logistic services to companies and to individual customers. Revenues from logistic services are recognized over the delivery period since the customers simultaneously receive and consume benefits provided by the Group’s performance as the Group performs during the delivery period. |
Contract liabilities | Contract liabilities A contract liability is recognized when the Group has an obligation to transfer goods or services to a customer for which the Group has received consideration from the customer. It is included in advance from customers on the consolidated balance sheets. Changes in the Group’s contract liabilities are presented in the following table for the years ended December 31, 2022 and 2023: Years ended December 31, 2022 2023 Contract liabilities as of January 1 $ 18,239 $ 26,652 Cash received in advance, net of VAT 484,139 617,450 Revenue recognized from opening balance of contract liabilities (18,239) (26,652) Revenue recognized from contract liabilities arising during current year (457,487) (606,249) Contract liabilities as of December 31 $ 26,652 $ 11,201 The Company has elected the practical expedient not to disclose the information about remaining performance obligations which are part of contracts that have an original expected duration of one year or less. |
Cost of revenues | (q) Cost of revenues Product sales Cost of goods sold primarily consists of the purchase price of consumer products sold by the Group on its websites and to third-party sellers, inbound and outbound shipping charges, packaging supplies and inventory write-downs. Shipping charges to receive products from its suppliers are included in inventory cost and recognized as cost of sales upon sale of products to customers. Services Cost of services primarily consists of the shipping charges and cost of packaging supplies directly incurred relating to logistic services. |
Fulfillment | (r) Fulfillment Fulfillment costs represent those costs incurred in operating and staffing the Group’s fulfillment and customer service centers, including (i) costs attributable to buying, receiving, inspecting, and warehousing inventories, (ii) picking, packaging, and preparing customer orders for shipment, and (iii) payment processing and related transaction costs. |
Selling and marketing | (s) Selling and marketing Selling and marketing expenses consist primarily of search engine marketing and advertising, affiliate market program expenditures, public relations expenditures; and payroll and related expenses for personnel engaged in selling, marketing and business development. The Group pays to use certain relevant key words relating to its business on major search engines and the fees charged to the Group are on a “cost-per-click” basis. Advertising expense includes fees paid to on-line advertisers who assist the Group to advertise at targeted websites. Such fees are charged at a fixed rate or calculated based on traffic directed to the Group’s websites. The advertising expenses for the years ended December 31, 2021, 2022 and 2023 were $142,397, $210,817 and $291,702, respectively. |
General and administrative | (t) General and administrative General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions such as accounting, finance, tax, legal, and human resources; costs associated with the use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees, provision for credit losses and other general corporate costs. Also included in general and administrative expenses are payroll and related expenses for employees involved in product research and development, and systems support, as well as server charges and costs associated with telecommunications. The research and development expenses for the years ended December 31, 2021, 2022 and 2023 were $20,338, $19,447 and $19,105, respectively. General and administrative expenses also include chargebacks relating to fraudulent credit card activities from the payment processing agencies. The Group estimates chargebacks based on historical experience. The estimation of chargebacks is adjusted to the extent that actual chargebacks differ or are expected to differ. The chargeback expenses for the years ended December 31, 2021, 2022 and 2023 were $1,352, $2,209 and $2,338, respectively. |
Government subsidies | (u) Government subsidies Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. For the government subsidies with no further conditions to be met, the amounts are recorded as operating income in “Other operating income”, or as a reduction of specific cost or expenses if such subsidies are intended to compensate such amounts. The government subsidies with certain operating conditions are recorded as liabilities when received and will be recorded as “Other operating income” or as a reduction of specific cost or expenses when the conditions are met. |
Fair value measurements | (v) Fair value measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: ● Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. ● Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3-inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. |
Financial instruments and fair value measurements | (w) Financial instruments and fair value measurements Financial instruments of the Group primarily consist of cash and cash equivalents, restricted cash, accounts receivable, receivables from payment processing agencies, amounts due from related parties, long-term investments, long-term rental deposits, accounts payable, advance from customers, accrued expenses and other current liabilities and long-term payable. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, receivable from payment processing agencies, accounts payable, advance from customers, accrued expenses and other current liabilities as of December 31, 2022 and 2023 approximate their fair values due to short-term maturities. The carrying amount of long-term payable approximates fair value as the related interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities. Goodwill, long-term investment and long-lived assets are measured at fair value on a nonrecurring basis only when impairment is recognized. The Group estimates the fair value of a reporting unit using the discounted cash flow method under the income approach. The discounted cash flows are based on a five-year financial forecasts developed by management for planning purposes. Cash flows beyond the forecasted period are estimated using a terminal value calculation. The fair values of long-lived assets are determined based on various valuation methods, including the replacement cost method, the relief from royalty method and the excess earning method. The fair value measurement of long-term investment is described in (l) Long-term investment The following table present the fair value hierarchy for the asset at December 31, 2022 and 2023: Fair value measurement at December 31, 2022 using Quoted prices in Significant Significant Carrying Value at active markets observable unobservable December 31, 2022 (Level 1) inputs (Level 2) inputs (Level 3) Total losses Non-recurring fair value measurements for: Long-term investment $ — $ — $ — $ — $ 55,234 Fair value measurement at December 31, 2023 using Quoted prices in Significant Significant Carrying Value at active markets observable unobservable December 31, 2023 (Level 1) inputs (Level 2) inputs (Level 3) Total losses Non-recurring fair value measurements for: Long-term investment $ — $ — $ — $ — $ — For long-term investments which consists of an equity security accounted for under the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investment is re-measured to fair value (Note 8). The non-recurring fair value measurements for this investment requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Group. These non-recurring fair value measurements were measured as of the observable transaction dates. The Company uses valuation methodologies including the back-solve method and an equity allocation model which requires management to use the observable transaction price at the transaction date and other unobservable inputs (level 3) such as expected volatility, discount for lack of marketability and probability of exit events as it relates to an initial public offering, liquidation and redemption preferences. |
Foreign currency translation | (x) Foreign currency translation The Company’s functional currency is the U.S. dollar (“US$”). The Company’s subsidiaries, VIEs and its VIEs’ subsidiary determine their functional currencies based on the criteria of ASC Topic 830, Foreign Currency Matters Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange prevailing at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations. The Group’s entities with functional currency of Renminbi (“RMB”), Euro (“EUR”), Singapore Dollar (“SGD”), Malaysian Ringgit (“RM”) and Pound (“GBP”), translate their operating results and financial position into the US$, the Group’s reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income / (loss). |
Income taxes | (y) Income taxes Income taxes are provided using the asset and liability method. Under this method, deferred income taxes are recognized for tax credits and net operating losses available for carry forwards and significant temporary differences. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group’s estimated liability for unrecognized tax benefits is periodically assessed for adequacy and may be affected by changing interpretations of laws, rulings by tax authorities, changes and / or developments with respect to tax audits, and expiration of the statute of limitations. The actual benefits ultimately realized may differ from the Group’s estimates. As each audit is concluded, adjustments, if any, are recorded in the Group’s consolidated financial statements. Additionally, in future periods, changes in facts, circumstances, and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. The Group applies the provisions of ASC Topic 740, Income Taxes |
Comprehensive income / loss | (z) Comprehensive income / (loss) Comprehensive income / (loss) includes net income / (loss) and foreign currency translation adjustments and is reported in the consolidated statements of comprehensive income / (loss). |
Share-based compensation | (aa) Share-based compensation Share-based payment transactions with employees, including share options and nonvested shares are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expense using the straight-line method for all employee equity awards granted with service conditions and graded vesting provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the awards that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of share-based compensation expense to be recognized in future periods. Changes in the terms or conditions of equity awards are accounted as a modification under which the Group calculate whether there is any excess of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period of the modification occurred and for unvested awards, the Group recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. |
Leases | (bb) Leases Leases are classified at the inception date as either a finance lease or an operating lease. The Group classifies a lease as a finance lease when the lease meets any one of the following criteria at lease commencement: a. The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. b. The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. c. The lease term is for a major part of the remaining economic life of the underlying asset. d. The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset. e. The underlying asset is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term. For both operating and financing leases, the Group records a lease liability and corresponding right-of-use (ROU) asset at lease commencement. Lease terms are based on the non-cancellable term of the lease and may contain options to extend the lease when it is reasonably certain that the Group will exercise the option. Lease liabilities represent the present value of the lease payments not yet paid, discounted using the discount rate for the lease at lease commencement. The Group estimates its incremental borrowing rate for its leases at the commencement date to determine the present value of future lease payments when the implicit rate is not readily determinable in the lease. In estimating its incremental borrowing rate, the Group considers its credit rating and publicly available data of borrowing rates for loans of similar amount, currency and term as the lease. Operating leases are presented as “Operating lease ROU assets” and “Operating lease liabilities”. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. At lease commencement, operating lease ROU assets represent the right to use underlying assets for their respective lease terms and are recognized at amounts equal to the lease liabilities adjusted for any lease payments made prior to the lease commencement date, less any lease incentives received and any initial direct costs incurred by the Group. After lease commencement, operating lease liabilities are measured at the present value of the remaining lease payments using the discount rate determined at lease commencement. Operating lease ROU assets are measured at the amount of the lease liabilities and further adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs and impairment of the ROU assets, if any. Operating lease expense is recognized as a single cost on a straight-line basis over the lease term. Financing lease ROU assets and liabilities are included in “property and equipment, net”, “accrued expenses and other current liabilities” and “long-term payable” on the consolidated balance sheets. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. Financing lease ROU assets are amortized on a straight-line basis from the lease commencement date. After initial measurement, the carrying value of the lease liability is increased to reflect interest at a constant rate and reduced to reflect any lease payments made during the period. Leases that have a term of 12 months or less at the commencement date (“short-term leases”) are not included in operating lease ROU assets and operating lease liabilities. Lease expense for the short-term leases is recognized on a straight-line basis over the lease term. |
Income / (loss) per share | (cc) Income / (loss) per share Basic income / (loss) per ordinary share is computed by dividing net income / (loss) attributable to ordinary shareholders by weighted average number of ordinary shares outstanding during the period. Diluted income / (loss) per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares and is calculated by dividing net income / (loss) attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the year. Ordinary equivalent shares consist of shares issuable upon convertible promissory notes using the if-converted method, and ordinary shares issuable upon the vest of nonvested shares or exercise of outstanding share options (using the treasury stock method). Ordinary equivalent shares are calculated based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. Ordinary equivalent shares are not included in the denominator of the diluted income / (loss) per share calculation when inclusion of such shares would be anti-dilutive. |
Significant risks and uncertainties | (dd) Significant risks and uncertainties The Group participates in an industry with rapid changes in regulations, customer demand and competition and believes that changes in any of the following areas could have a material adverse effect on the Group’s future financial position, results of operations, or cash flows: advances and trends in e-commerce industry; changes in certain supplier and vendor relationships; regulatory or tax related factors; and risks associated with the Group’s ability to keep and increase the market coverage. |
Liquidity risk | Liquidity risk For the years ended December 31, 2021, 2022 and 2023, the Group had financed its operations primarily through some private placements and its own operations. As of December 31, 2023, the Group had net current liabilities of $47,535 and an accumulated deficit of $259,321, and the Group may continue to experience working capital deficit in the future. For the years ended December 31, 2021, 2022, and 2023, the Group made net income of $13,454, net loss of $56,582 and $9,590, respectively. As of December 31, 2023, the Group had approximately $71,704 in cash and cash equivalents and restricted cash on hand. The Group believes that the current cash and cash equivalents and restricted cash which becomes unrestricted in twelve months will be sufficient to meet the Group’s anticipated cash needs, including the expenses and other expenditures required for its business operations, for at least the next 12 months from the date of issuance of its annual financial statements. |
Concentration of credit risk | (ee) Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash, cash equivalents and restricted cash, accounts receivable, advances to suppliers, receivable from reputable payment processing agencies with high-credit ratings and long-term rental deposits. The Group places its cash and cash equivalents and restricted cash with financial institutions and third-party payment processing agencies located in the PRC, Hong Kong, the United States, Netherlands, Singapore, Malaysia. In the event of bankruptcy of one of these financial institutions and third-party payment processing agencies, the Group may not be able to claim its cash and demand deposits back in full. The Group continues to monitor the financial strength of the financial institutions and third-party payment processing agencies. There has been no recent history of default in relation to these financial institutions and third-party payment processing agencies. Accounts receivable mainly include amount generated from logistic services and the cash-on-delivery business. With respect to advances to product suppliers and long-term rental deposits, the Group performs on-going credit evaluations of the financial condition of its vendors. Receivable from payment processing agencies represented cash that had been received from customers but held by the payment processing agencies in the process of reconciliation and are collected by the Group subsequent to the year end. |
Foreign currency risk | (ff) Foreign currency risk The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Group’s cash and cash equivalents and restricted cash denominated in RMB amounted to $3,248 and $3,115 at December 31, 2022 and 2023, respectively. |
Recent accounting pronouncements not yet adopted | (gg) Recent accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Schedule of consolidated financial information of the Group's VIEs and its subsidiary | December 31, 2022 2023 Total assets $ 126 $ — Total liabilities $ — $ — Years ended December 31, 2021 2022 2023 Revenues $ 790 $ — $ — Net loss $ (295) $ (424) $ — Years ended December 31, 2021 2022 2023 Net cash provided by / (used in) operating activities $ 3,758 $ (8,673) $ — Net cash provided by investing activities $ 381 $ 2,778 $ — Net cash used in financing activities $ — $ — $ — |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful lives of property and equipment | Useful lives Furniture, fixtures and office equipment 1 - 5 years Leasehold improvements Lesser of the lease term or estimated useful life of the assets Vehicles 4 - 10 years IT equipment 1 - 3 years |
Schedule of estimated useful lives of identifiable intangible assets | Useful lives Domain name / Trade name Indefinite life Technology platform 1 year Non-compete agreement 2 years Customer base 4.3 years Technology 3-5 years Members 4 years Branding 10 years In-progress orders 0.1 year |
Schedule of changes in contract liabilities | Years ended December 31, 2022 2023 Contract liabilities as of January 1 $ 18,239 $ 26,652 Cash received in advance, net of VAT 484,139 617,450 Revenue recognized from opening balance of contract liabilities (18,239) (26,652) Revenue recognized from contract liabilities arising during current year (457,487) (606,249) Contract liabilities as of December 31 $ 26,652 $ 11,201 |
Schedule of fair value hierarchy for the assets and liabilities | Fair value measurement at December 31, 2022 using Quoted prices in Significant Significant Carrying Value at active markets observable unobservable December 31, 2022 (Level 1) inputs (Level 2) inputs (Level 3) Total losses Non-recurring fair value measurements for: Long-term investment $ — $ — $ — $ — $ 55,234 Fair value measurement at December 31, 2023 using Quoted prices in Significant Significant Carrying Value at active markets observable unobservable December 31, 2023 (Level 1) inputs (Level 2) inputs (Level 3) Total losses Non-recurring fair value measurements for: Long-term investment $ — $ — $ — $ — $ — |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of components of prepaid expenses and other current assets | As of December 31, 2022 2023 Prepayments to suppliers (1) $ 4,711 $ 4,441 Deferred expenses 659 546 Rental deposits and prepaid rents 129 969 Others 953 919 Total $ 6,452 $ 6,875 (1) The prepayments primarily consist of shipping costs and advertising fee paid in advance. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of components of property and equipment | As of December 31, 2022 2023 Leasehold improvements $ 1,451 $ 1,466 Furniture, fixtures and office equipment 3,069 3,386 IT equipment 2,393 2,437 Vehicles 1,362 1,739 Property and equipment, gross 8,275 9,028 Less: Accumulated depreciation (5,329) (6,239) Property and equipment, net $ 2,946 $ 2,789 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | Ador Ezbuy Total Balance at January 1, 2022 $ 690 $ 29,750 $ 30,440 Effect of exchange rate changes on goodwill — (2,263) (2,263) Balance at December 31, 2022 $ 690 $ 27,487 $ 28,177 Effect of exchange rate changes on goodwill — (784) (784) Balance at December 31, 2023 $ 690 $ 26,703 $ 27,393 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE ASSETS, NET | |
Schedule of carrying amounts of intangible assets | December 31, 2022 December 31, 2023 Gross Accumulated Net Gross Accumulated Net carrying Accumulated impairment carrying carrying Accumulated impairment carrying amount amortization loss amount amount amortization loss amount Intangible assets not subject to amortization: Trademark/domain name $ 1,220 $ — $ (1,010) $ 210 $ 1,220 $ — $ (1,010) $ 210 Intangible assets subject to amortization: - Technology platform 90 (90) — — 90 (90) — — - Non-compete agreement 9 (7) (2) — 9 (7) (2) — - Customer base 32 (22) (10) — 32 (22) (10) — - Technology 2,906 (2,372) — 534 2,823 (2,823) — — - Branding 6,849 (2,797) — 4,052 6,654 (3,382) — 3,272 - In-progress orders 192 (192) — — 186 (186) — — - Members 20 (20) — — 20 (20) — — - Software 76 (42) — 34 74 (66) — 8 - Internal use software 2,474 (1,674) — 800 2,474 (2,360) — 114 $ 13,868 $ (7,216) $ (1,022) $ 5,630 $ 13,582 $ (8,956) $ (1,022) $ 3,604 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
Schedule of components of lease costs | Years ended December 31, 2021 2022 2023 Operating lease costs $ 5,089 $ 5,434 $ 5,359 Short-term lease costs 1,115 652 309 Financing lease costs: Amortization of ROU assets 28 27 28 Interests 13 5 4 Total lease costs $ 6,245 $ 6,118 $ 5,700 Years ended December 31, Other information 2021 2022 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 5,132 4,932 5,707 Operating cash flows from financing leases 44 43 44 Financing cash flows from financing leases 13 5 4 ROU assets obtained in exchange for new operating lease liabilities 4,655 5,498 862 Weighted-average remaining lease term (in years): Operating leases 3.13 2.30 1.39 Financing leases 2.72 1.72 0.72 Weighted-average discount rate: Operating leases 4.79 % 3.90 % 3.95 % Financing leases 5.70 % 5.70 % 5.70 % |
Schedule of future minimum lease payments for operating and financing leases | Operating Leases Finance Leases 2024 $ 5,321 $ 34 2025 1,883 — 2026 43 — Total minimum lease payments 7,247 34 Less: Imputed interest (286) — Total lease liability balance $ 6,961 $ 34 Minimum payments related to leases not yet commenced as of December 31, 2023 — — |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2022 2023 Accrued advertising fees (1) $ 48,445 $ 51,143 VAT and other taxes payable 28,680 29,194 Accrued payroll and staff welfare 6,971 3,524 Accrued sales return (2) 2,348 1,376 Accrued professional fees 1,153 1,101 Individual income tax withheld 598 142 Credit card processing charges 106 42 Current portion of finance lease liabilities 44 34 Deposits received from a merchant — 5,624 Others (3) 2,012 2,442 Total $ 90,357 $ 94,622 (1) During the year ended December 31, 2023, the Group recognized advertising fees of $ 291,702 and paid the advertising fees of $ 289,004 . (2) Accrued sales return represents the estimated sales return at the end of each of the respective year. Movements during the respective years are as follows: (3) |
Schedule of movements in accrued sales return | Years ended December 31, 2022 2023 Balance at January 1 $ 680 $ 2,348 Allowance for sales return accrued in the year 14,950 15,732 Utilization of accrued sales return allowance (13,282) (16,704) Balance at December 31 $ 2,348 $ 1,376 |
SHARE OPTIONS (Tables)
SHARE OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHARE OPTIONS | |
Schedule of assumptions used for estimating the fair value of options | Years ended December 31, 2021 2022 2023 Risk-free interest rate per annum 1.56 % 4.43 % 3.85 % Exercise multiple 2.8 2.8 2.8 Expected volatility 79.5 % 79.0 % 78.0 % Expected dividend yield 0 % 0 % 0 % Fair value of ordinary shares $ 0.45 $ 0.369 $ 0.52 Expected terms (in years) 10 10 10 |
Summary of share option activity | Weighted average exercise price Options granted per option Outstanding at January 1, 2023 4,423,900 $ 0.38 Granted 1,321,480 $ 0.32 Exercised — $ — Forfeited (11,300) $ 2.65 Outstanding at December 31, 2023 5,734,080 $ 0.36 |
Summary of information regarding the share options granted | As of December 31, 2023 Weighted- Weighted- average remaining Weighted- average exercise contractual Average Options Number price per option life (years) intrinsic value Options Outstanding 5,734,080 $ 0.36 7.95 $ 0.19 Exercisable 5,734,080 $ 0.36 7.95 $ 0.19 Expected to vest — $ — — $ — |
NONVESTED SHARES (Tables)
NONVESTED SHARES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Nonvested Shares Disclosure [Abstract] | |
Summary of information regarding the nonvested shares granted and vested | Weighted average grant date Number of Shares fair value Outstanding at January 1, 2023 46,000 $ 0.55 Granted 298,000 $ 0.45 Forfeited (16,000) $ 0.60 Vested (178,000) $ 0.57 Outstanding at December 31, 2023 150,000 $ 0.33 |
Schedule of share-based compensation expenses | Years ended December 31, 2021 2022 2023 Fulfillment $ 15 $ 12 $ — Selling and marketing 142 99 34 General and administrative 1,225 229 381 Total $ 1,382 $ 340 $ 415 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of components of (loss) / income before income taxes | Years ended December 31, 2021 2022 2023 Cayman Islands $ (5,219) $ (2,411) $ (1,635) Hong Kong SAR (12,136) (66,872) (9,307) PRC, excluding Hong Kong SAR, and other countries 40,611 (6) 1,392 Total $ 23,256 $ (69,289) $ (9,550) |
Schedule of income tax expense | Years ended December 31, 2021 2022 2023 Current income tax expense / (benefit) $ 9,517 $ (12,300) $ — Deferred tax expense / (benefit) 285 (407) 40 Total $ 9,802 $ (12,707) $ 40 |
Schedule of principal components of the deferred tax assets and liabilities | As of December 31, 2022 2023 Deferred tax assets: Allowance for credit losses $ 156 $ 154 Write-down for inventory 162 111 Lease liabilities 2,154 876 Net operating loss carry forwards 30,677 34,665 Gross deferred tax assets 33,149 35,806 Less: Valuation allowance (30,324) (34,500) Total deferred tax assets, net $ 2,825 $ 1,306 Deferred tax liabilities: Property and equipment, net $ (87) $ (151) Acquired intangible assets (695) (433) Operating lease ROU assets (2,154) (876) Total deferred tax liabilities $ (2,936) $ (1,460) Net deferred tax assets — — Net deferred tax liabilities $ (111) $ (154) |
Schedule of movement of valuation allowance | Years ended December 31, 2022 2023 Balance at beginning of the period $ 28,195 $ 30,324 Additions 3,145 4,210 Decrease related to subsidiaries’ cancellation (1,016) (34) Balance at end of the period $ 30,324 $ 34,500 |
Schedule of reconciliation between the expense or benefit of income taxes computed by applying the PRC tax rate to income (loss) before income taxes and the actual provision for income taxes | Years ended December 31, 2021 2022 2023 Income/(loss) before provision of income tax $ 23,256 $ (69,289) $ (9,550) Statutory tax rate in the PRC 25 % 25 % 25 % Income tax expense / (benefit) at statutory tax rate 5,814 (17,322) (2,387) Non-deductible expenses 346 982 129 Non-deducible impairment loss — 14,021 — Statutory expense (655) (203) (293) R&D super deduction (2,664) (2,392) (2,904) Effect of preferential tax rates 122 344 (86) Effect of income tax rate differences in jurisdictions other than the PRC (892) 1,311 1,151 Deferred tax expense 381 (415) — Prior year true up (594) (157) (71) Unrecognized tax benefits-Fin 48 9,576 (12,302) — Changes in valuation allowances (1,632) 3,426 4,501 Income tax expense/(benefit) $ 9,802 $ (12,707) $ 40 |
Schedule of Roll-forward of unrecognized tax benefits | Years ended December 31, 2021 2022 2023 Beginning balance $ — $ 13,101 $ 107 Additions 13,101 73 — Decreases — (13,067) — Ending balance $ 13,101 $ 107 $ 107 |
INCOME_ (LOSS) PER SHARE (Table
INCOME/ (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME/ (LOSS) PER SHARE | |
Schedule of computation of basic and diluted net income / (loss) per ordinary share | Years ended December 31, 2021 2022 2023 Numerator: Net income / (loss) attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd. $ 13,129 $ (56,582) $ (9,590) Adjusted net income / (loss) attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd. used in calculating net income/ (loss) per ordinary share —diluted 13,129 (56,582) (9,590) Denominator: Weighted average number of shares used in calculating net income/ (loss) per ordinary share —basic 224,306,117 226,248,599 225,940,602 Weighted average number of shares used in calculating net income / (loss) per ordinary share —diluted 226,568,979 226,248,599 225,940,602 Net income / (loss) per ordinary share — basic $ 0.06 $ (0.25) $ (0.04) Net income / (loss) per ordinary share — diluted $ 0.06 $ (0.25) $ (0.04) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT REPORTING | |
Schedule of components of net revenues | Year ended December 31, 2023 Product sales Services Consolidated Revenues $ 617,240 $ 12,188 $ 629,428 Cost of revenues 265,964 3,532 269,496 Gross profit 351,276 8,656 359,932 Unallocated operating expenses 370,327 Loss from operations (10,395) Interest income 350 Interest expense (4) Other income, net 499 Loss before income taxes $ (9,550) Year ended December 31, 2022 Product sales Services Consolidated Revenues $ 491,949 $ 11,619 $ 503,568 Cost of revenues 223,383 5,107 228,490 Gross profit 268,566 6,512 275,078 Unallocated operating expenses 289,318 Loss from operations (14,240) Interest income 57 Interest expense (5) Other income, net 982 Impairment loss on investment (56,083) Loss before income taxes $ (69,289) Year ended December 31, 2021 Product sales Services Consolidated Revenues $ 435,170 $ 10,933 $ 446,103 Cost of revenues 235,237 4,156 239,393 Gross profit 199,933 6,777 206,710 Unallocated operating expenses 222,822 Loss from operations (16,112) Interest income 59 Interest expense (13) Other income, net 39,322 Income before income taxes $ 23,256 |
Schedule of components of the Group's cost | Years ended December 31, 2021 2022 2023 Apparel $ 274,212 $ 399,518 $ 518,272 Other general merchandises (1) 160,958 92,431 98,968 Total product sales revenues $ 435,170 $ 491,949 $ 617,240 (1) Other general merchandises mainly include products such as small accessories and gadgets, home garden, electronics and communication devices and others. |
Summary of total revenues by geographic location | Years ended December 31, 2021 2022 2023 Revenues % Revenues % Revenues % Europe $ 218,915 49.1 $ 232,954 46.3 $ 313,559 49.8 North America 91,520 20.5 171,553 34.1 235,974 37.5 Other countries 135,668 30.4 99,061 19.6 79,895 12.7 Total revenues $ 446,103 100.0 $ 503,568 100.0 $ 629,428 100.0 |
PARENT ONLY INFORMATION (Tables
PARENT ONLY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PARENT ONLY INFORMATION | |
Schedule of condensed balance sheets | December 31, 2022 2023 ASSETS Current assets Cash and cash equivalents $ 82 $ 772 Prepaid expenses and other current assets 186 156 Amounts due from subsidiaries 153,746 149,541 TOTAL ASSETS $ 154,014 $ 150,469 LIABILITIES AND EQUITY Current Liabilities Accrued expenses and other current liabilities $ 739 $ 667 Deficit of investment in subsidiaries 149,399 158,184 TOTAL LIABILITIES $ 150,138 $ 158,851 EQUITY / (DEFICIT ) Ordinary shares $ 17 $ 17 Additional paid-in capital 282,722 283,137 Treasury shares, at cost (28,615) (30,359) Accumulated deficit (249,224) (259,321) Accumulated other comprehensive income (1,024) (1,856) TOTAL EQUITY / (DEFICIT ) 3,876 (8,382) TOTAL LIABILITIES AND EQUITY $ 154,014 $ 150,469 |
Schedule of condensed statements of operations and comprehensive (loss) | Years ended December 31 2021 2022 2023 General and administrative $ 3,050 $ 2,234 $ 1,222 Operating loss (3,050) (2,234) (1,222) Share of income / (loss) from subsidiaries and VIEs 16,179 (54,348) (8,368) Income / (loss) before income taxes 13,129 (56,582) (9,590) Income tax expense — — — Net income / (loss) 13,129 (56,582) (9,590) Other comprehensive income / (loss): Foreign currency translation adjustment, net of nil income taxes 942 (3,761) (832) Total comprehensive income / (loss) $ 14,071 $ (60,343) $ (10,422) |
Schedule of condensed statements of cash flows | Years ended December 31, 2021 2022 2023 Net income / (loss) $ 13,129 $ (56,582) $ (9,590) Share of (loss) / income from subsidiaries and VIEs (16,179) 54,348 8,368 Prepaid expenses and other current assets 5 101 30 Accrued expenses and other current liabilities (465) (95) (72) Net cash used in operating activities (3,510) (2,228) (1,264) Changes in amounts due from subsidiaries and VIEs 3,230 2,244 4,205 Net cash provided by investing activities 3,230 2,244 4,205 Issuance of ordinary shares from treasury shares 268 — 45 Repurchase of ordinary shares — — (2,296) Net cash provided by / (used in) financing activities 268 — (2,251) Net (decrease) / increase in cash and cash equivalents (12) 16 690 Cash and cash equivalents at beginning of the year 78 66 82 Cash and cash equivalents at end of the year $ 66 $ 82 $ 772 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Consolidated Financial Information of the Group's VIEs and Subsidiaries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated financial information of the Group's VIE and its subsidiaries included in consolidated financial statements | |||
Total assets | $ 126,309 | $ 164,813 | |
Total liabilities | 134,691 | 160,937 | |
Revenues | 629,428 | 503,568 | $ 446,103 |
Net loss | (9,590) | (56,582) | 13,129 |
Net cash provided by / (used in) operating activities | (20,715) | 35,826 | (1,771) |
Net cash provided by investing activities | (1,078) | 2,051 | (1,743) |
Net cash used in financing activities | (2,295) | (43) | (1,320) |
Consolidated VIEs | |||
Consolidated financial information of the Group's VIE and its subsidiaries included in consolidated financial statements | |||
Total assets | 0 | 126 | |
Total liabilities | 0 | 0 | |
Revenues | 0 | 0 | 790 |
Net loss | 0 | (424) | (295) |
Net cash provided by / (used in) operating activities | 0 | (8,673) | 3,758 |
Net cash provided by investing activities | 0 | 2,778 | 381 |
Net cash used in financing activities | $ 0 | 0 | $ 0 |
Consolidated VIEs | Pledge or collateralization | |||
Consolidated financial information of the Group's VIE and its subsidiaries included in consolidated financial statements | |||
Total assets | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories and Property and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventories | |||
Inventory (reversal when sold) / write-down | $ 0 | $ 103 | $ 880 |
Furniture, fixtures and office equipment | Minimum | |||
PROPERTY AND EQUIPMENT, NET | |||
Useful lives | 1 year | ||
Furniture, fixtures and office equipment | Maximum | |||
PROPERTY AND EQUIPMENT, NET | |||
Useful lives | 5 years | ||
Leasehold improvements | |||
PROPERTY AND EQUIPMENT, NET | |||
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember | ||
IT equipment | Minimum | |||
PROPERTY AND EQUIPMENT, NET | |||
Useful lives | 1 year | ||
IT equipment | Maximum | |||
PROPERTY AND EQUIPMENT, NET | |||
Useful lives | 3 years | ||
Vehicles | Minimum | |||
PROPERTY AND EQUIPMENT, NET | |||
Useful lives | 4 years | ||
Vehicles | Maximum | |||
PROPERTY AND EQUIPMENT, NET | |||
Useful lives | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Acquired intangible assets, net (Details) | Dec. 31, 2023 |
Technology platform | |
Acquired intangible assets, net | |
Useful lives | 1 year |
Non-compete agreement | |
Acquired intangible assets, net | |
Useful lives | 2 years |
Customer base | |
Acquired intangible assets, net | |
Useful lives | 4 years 3 months 18 days |
Technology | Minimum | |
Acquired intangible assets, net | |
Useful lives | 3 years |
Technology | Maximum | |
Acquired intangible assets, net | |
Useful lives | 5 years |
Members | |
Acquired intangible assets, net | |
Useful lives | 4 years |
Branding | |
Acquired intangible assets, net | |
Useful lives | 10 years |
In-progress orders | |
Acquired intangible assets, net | |
Useful lives | 1 month 6 days |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts receivable, net of allowance for credit losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue recognition | |||
Accrued sales return | $ 1,376 | $ 2,348 | $ 680 |
Allowance for sales return | 15,732 | 14,950 | 9,377 |
Revenues | 629,428 | 503,568 | 446,103 |
Cost of goods sold | 269,496 | 228,490 | 239,393 |
Allowance of credit losses | $ 1,841 | 1,841 | |
Return period, subsequent to the receipt of shipment with quality-related issues | 12 months | ||
Movements in the allowance for credit losses | |||
Allowance of credit losses | $ 1,841 | 1,841 | |
Credit losses recognized | 0 | (968) | |
Revenue included in advance from customers | |||
Contract liabilities as of January 1 | 26,652 | 18,239 | |
Cash received in advance, net of VAT | 617,450 | 484,139 | |
Revenue recognized from opening balance of contract liabilities | (26,652) | (18,239) | |
Revenue recognized from contract liability arising during current year | (606,249) | (457,487) | |
Contract liabilities as of December 31 | $ 11,201 | 26,652 | 18,239 |
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | true | ||
Selling and marketing | |||
Advertising expense | $ 291,702 | 210,817 | 142,397 |
General and administrative | |||
Research and development expense | 19,105 | 19,447 | 20,338 |
Chargeback incurred | $ 2,338 | 2,209 | 1,352 |
Income taxes | |||
Threshold Percentage For Not Recognizing Income Tax | 50% | ||
Accrued expenses and other current liabilities | |||
Revenue recognition | |||
Accrued sales return | $ 1,376 | 2,348 | |
Shipping and handling | |||
Revenue recognition | |||
Cost of goods sold | 126,628 | 101,349 | 90,576 |
Membership revenues | |||
Revenue recognition | |||
Revenues | 1,899 | 479 | $ 810 |
Foreign currency risk | Denominated in RMB | |||
Foreign currency risk | |||
Cash and cash equivalents, term deposit and restricted cash | $ 3,115 | $ 3,248 | |
Maximum | |||
Revenue recognition | |||
Return period, subsequent to the receipt of shipment with no quality-related issues | 7 days | ||
Return period, subsequent to the receipt of shipment with quality-related issues | 30 days |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Financial instruments and fair value measurements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Nonrecurring | |
Liabilities: | |
Total losses | $ 55,234 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Liquidity Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Current liabilities | $ 47,535 | |||
Working Capital Deficit | 259,321 | |||
Net income(loss) | (9,590) | $ (56,582) | $ 13,454 | |
Net change in cash, cash equivalents, and restricted cash | $ 71,704 | $ 94,568 | $ 59,602 | $ 65,529 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Prepayments to suppliers | $ 4,441 | $ 4,711 |
Deferred expenses | 546 | 659 |
Rental deposits and prepaid rents | 969 | 129 |
Others | 919 | 953 |
Total | $ 6,875 | $ 6,452 |
PREPAID EXPENSES AND OTHER CU_4
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||
Allowance for credit losses | $ 192 | $ 192 | |
Additions for impairment losses | $ 0 | $ 83 | $ 0 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | $ 9,028 | $ 8,275 | |
Less: Accumulated depreciation | (6,239) | (5,329) | |
Property and equipment, net | 2,789 | 2,946 | |
Depreciation expenses | 1,280 | 1,223 | $ 1,217 |
Leasehold improvements | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 1,466 | 1,451 | |
Furniture, fixtures and office equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 3,386 | 3,069 | |
IT equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 2,437 | 2,393 | |
Vehicles | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | $ 1,739 | $ 1,362 |
GOODWILL - Changes in the carry
GOODWILL - Changes in the carrying amount of goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
GOODWILL | ||
Goodwill, beginning balance | $ 28,177 | $ 30,440 |
Effect of exchange rate changes on goodwill | (784) | (2,263) |
Goodwill, ending balance | 27,393 | 28,177 |
Ador Inc | ||
GOODWILL | ||
Goodwill, beginning balance | 690 | 690 |
Effect of exchange rate changes on goodwill | 0 | 0 |
Goodwill, ending balance | 690 | 690 |
Ezbuy | ||
GOODWILL | ||
Goodwill, beginning balance | 27,487 | 29,750 |
Effect of exchange rate changes on goodwill | (784) | (2,263) |
Goodwill, ending balance | $ 26,703 | $ 27,487 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Acquired intangible assets, net | |||
Gross carrying amount | $ 13,582 | $ 13,868 | |
Accumulated amortization | (8,956) | (7,216) | |
Accumulated impairment loss | (1,022) | (1,022) | |
Net carrying amount | 3,604 | 5,630 | |
Total amortization expenses | 1,897 | 2,148 | $ 2,082 |
Expected amortization expenses | |||
2024 | 788 | ||
2025 | 665 | ||
2026 | 665 | ||
2027 | 665 | ||
2028 | 611 | ||
Impairment charges, intangible assets | 0 | 0 | $ 0 |
Technology platform | |||
Acquired intangible assets, net | |||
Intangible assets subject to amortization | 90 | 90 | |
Accumulated amortization | (90) | (90) | |
Accumulated impairment loss | 0 | 0 | |
Net carrying amount | 0 | 0 | |
Non-compete agreement | |||
Acquired intangible assets, net | |||
Intangible assets subject to amortization | 9 | 9 | |
Accumulated amortization | (7) | (7) | |
Accumulated impairment loss | (2) | (2) | |
Net carrying amount | 0 | 0 | |
Customer base | |||
Acquired intangible assets, net | |||
Intangible assets subject to amortization | 32 | 32 | |
Accumulated amortization | (22) | (22) | |
Accumulated impairment loss | (10) | (10) | |
Net carrying amount | 0 | 0 | |
Technology | |||
Acquired intangible assets, net | |||
Intangible assets subject to amortization | 2,823 | 2,906 | |
Accumulated amortization | (2,823) | (2,372) | |
Accumulated impairment loss | 0 | 0 | |
Net carrying amount | 0 | 534 | |
Branding | |||
Acquired intangible assets, net | |||
Intangible assets subject to amortization | 6,654 | 6,849 | |
Accumulated amortization | (3,382) | (2,797) | |
Accumulated impairment loss | 0 | 0 | |
Net carrying amount | 3,272 | 4,052 | |
In-progress orders | |||
Acquired intangible assets, net | |||
Intangible assets subject to amortization | 186 | 192 | |
Accumulated amortization | (186) | (192) | |
Accumulated impairment loss | 0 | 0 | |
Net carrying amount | 0 | 0 | |
Members | |||
Acquired intangible assets, net | |||
Intangible assets subject to amortization | 20 | 20 | |
Accumulated amortization | (20) | (20) | |
Accumulated impairment loss | 0 | 0 | |
Net carrying amount | 0 | 0 | |
Software | |||
Acquired intangible assets, net | |||
Intangible assets subject to amortization | 74 | 76 | |
Accumulated amortization | (66) | (42) | |
Accumulated impairment loss | 0 | 0 | |
Net carrying amount | 8 | 34 | |
Internal use software | |||
Acquired intangible assets, net | |||
Intangible assets subject to amortization | 2,474 | 2,474 | |
Accumulated amortization | (2,360) | (1,674) | |
Accumulated impairment loss | 0 | 0 | |
Net carrying amount | 114 | 800 | |
Trademark/domain name | |||
Acquired intangible assets, net | |||
Intangible assets not subject to amortization | 1,220 | 1,220 | |
Accumulated amortization | 0 | 0 | |
Accumulated impairment loss | (1,010) | (1,010) | |
Net carrying amount | $ 210 | $ 210 |
LEASES - Components of lease co
LEASES - Components of lease cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | $ 5,359 | $ 5,434 | $ 5,089 |
Short-term lease costs | 309 | 652 | 1,115 |
Amortization of ROU assets | 28 | 27 | 28 |
Interests | 4 | 5 | 13 |
Total lease costs | 5,700 | 6,118 | 6,245 |
Operating cash flows from operating leases | 5,707 | 4,932 | 5,132 |
Operating cash flows from financing leases | 44 | 43 | 44 |
Financing cash flows from financing leases | 4 | 5 | 13 |
ROU assets obtained in exchange for new operating lease liabilities | $ 862 | $ 5,498 | $ 4,655 |
Weighted-average remaining operating lease term (in years) | 1 year 4 months 20 days | 2 years 3 months 18 days | 3 years 1 month 17 days |
Weighted-average remaining financing lease term (in years) | 8 months 19 days | 1 year 8 months 19 days | 2 years 8 months 19 days |
Weighted-average discount rate, operating leases | 3.95% | 3.90% | 4.79% |
Weighted-average discount rate, financing leases | 5.70% | 5.70% | 5.70% |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term of leases | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term of leases | 4 years |
LEASES - Future minimum lease p
LEASES - Future minimum lease payments for operating and financing leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Future minimum lease payments under non-cancellable operating lease agreements | |||
2024 | $ 5,321 | ||
2025 | 1,883 | ||
2026 | 43 | ||
Total minimum operating lease payments | 7,247 | ||
Less: Imputed interest | (286) | ||
Total lease liability balance | $ 6,961 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Operating Lease, Liability, Current, Operating Lease, Liability, Noncurrent | ||
Minimum payments related to leases not yet commenced | $ 0 | ||
Minimum future lease payments under the Finance Leases | |||
2024 | 34 | ||
2025 | 0 | ||
2026 | 0 | ||
Total minimum lease payments | 34 | ||
Less: Imputed interest | 0 | ||
Total lease liability balance | $ 34 | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities | ||
Minimum payments related to leases not yet commenced | $ 0 | ||
Fulfillment | |||
Lessee, Lease, Description [Line Items] | |||
Total operating and short-term lease costs | 3,360 | $ 3,344 | $ 3,299 |
Selling and marketing | |||
Lessee, Lease, Description [Line Items] | |||
Total operating and short-term lease costs | 947 | 1,288 | 1,042 |
General and administrative | |||
Lessee, Lease, Description [Line Items] | |||
Total operating and short-term lease costs | $ 1,361 | $ 1,454 | $ 1,863 |
LONG-TERM INVESTMENT (Details)
LONG-TERM INVESTMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2017 | |
LONG-TERM INVESTMENT | ||||
Accumulated impairment on equity investment | $ 56,083 | $ 56,083 | ||
Investment In Maikailai Technologies Co. Ltd. | ||||
LONG-TERM INVESTMENT | ||||
Long-term investments | 0 | 0 | ||
Equity Securities, FV-NI, Unrealized Gain (Loss) | 0 | 849 | $ 38,834 | |
Equity Securities, FV-NI, Realized Gain (Loss) | 0 | 56,083 | $ 0 | |
Equity Securities without Readily Determinable Fair Value, Downward Price Adjustment, Annual Amount | $ 2,950 | $ 2,950 | ||
Maikailai | ||||
LONG-TERM INVESTMENT | ||||
Percentage of equity interest | 10.53% | |||
Total consideration | $ 2,950 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Accrued advertising fees | $ 51,143 | $ 48,445 | |
VAT and other taxes payable | 29,194 | 28,680 | |
Accrued payroll and staff welfare | 3,524 | 6,971 | |
Accrued sales return | 1,376 | 2,348 | $ 680 |
Accrued professional fees | 1,101 | 1,153 | |
Individual income tax withheld | 142 | 598 | |
Credit card processing charges | 42 | 106 | |
Current portion of finance lease liabilities | 34 | 44 | |
Deposits received from a merchant | 5,624 | 0 | |
Others | 2,442 | 2,012 | |
Total | 94,622 | 90,357 | |
Movements in accrued sales return | |||
Balance at the beginning of the period | 2,348 | 680 | |
Allowance for sales return accrued in the year | 15,732 | 14,950 | 9,377 |
Utilization of accrued sales return allowance | (16,704) | (13,282) | |
Balance at the end of the period | $ 1,376 | $ 2,348 | $ 680 |
ACCRUED EXPENSES AND OTHER CU_4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Additional information (Details) | Dec. 31, 2023 USD ($) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Advertising fees | $ 291,702 |
Paid to Advertising fees | $ 289,004 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2021 | Jun. 29, 2023 | |
Total consideration to share repurchase plan | $ 2,296 | ||
Consideration received | $ 268 | ||
Issuance of ordinary shares from treasury shares | $ 45 | ||
Ordinary Shares | |||
Repurchase of outstanding shares (in share) | (3,571,460) | ||
Issuance of ordinary shares (in shares) | 346,570 | ||
Issuance of ordinary shares from treasury shares (in shares) | 74,656 | ||
Treasury Shares | |||
Total consideration to share repurchase plan | $ 2,296 | ||
Consideration received | $ 898 | ||
Issuance of ordinary shares from treasury shares | $ 190 | ||
ADR [Member] | |||
Authorized stock repurchase | $ 10,000 | ||
Repurchase of outstanding shares (in share) | 1,785,730 | ||
Issuance of ordinary shares (in shares) | 37,328 | 173,285 | |
Ordinary Shares | |||
Repurchase of outstanding shares (in share) | 3,571,460 | ||
Total consideration to share repurchase plan | $ 2,296 | ||
Issuance of ordinary shares (in shares) | 346,570 | ||
Consideration received | $ 898 |
SHARE OPTIONS - Options Details
SHARE OPTIONS - Options Details and Assumptions Used to Estimate Fair Value of Options Granted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 09, 2014 | Dec. 31, 2008 | |
2008 Plan | |||||||
Share options | |||||||
Capital shares reserved for future issuance | 11,344,444 | 4,444,444 | |||||
2008 Plan | Share options | |||||||
Share options | |||||||
Shares options granted | 1,321,480 | 3,000,000 | |||||
Exercise price of shares options granted (in dollars per share) | $ 0.32 | $ 0.40 | |||||
Incremental share-based compensation expense | $ 425 | ||||||
Assumptions used for estimating the fair value of options granted on the date of grant | |||||||
Risk-free interest rate per annum (as a percent) | 3.85% | 4.43% | 1.56% | ||||
Exercise multiple | 2.8 | 2.8 | 2.8 | ||||
Expected volatility (as a percent) | 78% | 79% | 79.50% | ||||
Expected dividend yield (as a percent) | 0% | 0% | 0% | ||||
Fair value of ordinary shares (in dollars per share) | $ 0.52 | $ 0.369 | $ 0.45 | ||||
Expected terms (in years) | 10 years | 10 years | 10 years | ||||
2008 Plan | Share options | Employees | |||||||
Share options | |||||||
Shares options granted | 1,300,000 | 80,000 | |||||
Exercise price of shares options granted (in dollars per share) | $ 0.25 | $ 0.40 | |||||
2019 Plan | |||||||
Share options | |||||||
Shares authorized to grant | 2,867,382 | ||||||
Additional shares authorized to issue | 10,667,382 | ||||||
The Plans | Share options | Consultants | Tranche One | |||||||
Share options | |||||||
Shares options granted | 44,444 | ||||||
Exercise price of shares options granted (in dollars per share) | $ 0.01 | ||||||
The Plans | Share options | Consultants | Tranche Two | |||||||
Share options | |||||||
Shares options granted | 77,036 | ||||||
Exercise price of shares options granted (in dollars per share) | $ 0.81 | ||||||
The Plans | Share options | Consultants | Tranche Three | |||||||
Share options | |||||||
Shares options granted | 1,200,000 | ||||||
Exercise price of shares options granted (in dollars per share) | $ 0.30 |
SHARE OPTIONS - Summary of Stoc
SHARE OPTIONS - Summary of Stock Option Activity (Details) - 2008 Plan - Share options - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2020 | |
Options granted | ||
Balance at the beginning of the period (in shares) | 4,423,900 | |
Granted (in shares) | 1,321,480 | 3,000,000 |
Exercised (in shares) | 0 | |
Forfeited (in shares) | (11,300) | |
Balance at the end of the period (in shares) | 5,734,080 | |
Weighted average exercise price per option | ||
Balance at the beginning of the period (in dollars per share) | $ 0.38 | |
Granted (in dollars per share) | 0.32 | $ 0.40 |
Exercised (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 2.65 | |
Balance at the end of the period (in dollars per share) | $ 0.36 |
SHARE OPTIONS - Details of Shar
SHARE OPTIONS - Details of Share Options Granted (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Additional disclosures | |||
Total fair value of the equity awards vested | $ 281,000 | $ 154,000 | $ 4,000 |
Share-based compensation expense | $ 415,000 | $ 340,000 | 1,382,000 |
2008 Plan | Share options | |||
Options Number | |||
Outstanding (in shares) | 5,734,080 | 4,423,900 | |
Exercisable (in shares) | 5,734,080 | ||
Expected to vest (in shares) | 0 | ||
Weighted-average exercise price per option | |||
Outstanding (in dollars per share) | $ 0.36 | $ 0.38 | |
Exercisable (in dollars per share) | 0.36 | ||
Expected to vest (in dollars per share) | $ 0 | ||
Weighted-average remaining contractual life (years) | |||
Outstanding | 7 years 11 months 12 days | ||
Exercisable | 7 years 11 months 12 days | ||
Expected to vest (in years) | 0 years | ||
Average intrinsic value | |||
Outstanding (in dollars) | $ 0.19 | ||
Exercisable (in dollars) | 0.19 | ||
Expected to vest (in dollars) | 0 | ||
Additional disclosures | |||
Total intrinsic value of options exercised | $ 0 | $ 0 | $ 0 |
Weighted average grant date fair value of options (in dollars per share) | $ 0.21 | $ 0.12 | $ 0.05 |
Share-based compensation expense | $ 281,000 | $ 154,000 | $ 429,000 |
Unrecognized compensation cost | $ 0 |
NONVESTED SHARES (Details)
NONVESTED SHARES (Details) - Nonvested shares - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Nonvested shares | |||
Nonvested shares granted | 298,000 | 313,000 | 1,275,200 |
Vest over a period of two years | |||
Nonvested shares | |||
Nonvested shares granted | 152,000 | 20,000 | 60,000 |
Vesting period | 2 years | 2 years | 2 years |
Vest over a period of one year | |||
Nonvested shares | |||
Nonvested shares granted | 20,000 | 16,000 | 40,000 |
Vesting period | 1 year | 1 year | 1 year |
Vest immediately | |||
Nonvested shares | |||
Nonvested shares granted | 126,000 | 277,000 | 1,235,200 |
NONVESTED SHARES - Summary of N
NONVESTED SHARES - Summary of Nonvested Shares Granted and Vested (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted average grant date fair value | |||
Incremental compensation expenses | $ 415 | $ 340 | $ 1,382 |
Nonvested shares | |||
Number of Shares | |||
Outstanding at the beginning of the period (in shares) | 46,000 | ||
Granted (in shares) | 298,000 | 313,000 | 1,275,200 |
Forfeited (in shares) | (16,000) | ||
Vested (in shares) | (178,000) | ||
Outstanding at the end of the period (in shares) | 150,000 | 46,000 | |
Weighted average grant date fair value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 0.55 | ||
Granted (in dollars per share) | 0.45 | ||
Forfeited (in dollars per share) | 0.60 | ||
Vested (in dollars per share) | 0.57 | ||
Outstanding at the end of the period (in dollars per share) | $ 0.33 | $ 0.55 | |
Fair value of shares vested | $ 134 | $ 186 | $ 910 |
Incremental compensation expenses | 134 | $ 186 | $ 953 |
Unrecognized compensation cost | $ 68 | ||
Weighted-average period of recognition of unrecognized compensation cost | 1 year 1 month 6 days |
NONVESTED SHARES - Share-based
NONVESTED SHARES - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation expenses | |||
Share-based compensation expense | $ 415 | $ 340 | $ 1,382 |
Fulfillment | |||
Share-based compensation expenses | |||
Share-based compensation expense | 0 | 12 | 15 |
Selling and marketing | |||
Share-based compensation expenses | |||
Share-based compensation expense | 34 | 99 | 142 |
General and administrative | |||
Share-based compensation expenses | |||
Share-based compensation expense | $ 381 | $ 229 | $ 1,225 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 HKD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 HKD ($) | Dec. 31, 2018 | |
Income taxes | ||||||||
Assessable profits | $ 2,000 | |||||||
Half of the current tax rate (as a Percent) | 8.25% | |||||||
Income tax expense | $ 40 | $ (12,707) | $ 9,802 | |||||
Current income tax expense / (benefit) | 0 | (12,300) | 9,517 | |||||
Deferred tax expense / (benefit) | 40 | (407) | 9,827 | |||||
Deferred | 285 | |||||||
Income tax expense/(benefit) | 40 | (12,707) | 9,802 | |||||
Schedule of Loss before income taxes | ||||||||
Loss before provision of income tax | (9,550) | (69,289) | 23,256 | |||||
Deferred tax assets: | ||||||||
Allowance for credit losses | 154 | 156 | ||||||
Write-down for inventory | 111 | 162 | ||||||
Lease liabilities | 876 | 2,154 | ||||||
Net operating loss carry forwards | 34,665 | 30,677 | ||||||
Gross deferred tax assets | 35,806 | 33,149 | ||||||
Less: Valuation allowance | (34,500) | (30,324) | (28,195) | |||||
Total deferred tax assets | 1,306 | 2,825 | ||||||
Deferred tax liabilities: | ||||||||
Property and equipment, net | (151) | (87) | ||||||
Acquired intangible assets | (433) | (695) | ||||||
Operating lease ROU assets | (876) | (2,154) | ||||||
Total deferred tax liabilities | (1,460) | (2,936) | ||||||
Net deferred tax assets | 0 | 0 | ||||||
Total deferred tax liabilities | 154 | 111 | ||||||
Movement of valuation allowance | ||||||||
Balance at beginning of the period | $ 34,500 | 30,324 | 28,195 | |||||
Additions | 4,210 | 3,145 | ||||||
Decrease related to subsidiaries' cancellation | (34) | (1,016) | ||||||
Balance at end of the period | 34,500 | 30,324 | 28,195 | |||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Income/(loss) before provision of income tax | $ (9,550) | $ (69,289) | $ 23,256 | |||||
Statutory tax rate in the PRC | 25% | 25% | 25% | 25% | ||||
Income tax expense / (benefit) at statutory tax rate | $ (2,387) | $ (17,322) | $ 5,814 | |||||
Non-deductible expenses | 129 | 982 | 346 | |||||
Non-deducible impairment loss | 0 | 14,021 | 0 | |||||
Statutory expense | (293) | (203) | (655) | |||||
R&D super deduction | (2,904) | (2,392) | (2,664) | |||||
Effect of preferential tax rate | (86) | 344 | 122 | |||||
Effect of income tax rate differences in jurisdictions other than the PRC | 1,151 | 1,311 | (892) | |||||
Deferred tax expense | 0 | (415) | 381 | |||||
Prior year true up | (71) | (157) | (594) | |||||
Unrecognized tax benefits-Fin 48 | 0 | (12,302) | 9,576 | |||||
Changes in valuation allowances | 4,501 | 3,426 | (1,632) | |||||
Income tax expense/(benefit) | 40 | (12,707) | 9,802 | |||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||
Beginning balance | $ 107 | 107 | 13,101 | 0 | ||||
Additions | 0 | 73 | 13,101 | |||||
Decreases | 0 | (13,067) | 0 | |||||
Ending balance | 107 | 107 | 13,101 | $ 0 | ||||
Unrecognized tax benefits | 107 | 107 | $ 13,101 | $ 0 | ||||
interest expense | $ 107 | $ 107 | ||||||
Percentage of effective rate | 100% | 100% | ||||||
Shenzhen Ruizhihe | ||||||||
Income taxes | ||||||||
Taxable income (as a percent) | 20% | 20% | ||||||
PRC | ||||||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Statute of limitations | 4 years | 4 years | ||||||
PRC | Guoshuihan 2009 | ||||||||
Income taxes | ||||||||
Preferential tax term | 3 years | 3 years | ||||||
PRC | Shanghai Lanting | ||||||||
Income taxes | ||||||||
Preferential tax term | 3 years | 3 years | ||||||
Cayman Islands | ||||||||
Schedule of Loss before income taxes | ||||||||
Loss before provision of income tax | $ (1,635) | $ (2,411) | $ (5,219) | |||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Income/(loss) before provision of income tax | (1,635) | (2,411) | (5,219) | |||||
Hong Kong | ||||||||
Income taxes | ||||||||
Withholding taxes amount on remittance of dividends | $ 0 | |||||||
Assessable profits | $ 0 | |||||||
Accumulated tax losses of subsidiaries | 162,999 | |||||||
Schedule of Loss before income taxes | ||||||||
Loss before provision of income tax | (9,307) | (66,872) | (12,136) | |||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Income/(loss) before provision of income tax | $ (9,307) | $ (66,872) | $ (12,136) | |||||
Statutory tax rate in the PRC | 16.50% | 16.50% | ||||||
PRC | ||||||||
Income taxes | ||||||||
Preferential income tax rate | 15% | 15% | ||||||
Accumulated tax losses of subsidiaries | $ 30,916 | |||||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Statutory tax rate in the PRC | 25% | 25% | ||||||
PRC | Guoshuihan 2009 | ||||||||
Income taxes | ||||||||
Eligible for preferential tax rate | 15% | 15% | 15% | |||||
PRC | Shanghai Lanting | ||||||||
Income taxes | ||||||||
Eligible for preferential tax rate | 15% | 15% | 15% | 15% | ||||
PRC excluding Hong Kong SAR, and other countries | ||||||||
Schedule of Loss before income taxes | ||||||||
Loss before provision of income tax | $ 1,392 | $ (6) | $ 40,611 | |||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Income/(loss) before provision of income tax | $ 1,392 | $ (6) | $ 40,611 | |||||
Hong Kong, PRC and Singapore | Maximum | ||||||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Statute of limitations | 6 years | 6 years | ||||||
Hong Kong, PRC and Singapore | Minimum | ||||||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Statute of limitations | 4 years | 4 years | ||||||
Singapore | ||||||||
Income taxes | ||||||||
Accumulated tax losses of subsidiaries | $ 7,399 | |||||||
Singapore | Ching International service PTE.LTD | ||||||||
Income taxes | ||||||||
Percent of exemption on first SGD 10,000 of taxable income | 75% | 75% | ||||||
Percent of exemption on next SGD 190,000 of taxable income | 50% | 50% | ||||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Statutory tax rate in the PRC | 17% | 17% | ||||||
Singapore | Avant E-Commerce Service PTE.LTD | ||||||||
Income taxes | ||||||||
Percent of exemption on first SGD 10,000 of taxable income | 75% | 75% | ||||||
Percent of exemption on next SGD 190,000 of taxable income | 50% | 50% | ||||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Statutory tax rate in the PRC | 17% | 17% | ||||||
Singapore | Avant Logistic Service PTE.LTD | ||||||||
Income taxes | ||||||||
Percent of exemption on first SGD 10,000 of taxable income | 75% | 75% | ||||||
Percent of exemption on next SGD 190,000 of taxable income | 50% | 50% | ||||||
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes | ||||||||
Statutory tax rate in the PRC | 17% | 17% | ||||||
Other regions | ||||||||
Income taxes | ||||||||
Accumulated tax losses of subsidiaries | $ 643 |
INCOME_ (LOSS) PER SHARE - Comp
INCOME/ (LOSS) PER SHARE - Computation of Basic and Diluted Net Income/(Loss) Per Ordinary Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income / (loss) attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd. | $ (9,590) | $ (56,582) | $ 13,129 |
Adjusted net income / (loss) attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd. used in calculating net income/ (loss) per ordinary share -diluted | $ (9,590) | $ (56,582) | $ 13,129 |
Denominator: | |||
Weighted average number of shares used in calculating net income/ (loss) per ordinary share -basic | 225,940,602 | 226,248,599 | 224,306,117 |
Weighted average number of shares used in calculating net income / (loss) per ordinary share -diluted | 225,940,602 | 226,248,599 | 226,568,979 |
Net income / (loss) per ordinary share- basic | $ (0.04) | $ (0.25) | $ 0.06 |
Net income / (loss) per ordinary share- diluted | $ (0.04) | $ (0.25) | $ 0.06 |
Share options | |||
Denominator: | |||
Shares excluded from the calculation of diluted loss per share | 5,734,080 | 4,423,900 | |
Nonvested shares | |||
Denominator: | |||
Shares excluded from the calculation of diluted loss per share | 150,000 | 46,000 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
EMPLOYEE BENEFIT PLANS | |||
Total contribution for employee benefits | $ 6,832 | $ 6,646 | $ 7,072 |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |||
Minimum percentage of after-tax profit required to be transferred to general reserve till such reserve reaches specified percentage of registered capital | 10% | ||
General reserve as a percentage of registered capital up to which after-tax profit of PRC subsidiaries and VIEs shall be transferred | 50% | ||
Discretionary appropriations to enterprise expansion reserve, staff welfare and bonus reserve | $ 0 | $ 0 | $ 0 |
Amount of restricted net assets of subsidiaries and VIE not available for distribution | $ 2,398 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment reporting | |||
Number of operating segments | segment | 2 | ||
Revenues | $ 629,428 | $ 503,568 | $ 446,103 |
Cost of revenues | 269,496 | 228,490 | 239,393 |
Gross profit | 359,932 | 275,078 | 206,710 |
Unallocated operating expenses | 370,327 | 289,318 | 222,822 |
Loss from operations | (10,395) | (14,240) | (16,112) |
Interest income | 350 | 57 | 59 |
Interest expense | (4) | (5) | (13) |
Other income, net | 499 | 982 | 39,322 |
Impairment loss on investment | 0 | (56,083) | 0 |
Income / (loss) before income taxes | (9,550) | (69,289) | 23,256 |
Product sales | |||
Segment reporting | |||
Revenues | 617,240 | 491,949 | 435,170 |
Cost of revenues | 265,964 | 223,383 | 235,237 |
Gross profit | 351,276 | 268,566 | 199,933 |
Services and others | |||
Segment reporting | |||
Revenues | 12,188 | 11,619 | 10,933 |
Cost of revenues | 3,532 | 5,107 | 4,156 |
Gross profit | $ 8,656 | $ 6,512 | $ 6,777 |
SEGMENT REPORTING - Components
SEGMENT REPORTING - Components of product sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment reporting | |||
Total revenues | $ 629,428 | $ 503,568 | $ 446,103 |
Product sales | |||
Segment reporting | |||
Total revenues | 617,240 | 491,949 | 435,170 |
Apparel | |||
Segment reporting | |||
Total revenues | 518,272 | 399,518 | 274,212 |
Other general merchandises | |||
Segment reporting | |||
Total revenues | $ 98,968 | $ 92,431 | $ 160,958 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of revenues and percentage of revenues by geographical locations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment reporting | |||
Total revenues | $ 629,428 | $ 503,568 | $ 446,103 |
Revenues (as a percent) | 100% | 100% | 100% |
Europe | |||
Segment reporting | |||
Total revenues | $ 313,559 | $ 232,954 | $ 218,915 |
Revenues (as a percent) | 49.80% | 46.30% | 49.10% |
North America | |||
Segment reporting | |||
Total revenues | $ 235,974 | $ 171,553 | $ 91,520 |
Revenues (as a percent) | 37.50% | 34.10% | 20.50% |
Other countries | |||
Segment reporting | |||
Total revenues | $ 79,895 | $ 99,061 | $ 135,668 |
Revenues (as a percent) | 12.70% | 19.60% | 30.40% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Related party - Share transfer agreement - Yew Tee Global Investment Pte. Ltd $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Related Party Transactions. | |
Amount of related party transaction | $ 1,544 |
Percentage of outstanding shares held | 20% |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Failure to make payments of contributions for employee benefit plans | |
Contingencies | |
Contributions for employee benefit plans | $ 403 |
PARENT ONLY INFORMATION - Conde
PARENT ONLY INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||||
Prepaid expenses and other current assets | $ 6,875 | $ 6,452 | ||
TOTAL ASSETS | 126,309 | 164,813 | ||
Current Liabilities | ||||
Accrued expenses and other current liabilities | 94,622 | 90,357 | ||
TOTAL LIABILITIES | 134,691 | 160,937 | ||
EQUITY / (DEFICIT) | ||||
Ordinary shares | 17 | 17 | ||
Additional paid-in capital | 283,137 | 282,722 | ||
Treasury shares, at cost | (30,359) | (28,615) | ||
Accumulated deficit | (259,321) | (249,224) | ||
Accumulated other comprehensive loss | (1,856) | (1,024) | ||
TOTAL EQUITY / (DEFICIT) | (8,382) | 3,876 | $ 63,879 | $ 49,377 |
TOTAL LIABILITIES AND EQUITY / (DEFICIT) | 126,309 | 164,813 | ||
LightInTheBox Holding Co., Ltd. | ||||
Current assets | ||||
Cash and cash equivalents | 772 | 82 | ||
Prepaid expenses and other current assets | 156 | 186 | ||
Amounts due from subsidiaries | $ 149,541 | $ 153,746 | ||
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | srt:SubsidiariesMember | srt:SubsidiariesMember | ||
TOTAL ASSETS | $ 150,469 | $ 154,014 | ||
Current Liabilities | ||||
Accrued expenses and other current liabilities | 667 | 739 | ||
Deficit of investment in subsidiaries | 158,184 | 149,399 | ||
TOTAL LIABILITIES | 158,851 | 150,138 | ||
EQUITY / (DEFICIT) | ||||
Ordinary shares | 17 | 17 | ||
Additional paid-in capital | 283,137 | 282,722 | ||
Treasury shares, at cost | (30,359) | (28,615) | ||
Accumulated deficit | (259,321) | (249,224) | ||
Accumulated other comprehensive loss | (1,856) | (1,024) | ||
TOTAL EQUITY / (DEFICIT) | (8,382) | 3,876 | ||
TOTAL LIABILITIES AND EQUITY / (DEFICIT) | $ 150,469 | $ 154,014 |
PARENT ONLY INFORMATION - Con_2
PARENT ONLY INFORMATION - Condensed Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
General and administrative | $ 34,078 | $ 36,295 | $ 39,733 |
Loss from operations | (10,395) | (14,240) | (16,112) |
Income / (loss) before income taxes | (9,550) | (69,289) | 23,256 |
Income tax expense | 40 | (12,707) | 9,802 |
Net income / (loss) | (9,590) | (56,582) | 13,454 |
Other comprehensive (loss) / income: | |||
Foreign currency translation adjustment, net of nil income taxes | (832) | (3,761) | 942 |
Total comprehensive income / (loss) | (10,422) | (60,343) | 14,396 |
Foreign currency translation adjustment, net of income taxes | 0 | 0 | 0 |
LightInTheBox Holding Co., Ltd. | |||
General and administrative | 1,222 | 2,234 | 3,050 |
Loss from operations | (1,222) | (2,234) | (3,050) |
Share of (loss) / income from subsidiaries and VIEs | (8,368) | (54,348) | 16,179 |
Income / (loss) before income taxes | (9,590) | (56,582) | 13,129 |
Income tax expense | 0 | 0 | 0 |
Net income / (loss) | (9,590) | (56,582) | 13,129 |
Other comprehensive (loss) / income: | |||
Foreign currency translation adjustment, net of nil income taxes | (832) | (3,761) | 942 |
Total comprehensive income / (loss) | (10,422) | (60,343) | 14,071 |
Foreign currency translation adjustment, net of income taxes | $ 0 | $ 0 | $ 0 |
PARENT ONLY INFORMATION - Con_3
PARENT ONLY INFORMATION - Condensed Statements of Operations and Comprehensive Loss - Additional (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Foreign currency translation adjustment, net of income taxes | $ 0 | $ 0 | $ 0 |
LightInTheBox Holding Co., Ltd. | |||
Foreign currency translation adjustment, net of income taxes | $ 0 | $ 0 | $ 0 |
PARENT ONLY INFORMATION - Con_4
PARENT ONLY INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net income / (loss) | $ (9,590) | $ (56,582) | $ 13,454 |
Prepaid expenses and other current assets | (423) | 1,412 | (2,837) |
Accrued expenses and other current liabilities | 4,276 | 32,537 | 15,808 |
Net cash provided by / (used in) operating activities | (20,715) | 35,826 | (1,771) |
Net cash (used in) / provided by investing activities | (1,078) | 2,051 | (1,743) |
Issuance of ordinary shares from treasury shares | 45 | 0 | 268 |
Net cash used in financing activities | (2,295) | (43) | (1,320) |
Net (decrease) / increase in cash, cash equivalents and restricted cash | (24,088) | 37,834 | (4,834) |
Cash, cash equivalents and restricted cash at beginning of year | 94,568 | 59,602 | 65,529 |
Cash, cash equivalents and restricted cash at end of year | 71,704 | 94,568 | 59,602 |
LightInTheBox Holding Co., Ltd. | |||
Net income / (loss) | (9,590) | (56,582) | 13,129 |
Share of (loss) / income from subsidiaries and VIEs | 8,368 | 54,348 | (16,179) |
Prepaid expenses and other current assets | 30 | 101 | 5 |
Accrued expenses and other current liabilities | (72) | (95) | (465) |
Net cash provided by / (used in) operating activities | (1,264) | (2,228) | (3,510) |
Changes in amounts due from subsidiaries and VIEs | 4,205 | 2,244 | 3,230 |
Net cash (used in) / provided by investing activities | 4,205 | 2,244 | 3,230 |
Issuance of ordinary shares from treasury shares | 45 | 0 | 268 |
Repurchase of ordinary shares | (2,296) | 0 | 0 |
Net cash used in financing activities | (2,251) | 0 | 268 |
Net (decrease) / increase in cash, cash equivalents and restricted cash | 690 | 16 | (12) |
Cash, cash equivalents and restricted cash at beginning of year | 82 | 66 | 78 |
Cash, cash equivalents and restricted cash at end of year | $ 772 | $ 82 | $ 66 |