Overstock.com 2004 Annual Report Download - page 69

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Overstock.com, Inc.
Consolidated Statements of Cash Flows
Year ended December 31,
2002 2003 2004
(in thousands)
Cash flows from operating activities:
Net loss $ (4,560) $(11,887) $ (5,002)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 1,873 2,325 3,937
Amortization of unearned stock-based compensation 3,276 846 360
Loss on disposition of property and equipment — — 34
Realized loss (gain) on marketable securities 55 (15) (2)
Stock-based compensation to consultants for services 24 177 1,278
Stock issued to employees 181 21 —
Amortization of debt discount and deferred financing fees 242 — 147
Selling shareholder fees 439 — —
Changes in operating assets and liabilities:
Accounts receivable, net (5,429) (3,189) 4,468
Inventories, net (6,368) (15,972) (15,353)
Prepaid inventory (1,099) (1,584) (9,376)
Prepaid expenses (758) (666) (1,807)
Other long-term assets 246 (7) (944)
Accounts payable 10,051 16,632 33,697
Accrued liabilities 4,316 2,907 13,601
Net cash provided by (used in) operating activities 2,489 (10,412) 25,038
Cash flows from investing activities:
Increase in restricted cash — — (1,602)
Purchases of marketable securities (34,819) (41,363) (92,877)
Sales of marketable securities 13,243 51,388 15,373
Expenditures for property and equipment (1,746) (6,707) (8,734)
Proceeds from the sale of property and equipment — — 20
Expenditures for other long-term assets (5) (172) —
Net cash provided by (used in) investing activities (23,327) 3,146 (87,820)
Cash flows from financing activities:
Payments on capital lease obligations (261) (141) (658)
Borrowings on related party note payables 1,160 — —
Payments on related party note payables (5,660) — —
Drawdown on line of credit — — 1,000
Payments on line of credit — — (1,000)
Payments of deferred financing fees — — (301)
Proceeds from the issuance of convertible senior notes — — 116,199
Issuance of redeemable preferred stock 6,582 — —
Issuance of common stock in offerings, net of issuance costs 26,140 23,968 113,064
Payment of selling shareholder fees (439) — —
Issuance of common stock 31 — —
Exercise of stock options and warrants 615 1,227 4,288
Net cash provided by financing activities 28,168 25,054 232,592
Effect of exchange rate changes on cash — (1) 22
Net increase in cash and cash equivalents 7,330 17,787 169,832
Cash and cash equivalents, beginning of year 3,729 11,059 28,846
Cash and cash equivalents, end of year $ 11,059 $ 28,846 $198,678
Supplemental disclosures of cash flow information:
Interest paid $ 222 $ 51 $ 165
Equipment and software acquired under capital leases 25 120 1,835
Deemed dividend on redeemable common stock 406 262 188