| Revised Consolidated Financial Statements Information | 18. Revised Consolidated Financial Statements Information In March 2024, in connection with the Ecommerce Wind-Down, the Company identified errors related to an overstatement of credit balances in other current liabilities and accounts payable as of and prior to December 31, 2023. The Company incorrectly recorded approximately $ 1.4 million of other current liabilities and $ 4.1 million of accounts payable, instead of a reduction in operating expenses of $ 5.5 million, of which $ 4.6 million related to annual periods prior to 2023. The Company evaluated the impact of these errors and concluded that they are not material to any previously issued annual or interim consolidated financial statements. As a result of these errors, the Company has revised the consolidated financial statements for the three and nine months ended September 30, 2023 and as of December 31, 2023 and 2022 and for the years then ended. The Company has reflected these revisions in its 2024 Quarterly Reports on Form 10-Q and intends to reflect the revisions in it 2024 Annual Report to be filed on Form 10-K. The following table (in thousands) sets forth the Company’s consolidated results of operations for the three and nine months ended September 30, 2023 and the years ended December 31, 2023 and 2022, which have been retrospectively adjusted for the impact of the immaterial errors identified as well as new financial statement presentation and discontinued operations presentation related to the Ecommerce Wind-Down.
Three Months Ended September 30, 2023
As Reported Adjustments Discontinued Operations Presentation Reclasses (1) As Recasted and Revised
Total revenue $ 235,634 $ — $ ( 182,965 ) $ ( 52,668 ) $ —
Total cost of sales 187,540 — ( 177,047 ) ( 10,493 ) —
Total gross profit 48,094 — ( 5,918 ) ( 42,175 ) —
Selling, general and administrative expenses 79,586 ( 130 ) ( 48,609 ) ( 30,847 ) —
Depreciation and amortization 11,010 ( 3,712 ) ( 7,298 ) —
Impairment charges — —
Loss from operations ( 42,502 ) 130 46,403 ( 4,030 ) —
Gain on debt extinguishment — — —
Interest expense 12,058 ( 4,944 ) ( 7,114 ) —
Interest income ( 5,506 ) 3,502 2,004 —
Other loss, net 33,543 ( 33,543 ) —
Interest income 47,579 47,579
Total interest expense 11,638 11,638
Net interest income 35,941 35,941
Realized and unrealized losses, net of recoveries 37,258 37,258
Net interest income after losses and recoveries ( 1,317 ) ( 1,317 )
Total noninterest (loss) income 7,631 7,631
Total expenses 40,936 40,936
Loss before provision (benefit) for income taxes ( 82,597 ) 130 47,845 ( 34,622 ) ( 34,622 )
Provision (benefit) for income taxes 260 ( 143 ) 117
Net loss from continuing operations ( 34,739 )
Net loss from discontinued operations ( 47,988 )
Total net loss $ ( 82,857 ) $ 130 $ ( 82,727 )
Net loss per share attributable to common stockholders, continuing operations, basic and diluted ( 19.89 )
Net loss per share attributable to common stockholders, discontinued operations, basic and diluted ( 27.48 )
Total net loss per share attributable to common stockholders, basic and diluted $ ( 47.45 ) $ ( 47.38 )
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted 1,746,154 1,746,154
(1) Reflects revised presentation as a result of the Ecommerce Wind-Down.
Nine Months Ended September 30, 2023
As Reported Adjustments Discontinued Operations Presentation Reclasses (1) As Recasted and Revised
Total revenue $ 657,279 $ — $ ( 507,712 ) $ ( 149,566 ) $ —
Total cost of sales 524,379 — ( 495,936 ) ( 28,443 ) —
Total gross profit 132,900 — ( 11,776 ) ( 121,123 ) —
Selling, general and administrative expenses 263,078 ( 711 ) ( 160,843 ) ( 101,524 ) —
Depreciation and amortization 31,845 ( 10,125 ) ( 21,720 ) —
Impairment charges 1,353 ( 1,353 ) —
Loss from operations ( 163,376 ) 711 160,545 2,121 —
Gain on debt extinguishment ( 19,640 ) 19,640 —
Interest expense 30,915 ( 14,178 ) ( 16,737 ) —
Interest income ( 16,369 ) 9,350 7,019 —
Other loss, net 65,019 ( 65,019 ) —
Interest income 128,942 128,942
Total interest expense 28,721 28,721
Net interest income 100,221 100,221
Realized and unrealized losses, net of recoveries 76,173 76,173
Net interest income after losses and recoveries 24,048 24,048
Total noninterest (loss) income 48,759 48,759
Total expenses 130,024 130,024
Loss before provision (benefit) for income taxes ( 223,301 ) 711 165,373 ( 57,217 ) ( 57,217 )
Provision (benefit) for income taxes 918 ( 465 ) 453
Net loss from continuing operations ( 57,670 )
Net loss from discontinued operations ( 165,838 )
Total net loss $ ( 224,219 ) $ 711 $ ( 223,508 )
Net loss per share attributable to common stockholders, continuing operations, basic and diluted ( 33.16 )
Net loss per share attributable to common stockholders, discontinued operations, basic and diluted ( 95.36 )
Total net loss per share attributable to common stockholders, basic and diluted $ ( 128.93 ) $ ( 128.52 )
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted 1,739,042 1,739,042
(1) Reflects revised presentation as a result of the Ecommerce Wind-Down.
Year ended December 31, 2023
As Reported Adjustments Discontinued Operations Presentation Reclasses (1) As Recasted and Revised
Total revenue $ 893,203 $ — $ ( 687,215 ) $ ( 205,988 ) $ —
Total cost of sales 731,256 — ( 692,037 ) ( 39,219 ) —
Total gross profit 161,947 — 4,822 ( 166,769 ) —
Selling, general and administrative expenses 340,657 ( 929 ) ( 205,977 ) ( 133,751 ) —
Depreciation and amortization 42,769 ( 13,656 ) ( 29,113 ) —
Impairment charges 48,748 ( 48,748 ) —
Loss from operations ( 270,227 ) 929 273,203 ( 3,905 ) —
Gain on debt extinguishment ( 37,878 ) — — 37,878 —
Interest expense 45,445 ( 19,556 ) ( 25,889 ) —
Interest income ( 21,158 ) 13,218 7,940 —
Other loss (income), net 108,289 — — ( 108,289 ) —
Interest income $ 178,482 $ 178,482
Total interest expense 41,893 41,893
Net interest income 136,589 136,589
Realized and unrealized losses, net of recoveries 122,541 122,541
Net interest income after losses and recoveries 14,048 14,048
Total noninterest (loss) income 75,126 75,126
Total expenses 173,629 173,629
Loss before provision (benefit) for income taxes ( 364,925 ) 929 279,541 ( 84,455 ) ( 84,455 )
Provision (benefit) for income taxes 615 ( 492 ) 123
Net loss from continuing operations ( 84,578 )
Net loss from discontinued operations ( 280,033 )
Total net loss $ ( 365,540 ) $ 929 ( 364,611 )
Net loss per share attributable to common stockholders, continuing operations, basic and diluted ( 48.52 )
Net loss per share attributable to common stockholders, discontinued operations, basic and diluted ( 160.65 )
Total net loss per share attributable to common stockholders, basic and diluted $ ( 209.70 ) $ ( 209.17 )
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted 1,743,128 1,743,128
(1) Reflects revised presentation as a result of the Ecommerce Wind-Down.
Year ended December 31, 2022
As Reported Adjustments Discontinued Operations Presentation Reclasses (1) As Recasted and Revised
Total revenue $ 1,948,901 $ — $ ( 1,774,270 ) $ ( 174,631 ) $ —
Total cost of sales 1,704,114 — ( 1,686,340 ) ( 17,774 ) —
Total gross profit 244,787 — ( 87,930 ) ( 156,857 ) —
Selling, general and administrative expenses 566,387 ( 1,447 ) ( 424,985 ) ( 139,955 ) —
Depreciation and amortization 38,290 ( 11,220 ) ( 27,070 ) —
Impairment charges 211,873 ( 211,873 ) —
Loss from operations ( 571,763 ) 1,447 560,148 10,168 —
Gain on debt extinguishment ( 164,684 ) — — 164,684 —
Interest expense 40,693 ( 26,831 ) ( 13,862 ) —
Interest income ( 19,363 ) 15,934 3,429 —
Other loss (income), net 43,181 — ( 43,181 ) —
Interest income 91,671 91,671
Total interest expense 9,508 9,508
Net interest income 82,163 82,163
Realized (gain) on sale of finance receivables ( 44,481 ) ( 44,481 )
Realized and unrealized losses, net of recoveries 54,761 54,761
Net interest income after gains, losses and recoveries 71,883 71,883
Total noninterest (loss) income 208,983 208,983
Total expenses 179,965 179,965
(Loss) income before provision (benefit) for income taxes ( 471,590 ) 1,447 571,045 100,901 100,901
Provision (benefit) for income taxes ( 19,680 ) ( 19,680 )
Net income from continuing operations 120,581
Net loss from discontinued operations ( 571,045 )
Total net loss $ ( 451,910 ) $ 1,447 $ ( 450,464 )
Net loss per share attributable to common stockholders, continuing operations, basic and diluted 69.95
Net loss per share attributable to common stockholders, discontinued operations, basic and diluted $ ( 331.26 )
Total net loss per share attributable to common stockholders, basic and diluted $ ( 262.15 ) $ ( 261.31 )
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted 1,723,843 1,723,843
(1) Reflects revised presentation as a result of the Ecommerce Wind-Down. The impacts to our Consolidated Balance Sheets as of December 31, 2023 and 2022 were as follows (in thousands):
As of December 31, 2023
As Reported Adjustments Discontinued Operations Presentation Reclasses (1) As Recasted and Revised
ASSETS
Current Assets:
Cash and cash equivalents $ 135,585 $ 135,585
Restricted cash 73,234 73,234
Accounts receivable, net of allowance 9,139 ( 4,413 ) ( 4,726 ) —
Finance receivables at fair value 12,501 ( 12,501 ) —
Finance receivables held for sale, net 503,546 503,546
Inventory 163,250 ( 163,250 ) —
Beneficial interests in securitizations 4,485 ( 4,485 ) —
Prepaid expenses and other current assets 50,899 ( 8,818 ) ( 42,081 ) —
Total current assets 952,639 — ( 176,481 ) ( 63,793 )
Finance receivables at fair value 336,169 12,501 348,670
Property and equipment, net 24,132 ( 19,150 ) 4,982
Intangible assets, net 131,892 131,892
Operating lease right-of-use assets 7,063 7,063
Interest Receivable 14,484 14,484
Other assets (including other assets of consolidated VIEs of $ 1.8 million) 23,527 ( 906 ) 36,808 59,429
Assets from discontinued operations 196,537 196,537
Total assets $ 1,475,422 $ — $ — $ — $ 1,475,422
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $ 26,762 $ ( 4,138 ) $ ( 6,439 ) $ ( 16,185 ) $ —
Accrued expenses 52,452 ( 27,133 ) ( 25,319 ) —
Vehicle floorplan 151,178 ( 151,178 ) —
Warehouse credit facilities of consolidated VIEs 421,268 — 421,268
Current portion of long-term debt 172,410 — ( 172,410 ) —
Deferred revenue 14,025 ( 14,025 ) —
Operating lease liabilities, current 8,737 ( 6,105 ) ( 2,632 ) —
Other current liabilities 9,974 ( 1,382 ) ( 5,884 ) ( 2,708 ) —
Total current liabilities 856,806 ( 5,520 ) ( 210,764 ) ( 219,254 )
Long-term debt, net of current portion 454,173 — 172,410 626,583
Operating lease liabilities, excluding current portion 25,183 ( 17,356 ) 2,632 10,459
Other long-term liabilities 17,109 — 44,212 61,321
Liabilities from discontinued operations 228,120 228,120
Total liabilities 1,353,271 ( 5,520 ) — — 1,347,751
Commitments and contingencies
Stockholders’ equity:
Common stock, $ 0.001 par value; 500,000,000 shares authorized as of December 31, 2023; 1,791,286 shares issued and outstanding as of December 31, 2023 2 2
Additional paid-in-capital 2,088,381 2,088,381
Accumulated deficit ( 1,966,232 ) 5,520 ( 1,960,712 )
Total stockholders’ equity 122,151 5,520 — — 127,671
Total liabilities and stockholders’ equity $ 1,475,422 $ — $ — $ — $ 1,475,422
(1) Reflects revised presentation as a result of the Ecommerce Wind-Down.
As of December 31, 2022
As Reported Adjustments Discontinued Operations Presentation Reclasses (1) As Recasted and Revised
ASSETS
Current Assets:
Cash and cash equivalents $ 398,915 $ 398,915
Restricted cash 73,095 73,095
Accounts receivable, net of allowance 13,967 ( 13,046 ) ( 921 ) 0
Finance receivables at fair value 12,939 ( 12,939 ) —
Finance receivables held for sale, net 321,626 321,626
Inventory 320,648 ( 320,648 ) —
Beneficial interests in securitizations 20,592 20,592
Prepaid expenses and other current assets 58,327 ( 28,552 ) ( 29,775 ) 0
Total current assets 1,220,109 — ( 362,246 ) ( 43,635 ) 814,228
Finance receivables at fair value 140,235 12,939 153,174
Property and equipment, net 50,201 ( 45,735 ) 4,466
Intangible assets, net 158,910 158,910
Operating lease right-of-use assets 23,568 ( 21,015 ) 2,553
Interest receivable 7,242 7,242
Other assets 26,004 ( 3,246 ) 23,454 46,212
Assets from discontinued operations 432,242 432,242
Total assets $ 1,619,027 $ — $ — $ — $ 1,619,027
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $ 34,702 $ ( 3,310 ) $ ( 14,523 ) $ ( 16,869 ) $ 0
Accrued expenses 76,795 ( 47,062 ) ( 29,733 ) ( 0 )
Vehicle floorplan 276,988 ( 276,988 ) —
Warehouse credit facilities of consolidated VIEs 229,518 229,518
Current portion of long-term debt 47,239 ( 47,239 ) —
Deferred revenue 10,655 ( 10,655 ) —
Operating lease liabilities, current 9,730 ( 7,352 ) ( 2,378 ) ( 0 )
Other current liabilities 17,693 ( 1,283 ) ( 9,966 ) ( 6,444 ) 0
Total current liabilities 703,320 ( 4,592 ) ( 366,547 ) ( 102,663 ) 229,518
Long-term debt, net of current portion 402,154 47,239 449,393
Operating lease liabilities, excluding current portion 20,129 ( 17,276 ) 2,378 5,231
Other long-term liabilities 18,183 53,046 71,229
Liabilities from discontinued operations 383,823 383,823
Total liabilities 1,143,786 ( 4,592 ) — — 1,139,194
Commitments and contingencies
Stockholders’ equity:
Common stock, $ 0.001 par value; 500,000,000 shares authorized as of December 31, 2023 and 2022; 1,791,286 and 1,727,525 shares issued and outstanding as of December 31, 2023 and 2022, respectively 2 2
Additional paid-in-capital 2,075,931 2,075,931
Accumulated deficit ( 1,600,692 ) 4,592 ( 1,596,100 )
Total stockholders’ equity 475,241 4,592 — — 479,833
Total liabilities and stockholders’ equity $ 1,619,027 $ — $ — $ — $ 1,619,027
(1) Reflects revised presentation as a result of the Ecommerce Wind-Down. There is no impact to our Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2023 and years ended December 31, 2023 and 2022 other than the impact to accumulated deficit as a result of the changes in net loss as presented above and as a result of impacts for periods prior to 2023 to opening accumulated deficit as of December 31, 2022. There is no impact to net cash used in (provided by) operating activities; investing activities or financing activities in our Consolidated Statements of Cash Flows. |
