Overstock.com 2015 Annual Report Download - page 56
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The following table reflects our general and administrative expenses ("G&A") for the years ended December 31, 2015 and 2014 (in thousands):
General and administrative expenses
$ 82,187
$ 71,777
$ 10,410
14.5%
General and administrative expenses as a percent of net revenues
5.0%
4.8%
The $10.4 million increase in general and administrative expenses (“G&A”) for the year ended December 31, 2015, as compared to the same period
in 2014, was primarily due to an increase of $5.9 million in staff and travel related costs, an increase in management consulting services of $2.9 million, a
$1.0 million expense for a contract termination fee, and an increase in depreciation and amortization of $932,000 (including amortization of intangible assets
related to our recent acquisition).
G&A expenses include stock-based compensation expense of approximately $2.5 million and $2.8 million for the years ended December 31, 2015
and 2014, respectively.
Although we made efforts to reduce expenses in Q4 2015, we continue to seek opportunities for growth by expanding our sales and distribution
footprint, through Medici's crypto-initiatives, and through other means. As a result of these and other initiatives, we may continue to incur additional COGS,
sales and marketing, technology and/or G&A expenses. These expenses may be material, and, coupled with the seasonality of our business, may lead to
reduced income as compared to prior periods or to losses in some periods.
Depreciation expense is classified within the corresponding operating expense categories on the consolidated statements of operations as follows (in
thousands):
Cost of goods sold - direct
$ 283
$ 282
Technology
22,126
16,651
General and administrative
1,107
1,028
Total depreciation, including internal-use software and website development
$ 23,516
$ 17,961
Interest income is primarily derived from the investment of our cash in cash equivalents and short-term investments. Interest income for the years
ended December 31, 2015 and 2014 totaled $155,000 and $152,000, respectively.
Interest expense for the year ended December 31, 2015 is primarily related to our cryptobond transactions. Interest expense for the years ended
December 31, 2015 and 2014 totaled $140,000 and $39,000, respectively.
Other income, net for the year ended December 31, 2015 was $3.6 million as compared to $1.2 million in 2014. The increase is primarily due to
increased Club O Rewards breakage of $3.9 million due to increased participation in the Club O Rewards program, including our recently introduced Club O
Silver program, partially offset by costs of $850,000 related to our cryptobond transactions.
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