Revised Consolidated Financial Statements Information

9 Months Ended

Sep. 30, 2024

Accounting Changes and Error Corrections [Abstract]

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.