Overstock.com 2003 Annual Report Download - page 65

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consisting only of normal recurring adjustments, that we consider necessary for a fair statement of our financial position and operating results for the quarters
presented.
Three Months Ended
Mar. 31,
2002
June 30,
2002
Sept. 30,
2002
Dec. 31,
2002
Mar. 31,
2003
June 30,
2003
Sept. 30,
2003
Dec. 31,
2003
(unaudited)
Consolidated Statement of Operations Data:
Direct revenue $ 10,029 $ 11,853 $ 20,759 $35,302 $ 24,962 $ 25,159 $ 29,011 $ 57,460
Commission revenue 1,659 2,230 2,857 5,633 3,966 3,431 28,504 64,910
Warehouse revenue 379 297 192 594 236 243 273 790
Total revenue 12,067 14,380 23,808 41,529 29,164 28,833 57,788 123,160
Cost of goods sold(1) 9,990 11,831 19,238 32,382 24,539 24,030 53,537 111,386
Gross profit 2,077 2,549 4,570 9,147 4,625 4,803 4,251 11,774
Operating expenses:
Sales and marketing expenses(2) 1,219 1,313 2,083 4,054 3,848 2,572 3,855 9,898
General and administrative expenses(2) 2,802 2,195 2,372 3,456 4,545 3,367 4,059 4,940
Amortization of stock-based compensation 846 806 674 577 328 112 171 145
Total operating expenses 4,867 4,314 5,129 8,087 8,721 6051 8,085 14,983
Operating income (loss) (2,790) (1,765) (559) 1,060 (4,096) (1,248) (3,834) (3,209)
Interest income 22 49 229 103 152 142 98 69
Interest expense (240) (208) (7) (10) (7) (55) (8) (6)
Other income (expense), net 1 (442) 63 (66) 10 25 79 1
Net income (loss) (3,007) (2,366) (274) 1,087 (3,941) (1,136) (3,665) (3,145)
Deemed dividend related to redeemable common stock (111) (106) (97) (92) (77) (78) (58) (49)
Deemed dividend related to beneficial conversion feature of preferred stock (6,607) — — — — — — —
Net income (loss) attributable to common shares $ (9,725) $ (2,472) $ (371) $ 995 $ (4,018) $ (1,214) $ (3,723) $ (3,194)
Net income (loss) per common share
—basic $ (0.87) $ (0.20) $ (0.03) $ 0.07 $ (0.26) $ (0.07) $ (0.23) $ (0.19)
—diluted $ (0.87) $ (0.20) $ (0.03) $ 0.06 $ (0.26) $ (0.07) $ (0.23) $ (0.19)
Weighted average common shares outstanding
—basic 11,171 12,280 14,447 14,486 15,486 16,384 16,419 16,473
—diluted 11,171 12,280 14,447 15,696 15,486 16,384 16,419 16,473
(1) Amounts include stock based compensation of $ 102 $ 96 $ 93 $ 82 $ 39 $ 13 $ 20 $ 18
(2) Amounts exclude stock-based compensation as follows:
Sales and marketing expenses $ 22 $ 21 $ 21 $ 19 $ 11 $ 3 $ 5 $ 3
General and administrative expenses 824 785 653 558 317 109 166 142
$ 846 $ 806 $ 674 $ 577 $ 328 $ 112 $ 171 $ 145
F-26
Schedule II
Valuation and Qualifying Accounts
(dollars in thousands)
Balance at
Beginning of
Year
Charged to
Expense Deductions
Balance at End of
Year
Year ended December 31, 2001
Deferred tax valuation allowance $ 18,117 $ 3,645 $ — $ 21,762
Reserve for sales returns 350 6,121 5,975 496
Allowance for inventory obsolescence 1,750 1,135 1,942 943