Overstock.com 2005 Annual Report Download - page 36

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The following is a summary of stock option activity:
2003 2004 2005
Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
Outstanding—beginning of year 1,415 $ 5.37 1,780 $ 8.39 1,512 $ 8.39
Granted at fair value 854 12.77 474 24.14 220 44.44
Exercised (197 ) 4.69 (468 ) 6.75 (298 ) 8.56
Canceled/forfeited (292 ) 9.12 (274 ) 13.26 (135 ) 24.08
Outstanding—end of year 1,780 8.39 1,512 12.90 1,299 18.09
Options exercisable at year-end 614 5.44 608 7.51 739 11.33
During 2005, except as previously reported in a Quarterly Report on Form 10-Q or current Report on Form 8-K, the Company
did not sell any equity securities that were not registered under the Securities Act.
ITEM 6. SELECTED FINANCIAL DATA
The following selected consolidated financial data as of December 31, 2004 and 2005 and for each of the three years in the
period ended December 31, 2005, are derived from our consolidated financial statements and are included elsewhere in this Form 10-
K. The consolidated financial data as of December 31, 2001, 2002 and 2003 and for the years ended December 31, 2001 and 2002, are
derived from audited consolidated financial statements, but are not contained herein. The historical results do not necessarily indicate
results expected for any future period. This information should be read in conjunction with "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and the Consolidated Financial Statements and the related notes thereto included
elsewhere in this Form 10-K. Fiscal 2005 results include the acquisition of Ski West starting from July 1, 2005.
Year ended December 31,
2001 2002 2003 2004 2005
(in thousands, except per share data)
Consolidated Statement of Operations Data:
Revenue
Direct revenue $ 36,038 $ 79,405 $ 138,134 $ 213,210 $ 324,875
Fulfillment partner revenue 3,965 12,379 100,811 281,425 478,947
Total revenue 40,003 91,784 238,945 494,635 803,822
Cost of goods sold
Direct 33,378 70,445 123,963 184,928 282,377
Fulfillment partner 1,143 2,755 89,190 243,468 400,889
Total cost of goods sold 34,521 73,200 213,153 428,396 683,266
Gross profit 5,482 18,584 25,792 66,239 120,556
Operating expenses:
Sales and marketing expenses 5,784 8,669 20,173 40,533 79,651
Technology 1,886 1,922 2,424 8,449 28,132
General and administrative expenses 7,555 8,903 14,487 21,786 36,495
Amortization of stock-based compensation 649 2,903 756 360 72
Amortization of goodwill 3,056 — — — —
Total operating expenses 18,930 22,397 37,840 71,128 144,350
Operating loss (13,448 ) (3,813 ) (12,048 ) (4,889 ) (23,794 )
Interest income, net 461 403 461 1,173 (270 )
Interest expense (729 ) (465 ) (76 ) (775 ) (5,582 )
Other income (expense), net 29 (444 )115 (49 )4,728
Net loss (13,687 ) (4,319 ) (11,548 ) (4,540 ) (24,918 )
Deemed dividend related to redeemable common stock (404 ) (406 ) (262 ) (188 ) (185 )
Deemed dividend related to beneficial conversion
feature of preferred stock — (6,607 )— — —
Net loss attributable to common shares $ (14,091 )$ (11,332 )$ (11,810 )$ (4,728 )$ (25,103 )
Net loss per common share—basic and diluted $ (1.28 ) $ (0.86 ) $ (0.73 ) $ (0.26 ) $ (1.29 )