Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2022 shares | |
Document And Entity Information | |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2022 |
Document Quarterly Report | true |
Document Transition Report | false |
Entity Registrant Name | EXP WORLD HOLDINGS, INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-38493 |
Entity Tax Identification Number | 98-0681092 |
Entity Address, Address Line One | 2219 Rimland Drive, Suite 301 |
Entity Address, City or Town | Bellingham |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 98226 |
City Area Code | 360 |
Local Phone Number | 685-4206 |
Title of 12(b) Security | Common Stock, $0.00001 par value per share |
Trading Symbol | EXPI |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 151,798,879 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0001495932 |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 134,898 | $ 108,237 |
Restricted cash | 105,883 | 67,673 |
Accounts receivable, net of allowance for credit losses of $2,806 and $2,198, respectively | 154,997 | 133,489 |
Prepaids and other assets | 7,822 | 9,916 |
TOTAL CURRENT ASSETS | 403,600 | 319,315 |
Property, plant, and equipment, net | 19,906 | 15,902 |
Operating lease right-of-use assets | 2,265 | 2,482 |
Other noncurrent assets | 1,943 | 2,827 |
Intangible assets, net | 7,071 | 7,528 |
Deferred tax assets | 59,719 | 52,827 |
Goodwill | 12,945 | 12,945 |
TOTAL ASSETS | 507,449 | 413,826 |
CURRENT LIABILITIES | ||
Accounts payable | 5,971 | 7,158 |
Customer deposits | 93,566 | 67,673 |
Accrued expenses | 147,393 | 111,672 |
Current portion of lease obligation - operating lease | 213 | 311 |
TOTAL CURRENT LIABILITIES | 247,143 | 186,814 |
Long-term payable | 2,714 | 2,714 |
Long-term lease obligation - operating lease, net of current portion | 720 | 765 |
TOTAL LIABILITIES | 250,577 | 190,293 |
EQUITY | ||
Common Stock, $0.00001 par value 900,000,000 shares authorized; 161,781,042 issued and 150,293,351 outstanding in 2022; 155,516,284 issued and 148,764,592 outstanding in 2021 | 2 | 1 |
Additional paid-in capital | 509,476 | 401,479 |
Treasury stock, at cost: 11,487,691 and 6,751,692 shares held, respectively | (289,829) | (210,009) |
Accumulated earnings | 37,007 | 30,510 |
Accumulated other comprehensive income (loss) | (953) | 188 |
Total eXp World Holdings, Inc. stockholders' equity | 255,703 | 222,169 |
Equity attributable to noncontrolling interest | 1,169 | 1,364 |
TOTAL EQUITY | 256,872 | 223,533 |
TOTAL LIABILITIES AND EQUITY | $ 507,449 | $ 413,826 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
Accounts receivable, allowance for credit losses and bad debt | $ 2,806 | $ 2,198 | ||||
Common stock, par value | $ 0.00001 | $ 0.00001 | ||||
Common stock, shares authorized | 900,000,000 | 900,000,000 | ||||
Common stock, shares issued | 163,286,570 | 158,300,605 | 155,516,284 | 151,146,986 | 147,934,768 | 146,677,786 |
Common stock, shares outstanding | 151,798,879 | 148,764,592 | ||||
Treasury stock, shares | 11,487,691 | 7,883,740 | 6,751,692 | 4,725,296 | 3,035,404 | 2,534,494 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Revenues | $ 1,415,060 | $ 999,887 | $ 2,425,791 | $ 1,583,720 |
Operating expenses | ||||
Commissions and other agent-related costs | 1,307,810 | 919,970 | 2,235,077 | 1,450,317 |
General and administrative expenses | 91,391 | 60,721 | 166,713 | 107,021 |
Sales and marketing expenses | 4,210 | 2,683 | 7,910 | 4,940 |
Total operating expenses | 1,403,411 | 983,374 | 2,409,700 | 1,562,278 |
Operating income | 11,649 | 16,513 | 16,091 | 21,442 |
Other (income) expense | ||||
Other (income) expense, net | 62 | 54 | 472 | (80) |
Equity in losses of unconsolidated affiliates | 567 | 1 | 884 | 7 |
Total other (income) expense, net | 629 | 55 | 1,356 | (73) |
Income before income tax expense | 11,020 | 16,458 | 14,735 | 21,515 |
Income tax (benefit) expense | 1,661 | (20,585) | (3,488) | (20,374) |
Net income | 9,359 | 37,043 | 18,223 | 41,889 |
Net income attributable to noncontrolling interest | 7 | 18 | 7 | |
Net income attributable to eXp World Holdings, Inc. | $ 9,359 | $ 37,050 | $ 18,241 | $ 41,896 |
Earnings per share - Basic | $ 0.06 | $ 0.25 | $ 0.12 | $ 0.29 |
Earnings per share - Diluted | $ 0.06 | $ 0.24 | $ 0.12 | $ 0.27 |
Weighted average shares outstanding - Basic | 150,783,418 | 145,584,495 | 150,049,170 | 144,973,139 |
Weighted average shares outstanding - Diluted | 155,816,038 | 157,288,672 | 156,579,590 | 158,096,735 |
Comprehensive income: | ||||
Net income | $ 9,359 | $ 37,043 | $ 18,223 | $ 41,889 |
Comprehensive loss attributable to noncontrolling interests | 7 | 18 | 7 | |
Net income attributable to eXp World Holdings, Inc. | 9,359 | 37,050 | 18,241 | 41,896 |
Other comprehensive income: | ||||
Foreign currency translation gain (loss), net of tax | (1,182) | 24 | (1,141) | 71 |
Comprehensive income attributable to eXp World Holdings, Inc. | $ 8,177 | $ 37,074 | $ 17,100 | $ 41,967 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total |
Beginning of quarter at Dec. 31, 2020 | $ 1 | $ (37,994) | $ 218,492 | $ (39,162) | $ 247 | $ 1,003 | |
Repurchase of common stock, shares | 2,190,802 | ||||||
Repurchase of common stock | (88,912) | ||||||
Net income | 41,896 | (7) | $ 41,889 | ||||
Shares issued for stock options exercised, shares | 2,344,908 | ||||||
Shares issued for stock options exercised | 1,757 | ||||||
Agent growth incentive stock compensation | 8,694 | ||||||
Stock option compensation | 6,239 | ||||||
Agent equity stock compensation | 59,853 | ||||||
Foreign currency translation loss | $ 71 | ||||||
Transactions with noncontrolling interests | 19 | ||||||
Ending of quarter at Jun. 30, 2021 | 1 | (126,906) | 295,035 | 2,734 | 318 | 1,015 | $ 172,197 |
Beginning of quarter at Mar. 31, 2021 | 1 | (72,003) | 248,634 | (34,316) | 294 | 1,003 | |
Repurchase of common stock, shares | 1,689,892 | ||||||
Repurchase of common stock | (54,903) | ||||||
Net income | 37,050 | (7) | $ 37,043 | ||||
Shares issued for stock options exercised, shares | 1,797,132 | ||||||
Shares issued for stock options exercised | 384 | ||||||
Agent growth incentive stock compensation | 4,438 | ||||||
Stock option compensation | 3,128 | ||||||
Agent equity stock compensation | 38,451 | ||||||
Foreign currency translation loss | $ 24 | ||||||
Transactions with noncontrolling interests | 19 | ||||||
Ending of quarter at Jun. 30, 2021 | 1 | (126,906) | 295,035 | 2,734 | 318 | 1,015 | 172,197 |
Beginning of quarter at Dec. 31, 2021 | 1 | (210,009) | 401,479 | 30,510 | 188 | 1,364 | $ 223,533 |
Repurchase of common stock, shares | 4,735,999 | ||||||
Repurchase of common stock | (79,820) | ||||||
Net income | 18,241 | (18) | $ 18,223 | ||||
Dividends declared and paid | (11,744) | ||||||
Shares issued for stock options exercised, shares | 1,363,055 | ||||||
Shares issued for stock options exercised | 778 | ||||||
Agent growth incentive stock compensation | 13,268 | ||||||
Stock option compensation | 7,116 | ||||||
Agent equity stock compensation | 1 | 86,835 | |||||
Foreign currency translation loss | $ (1,141) | ||||||
Transactions with noncontrolling interests | (177) | ||||||
Ending of quarter at Jun. 30, 2022 | 2 | (289,829) | 509,476 | 37,007 | (953) | 1,169 | $ 256,872 |
Beginning of quarter at Mar. 31, 2022 | 2 | (239,965) | 450,570 | 33,533 | 229 | 1,169 | |
Repurchase of common stock, shares | 3,603,951 | ||||||
Repurchase of common stock | (49,864) | ||||||
Net income | 9,359 | $ 9,359 | |||||
Dividends declared and paid | (5,885) | ||||||
Shares issued for stock options exercised, shares | 639,861 | ||||||
Shares issued for stock options exercised | 280 | ||||||
Agent growth incentive stock compensation | 6,685 | ||||||
Stock option compensation | 3,606 | ||||||
Agent equity stock compensation | 48,335 | ||||||
Foreign currency translation loss | $ (1,182) | ||||||
Ending of quarter at Jun. 30, 2022 | $ 2 | $ (289,829) | $ 509,476 | $ 37,007 | $ (953) | $ 1,169 | $ 256,872 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING ACTIVITIES | ||
Net income | $ 18,223 | $ 41,889 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation expense | 3,570 | 2,196 |
Amortization expense - intangible assets | 817 | 621 |
Loss on dissolution of consolidated affiliates | 361 | |
Allowance for credit losses on receivables/bad debt on receivables | 608 | (208) |
Equity in losses of unconsolidated affiliates | 884 | 7 |
Agent growth incentive stock compensation expense | 17,028 | 11,312 |
Stock option compensation | 7,121 | 6,239 |
Agent equity stock compensation expense | 86,835 | 59,853 |
Deferred income taxes, net | (6,892) | (15,329) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (22,269) | (57,095) |
Prepaids and other assets | 2,236 | (4,466) |
Customer deposits | 25,893 | 65,981 |
Accounts payable | (1,152) | 2,354 |
Accrued expenses | 31,961 | 54,231 |
Long-term payable | (160) | |
Other operating activities | 74 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 165,298 | 167,425 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (8,077) | (5,609) |
Acquisition of businesses | (1,500) | |
NET CASH USED IN INVESTING ACTIVITIES | (8,077) | (7,109) |
FINANCING ACTIVITIES | ||
Repurchase of common stock | (79,820) | (88,912) |
Proceeds from exercise of options | 780 | 1,757 |
Transactions with noncontrolling interests | (425) | 19 |
Dividends declared and paid | (11,744) | |
NET CASH USED IN FINANCING ACTIVITIES | (91,209) | (87,136) |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | (1,141) | 71 |
Net change in cash, cash equivalents and restricted cash | 64,871 | 73,251 |
Cash, cash equivalents and restricted cash, beginning balance | 175,910 | 127,924 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE | 240,781 | 201,175 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Cash paid for income taxes | 2,444 | 702 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Termination of lease liabilities | 120 | |
Property, plant and equipment purchases in accounts payable | $ 246 | $ 7 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION eXp World Holdings, Inc. (“eXp,” or, collectively with its subsidiaries, the “Company,” “we,” “us,” or “our”) owns and operates a cloud-based real estate brokerage and a technology platform business that enables a variety of businesses to operate remotely. Our real estate brokerage is now one of the largest and fastest-growing real estate brokerage companies in the United States and is rapidly expanding internationally. Our technology platform business develops and uses immersive technologies that enable and support virtual workplaces. This unique enabling platform helps businesses increase their effectiveness and reduce costs from operating in traditional “brick and mortar” office spaces. Through various operating subsidiaries, the Company primarily operates a cloud-based real estate brokerage operating throughout the United States, most of the Canadian provinces, the United Kingdom (U.K.), Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, The Dominican Republic, Greece, and New Zealand. The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on February 25, 2022 (“2021 Annual Report”). In our opinion, the accompanying interim unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Operating results for the three and six month periods ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of eXp World Holdings, Inc., its wholly-owned subsidiaries, and including those entities in which we have a variable interest of which we are the primary beneficiary. If the Company has a variable interest in an entity but it is not the primary beneficiary of the entity or exercises control over the operations and has less than 50% ownership, it will use the equity method or the cost method of accounting for investments. Entities in which the Company has less than a 20% investment and where the Company does not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. Variable interest entities and noncontrolling interests A company is deemed to be the primary beneficiary of a variable interest entity (“VIE”) and must consolidate the entity if the company has both: (i) and (ii) Joint ventures A joint venture is a contractual arrangement whereby the Company and other parties undertake an economic activity through a jointly controlled entity. Joint control exists when strategic, financial, and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. Joint ventures are accounted for using the equity method and are recognized initially at cost. Use of Estimate 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for credit losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Reclassifications When necessary, the Company will reclassify certain amounts in prior-period financial statements to conform to the current period’s presentation. No reclassifications occurred during the current period. Restricted cash Restricted cash consists of cash held in escrow by the Company on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Once the cash transfers from escrow, the Company reduces the respective customers’ deposit liability. Restricted cash also includes cash held in escrow for acquisitions. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statements of cash flows. Cash and cash equivalents Restricted cash Total Balance, December 31, 2020 $ 100,143 $ 27,781 $ 127,924 Balance, June 30, 2021 $ 107,413 $ 93,762 $ 201,175 Balance, December 31, 2021 $ 108,237 $ 67,673 $ 175,910 Balance, June 30, 2022 $ 134,898 $ 105,883 $ 240,781 Recently Adopted Accounting Principles and Change in Accounting Principle In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12 – Income Taxes Recently Issued Accounting Pronouncements In November 2021, the FASB issued ASU 2021-08 – Business Combinations |
EXPECTED CREDIT LOSSES
EXPECTED CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2022 | |
EXPECTED CREDIT LOSSES [Abstract] | |
EXPECTED CREDIT LOSSES | 3. EXPECTED CREDIT LOSSES The Company is exposed to credit losses primarily through trade and other financing receivables arising from revenue transactions. The Company uses the aging schedule method to estimate current expected credit losses (“CECL”) based on days of delinquency, including information about past events and current economic conditions. The Company’s accounts receivable is separated into three categories to evaluate allowance under the CECL impairment model. The receivables in each category share similar risk characteristics. The three categories include agent non-commission based fees, agent short-term advances, and commissions receivable for real estate property settlements. As of the first quarter of 2022, the Company provided an allowance for potential credit losses of real estate transactions. The Company analyzed uncollectible accounts for the three categories of receivables. Receivables from real estate property settlements totaled $147,824 and $128,499 of which the Company recognized expected credit losses of $904 and nil, respectively as of June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021 agent non-commission based fees receivable and short-term advances totaled $9,979 and $7,188, of which the Company recognized expected credit losses of $1,902 and $2,198, respectively. The Company increases the allowance for expected credits losses when the Company determines all or a portion of a receivable is uncollectable. The Company recognizes recoveries as a decrease to the allowance for expected credit losses. Changes in the allowance were not material for the six months ended June 30, 2022 and the year ended December 31, 2021. |
PLANT, PROPERTY AND EQUIPMENT,
PLANT, PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2022 | |
PLANT, PROPERTY AND EQUIPMENT, NET [Abstract] | |
PLANT, PROPERTY AND EQUIPMENT, NET | 4. PLANT, PROPERTY AND EQUIPMENT, NET Plant, property and equipment, net consisted of the following: June 30, 2022 December 31, 2021 Computer hardware and software $ 30,200 $ 20,824 Furniture, fixture, and equipment 26 26 Total depreciable property and equipment 30,226 20,850 Less: accumulated depreciation (15,270) (11,711) Depreciable property, net 14,956 9,139 Assets under development 4,950 6,763 Property, plant, and equipment, net $ 19,906 $ 15,902 For the three months ended June 30, 2022 and 2021, depreciation expense was $1,954 and $1,189, respectively. For the six months ended June 30, 2022 and 2021, depreciation expense was $3,570 and $2,196, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 5. GOODWILL AND INTANGIBLE ASSETS Goodwill was $12,945 as of June 30, 2022 and December 31, 2021. The Company has a risk of future impairment to the extent that individual reporting unit performance does not meet projections. Additionally, if current assumptions and estimates, including projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates, and other market factors, are not met, or if valuation factors outside of the Company’s control change unfavorably, the estimated fair value of goodwill could be adversely affected, leading to a potential impairment in the future. For the three and six months ended June 30, 2022, no events occurred that indicated it was more likely than not that goodwill was impaired. Definite-lived intangible assets were as follows: June 30, 2022 December 31, 2021 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Trade name $ 2,868 ($ 697) $ 2,171 $ 2,868 ($ 554) $ 2,314 Existing technology 2,204 (1,643) 561 1,846 (1,102) 744 Non-competition agreements 125 (125) - 125 (125) - Customer relationships 1,895 (456) 1,439 1,895 (361) 1,534 Licensing agreement 210 (146) 64 210 (110) 100 Intellectual property 2,836 - 2,836 2,836 - 2,836 Total intangible assets $ 10,138 ($ 3,067) $ 7,071 $ 9,780 ($ 2,252) $ 7,528 Definite-lived intangible assets are amortized using the straight-line method over an asset’s estimated useful life. Amortization expense for definite-lived intangible assets for the three months ended June 30, 2022 and 2021 was $475 and $318 , respectively. Amortization expense for definite-lived intangible assets for the six months ended June 30, 2022 and 2021 was $817 and $621 , respectively. The Company has no indefinite-lived assets. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
LEASES | |
LEASES | 6. LEASES The Company’s lease portfolio consists of office leases with lease terms ranging from less than one year to seven years, with the weighted average lease term being three years. Certain leases provide for increases in future lease payments once the term of the lease has expired, as defined in the lease agreements. These leases generally also include real estate taxes. Short term leases, having a lease term at commencement of 12 months or less, are not capitalized and the expenses are recognized in the period incurred. Included below is other information regarding leases for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Other information Operating lease expense $ 97 $ 84 $ 206 $ 202 Short-term lease expense 260 10 282 26 Cash paid for operating leases 60 84 131 202 Weighted-average remaining lease term (years) – operating leases (1) 7.3 3.6 7.3 3.6 Weighted-average discount rate – operating leases 5.061% 4.855% 5.061% 4.855% (1) The Company’s lease terms include options to extend the lease when it is reasonably certain the Company will exercise its option. Additionally, the Company considered any historical and economic factors in determining if a lease renewal or termination option would be exercised. As of June 30, 2022, expirations of lease obligations by fiscal year were as follows: Period Ending December 31, Remaining 2022 $ 178 2023 155 2024 90 2025 90 2026 90 2027 and thereafter 405 Total lease payments 1,008 Less: interest (75) Total operating lease liabilities $ 933 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 7. STOCKHOLDERS’ EQUITY The following table represents a share reconciliation of the Company’s common stock issued for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (Shares of Common Stock) 2022 2021 2022 2021 Common stock: Balance, beginning of quarter 158,300,605 147,934,768 155,516,284 146,677,786 Shares issued for stock options exercised 639,861 1,797,132 1,363,055 2,344,908 Agent growth incentive stock compensation 403,652 339,904 914,324 625,026 Agent equity stock compensation 3,942,452 1,075,182 5,492,907 1,499,266 Balance, end of quarter 163,286,570 151,146,986 163,286,570 151,146,986 The Company’s stockholder approved equity plans described below are administered under the 2013 Stock Option Plan and the 2015 Equity Incentive Plan. Although a limited number of awards under the plan remain outstanding, no awards have been granted under the 2013 Stock Option Plan since 2015. The purpose of the equity plans is to retain the services of valued employees, directors, officers, agents, and consultants and to incentivize such persons to make contributions to the Company and motivate excellent performance. Agent Equity Program The Company provides agents and brokers the opportunity to elect to receive 5% of commissions earned from each completed real estate transaction in the form of common stock (the “Agent Equity Program” or “AEP”). If agents and brokers elect to receive portions of their commissions in common stock, they are entitled to receive the equivalent number of shares of common stock, based on the fixed monetary value of the commission payable. The Company recognizes a 10% discount on these issuances as an additional cost of sales charge during the periods presented. During the three months ended June 30, 2022 and 2021, the Company issued 3,942,452 and 1,075,182 shares of common stock, respectively, to agents and brokers with a value of $48,335 and $38,451, respectively, inclusive of discount. During the six months ended June 30, 2022 and 2021, the Company issued 5,492,907 and 1,499,266 shares of common stock, respectively, to agents and brokers with a value of $86,835 and $59,853, respectively, inclusive of discount. Agent Growth Incentive Program The Company administers an equity incentive program whereby agents and brokers become eligible to receive awards of the Company’s common stock through agent attraction and performance benchmarks (the “Agent Growth Incentive Program” or “AGIP”). The incentive program encourages greater performance and awards agents with common stock based on achievement of performance milestones. Awards typically vest after performance benchmarks are reached and three years of subsequent service is provided to the Company. Share-based performance awards are based on a fixed-dollar amount of shares based on the achievement of performance metrics. As such, the awards are classified as liabilities until the number of share awards becomes fixed once the performance metric is achieved. For the six months ended June 30, 2022, the Company’s stock compensation expense attributable to the Agent Growth Incentive Program was $17,028 of which the total amount of stock compensation expense attributable to liability classified awards was $4,451. Stock compensation expense related to the Agent Growth Incentive Program is included in general and administrative expense in the condensed consolidated statements of comprehensive income. The following table illustrates changes in the Company’s stock compensation liability for the periods presented: Amount Stock grant liability increase at December 31, 2021 $ 4,341 Stock grant liability increase year to date 4,451 Stock grants reclassified from liability to equity year to date (691) Balance, June 30, 2022 $ 8,101 Stock Option Awards During the three months ended June 30, 2022, and 2021, the Company granted 288,007 and 66,739 stock options, respectively, to employees with an estimated grant date fair value of $11.64 and $26.77 per share, respectively. During the six months ended June 30, 2022 and 2021, the Company granted 772,385 and 194,004 stock options, respectively, to employees with an estimated grant date fair value of $13.24 and $24.80 per share, respectively. The fair value was calculated using a Black Scholes-Merton option pricing model. Stock Repurchase Plan In December 2018, the Company’s board of directors (the “Board”) approved a stock repurchase program authorizing the Company to purchase up to $25.0 million of its common stock, which was later amended in November 2019 and again in June 2020 increasing the authorized repurchase amount to $75.0 million. In December 2020, the Board approved another amendment to the repurchase plan, increasing the total amount authorized to be purchased from $75.0 million to $400.0 million. Purchases under the repurchase program may be made in the open market or through a 10b5-1 plan and are expected to comply with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing and number of shares repurchased depends upon market conditions. The repurchase program does not require the Company to acquire a specific number of shares. The cost of the shares that are repurchased is funded from cash and cash equivalents on hand. Repurchase Plan Amendment On May 3, 2022, the Board authorized an increase to the Company’s stock repurchase program from $400 million of its common stock up to $500 million and approved a form of amendment to its Issuer Repurchase Plan, dated January 10, 2022, by and between the Company and Stephens Inc., to increase monthly repurchases from $10 million of its common stock per month up to $20 million which amendment was signed May 6, 2022. For accounting purposes, common stock repurchased under the stock repurchase programs is recorded based upon the transaction date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method. These shares are not retired and are considered issued but not outstanding. The following table shows the changes in treasury stock for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (Shares of Treasury Stock) 2022 2021 2022 2021 Treasury stock: Balance, beginning of quarter 7,883,740 3,035,404 6,751,692 2,534,494 Repurchases of common stock 3,603,951 1,689,892 4,735,999 2,190,802 Balance, end of quarter 11,487,691 4,725,296 11,487,691 4,725,296 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 8. EARNINGS PER SHARE Basic earnings per share is computed based on net income attributable to eXp stockholders divided by the basic weighted-average shares outstanding during the period. Dilutive earnings per share is computed consistently with the basic computation while giving effect to all dilutive potential common shares and common share equivalents that were outstanding during the period. The Company uses the treasury stock method to reflect the potential dilutive effect of unvested stock awards and unexercised options. The following table sets forth the calculation of basic and diluted earnings per share attributable to common stock during the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income attributable to common stock $ 9,359 $ 37,050 $ 18,241 $ 41,896 Denominator: Weighted average shares - basic 150,783,418 145,584,495 150,049,170 144,973,139 Dilutive effect of common stock equivalents 5,032,620 11,704,177 6,530,420 13,123,596 Weighted average shares - diluted 155,816,038 157,288,672 156,579,590 158,096,735 Earnings per share: Earnings per share attributable to common stock- basic $ 0.06 $ 0.25 $ 0.12 $ 0.29 Earnings per share attributable to common stock- diluted $ 0.06 $ 0.24 $ 0.12 $ 0.27 For the three months ended June 30, 2022 and 2021 total outstanding shares of common stock excluded 1,485,139 and 152,950 shares, respectively, from the computation of diluted earnings per share because their effect would have been anti-dilutive. For six months ended June 30, 2022 and 2021 total outstanding shares of common stock excluded 692,237 and 62,889 shares, respectively, from the computation of diluted earnings per share because their effect would have been anti-dilutive. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
INCOME TAXES | |
INCOME TAXES | 9. INCOME TAXES Our quarterly tax provision is computed by applying the estimated annual effective tax rate to the year-to-date pre-tax income or loss plus discrete tax items arising in the period. Our provision for (benefit from) income taxes amounted to ( $3.49 ) million and ( $20.4 ) million for the six months ended June 30, 2022 and 2021, respectively, which represent an effective tax rates of negative 23.81% and 95.1% , respectively. The decrease in income tax benefit was primarily attributable to the release of valuation allowance in 2021 and lower deductible stock based compensation in 2022. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Jun. 30, 2022 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 10. The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: ● Level 1 – Inputs are quoted market prices in active markets for identical assets or liabilities (these are observable market inputs). ● Level 2 – Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability (includes quoted market prices for similar assets or identical or similar assets in markets in which there are few transactions, prices that are not current or prices that vary substantially). ● Level 3 – Inputs are unobservable inputs that reflect the entity's own assumptions in pricing the asset or liability (used when little or no market data is available). The Company holds funds in a money market account, which are considered Level 1 assets. The Company values its money market funds at fair value on a recurring basis. As of June 30, 2022 and December 31, 2021, the fair value of the Company’s money market funds was $43,423 and $43,386, respectively. There have been no transfers between Level 1, Level 2 and Level 3 in the period presented. The Company did not have any Level 2 or Level 3 financial assets or liabilities in the period presented . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 11. From time to time, the Company is subject to potential liability under laws and government regulations and various claims and legal actions that may be asserted against us that could have a material adverse effect on the business, reputation, results of operations or financial condition. Such litigation may include, but is not limited to, actions or claims relating to sensitive data, including proprietary business information and intellectual property and that of clients and personally identifiable information of employees and contractors, cyber-attacks, data breaches and non-compliance with contractual or other legal obligations. On November 19, 2021, the Company agreed to settle a class action lawsuit filed against the Company in 2018 alleging violations under the Telephone Consumer Protection Act. Pursuant to the proposed settlement agreement terms, the Company will grant certain monetary and non-monetary settlements. The Company decided to set aside provisions at the amount of $10.0 million to cover current estimated settlement fees and costs. The settlement agreement terms remain subject to judicial review and approval. There are no matters pending or, to the Company’s knowledge, threatened that are expected to have a material adverse impact on the business, reputation, results of operations, or financial condition. There are no proceedings in which any of the Company’s directors, officers or affiliates, or any registered or beneficial stockholder is an adverse party or has a material interest adverse to the Company’s interest. In March and April 2022, an indirect subsidiary and unconsolidated joint venture of the Company, SUCCESS Lending, entered into Mortgage Warehouse Agreements and related ancillary agreements (the “Credit Agreements”) with Flagstar Bank FSB and Texas Capital Bank, which each provide SUCCESS Lending with a revolving warehouse credit line of up to $25 million. It is customary for mortgage businesses like SUCCESS Lending to obtain warehouse credit lines in order to enable them to close and fund residential mortgage loans for subsequent sale to investors. SUCCESS Lending will use the borrowing capacity under the Credit Agreements exclusively for such purposes and borrowings will generally be repaid with the proceeds received from the sale of mortgage loans. In connection with the Credit Agreements, the Company has entered into Capital Maintenance Agreements with each of Flagstar Bank FSB and Texas Capital Bank whereby the Company agrees to provide certain funds necessary to ensure that SUCCESS Lending is at all times in compliance with its financial covenants under the Credit Agreements. The Company’s capital commitment liability under the Capital Maintenance Agreement with Flagstar Bank FSB is limited to $2.0 million. The Company’s capital commitment liability under the Capital Maintenance Agreement with Texas Capital Bank is limited to $1.25 million. The Credit Agreements represent off-balance sheet arrangements for the Company. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 12. SEGMENT INFORMATION Historically, management has not made operating decisions and assessed performance based on geographic locations. Rather, the chief operating decision-maker makes operating decisions and assesses performance based on the products and services of the identified operating segments. While management does consider real estate and brokerage services, the acquired technology and affiliated services provided to be identified operating segments, the profits and losses and assets of the technology and affiliated services business units are not material. Operating Segments The Company primarily operates as a cloud-based real estate brokerage. The real estate brokerage business represents 99.1% and 99.5% of the total revenue of the Company for the six months ended June 30, 2022 and 2021, respectively. The real estate brokerage business represents 96.8% and 99.0% of the total assets of the Company as of June 30, 2022 and December 31, 2021, respectively. The Company offers software subscriptions to customers to access its virtual reality software platform. Additionally, the Company offers professional services for implementation and consulting services. However, the operations and assets of the technology segment are not managed by the Company’s chief operating decision-maker as a separate reportable segment. Services provided through First Cloud and Silverline are in the emerging stages of development as contributing segments and are not material to the Company’s total revenue, total net income or total assets as of June 30, 2022 and 2021, respectively. The Company aggregates the identified operating segments for reporting purposes and has one reportable segment. Geographical Information The Company primarily operates within the real estate brokerage markets in the United States and Canada. During the previous three years, the Company expanded operations into the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, and New Zealand. The Company’s management analyzes geographical locations on a forward-looking basis to identify growth opportunities. For both the six months ended June 30, 2022 and 2021, approximately 9%, respectively, of the Company’s total revenue was generated outside of the U.S. Assets held outside of the U.S. were 8% as of June 30, 2022 and December 31, 2021 The Company’s technology services and affiliated services are currently provided primarily in the U.S. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 13. SUBSEQUENT EVENTS Quarterly Cash Dividend On July 29, 2022, the Company’s Board of Directors declared a dividend of $0.045 per share which is expected to be payable on August 29, 2022, to stockholders of record as of the close of business on August 12, 2022. The ex-dividend date is expected to be August 11, 2022. The dividend will be paid in cash. Zoocasa Acquisition On July 1, 2022, the Company acquired Zoocasa Realty Inc. and its key property, Zoocasa.com (“Zoocasa”). Zoocasa is a consumer real estate search portal that offers proprietary home search tools, market insights and a connection to local real estate experts. The acquisition expanded the Company’s online lead generation, home search and listings portal capabilities for its agents and brokers as well as for home buying and selling consumers across North America. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of eXp World Holdings, Inc., its wholly-owned subsidiaries, and including those entities in which we have a variable interest of which we are the primary beneficiary. If the Company has a variable interest in an entity but it is not the primary beneficiary of the entity or exercises control over the operations and has less than 50% ownership, it will use the equity method or the cost method of accounting for investments. Entities in which the Company has less than a 20% investment and where the Company does not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. |
Variable interest entities and noncontrolling interests | Variable interest entities and noncontrolling interests A company is deemed to be the primary beneficiary of a variable interest entity (“VIE”) and must consolidate the entity if the company has both: (i) and (ii) |
Joint ventures | Joint ventures A joint venture is a contractual arrangement whereby the Company and other parties undertake an economic activity through a jointly controlled entity. Joint control exists when strategic, financial, and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. Joint ventures are accounted for using the equity method and are recognized initially at cost. |
Use of estimates | Use of Estimate 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for credit losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Reclassifications | Reclassifications When necessary, the Company will reclassify certain amounts in prior-period financial statements to conform to the current period’s presentation. No reclassifications occurred during the current period. |
Restricted cash | Restricted cash Restricted cash consists of cash held in escrow by the Company on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Once the cash transfers from escrow, the Company reduces the respective customers’ deposit liability. Restricted cash also includes cash held in escrow for acquisitions. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown on the condensed consolidated statements of cash flows. Cash and cash equivalents Restricted cash Total Balance, December 31, 2020 $ 100,143 $ 27,781 $ 127,924 Balance, June 30, 2021 $ 107,413 $ 93,762 $ 201,175 Balance, December 31, 2021 $ 108,237 $ 67,673 $ 175,910 Balance, June 30, 2022 $ 134,898 $ 105,883 $ 240,781 |
Recently Adopted and Issued Accounting Principles | Recently Adopted Accounting Principles and Change in Accounting Principle In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12 – Income Taxes Recently Issued Accounting Pronouncements In November 2021, the FASB issued ASU 2021-08 – Business Combinations |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Cash | Cash and cash equivalents Restricted cash Total Balance, December 31, 2020 $ 100,143 $ 27,781 $ 127,924 Balance, June 30, 2021 $ 107,413 $ 93,762 $ 201,175 Balance, December 31, 2021 $ 108,237 $ 67,673 $ 175,910 Balance, June 30, 2022 $ 134,898 $ 105,883 $ 240,781 |
PLANT, PROPERTY AND EQUIPMENT_2
PLANT, PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
PLANT, PROPERTY AND EQUIPMENT, NET [Abstract] | |
Schedule of plant, property and equipment | June 30, 2022 December 31, 2021 Computer hardware and software $ 30,200 $ 20,824 Furniture, fixture, and equipment 26 26 Total depreciable property and equipment 30,226 20,850 Less: accumulated depreciation (15,270) (11,711) Depreciable property, net 14,956 9,139 Assets under development 4,950 6,763 Property, plant, and equipment, net $ 19,906 $ 15,902 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of Definite-Lived Assets | June 30, 2022 December 31, 2021 Gross Accumulated Net Carrying Gross Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Trade name $ 2,868 ($ 697) $ 2,171 $ 2,868 ($ 554) $ 2,314 Existing technology 2,204 (1,643) 561 1,846 (1,102) 744 Non-competition agreements 125 (125) - 125 (125) - Customer relationships 1,895 (456) 1,439 1,895 (361) 1,534 Licensing agreement 210 (146) 64 210 (110) 100 Intellectual property 2,836 - 2,836 2,836 - 2,836 Total intangible assets $ 10,138 ($ 3,067) $ 7,071 $ 9,780 ($ 2,252) $ 7,528 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
LEASES | |
Schedule of future operating lease payments | Period Ending December 31, Remaining 2022 $ 178 2023 155 2024 90 2025 90 2026 90 2027 and thereafter 405 Total lease payments 1,008 Less: interest (75) Total operating lease liabilities $ 933 |
Schedule of other lease information | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Other information Operating lease expense $ 97 $ 84 $ 206 $ 202 Short-term lease expense 260 10 282 26 Cash paid for operating leases 60 84 131 202 Weighted-average remaining lease term (years) – operating leases (1) 7.3 3.6 7.3 3.6 Weighted-average discount rate – operating leases 5.061% 4.855% 5.061% 4.855% (1) The Company’s lease terms include options to extend the lease when it is reasonably certain the Company will exercise its option. Additionally, the Company considered any historical and economic factors in determining if a lease renewal or termination option would be exercised. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
STOCKHOLDERS' EQUITY | |
Schedule of common stock issued roll forward | Three Months Ended June 30, Six Months Ended June 30, (Shares of Common Stock) 2022 2021 2022 2021 Common stock: Balance, beginning of quarter 158,300,605 147,934,768 155,516,284 146,677,786 Shares issued for stock options exercised 639,861 1,797,132 1,363,055 2,344,908 Agent growth incentive stock compensation 403,652 339,904 914,324 625,026 Agent equity stock compensation 3,942,452 1,075,182 5,492,907 1,499,266 Balance, end of quarter 163,286,570 151,146,986 163,286,570 151,146,986 |
Changes in the Company's stock compensation liability | Amount Stock grant liability increase at December 31, 2021 $ 4,341 Stock grant liability increase year to date 4,451 Stock grants reclassified from liability to equity year to date (691) Balance, June 30, 2022 $ 8,101 |
Schedule of shares repurchased | Three Months Ended June 30, Six Months Ended June 30, (Shares of Treasury Stock) 2022 2021 2022 2021 Treasury stock: Balance, beginning of quarter 7,883,740 3,035,404 6,751,692 2,534,494 Repurchases of common stock 3,603,951 1,689,892 4,735,999 2,190,802 Balance, end of quarter 11,487,691 4,725,296 11,487,691 4,725,296 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
EARNINGS PER SHARE [Abstract] | |
Schedule of calculation of basic and diluted earnings per share | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income attributable to common stock $ 9,359 $ 37,050 $ 18,241 $ 41,896 Denominator: Weighted average shares - basic 150,783,418 145,584,495 150,049,170 144,973,139 Dilutive effect of common stock equivalents 5,032,620 11,704,177 6,530,420 13,123,596 Weighted average shares - diluted 155,816,038 157,288,672 156,579,590 158,096,735 Earnings per share: Earnings per share attributable to common stock- basic $ 0.06 $ 0.25 $ 0.12 $ 0.29 Earnings per share attributable to common stock- diluted $ 0.06 $ 0.24 $ 0.12 $ 0.27 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Cash) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Cash and cash equivalents | $ 134,898 | $ 107,413 | $ 108,237 | $ 100,143 |
Restricted cash | 105,883 | 93,762 | 67,673 | 27,781 |
Net change in cash, cash equivalents and restricted cash | 64,871 | 73,251 | ||
Total cash, cash equivalents, and restricted cash | $ 240,781 | $ 201,175 | $ 175,910 | $ 127,924 |
EXPECTED CREDIT LOSSES (Narrati
EXPECTED CREDIT LOSSES (Narrative) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts receivable, allowance for credit losses and bad debt | $ 2,806,000 | $ 2,198,000 |
Agent Noncommission Based Fees [Member] | ||
Accounts Receivable, before Allowance for Credit Loss | 9,979,000 | 7,188,000 |
Accounts receivable, allowance for credit losses and bad debt | 1,902,000 | 2,198,000 |
Commissions Receivable for Real Estate Property Settlements [Member] | ||
Accounts Receivable, before Allowance for Credit Loss | 147,824,000 | 128,499,000 |
Accounts receivable, allowance for credit losses and bad debt | $ 904,000 | $ 0 |
PLANT, PROPERTY AND EQUIPMENT_3
PLANT, PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
PLANT, PROPERTY AND EQUIPMENT, NET [Abstract] | ||||
Depreciation expense | $ 1,954 | $ 1,189 | $ 3,570 | $ 2,196 |
PLANT, PROPERTY AND EQUIPMENT_4
PLANT, PROPERTY AND EQUIPMENT, NET (Schedule of Fixed assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Total depreciable property and equipment | $ 30,226 | $ 20,850 |
Less: accumulated depreciation | (15,270) | (11,711) |
Depreciable property, net | 14,956 | 9,139 |
Assets under development | 4,950 | 6,763 |
Property, plant, and equipment, net | 19,906 | 15,902 |
Computer hardware and software | ||
Total depreciable property and equipment | 30,200 | 20,824 |
Furniture, fixtures and equipment | ||
Total depreciable property and equipment | $ 26 | $ 26 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
GOODWILL AND INTANGIBLE ASSETS | |||||
Indefinite-lived intangible assets (excluding goodwill) | $ 0 | $ 0 | |||
Goodwill | 12,945,000 | 12,945,000 | $ 12,945,000 | ||
Amortization of intangible assets | 475,000 | $ 318,000 | 817,000 | $ 621,000 | |
Goodwill, impairment loss | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Schedule of Definite-Lived Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 10,138 | $ 9,780 |
Accumulated Amortization | (3,067) | (2,252) |
Net Carrying Amount | 7,071 | 7,528 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 2,836 | 2,836 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | 2,836 | 2,836 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 2,868 | 2,868 |
Accumulated Amortization | (697) | (554) |
Net Carrying Amount | 2,171 | 2,314 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 2,204 | 1,846 |
Accumulated Amortization | (1,643) | (1,102) |
Net Carrying Amount | 561 | 744 |
Non-competition agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 125 | 125 |
Accumulated Amortization | (125) | (125) |
Net Carrying Amount | 0 | 0 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 1,895 | 1,895 |
Accumulated Amortization | (456) | (361) |
Net Carrying Amount | 1,439 | 1,534 |
Licensing agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 210 | 210 |
Accumulated Amortization | (146) | (110) |
Net Carrying Amount | $ 64 | $ 100 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | Jun. 30, 2022 |
Minimum | |
Term of lease | 1 year |
Maximum | |
Term of lease | 7 years |
Weighted Average | |
Term of lease | 3 years |
LEASES (Summary of components o
LEASES (Summary of components of our lease cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
LEASES | ||||
Operating lease expense | $ 97 | $ 84 | $ 206 | $ 202 |
Short term lease expense | 260 | 10 | 282 | 26 |
Cash paid for operating leases | $ 60 | $ 84 | $ 131 | $ 202 |
Weighted-average remaining lease term (years)- operating leases | 7 years 3 months 18 days | 3 years 7 months 6 days | 7 years 3 months 18 days | 3 years 7 months 6 days |
Weighted-average discount rate - operating leases | 5.061% | 4.855% | 5.061% | 4.855% |
LEASES (Schedule of future mini
LEASES (Schedule of future minimum lease payments) (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Rent Payments | |
Remaining 2022 | $ 178 |
2023 | 155 |
2024 | 90 |
2025 | 90 |
2026 | 90 |
2027 and thereafter | 405 |
Total lease payments | 1,008 |
Less: interest | (75) |
Total operating lease liabilities | $ 933 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Common stock issued | 163,286,570 | 151,146,986 | 163,286,570 | 151,146,986 | 158,300,605 | 155,516,284 | 147,934,768 | 146,677,786 |
Common stock outstanding | 151,798,879 | 151,798,879 | 148,764,592 | |||||
Repurchase of common stock, shares | 3,603,951 | 1,689,892 | 4,735,999 | 2,190,802 | ||||
Shares issued for stock options exercised, shares | 639,861 | 1,797,132 | 1,363,055 | 2,344,908 | ||||
Stock based compensation | $ 7,121 | $ 6,239 | ||||||
Common Stock, Shares Authorized | 900,000,000 | 900,000,000 | 900,000,000 | |||||
Common stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||
Grant date fair value | $ 11.64 | |||||||
Agent Equity Award Program | ||||||||
Stock issued for services, shares | 3,942,452 | 1,075,182 | 5,492,907 | 1,499,266 | ||||
Stock issued for services, value | $ 48,335 | $ 38,451 | $ 86,835 | $ 59,853 | ||||
Percentage of commission potentially redeemed in common stock | 5% | |||||||
Percentage of discount of market price, date of issuance | 10% | |||||||
Agent Growth Incentive Program | ||||||||
Stock issued for services, shares | 403,652 | 339,904 | 914,324 | 625,026 | ||||
Stock based compensation | $ 17,028 | |||||||
Amount of stock compensation attributable to liability classified awards | $ 4,451 | |||||||
Stock Options | ||||||||
Stock options granted, shares | 288,007 | 66,739 | 772,385 | 194,004 | ||||
Grant date fair value | $ 26.77 | $ 13.24 | $ 24.80 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of common stock issued) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Common Stock, Shares, Issued, Beginning Balance | 158,300,605 | 147,934,768 | 155,516,284 | 146,677,786 |
Shares issued for stock options exercised, shares | 639,861 | 1,797,132 | 1,363,055 | 2,344,908 |
Common Stock, Shares, Issued, Ending Balance | 163,286,570 | 151,146,986 | 163,286,570 | 151,146,986 |
Agent Equity Award Program | ||||
Agent equity stock compensation, shares | 3,942,452 | 1,075,182 | 5,492,907 | 1,499,266 |
Agent Growth Incentive Program | ||||
Agent equity stock compensation, shares | 403,652 | 339,904 | 914,324 | 625,026 |
STOCKHOLDERS' EQUITY (Changes i
STOCKHOLDERS' EQUITY (Changes in the Company's stock compensation liability) (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
STOCKHOLDERS' EQUITY | ||
Stock grant liability increase year to date | $ 4,451 | $ 4,341 |
Stock grants reclassified from liability to equity year to date | (691) | |
Balance, at end of period | $ 8,101 |
STOCKHOLDERS' EQUITY (Stock Rep
STOCKHOLDERS' EQUITY (Stock Repurchase Plan) (Narrative) (Details) - USD ($) $ in Millions | May 06, 2022 | May 03, 2022 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2018 |
STOCKHOLDERS' EQUITY | |||||
Stock repurchase program authorized amount | $ 500 | $ 400 | $ 75 | $ 25 | |
Minimum | |||||
STOCKHOLDERS' EQUITY | |||||
Stock repurchase program authorized amount per month | $ 10 | ||||
Maximum | |||||
STOCKHOLDERS' EQUITY | |||||
Stock repurchase program authorized amount per month | $ 20 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of shares repurchased) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Treasury stock: | ||||
Balance, beginning of quarter | 7,883,740 | 3,035,404 | 6,751,692 | 2,534,494 |
Repurchase of common stock, shares | 3,603,951 | 1,689,892 | 4,735,999 | 2,190,802 |
Balance, end of quarter | 11,487,691 | 4,725,296 | 11,487,691 | 4,725,296 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of calculation of basic and diluted earnings (loss) per share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
EARNINGS PER SHARE [Abstract] | ||||
Net income (loss) attributable to common stock | $ 9,359 | $ 37,050 | $ 18,241 | $ 41,896 |
Weighted average shares - basic | 150,783,418 | 145,584,495 | 150,049,170 | 144,973,139 |
Dilutive effect of common stock equivalents | 5,032,620 | 11,704,177 | 6,530,420 | 13,123,596 |
Weighted average shares - diluted | 155,816,038 | 157,288,672 | 156,579,590 | 158,096,735 |
Earnings per share attributable to common stock- basic | $ 0.06 | $ 0.25 | $ 0.12 | $ 0.29 |
Earnings per share attributable to common stock- diluted | $ 0.06 | $ 0.24 | $ 0.12 | $ 0.27 |
Shares excluded, anti-dilutive | 1,485,139 | 152,950 | 692,237 | 62,889 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
INCOME TAXES | ||||
Income tax (benefit) expense | $ 1,661 | $ (20,585) | $ (3,488) | $ (20,374) |
Effective income tax rate | 23.81% | 95.10% |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Money Market Funds [Member] | ||
Money market funds | $ 43,423 | $ 43,386 |
COMMITMENT AND CONTINGENCIES (N
COMMITMENT AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | 2 Months Ended | |
Apr. 30, 2022 | Jun. 30, 2022 | |
Loss Contingency, Estimate of Possible Loss | $ 10,000 | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 25,000 | |
Flagstar Bank FSB [Member] | ||
Investment Company, Committed Capital | 2,000 | |
Texas Capital Bank [Member] | ||
Investment Company, Committed Capital | $ 1,250 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) - segment | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Number of reportable segments | 1 | ||
Total Assets | Product Concentration Risk | Real Estate Brokerage Segment | |||
Concentration risk percentage | 96.80% | 99% | |
Sales Revenue, Net | Product Concentration Risk | Real Estate Brokerage Segment | |||
Concentration risk percentage | 99.10% | 99.50% | |
Non Domestic | Total Assets | Geographic Concentration Risk | |||
Concentration risk percentage | 8% | 8% | |
Non Domestic | Sales Revenue, Net | Geographic Concentration Risk | |||
Concentration risk percentage | 9% | 9% |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - Subsequent Event [Member] | Jul. 29, 2022 $ / shares |
Dividends Payable, Amount Per Share | $ 0.045 |
Dividends Payable, Date to be Paid | Aug. 29, 2022 |
Dividends Payable, Date Declared | Jul. 29, 2022 |
Dividends Payable, Date of Record | Aug. 12, 2022 |