0001104659-21-052843 | 20-F | XBRL Viewer | Lightinthebox Holding Co LTD

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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2020 shares
Document and Entity Information
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Entity Registrant Name	LightInTheBox Holding Co., Ltd.
Document Period End Date	Dec. 31, 2020
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	224,038,611
Document Accounting Standard	U.S. GAAP
Entity Voluntary Filers	No
Title of 12(b) Security	Ordinary Shares, par value $0.000067 per share
Trading Symbol	LITB
Security Exchange Name	NYSE
Entity Central Index Key	0001523836
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
ICFR Auditor Attestation Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 61,477	$ 37,736
Restricted cash	4,052	2,709
Accounts receivable, net of allowance for credit losses	1,302	1,356
Amounts due from related parties	2,882	4,600
Inventories	9,919	7,357
Prepaid expenses and other current assets	5,176	3,619
Total current assets	84,808	57,377
Property and equipment, net	3,812	3,502
Intangible assets, net	9,416	8,516
Goodwill	29,745	27,922
Operating lease right-of-use assets	12,243	12,233
Long-term rental deposits	707	778
Long-term investments	17,297	2,873
TOTAL ASSETS	158,028	113,201
Current Liabilities
Accounts payable (including accounts payable of the consolidated VIEs without recourse to LightInTheBox Holding Co., Ltd. of $135 and $17 as of December 31, 2019 and 2020, respectively)	16,953	17,643
Amounts due to related parties	167	186
Advance from customers	33,279	21,731
Operating lease liabilities	4,269	3,470
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to LightInTheBox Holding Co., Ltd. of $1,012 and $1,568 as of December 31, 2019 and 2020, respectively)	42,183	28,642
Total current liabilities	96,851	71,672
Operating lease liabilities	8,118	8,801
Long-term payable	124	847
Deferred tax liability	3,558
TOTAL LIABILITIES	108,651	81,320
EQUITY
Ordinary shares ($0.000067 par value; 750,000,000 shares authorized; 203,349,887 and 244,895,045 shares issued as of December 31, 2019 and 2020, respectively; 187,214,651 and 224,038,611 shares outstanding as of December 31, 2019 and 2020, respectively)	17	14
Additional paid-in capital	282,260	262,888
Forward contracts		15,769
Treasury shares (14,011,790 and 18,934,988 shares as of December 31, 2019 and 2020, respectively)	(30,207)	(27,512)
Accumulated other comprehensive (loss) / income	1,795	(1,444)
Accumulated deficit	(204,571)	(217,888)
Non-controlling interests	83	54
TOTAL EQUITY	49,377	31,881
TOTAL LIABILITIES AND EQUITY	$ 158,028	$ 113,201

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accounts payable	$ 16,953	$ 17,643
Advance from customers	33,279	21,731
Accrued expenses and other current liabilities	$ 42,183	$ 28,642
Ordinary shares, par value (in dollars per share)	$ 0.000067	$ 0.000067
Ordinary shares, shares authorized	750,000,000	750,000,000
Ordinary shares, shares issued	244,895,045	203,349,887
Ordinary shares, shares outstanding	224,038,611	187,214,651
Treasury stock, shares	18,934,988	14,011,790
Consolidated VIEs
Accounts payable	$ 17	$ 135
Accrued expenses and other current liabilities	$ 1,568	$ 1,012

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues
Revenues	$ 398,151	$ 243,626	$ 227,539
Cost of revenues
Cost of revenues	221,997	146,029	166,343
Gross profit	176,154	97,597	61,196
Operating expenses:
Fulfillment	27,967	24,900	15,127
Selling and marketing	112,146	51,111	50,508
General and administrative	33,160	37,811	33,042
Other operating income	(974)	(173)
Total operating expenses	172,299	113,649	98,677
(Loss) / Income from operations	3,855	(16,052)	(37,481)
Interest income	103	297	487
Interest expense	(92)	(66)	(5)
Change in fair value of convertible promissory notes		14,591	(22,791)
Other income, net	12,898	283
Total other (loss) / income	12,909	15,105	(22,309)
(Loss) / Income before income taxes and share of income and gain from equity method investment	16,764	(947)	(59,790)
Income tax expense	(3,418)	(113)	(33)
Share of income and gain from equity method investment		2,118	221
Net (loss) / income	13,346	1,058	(59,602)
Less: Net (loss) / income attributable to non-controlling interests	29	59	(1)
Net (loss) / income attributable to LightInTheBox Holding Co., Ltd.	$ 13,317	$ 999	$ (59,601)
Net (loss) / income per ordinary share - basic (in dollars per share)	$ 0.06	$ 0.01	$ (0.44)
Net (loss) / income per ordinary share - diluted (in dollars per share)	$ 0.06	$ (0.06)	$ (0.44)
Product sales
Revenues
Revenues	$ 382,075	$ 236,705	$ 216,407
Cost of revenues
Cost of revenues	211,430	144,061	156,326
Gross profit	170,645	92,644	60,081
Service and others
Revenues
Revenues	16,076	6,921	11,132
Cost of revenues
Cost of revenues	10,567	1,968	10,017
Gross profit	$ 5,509	$ 4,953	$ 1,115

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
Net (loss) / income	$ 13,346	$ 1,058	$ (59,602)
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes	3,239	(512)	(733)
Total comprehensive (loss) / income	16,585	546	(60,335)
Less: comprehensive (loss) / income attributable to non-controlling interests	29	59	(1)
Comprehensive (loss) / income attributable to LightInTheBox Holding Co., Ltd.	$ 16,556	$ 487	$ (60,334)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
Foreign currency translation adjustment, net of income taxes	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY / (DEFICIT) - USD ($) $ in Thousands	Ordinary Shares	Additional Paid-in Capital	Treasury Shares, at cost	Accumulated Other Comprehensive Loss	Accumulated Deficit	Non-controlling Interests	Forward Contracts	Total
Balance at Dec. 31, 2017	$ 11	$ 238,851	$ (23,907)	$ (199)	$ (159,286)			$ 55,470
Balance (in shares) at Dec. 31, 2017	135,664,877
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon vesting of nonvested shares (in shares)	453,652
Exercise of share options		13						13
Exercise of share options (in shares)	52,000
Share-based compensation		405						405
Repurchase of ordinary shares			(3,354)					(3,354)
Repurchase of ordinary shares (in shares)	(2,704,988)
Non-controlling interests resulting from acquisition of Ezbuy						$ (4)		(4)
Net (loss) / income					(59,601)	(1)		(59,602)
Foreign currency translation adjustment, net of nil income taxes				(733)				(733)
Balance at Dec. 31, 2018	$ 11	239,269	(27,261)	(932)	(218,887)	(5)		(7,805)
Balance (in shares) at Dec. 31, 2018	134,456,369
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon vesting of nonvested shares (in shares)	1,813,304
Issuance of ordinary shares upon conversion of convertible promissory notes	$ 3	21,559						21,562
Issuance of ordinary shares upon conversion of convertible promissory notes (in shares)	51,337,958
Forward contracts							$ 15,769	15,769
Exercise of share options (in shares)	93,000
Share-based compensation		2,060						2,060
Repurchase of ordinary shares			(251)					(251)
Repurchase of ordinary shares (in shares)	(485,980)
Net (loss) / income					999	59		1,058
Foreign currency translation adjustment, net of nil income taxes				(512)				(512)
Balance at Dec. 31, 2019	$ 14	262,888	(27,512)	(1,444)	(217,888)	54	15,769	31,881
Balance (in shares) at Dec. 31, 2019	187,214,651
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon vesting of nonvested shares (in shares)	4,202,000
Issuance of ordinary shares upon conversion of convertible promissory notes	$ 3	15,766						15,769
Issuance of ordinary shares upon conversion of convertible promissory notes (in shares)	37,545,158
Forward contracts							$ (15,769)	(15,769)
Share-based compensation		3,606						3,606
Repurchase of ordinary shares			(2,695)					(2,695)
Repurchase of ordinary shares (in shares)	(4,923,198)
Net (loss) / income					13,317	29		13,346
Foreign currency translation adjustment, net of nil income taxes				3,239				3,239
Balance at Dec. 31, 2020	$ 17	$ 282,260	$ (30,207)	$ 1,795	$ (204,571)	$ 83		$ 49,377
Balance (in shares) at Dec. 31, 2020	224,038,611

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY / (DEFICIT) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY / (DEFICIT)
Foreign currency translation adjustment, net of income taxes	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net (loss) / income	$ 13,346	$ 1,058	$ (59,602)
Adjustments to reconcile net (loss)/income to net cash used in operating activities:
Depreciation and amortization	2,443	2,518	870
Loss /(Gain) on disposal of property and equipment	106	(1)	36
Share-based compensation	3,606	2,060	405
Unrealized foreign exchange loss / (gain)	(1,407)	(129)	339
Share of income and gain from equity method investment		(1,988)	(221)
Fair value change of equity investment without readily determinable fair values under the measurement alternative	(13,450)
Change in fair value of convertible promissory notes		(14,591)	22,791
Allowance for credit losses	(688)	(199)	533
Inventory write-down / (reversal when sold)	(108)	(458)	2,456
Deferred income tax	3,363	0	0
Changes in operating assets and liabilities, net of effect of acquisition of Ezbuy:
Accounts receivable	859	(777)	1,860
Inventories	(2,455)	1,582	5,638
Prepaid expenses and other current assets	(2,005)	3,416	10,298
Amounts due from related parties	315	(377)
Long-term rental deposits	71	353	(81)
Accounts payable	(690)	4,702	(16,185)
Amounts due to related parties	(19)	(4,767)	4,953
Advance from customers	11,548	3,999	(2,374)
Accrued expenses and other current liabilities	14,373	5,292	(1,584)
Operating lease right-of-use assets	(10)	(11,976)
Operating lease liabilities	116	12,165
Net cash (used in)/provided by operating activities	29,314	1,882	(29,868)
Cash flows from investing activities
Purchase of property and equipment	(2,233)	(917)	(387)
Capitalized internal use software	(1,627)
Proceeds from disposal of property and equipment	621	236
Cash acquired from acquisition of Ezbuy			3,683
Proceeds from disposal of long-term investment	1,403
Net cash provided by / (used in) investing activities	(1,836)	(681)	3,296
Cash flows from financing activities
Proceeds from exercise of share options			13
Principal repayment of finance leases	(991)	(300)	(24)
Repurchase of ordinary shares	(2,695)	(251)	(3,354)
Net cash used in financing activities	(3,686)	(551)	(3,365)
Net (decrease) / increase in cash, cash equivalents and restricted cash	23,792	650	(29,937)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	1,292	(7)	(275)
Cash, cash equivalents and restricted cash at beginning of year	40,445	39,802	70,014
Cash, cash equivalents and restricted cash at end of year	65,529	40,445	39,802
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets
Cash and cash equivalents	61,477	37,736	38,808
Restricted cash	4,052	2,709	994
Supplemental cash flow information:
Income taxes paid	(27)	(133)	(55)
Interest expense paid	(92)	(66)	(4)
Noncash investing activities:
Issuance of convertible promissory notes as the consideration of acquisition of Ezbuy			(29,131)
Acquisition of property, plant and equipment included in long-term payable			$ (1,170)
Purchase of property and equipment included in accrued expenses and other current liabilities		758
Disposal of property and equipment included in prepaid expenses and other current assets		(400)
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$ 10,261	10,060
Disposal of long-term investment included in amounts due from related parties		$ (4,223)

ORGANIZATION AND PRINCIPAL ACTIVITIES

12 Months Ended

Dec. 31, 2020

ORGANIZATION AND PRINCIPAL ACTIVITIES

ORGANIZATION AND PRINCIPAL ACTIVITIES

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

LightInTheBox Holding Co., Ltd. (the “Company”), incorporated in the Cayman Islands in March 2008 by five founding shareholders, together with its consolidated subsidiaries, its variable interest entities (“VIEs”) and its VIE’s subsidiary (collectively referred to the “Group”), is primarily involved in online retailing to sell and deliver products and services to consumers around the world.

(a)

History of the Group and corporate reorganization

The Group commenced its operation in June 2007, with the establishment of Light In The Box Limited (“Light In The Box”) in June 2007 in Hong Kong by the same five founding shareholders of the Company. Light In The Box subsequently became the Company's subsidiary through a share for share exchange in April 2008 which was accounted for in a manner akin to a pooling of interests as if the Company had been in existence and owned Light In The Box since June 2007.

Lightinthebox Trading (Shenzhen) Co., Ltd. (“Shenzhen Lanting Jishi“) was established in October 2008 in the People's Republic of China (the "PRC") as a wholly-owned subsidiary of Light In The Box.

On December 10, 2018, the Company acquired the total issued share capital of Ezbuy Holding Co., Ltd (“Ezbuy”).

Ezbuy, incorporated in the Cayman Islands in November 2014 by its five founding shareholders, together with its consolidated subsidiaries and its VIEs, is primarily involved in online retailing to sell and deliver products and services to consumers in South-East Asia.

Ezbuy commenced its operation in December 2014, with the establishment of Ezbuy Holdings limited (“Ezbuy HK”) in December 2014 in Hong Kong, a wholly-owned subsidiary of Ezbuy.

Qianhai Xuyi Information Technology (Shenzhen) Co., Ltd (“Qianhai Xuyi”) was established in March 2015 in the PRC as a wholly-owned subsidiary of Ezbuy HK.

Shanghai Lightinthebox Information Technology Co., Ltd (“Shanghai Lanting Jishi”) was established on September 25, 2020 in the PRC as a wholly-owned subsidiary of Light In The Box.

(b)

The VIE arrangements

The PRC regulations currently limits direct foreign ownership of business entities providing value-added telecommunications services, advertising services and internet services in the PRC where certain licenses are required for the provision of such services. To comply with these PRC regulations, the Group currently conducts certain aspects of its business in the PRC through Shenzhen Lanting Huitong Technologies Co.,Ltd. (“Lanting Huitong”), Beijing Lanting Gaochuang Technologies Co.,Ltd. (“Lanting Gaochuang”) , Shenzhen Xuyi International logistics Co., Ltd. (“Shenzhen Xuyi”), Chongqing Xuyi E-Commerce Co., Ltd. (“Chongqing Xuyi”), Jiaxing Xuyang Logistics Co., Ltd. (“Jiaxing Xuyang”), Chongqing Ruizhihe E-Commerce Co., Ltd. (“Chongqing Ruizhihe”), and Dongguan Herui Supply Chain Management Co., Ltd (“Dongguan Herui”), all of which are VIEs.

Lanting Huitong was established by the shareholders of the Company in June 2008 in the PRC. Through the contractual arrangements (as described below) among Shenzhen Lanting Jishi, Lanting Huitong and the respective shareholders of Lanting Huitong, Lanting Huitong became the Group's VIE.

In order to obtain the benefit granted to domestic enterprises that are held by Chinese nationals who have previously studied overseas, Mr. Quji (Alan) Guo, the Company’s co-founder and director, and Lanting Huitong established Lanting Gaochuang in December 2011, each holding 51% and 49% of Lanting Gaochuang from the incorporation of Lanting Gaochuang to July 2019, respectively, in the China Beijing Wangjing Overseas Students Pioneer Park. In July 2019, Mr. Quji (Alan) Guo entered into an equity transfer agreement to transfer his shares in Lanting Gaochuang to Mr. Jian He, the Company's director and the chief executive officer. Currently, Mr. Jian He and Lanting Huitong directly hold 51% and 49% of Lanting Gaochuang, respectively.

Through a series of contractual arrangements (as described below) among Shenzhen Lanting Jishi, Lanting Gaochuang and the respective shareholders of Lanting Gaochuang, Lanting Gaochuang became the Group’s VIE.

Shenzhen Xuyi was established by the founders of Ezbuy in November 2014 in the PRC. Through the contractual arrangements (as described below) among Qianhai Xuyi, Shenzhen Xuyi and the respective shareholders of Shenzhen Xuyi, Shenzhen Xuyi became Ezbuy’s VIE and then became the Group’s VIE since the Group’s acquisition of Ezbuy on December 10, 2018 (the “Acquisition”). In April 2020, Mr. Jian He entered into an equity transfer agreement to transfer his shares of Shenzhen Xuyi to Mr. Qianneng Fu. On April 9, 2020, the registration of this transfer with local branch of the SAIC was completed. The registered shareholders of Shenzhen Xuyi currently are Mr. Qianneng Fu and Mr. Zicong Ke, the Company’s employees, holding 67% and 33% respectively.

Chongqing Xuyi was also established by the founders of Ezbuy in December 2014 in the PRC. Through the contractual arrangements (as described below) among Qianhai Xuyi, Chongqing Xuyi and the respective shareholders of Chongqing Xuyi, Chongqing Xuyi became Ezbuy’s VIE and then became the Group’s VIE since the Acquisition.

Jiaxing Xuyang was established by one of the founders of Ezbuy and one of employees in Qianhai Xuyi in May 2017 in the PRC. Through the contractual arrangements (as described below) among Qianhai Xuyi, Jiaxing Xuyang and the respective shareholders of Jiaxing Xuyang, Jiaxing Xuyang became Ezbuy’s VIE and then became the Group’s VIE since the Acquisition.

Chongqing Ruizhihe and Dongguan Herui were established by the Company’s employees in September 2020 in the PRC. Through the contractual arrangements (as described below) among Shanghai Lanting Jishi, Chongqing Ruizhihe, Dongguan Herui and the respective shareholders of Chongqing Ruizhihe and Dongguan Herui, Chongqing Ruizhihe and Dongguan Herui became the Group’s VIEs.

(c)

Agreements that provide Shenzhen Lanting Jishi effective control over Lanting Huitong and Lanting Gaochuang (collectively, the “Shenzhen Lanting VIEs”), Qianhai Xuyi effective control over Shenzhen Xuyi, Chongqing Xuyi and Jiaxing Xuyang (collectively, the “Ezbuy VIEs”), and Shanghai Lanting Jishi effective control over Chongqing Ruizhihe and Dongguan Herui (collectively, the “Shanghai Lanting VIEs”)

(i)

Shenzhen Lanting VIEs

Powers of Attorney: Each registered shareholder of Shenzhen Lanting VIEs has executed a Power of Attorney appointing Shenzhen Lanting Jishi or its designee to be his or her attorney, and irrevocably authorizing them to vote on his or her behalf on all of the matters concerning Shenzhen Lanting VIEs that may require shareholders’ approval, including nominating and electing directors, general managers and other executive officers. The powers of attorney will be irrevocably effective as long as the registered shareholders remain as shareholders of Shenzhen Lanting VIEs.

Equity Disposal Agreements: Under the Equity Disposal Agreements entered into among Shenzhen Lanting Jishi, Shenzhen Lanting VIEs, and the shareholders of Shenzhen Lanting VIEs, Shenzhen Lanting Jishi or its designated party has exclusive options to purchase, when and to the extent permitted under PRC law, all or part of the equity interest in Shenzhen Lanting VIEs. The exercise price for the options to purchase all or part of the equity interest will be the minimum amount of consideration permissible under the then applicable PRC law. The Equity Disposal Agreements are valid for two years and can be extended indefinitely at Shenzhen Lanting Jishi’s sole option. Shenzhen Lanting Jishi has the right to terminate this agreement at any time by giving thirty days’ written notice to other parties.

Spousal Consent Letters: Under the Spousal Consent Letters, the spouses of certain shareholders of Lanting Huitong acknowledged that a certain percentage of the equity interest in Lanting Huitong held by and registered in the name of their respective spouse will be disposed of pursuant to the equity disposal agreement and share pledge agreement. These spouses understand that such equity interest is held by their respective spouse on behalf of Shenzhen Lanting Jishi, and they will not take any action to interfere with the disposition of such equity interests, including, without limitation, claiming that such equity interest constitute communal property of marriage. The spousal consent letters will be valid until the liquidation of Lanting Huitong, unless terminated earlier at Shenzhen Lanting Jishi’s sole discretion.

Loan Agreements: Under the Loan Agreement entered into in December 2011 between Lanting Huitong and Mr. Quji (Alan) Guo, Lanting Huitong extended a loan in the amount of $41 (RMB255,000) to Mr. Quji (Alan) Guo to be contributed as 51% of the registered capital of Lanting Gaochuang. Under this agreement, Mr. Quji (Alan) Guo agreed that without prior written consent from Lanting Huitong, Lanting Gaochuang might not enter into any transaction that could materially affect its assets, liabilities, interests or operations, and there would be no earnings distribution in any form by Lanting Gaochuang before such loan has been repaid. This loan could only be repaid by transferring all of Mr. Quji (Alan) Guo’s equity interest in Lanting Gaochuang to Lanting Huitong or a third party designated by Lanting Huitong, and submitting all proceeds from such transaction to Lanting Huitong. The loan agreement had a term of ten years and will be extended automatically, unless indicated otherwise by Lanting Huitong in writing three months prior to the contract expiration date. In September 2019, Mr. Quji (Alan) Guo made the repayment under this loan agreement which was therefore terminated. Under the loan agreement entered into in July 2019 between Lanting Huitong and Mr. Jian He, Lanting Huitong extended a loan in the amount of RMB255,000 ($40,492) to Mr. Jian He for his contribution of 51% of the registered capital of Lanting Gaochuang. Under this agreement, Mr. Jian He agreed that without prior written consent from Lanting Huitong, Lanting Gaochuang may not enter into any transaction that could materially affect its assets, liabilities, interests or operations, and there will be no earnings distribution in any form by Lanting Gaochuang before such loan has been repaid. Mr. Jian He also agreed that at the request of Lanting Huitong, all or part of the equity interests held in Lanting Gaochuang shall be promptly and unconditionally transferred to Lanting Huitong or a designated third party in accordance with PRC law. This loan can only be repaid by transferring all of Mr. Jian He’s equity interest in Lanting Gaochuang to Lanting Huitong or a third party designated by Lanting Huitong and submitting all proceeds from such transaction to Lanting Huitong. The loan agreement has a term of ten years and will be extended automatically, unless indicated otherwise by Lanting Huitong in writing three months prior to the expiration date.

Agreements that transfer economic benefits to Shenzhen Lanting Jishi

Business Operation Agreements: Under the Business Operation Agreements entered into among Shenzhen Lanting Jishi, Shenzhen Lanting VIEs, and the shareholders of Shenzhen Lanting VIEs, the registered shareholders of Shenzhen Lanting VIEs and Shenzhen Lanting VIEs agreed that Shenzhen Lanting VIEs may not enter into any transaction that could materially affect their assets, liabilities, interests or operations without prior written consent from Shenzhen Shenzhen Lanting Jishi or other party designated by Shenzhen Lanting Jishi, including entry into any loan or other debtor-creditor relationship with any third party or the making of any equity investment in any third party, the sale or purchase of any asset or right to or from any third party or creation of guarantees or any other security on any of its assets in favor of any third party, or creation of any other obligation on any of its assets. In addition, directors, supervisors, chairman, general managers, financial controllers or other senior managers of Shenzhen Lanting VIEs must be Shenzhen Lanting Jishi’s nominees. Furthermore, Shenzhen Lanting VIEs and their registered shareholders have agreed to accept and stringently implement proposals set forth by Shenzhen Lanting Jishi regarding employment and business and financial management. Shenzhen Lanting Jishi is entitled to any dividends declared by Shenzhen Lanting VIEs. The business operation agreements will be valid until the liquidation of Shenzhen Lanting VIEs, unless terminated earlier at Shenzhen Lanting Jishi’s sole discretion.

Exclusive Technical Support and Consulting Service Agreements: Under the Exclusive Technical Support and Consulting Service Agreements entered into between Shenzhen Lanting Jishi and Shenzhen Lanting VIEs, Shenzhen Lanting Jishi agreed to provide Shenzhen Lanting VIEs with technology support and consulting services, including the maintenance of computer rooms and websites, the provision of technology platforms required for operations, provision and maintenance of office networks, the conception, configuration, design, updating and maintenance of web pages, the maintenance of customer service platforms, employee training, advertisements, publicity and promotions, and provision of logistics support for product sales and services. Shenzhen Lanting VIEs agreed to pay a service fee equal to substantially all of their net income, an amount equivalent to the amount of the respective VIEs’ operating revenue for the then current quarter after the deduction of: (1) working capital necessary for the maintaining of the daily operations of the respective VIEs; and (2) the amount of cash required for the respective VIEs’ capital expenditures. The exclusive technical support and consulting service agreements will be valid until the liquidation of Shenzhen Lanting VIEs, unless terminated earlier at Shenzhen Lanting Jishi’s sole discretion.

Share Pledge Agreements: Under the Share Pledge Agreements entered into among Shenzhen Lanting Jishi, Shenzhen Lanting VIEs, and the shareholders of Shenzhen Lanting VIEs, the registered shareholders of Shenzhen Lanting VIEs pledged all of their respective equity interest in favor of Shenzhen Lanting Jishi to secure Shenzhen Lanting VIEs and their shareholders’ obligations under the various contractual agreements, including the Business Operation Agreements and the Exclusive Technical Support and Consulting Service Agreements described above. If Shenzhen Lanting VIEs or any of their respective registered shareholders breach any of their respective contractual obligations under these agreements, Shenzhen Lanting Jishi, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interest. The registered shareholders of our VIEs agreed not to transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their respective equity interest in our VIEs, without Shenzhen Lanting Jishi’s prior written consent. Unless terminated at Shenzhen Lanting Jishi’s sole discretion, the share pledge agreements will be valid until our VIEs and their shareholders fulfill all contractual obligations under the business operation agreements, the exclusive technical support and consulting service agreements and the equity disposal agreements. Our PRC counsel, Hiways Law Firm, has advised us that the pledges on the equity interest of Shenzhen Lanting VIEs were created and effective as such pledges have already been registered with the relevant local branch of the SAIC in accordance with the PRC Property Rights Law.

(ii)

Ezbuy VIEs

Exclusive Technical Support and Consulting Service Agreements: Under the Exclusive Technical Support and Consulting Service Agreements entered into between Qianghai Xuyi and Ezbuy VIEs, Qianhai Xuyi agreed to provide Ezbuy VIEs with technology support and consulting services, including the provision of technology platforms required for operations, provision and maintenance of office networks, the conception, configuration, design, updating and maintenance of web pages, employee training, advertisements and other technology services required for the operations. Ezbuy VIEs agreed to pay a service fee equal to substantially all of their net income, an amount equivalent to the amount of the respective VIEs’ operating revenue for the then current quarter after the deduction of: (1) working capital necessary for the maintaining of the daily operations of the respective VIEs; and (2) the amount of cash required for the respective VIEs’ capital expenditures. The exclusive technical support and consulting service agreements will be valid for 10 years unless terminated earlier at Qianhai Xuyi’s sole discretion or the liquidation of Ezbuy VIEs.

Powers of Attorney: Each registered shareholder of Ezbuy VIEs has executed a Power of Attorney appointing Qianhai Xuyi or its designee to be his or her attorney, and irrevocably authorizing them to vote on his or her behalf on all of the matters concerning our VIEs that may require shareholders’ approval, including nominating and electing directors, general managers and other executive officers. The powers of attorney will be irrevocably effective as long as the registered shareholders remain as shareholders of Ezbuy VIEs.

Exclusive Option Agreements: Under the Exclusive Option Agreements entered into among Qianhai Xuyi, Ezbuy VIEs, and the shareholders of Ezbuy VIEs, Qianhai Xuyi or its designated party has exclusive options to purchase, when and to the extent permitted under PRC law, all or part of the equity interest in Ezbuy VIEs. The exercise price for the options to purchase all or part of the equity interest will be the minimum amount of consideration permissible under the then applicable PRC law. The agreements are valid for two years and can be extended indefinitely at Qianhai Xuyi’s sole option.

Share Pledge Agreements: Under the Share Pledge Agreements entered into among Qianhai Xuyi, Ezbuy VIEs, and the shareholders of Ezbuy VIEs, the registered shareholders of Ezbuy VIEs pledged all of their respective equity interest in favor of Qianhai Xuyi to secure Ezbuy VIEs and their shareholders’ obligations under the various contractual agreements, including the Exclusive Option Agreements and the Exclusive Technical Support and Consulting Service Agreements described above. If Ezbuy VIEs or any of their respective registered shareholders breach any of their respective contractual obligations under these agreements, Qianhai Xuyi, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interest. The registered shareholders of Ezbuy VIEs agreed not to transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their respective equity interest in Ezbuy VIEs, without Lanting Jishi’s prior written consent. The Share Pledge Agreements will be valid until Ezbuy VIEs and their shareholders fulfill all contractual obligations under the Exclusive Option Agreements and the Exclusive Technical Support and Consulting Service Agreements. Our PRC counsel, Guangdong Lianyue Law Firm, has advised us that the pledges on the equity interest of Jiaxing Xuyang, Chongqing Xuyi and Shenzhen Xuyi were created and are effective as such pledges have already been registered with the relevant local branch of the SAIC in accordance with the PRC Property Rights Law.

Spousal Consent Letters: Under the Spousal Consent Letters, the spouses of certain shareholders of Ezbuy VIEs acknowledged that a certain percentage of the equity interest in Ezbuy VIEs held by and registered in the name of their respective spouse will be disposed of pursuant to the Exclusive Option Agreements and Share Pledge Agreements. These spouses understand that such equity interest is held by their respective spouse on behalf of Qianhai Xuyi, and they will not take any action to interfere with the disposition of such equity interests, including, without limitation, claiming that such equity interest constitute communal property of marriage.

(iii)

Shanghai Lanting VIEs

Exclusive Technical Support and Consulting Service Agreements: Under the Exclusive Technical Support and Consulting Service Agreements entered into between Shanghai Lanting Jishi and Shanghai Lanting VIEs, Shanghai Lanting Jishi agreed to provide Shanghai Lanting VIEs with technical support and consulting services, including the provision of technology platforms required for operations, provision and maintenance of office networks, the conception, configuration, design, updating and maintenance of web pages, employee training, advertisements and other technology services required for the operations. Shanghai Lanting VIEs agreed to pay a service fee equal to substantially all of their net income, an amount equivalent to the amount of the respective Shanghai Lanting VIEs’ operating revenue for the then current quarter after the deduction of: (1) working capital necessary for the maintaining of the daily operations of the respective Shanghai Lanting VIEs; and (2) the amount of cash required for the respective Shanghai Lanting VIEs’ capital expenditures. The exclusive technical support and consulting service agreements will be valid for 10 years and automatically renewed for another ten years at the end of each period unless terminated earlier at Shanghai Lanting Jishi’s sole discretion or the liquidation of Shanghai Lanting VIEs.

Powers of Attorney: Each registered shareholder of Shanghai Lanting VIEs has executed a Power of Attorney appointing Shanghai Lanting Jishi or its designee to be his or her attorney, and irrevocably authorizing them to vote on his or her behalf on all of the matters concerning Shanghai Lanting VIEs that may require shareholders’ approval, including nominating and electing directors, general managers and other executive officers. The powers of attorney will be irrevocably effective as long as the registered shareholders remain as shareholders of Shanghai Lanting VIEs.

Exclusive Option Agreements: Under the Exclusive Option Agreements entered into among Shanghai Lanting Jishi, Shanghai Lanting VIEs, and the shareholders of Shanghai Lanting VIEs, Shanghai Lanting Jishi or its designated party has exclusive options to purchase, when and to the extent permitted under PRC law, all or part of the equity interest in Shanghai Lanting VIEs. The exercise price for the options to purchase all or part of the equity interest will be the minimum amount of consideration permissible under the then applicable PRC law. If the exercise price for the options is higher than the respective equity investment cost, Shanghai Lanting VIEs agree to repay the difference between the exercise price and equity investment cost to Shanghai Lanting Jishi or its designated person. The agreements are valid for ten years and will be extended indefinitely unless terminated at Shanghai Lanting Jishi’s sole discretion.

Loan Agreements: Under the Loan Agreements entered into in September 2020 between Shanghai Lanting Jishi and the registered shareholders of Shanghai Lanting VIEs, Shanghai Lanting Jishi extended two loans to the registered shareholders of Shanghai Lanting VIEs, including a loan in the amount of $77 (RMB500,000) to the registered shareholders of Dongguan Herui, and a loan in the amount of $153 (RMB1,000,000) to the registered shareholders of Chongqing Ruizhihe, to be contributed as the registered capital of Shanghai Lanting VIEs. Under these agreements, the registered shareholders of Shanghai Lanting VIEs agreed that without prior written consent from Shanghai Lanting Jishi, Shanghai Lanting VIEs might not enter into any transaction that could materially affect its assets, liabilities, interests or operations, and there would be no earnings distribution in any form by Shanghai Lanting VIEs before such loan has been repaid. These loans could only be repaid by transferring all of the registered shareholders of Shanghai Lanting VIEs’ equity interest in Shanghai Lanting VIEs to Shanghai Lanting Jishi or a third party designated by Shanghai Lanting Jishi, and submitting all proceeds from such transaction to Shanghai Lanting Jishi. The loan agreements had a term of ten years and will be extended automatically, unless indicated otherwise by Shanghai Lanting Jishi in writing three months prior to the contract expiration date.

Share Pledge Agreements: Under the Share Pledge Agreements entered into among Shanghai Lanting Jishi, Shanghai Lanting VIEs, and the shareholders of Shanghai Lanting VIEs, the registered shareholders of Shanghai Lanting VIEs pledged all of their respective equity interest in favor of Shanghai Lanting Jishi to secure Shanghai Lanting VIEs and their shareholders’ obligations under the various contractual agreements, including the Exclusive Option Agreements and the Exclusive Technical Support and Consulting Service Agreements described above. If Shanghai Lanting VIEs or any of their respective registered shareholders breach any of their respective contractual obligations under these agreements, Shanghai Lanting Jishi, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interest. The registered shareholders of Shanghai Lanting VIEs agreed not to transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their respective equity interest in Shanghai Lanting VIEs, without Shanghai Lanting Jishi’s prior written consent. The share pledge agreements will be valid until Shanghai Lanting VIEs and their shareholders fulfill all contractual obligations under the exclusive option agreements and the exclusive technical support and consulting service agreements. Our PRC counsel, Hiways Law Firm, has advised us that the pledges on the equity interest of Chongqing Ruizhihe, Dongguan Herui were created and are effective as such pledges have already been registered with the relevant local branch of the SAMR in accordance with the PRC Property Rights Law.

Spousal Consent Letters: Under the Spousal Consent Letters, the spouses of the registered shareholders of ShanghaiLanting VIEs acknowledged that a certain percentage of the equity interest in Shanghai Lanting VIEs held by and registered in the name of their respective spouse will be disposed of pursuant to the Exclusive Option Agreements and Share Pledge Agreements. These spouses understand that such equity interest is held by their respective spouse on behalf of Shanghai Lanting Jishi, and they will not take any action to interfere with the disposition of such equity interests, including, without limitation, claiming that such equity interest constitute communal property of marriage.

(d) Risks in relation to the Group’s VIE structure

The Group believes that pledgees’ contractual arrangements with the VIEs are in compliance with the PRC law and are legally enforceable. The shareholders of the VIEs are also shareholders or key employees of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, uncertainties in the PRC legal system could limit the Group’s ability to enforce these contractual arrangements and if the shareholders of the VIEs were to reduce their interest in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. The Company’s ability to control the VIEs also depends on the power of attorney pledgees have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this power of attorney is legally enforceable but may not be as effective as direct equity ownership.

In addition, if the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the PRC government could:

revoke the Group’s business and operating licenses;

require the Group to discontinue or restrict operations;

restrict the Group’s right to collect revenues;

block the Group’s websites;

require the Group to restructure the operations in such a way as to compel the Group to establish a new enterprise, re-apply for the necessary licenses or relocate their businesses, staff and assets;

impose additional conditions or requirements with which the Group may not be able to comply; or

take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business.

The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s business. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the VIEs and its subsidiary or the right to receive their economic benefits, the Group would possibly no longer be able to consolidate the VIEs.

The following consolidated financial information of the Group’s VIEs and its subsidiary was included in the accompanying consolidated financial statements as of and for the years ended, after elimination of intercompany balances and transactions within the Group:


	December 31,
	2019		2020

Total assets	$	9,734	$	24,667
Total liabilities	$	1,147	$	5,178


	Year ended December 31,
	2018		2019		2020

Revenues	$	3	$	1,054	$	6,827
Net loss	$	(7,490)	$	(8,496)	$	(187)


	Year ended December 31,
	2018		2019		2020

Net cash (used in) / provided by operating activities	$	(7,519)	$	1,193	$	632
Net cash provided by / (used in) investing activities	$	473	$	(188)	$	826
Net cash provided by financing activities	$	—	$	—	$	—

As of December 31, 2019 and 2020, there was no pledge or collateralization of the consolidated VIEs’ assets that can only be used to settle the VIEs’ obligations. The creditors of the VIEs do not have recourse to the general credit of the Company or its consolidated subsidiaries.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

(b) Basis of consolidation

The consolidated financial statements include the financial statements of the Group, its subsidiaries, VIEs and the VIE’s subsidiary, in which the Company has a controlling financial interest. Equity interests of the Company’s subsidiaries that are not owned by the Company are referred to as non-controlling interests. All inter-company transactions and balances between the Company, its subsidiaries, VIEs and subsidiary of the VIE are eliminated upon consolidation.

The financial position and the results of its operations of Ezbuy Holding Co., Ltd, its subsidiaries and its VIE and VIE’s subsidiary have been consolidated with the Company beginning on December 10, 2018, the date of acquisition by the Company.

Non-controlling interests are classified as a separate component of equity in the consolidated balance sheets and consolidated statements of changes in equity. Additionally, net (loss) / income attributable to non-controlling interests is reflected separately from consolidated net (loss) /income in the consolidated statements of operations and comprehensive (loss) / income and changes in equity.

The Company records the non-controlling interests’ share of income or loss based on the percentage of ownership interest retained by the respective non-controlling interest holders. The net (loss) / income attributable to the Company is the total consolidated net (loss) / income less the net (loss) / income attributable to the non-controlling interests.

(d) Use of estimates

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 the reported amounts of revenues and expenses in the financial statements and accompanying notes. Actual results may differ from these estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s financial statements include the allowance for credit losses of accounts receivables, inventory valuation, the useful lives of property and equipment and intangibles with definite lives, impairment of goodwill and long-lived assets, realization of deferred income tax assets, incremental borrowing rates for lease liabilities, the fair value of equity investment without readily determinable fair value accounted for using the measurement alternative, impairment of equity investment, the fair value determination and estimated forfeiture rates for share-based compensation awards and the fair value determination for convertible promissory notes, the fair value determinations of identifiable assets acquired and liabilities assumed, and sales returns allowances.

(e) Cash and cash equivalents

Cash and cash equivalents consist of cash on hand, demand deposits, highly liquid investments and term deposits with an original maturity of three months or less and are readily convertible to known amount of cash.

(f) Restricted cash

Restricted cash consists of cash which is held under the Group’s name in an escrow accounts as deposits withheld by third party payment processing agencies and the deposits fluctuate with the volume of payment processed.

(g) Accounts receivable, net of allowance for credit losses

On January 1, 2020, the Group adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), using the modified retrospective transition method, which had no effect on the opening balance of accumulated deficit on January 1, 2020.. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. Upon adoption, the Group changed the impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost.

Prior to the Group’s adoption of ASU 2016-13, accounts receivable are carried at net realizable value. An allowance for credit losses is recorded when collection of the full amount is no longer probable. In evaluating the collectability of receivable balances, the Group considers specific evidence including the aging of the receivable, the customer’s payment history, its current credit-worthiness and current economic trends. Accounts receivable are recognized and carried at the original amount less an allowance for credit losses.

After the adoption of ASU 2016-13, the Group maintains an allowance for credit losses and records the allowance for credit losses as an offset to accounts receivable and the estimated credit losses charged to the allowance is classified as “General and administrative” in the consolidated statements of operations. The Group assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on similar business line, service or product offerings and on an individual basis when the Group identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Group considers historical collectability based on past due status, the age of the accounts receivable balances, credit quality of the Group’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Group’s ability to collect from customers. Accounts receivable are written off after all collection efforts have ceased.

(h) Inventories

Inventories represent products available for sale and are accounted for using the first-in-first-out method and specific identification method, and are valued at the lower of cost or net realizable value. Adjustments are recorded to write down the cost of inventory to the net realizable value due to slow-moving merchandise and broken assortments, which are dependent upon factors such as historical trends with similar merchandise, inventory aging, and historical and forecasted consumer demand. Write down of $2,456, reversals of $458 and $108 when sold were recorded in cost of revenues in the consolidated statements of operations for the years ended December 31, 2018, 2019 and 2020, respectively.

(i) Property and equipment, net

Property and equipment, net, resulting from direct purchase, is stated at cost less accumulated depreciation.

Property and equipment, resulting from the acquisitions of entities accounted for using the acquisition method of accounting, are estimated by management based on the fair value of assets acquired at the acquisition date.

Depreciation is calculated on a straight-line basis over the following estimated useful lives:


	Useful lives

Leasehold improvements	Lesser of the lease term or estimated useful life of the assets
Furniture, fixtures and office equipment	0.2 - 5	years
IT equipment	0.1 - 3	years
Vehicles	0.6 - 9	years

(j) Acquired intangible assets, net

Intangible assets, other than goodwill, resulting from the acquisitions of entities accounted for using the acquisition method of accounting are estimated by management based on the fair value of assets acquired at the acquisition date.

Identifiable intangible assets are carried at cost less accumulated amortization. Amortization of the intangible assets with definite life are computed using the straight-line method over the estimated useful lives.


	Useful lives

Domain name/Trade name	Indefinite life
Technology platform	1	years
Non-compete agreement	2	years
Customer base	4.3	years
Technology	3-5	years
Members	4	years
Branding	10	years
In-progress orders	0.1	year

(k) Internal use software

The Group capitalizes payroll costs incurred for the development of computer software for internal use pursuant to Accounting Standards Codification (“ASC”) Topic 350-40, Intangibles—Goodwill and Other—Internal use software. The Group capitalizes the costs during the development of the project, when it is determined that it is probable that the project will be completed, and the software will be used as intended. Costs related to preliminary project activities, post-implementation activities, training and maintenance are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, which is generally three years. Capitalized internal use software is recorded in "Intangible assets, net" on the consolidated balance sheets.

(l) Long-term investments

The Group’s long-term investments consist of an equity investment without readily determinable fair value and equity method investment.

Equity investments without readily determinable fair value

Equity investments, except for those accounted for under the equity method, those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Company elected to use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any.

For equity investments with readily determinable fair values and measured at fair value with changes in fair value recorded in earnings, the Company does not assess whether those securities are impaired. For those equity investments that the Company elects to use the measurement alternative, the Company makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the entity has to recognize an impairment loss in net (loss) / income equal to the difference between the carrying value and fair value.

Equity method investment

Investment in an entity where the Group can exercise significant influence, but not control, is accounted for using the equity method. Whether or not the Group can exercise significant influence with respect to an equity investee depends on an evaluation of several factors including, among others, the Group’s representation on the investee’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee. Under the equity method, the investment is initially recorded at cost and adjusted for the Group’s share of undistributed earnings or losses of the investee.

The management regularly evaluates the impairment of the equity investment based on performance and the financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financings, projected and historical financial performance, cash flow forecasts and financing needs. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Group did not record any impairment loss on its equity method investment during the years ended December 31, 2018 and 2019.

(m) Impairment of long-lived assets and definite-lived intangible assets

Long-lived assets, such as property and equipment and definite-lived intangible assets, are stated at cost less accumulated depreciation or amortization.

The Group evaluates the recoverability of long-lived assets, including identifiable intangible assets with determinable useful lives, whenever events or changes in circumstances indicate that a long-lived asset’s carrying amount may not be recoverable. The Group measures the carrying amount of long-lived asset against the estimated undiscounted future cash flows associated with it. Impairment exists when the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts.

(n) Impairment of goodwill and indefinite-lived intangible assets

Goodwill and intangible assets deemed to have indefinite useful lives are not amortized, but tested for impairment annually as of December 31 or more frequently if events and circumstances indicate that they might be impaired.

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. The Group adopted Accounting Standard Update ("ASU") No. 2017-04 Simplifying the Test for Goodwill Impairment ("ASU 2017-04") on January 1, 2020, which simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. The adoption of this standard did not have an impact on the Group's consolidated financial statements.

Prior to the adoption of ASU 2017-04, the Group performs a two-step quantitative impairment test. In performing the two-step goodwill impairment test, the first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Subsequent to the adoption of the ASU 2017-04, the quantitative impairment test compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess.

An intangible asset that is not subject to amortization is tested for impairment at least annually or if events or changes in circumstances indicate that the asset might be impaired. Such impairment test compares the fair values of assets with their carrying value amounts and an impairment loss is recognized if and when the carrying amounts exceed the fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates.

(o) Business combinations

The Company accounts for its business combinations using the purchase method of accounting in accordance with ASC Topic 805, Business Combinations. The purchase method of accounting requires that the consideration transferred to be allocated to the assets, including separately identifiable assets and liabilities the Company acquired, based on their estimated fair values. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity and debt instruments issued as well as the contingent considerations as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of cost of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings.

(p) Treasury shares

Treasury shares represent shares of the Company’s stock that have been issued, repurchased by the Company, and that have not been retired or canceled. These shares have no voting rights and are not entitled to receive dividends and are excluded from the weighted average outstanding shares in calculation of net income per share. Treasury shares are recorded at cost.

(q) Revenue recognition

The Group recognizes revenue (i) from product sales of apparel and other general merchandise through its websites and other online platforms, and (ii) from logistics services to small businesses in China and also globally to individual customers.

The Group recognizes revenues upon the satisfaction of its performance obligation (upon transfer of control of promised goods or services to customers) in amounts that reflects the consideration to which the Group expects to be entitled to in exchange for those goods or services, excluding amounts collected on behalf of third parties (for example, value added taxes). For each performance obligation satisfied over time, the Group recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation. If the Group does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time.

Product sales

The Group identified one performance obligation which is to sell products to customers through its websites and other online platforms. Revenues of product sales are recognized on a gross basis and presented as product sales on the consolidated statements of operations, because (i) the Group is primarily responsible for fulfilling the promise to provide the specified products; (ii) the Group bears the physical and general inventory risk once the products are delivered to its warehouses; and (iii) the Group has discretion in establishing price.

The Group established a membership program whereby a registered member earns certain points for visiting one of the Group’s websites. Points could only be redeemed in connection with a future purchase. Such points, when redeemed, were treated as a reduction of revenues at the time of future purchase. Since the points are not earned based a concurrent sales transaction, no accruals are made at the time when points are earned by the registered members.

Prime membership revenue which are included in product sales, are amortized over the membership period on a straight-line basis. Prime is a subscription-based membership program. Items purchased from Prime shop enjoy flat international shipping per checkout.

Product sales, net of discounts, an allowance for sales return and VAT, are recognized at the point in time when customers accept the products upon delivery. Revenues are measured as the amount of consideration the Group expects to receive in exchange for transferring products to consumers. Sales return allowances, which reduce revenues, are estimated utilizing the expected value method based on historical experience of returns. In 2018, the Group allowed customers to return the goods with no quality-related issues within 14 days of receipt of shipment, which was subsequently changed to 7 days in 2019. The Group allows customers to return most goods with quality-related issues within 30 days of receipt of shipment, and to return lamps and faucets with quality-related issues within 12 months. Liabilities for sales return allowances are included in “Accrued expenses and other current liabilities” and were $381 and $586 as of December 31, 2019 and 2020.

The Group utilizes delivery service providers to deliver products to its consumers (“shipping activities”) but the delivery service is not considered as a separate obligation as the shipping activities are performed before the consumers obtain control of the products. Therefore, shipping activities are not considered a separate promised service to the consumers but rather are activities to fulfill the Group's promise to transfer the products. Outbound shipping charges to customers are included as a part of the revenues and outbound shipping-related costs are recorded as cost of product sales. Shipping costs incurred for sales of products and recognized as cost of product sales were $51,731, $36,691 and $74,896 for the years ended December 31, 2018, 2019 and 2020, respectively.

Services and others

The Group derives services revenues mainly from provision of logistic services to small businesses in China and also globally to individual customers and from provision of systems and technical services. Revenues from logistic services are recognized over the delivery period since the customers simultaneously receive and consume benefits provided by the Group’s performance as the Group performs during the delivery period. Revenues from provision of systems and technical services are recognized upon completion of services and provision of systems.

(r) Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when the Group has satisfied its performance obligation and has the unconditional right to payment. For the year ended December 31, 2018, accounts receivable consisted of accounts receivable for logistic services, accounts receivable for cash collected by the delivery service providers on behalf of the Group and accounts receivable for cash collected by supplemental online outlets. For the years ended December 31, 2019 and 2020, accounts receivable included receivables due from B2B partners and cash collected by supplemental online outlets. The Group considers many factors in assessing the collectability of its accounts receivable, such as the age of the amounts due, the customer’s payment history, creditworthiness, financial conditions of the customers and industry trend. As of December 31, 2019 and 2020, the allowance of credit losses was $1,418 and $998, respectively.

The movements in the allowance for credit losses were as follows:


	Year ended December 31,
	2018		2019		2020
Balance at beginning of the year		—		533		1,418
Additions		533		1,251		117
Reversals		—		—		(26)
Write-offs		—		(366)		(511)
Balance at end of the year	$	533	$	1,418	$	998

A contract liability is recognized when the Group has an obligation to transfer goods or services to a customer for which the Group has received consideration from the customer, or for which an amount of consideration is due, from the customer. It is included in advance from customers on the consolidated balance sheets.

Changes in the Group’s contract liabilities are presented in the following table for the years ended December 31, 2019 and 2020:


	For the year ended
	December 31, 2019			December 31, 2020
Contract liabilities as of January 1	$	10,246	$	14,330
Cash received in advance, net of VAT		240,460		418,006
Revenue recognized from opening balance of contract liabilities		(10,246)		(14,330)
Revenue recognized from contract liabilities arising during current year		(226,130)		(392,192)
Contract liabilities as of December 31	$	14,330	$	25,814

The Company has elected the practical expedient not to disclose the information about remaining performance obligations which are part of contracts that have an original expected duration of one year or less.

(s) Cost of revenues

Product sales

Cost of goods sold primarily consists of the purchase price of consumer products sold by the Group on its websites, inbound and outbound shipping charges, packaging supplies and inventory write-downs. Shipping charges to receive products from its suppliers are included in inventory cost and recognized as cost of sales upon sale of products to customers.

Services

Cost of services primarily consists of the shipping charges and cost of packaging supplies directly incurred relating to logistic services. Shipping charges are recognized as cost of revenues over the delivery period when the goods are delivered to destination.

(t) Fulfillment

Fulfillment costs represent those costs incurred in operating and staffing the Group’s fulfillment and customer service centers, including (i) costs attributable to buying, receiving, inspecting, and warehousing inventories, (ii) picking, packaging, and preparing customer orders for shipment, and (iii) payment processing and related transaction costs.

(u) Selling and marketing

Selling and marketing expenses consist primarily of search engine marketing and advertising, affiliate market program expenditures, public relations expenditures; and payroll and related expenses for personnel engaged in selling, marketing and business development. The Group pays to use certain relevant key words relating to its business on major search engines and the fees charged to the Group are on a “cost-per-click” basis. The Group also pays commissions to participants in its affiliate program when customer referrals result in product sales, and the Group classifies such costs as selling and marketing expenses in the consolidated statements of operations. Advertising expense includes fees paid to on-line advertisers who assist the Group to advertise at targeted websites. Such fees are charged at a fixed rate or calculated based on traffic directed to the Group’s website. The advertising expenses for the years ended December 31, 2018, 2019 and 2020 were $43,308, $41,975 and $103,618, respectively.

(v) General and administrative

General and administrative expenses consist of payroll and related expenses for employees involved in general corporate functions such as accounting, finance, tax, legal, and human resources; costs associated with the use by these functions of facilities and equipment, such as depreciation expense and rent; professional fees and other general corporate costs. Also included in general and administrative expenses are payroll and related expenses for employees involved in product research and development, and systems support, as well as server charges and costs associated with telecommunications. The research and development expenses for the years ended December 31, 2018, 2019 and 2020 were $5,694, $17,871 and $15,156, respectively.

General and administrative expenses also include credit losses relating to fraudulent credit card activities which resulted in chargebacks from the payment processing agencies. The Group estimates chargebacks based on historical experience. The estimation of chargebacks is adjusted to the extent that actual chargebacks differ, or are expected to differ. The chargeback expenses for the years ended December 31, 2018, 2019 and 2020 were $2,938, $1,836 and $2,225, respectively.

(w) Government subsidies

Government subsidies primarily consist of financial subsidies received from local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. For the government subsidies with no further conditions to be met, the amounts are recorded as operating income in “Other operating income”, or as a reduction of specific cost or expenses if such subsidies are intended to compensate such amounts. The government subsidies with certain operating conditions are recorded as liabilities when received and will be recorded as “Other operating income” or as a reduction of specific cost or expenses when the conditions are met.

(x) Fair value measurements

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows:

Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3-inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.

(y) Financial instruments and fair value measurements

Financial instruments of the Group primarily consist of cash and cash equivalents, restricted cash, accounts receivable, receivable from payment processing agencies, amounts due from related parties, long-term investments, long-term rental deposits, accounts payable, amounts due to related parties, advance from customers, accrued expenses and other current liabilities and long-term payable.

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, receivable from payment processing agencies, accounts payable, amounts due to related parties, advance from customers and accrued expenses and other current liabilities as of December 31, 2019 and 2020 approximate their fair values due to short-term maturities.

The carrying amount of long-term payable approximates fair value as the related interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities.

Goodwill, long-term investments and long-lived assets are measured at fair value on a nonrecurring basis only when impairment is recognized. The Group estimated the fair value of a reporting unit using the discounted cash flow method under the income approach. The discounted cash flows are based on a five year financial forecasts developed by management for planning purposes. Cash flows beyond the forecasted period were estimated using a terminal value calculation. The fair values of long-lived assets were determined based on various valuation methods, including the replacement cost method, the relief from royalty method and the excess earning method.

The following table present the fair value hierarchy for the assets and liabilities at December 31, 2020:

Fair value measurement

at December 31, 2020 using

Quoted prices in

Significant

Carrying Value at

active markets

observable

unobservable

December 31, 2020

(Level 1)

inputs (Level 2)

inputs (Level 3)

Total gains

Non-recurring fair value measurements for:

Long-term investments

17,297

—

17,297

13,450

For long-term investments which consists of an equity security accounted for under the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investments are re-measured to fair value (Note 9). The non-recurring fair value measurements for this investment requires management to estimate a price adjustment for the different rights and obligations between a similar instrument of the same issuer with an observable price change in an orderly transaction and the investment held by the Group. These non-recurring fair value measurements were measured as of the observable transaction dates. The Company uses valuation methodologies including the back-solve method and an equity allocation model which requires management to use the observable transaction price at the transaction date and other unobservable inputs (level 3) such as expected volatility, discount for lack of marketability and probability of exit events as it relates to an initial public offering, liquidation and redemption preferences.

(z) Foreign currency translation

The Company’s functional currency is the U.S. dollar (“US$”). The Company’s subsidiaries, VIEs and its VIEs’ subsidiary determine their functional currencies based on the criteria of ASC topic 830, Foreign Currency Matters.

Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations.

The Group’s entities with functional currency of Renminbi (“RMB”), Euro (“EUR”), Singapore Dollar (“SGD”), Malaysian Ringgit (“RM”), Thailand Baht (“THB”) and Indonesian Rupiah (“IDR”), translate their operating results and financial position into the US$, the Group’s reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive loss.

(aa) Income taxes

Income taxes are provided using the asset and liability method. Under this method, deferred income taxes are recognized for tax credits and net operating losses available for carry forwards and significant temporary differences. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities.

The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2018, 2019 or 2020, respectively.

The Company applies the provisions of ASC Topic 740, Income Taxes (“ASC 740”), in accounting for uncertainty in income taxes. ASC 740 clarifies the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the financial statements. The Company has elected to classify interest and penalties related to an uncertain tax position, if and when required as part of income tax expense in the consolidated statements of comprehensive (loss) / income.

(bb) Comprehensive (loss) / income

Comprehensive (loss) / income includes net (loss) / income and foreign currency translation adjustments and is reported in the consolidated statements of comprehensive (loss) / income.

(cc) Share-based compensation

Share-based payment transactions with employees, such as share options are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expense using the straight-line method for all employee equity awards granted with service conditions and graded vesting provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the options that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of share-based compensation expense to be recognized in future periods.

Changes in the terms or conditions of share options are accounted as a modification under which the Group calculate whether there is any excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested options, the Group recognizes incremental compensation cost in the period of the modification occurred and for unvested options, the Group recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date.

(dd) Leases

On January 1, 2019, the Group adopted Accounting Standards Update (“ASU”) No. 2016-02 (“ASU 2016-02”), Leases (Topic 842), using the modified retrospective transition method and elected the transition option to use an effective date of January 1, 2019 as the date of initial application. As a result, the comparative periods were not restated.

The Group has elected the package of practical expedients permitted which allows the Group not to reassess the following at adoption date: (i) whether any expired or existing contracts are or contains a lease, (ii) the lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases (i.e. whether those costs qualify for capitalization under ASU 2016-02). The Group also elected the short-term lease exemption for certain classes of underlying assets including office space, warehouses and server rental, with lease term of 12 months or less. For lease arrangement with lease and non-lease components, the Group made the policy election to combine the lease and non-lease components as one-single component under Topic 842.

The Group’s accounting policy effective on the adoption date of ASU 2016-02 is as follows:

Leases are classified at the inception date as either a finance lease or an operating lease.

The Group classifies a lease as a finance lease when the lease meets any one of the following criteria at lease commencement:

a. The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.

b. The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.

c. The lease term is for a major part of the remaining economic life of the underlying asset.

d. The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset.

e. The underlying asset is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term.

For both operating and financing leases, the Group records a lease liability and corresponding right-of-use (ROU) asset at lease commencement. Lease terms are based on the non-cancellable term of the lease and may contain options to extend the lease when it is reasonably certain that the Group will exercise the option. Lease liabilities represent the present value of the lease payments not yet paid, discounted using the discount rate for the lease at lease commencement.

The Group estimates its incremental borrowing rate for its leases at the commencement date to determine the present value of future lease payments when the implicit rate is not readily determinable in the lease. In estimating its incremental borrowing rate, the Group considers its credit rating and publicly available data of borrowing rates for loans of similar amount, currency and term as the lease.

Operating leases are presented as “Operating lease ROU assets” and “Operating lease liabilities”. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. At lease commencement, operating lease ROU assets represent the right to use underlying assets for their respective lease terms and are recognized at amounts equal to the lease liabilities adjusted for any lease payments made prior to the lease commencement date, less any lease incentives received and any initial direct costs incurred by the Group.

After lease commencement, operating lease liabilities are measured at the present value of the remaining lease payments using the discount rate determined at lease commencement. Operating lease ROU assets are measured at the amount of the lease liabilities and further adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs and impairment of the ROU assets, if any. Operating lease expense is recognized as a single cost on a straight-line basis over the lease term.

Financing lease ROU assets and liabilities are included in “property and equipment, net” , “accrued expenses and other current liabilities” and “longterm payable” on the consolidated balance sheets. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. Financing lease ROU assets are amortized on a straight-line basis from the lease commencement date. After initial measurement, the carrying value of the lease liability is increased to reflect interest at a constant rate and reduced to reflect any lease payments made during the period.

Leases that have a term of 12 months or less at the commencement date (“short-term leases”) are not included in operating lease ROU assets and operating lease liabilities. Lease expense for the short-term leases is recognized on a straight-line basis over the lease term.

(ee) (Loss) / Income per share

Basic (loss) / income per ordinary share is computed by dividing net (loss) / income attributable to ordinary shareholders by weighted average number of ordinary shares outstanding during the period.

Diluted earnings per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares and is calculated by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the year. Ordinary equivalent shares consist of shares issuable upon convertible promissory notes using the if-converted method, and ordinary shares issuable upon the vest of nonvested shares or exercise of outstanding share options (using the treasury stock method). Ordinary equivalent shares are calculated based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive.

(ff) Significant risks and uncertainties

The Group participates in an industry with rapid changes in regulations, customer demand and competition and believes that changes in any of the following areas could have a material adverse effect on the Group’s future financial position, results of operations, or cash flows: advances and trends in e-commerce industry; changes in certain supplier and vendor relationships; regulatory or other PRC related factors; and risks associated with the Group’s ability to keep and increase the market coverage.

(gg) Concentration of credit risk

Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash, cash equivalents and restricted cash, accounts receivable, advances to suppliers, receivable from reputable payment processing agencies with high-credit ratings and long-term rental deposits. The Group places its cash and cash equivalents and restricted cash with financial institutions and third-party payment processing agencies located in the PRC, Hong Kong, United States, Netherland, Singapore, Malaysia, Thailand and Indonesia. In the event of bankruptcy of one of these financial institutions and third-party payment processing agencies, the Group may not be able to claim its cash and demand deposits back in full. The Group continues to monitor the financial strength of the financial institutions and third-party payment processing agencies. There has been no recent history of default in relation to these financial institutions and third-party payment processing agencies. For the year ended December 31, 2018, accounts receivable primarily comprised amounts receivable from supplemental online outlets and amounts receivable from product delivery service providers. These amounts are collected from customers by the supplemental online outlets and the product delivery service providers. For the years ended December 31, 2019 and 2020, accounts receivable also included receivables due from B2B partners. With respect to advances to product suppliers and long-term rental deposits, the Group performs on-going credit evaluations of the financial condition of its vendors. Receivable from payment processing agencies represented cash that had been received from customers but held by the payment processing agencies in the process of reconciliation and are collected by the Group subsequent to the year end.

(hh) Foreign currency risk

The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Group’s cash and cash equivalents and restricted cash denominated in RMB amounted to $3,952 and $5,032 at December 31, 2019 and 2020, respectively.

(ii) Impact of COVID-19

The Group's operations and performance depend significantly on global and regional economic conditions, and the outbreak of COVID-19 has had a significant negative effect on global and regional economies. Further, the Group's, its suppliers’ and couriers' abilities to offer and to deliver products in an efficient manner may be adversely affected by the health impacts, travel restrictions, required social distancing, and other governmental mandates due to COVID-19, which could negatively impact the Group's customer experience and cause the Group's revenues and profitability to decline. Additionally, due to the economic impacts caused by COVID-19, consumer discretionary spending may be adversely affected, which may cause demand for the Group's products available on its websites to be reduced and the Group's revenues to decline.

There are still uncertainties of COVID-19's future impact, and the extent of the impact will depend on a number of factors, including the duration of the pandemic, changes to consumer ecommerce activity in response to evolving governmental mandates that impact brick-and-mortar stores such as business closures or other governmental or business disruptions, global unemployment rates, the development and distribution of vaccines. As a result, certain of the Group's estimates and assumptions, including the allowance for credit losses, the valuation of long-lived assets and goodwill subject to impairment assessments, require significant judgments and carry a higher degree of variabilities and volatilities that could result in material changes to the Group's current estimates in future periods.

(jj) Recent accounting pronouncements not yet adopted

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB’s overall initiative to reduce complexity in accounting standards. The amendments include removal of certain exceptions to the general principles of ASC 740, Income taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The update is effective in fiscal years beginning after December 15, 2020, and interim periods therein, and early adoption is permitted. Certain amendments in this update should be applied retrospectively or modified retrospectively, all other amendments should be applied prospectively. The Group is evaluating the effect that adoption of this guidance will have on its consolidated financial statements and related disclosures.

ACQUISITION

12 Months Ended

Dec. 31, 2020

ACQUISITION

ACQUISITION

3. ACQUISITION

On November 8, 2018, the Company entered into a Share Purchase Agreement (“SPA”) with Ezbuy and the original shareholders of Ezbuy to acquire 100% of the issued share capital (voting equity interest) of Ezbuy by issuing convertible promissory notes. Before the acquisition, 80% equity interest of three subsidiaries of Ezbuy was owned by the original shareholders and 20% by a third party.

The Company completed the acquisition on December 10, 2018 (the “acquisition date”). The purchase consideration was $29,131, which was deemed to be the fair value of the convertible promissory notes as of the acquisition date.

The transaction was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. The results of Ezbuy’s operations have been included in the Group’s consolidated financial statements since December 11, 2018. For the year ended December 31, 2018, revenues and net income from Ezbuy included in the Group’s consolidated financial statements were $6,785 and $365, respectively.

The following table presents the amounts recognized for assets acquired and liabilities assumed for Ezbuy as of the acquisition date. The non-controlling interests represents the fair value of the 20% equity interest of the three subsidiaries of Ezbuy, which is not held by Ezbuy:


	As of December 10, 2018
Cash and cash equivalents	$	3,683
Accounts receivable		35
Inventories		4,694
Prepaid expenses and other current assets		1,418
Property and equipment, net		2,982
Intangible assets, net		9,895
Long-term rental deposits		400
Accounts payable		(6,601)
Advance from customers		(9,734)
Accrued expenses and other current liabilities		(3,954)
Long-term payable		(1,170)
Fair value of non-controlling interest		4
Goodwill		27,479
Total purchase consideration	$	29,131

The intangible assets consist of technology, branding and in-progress orders. The fair values of technology of $2,891, branding of $6,813 and in-progress orders of $191 are amortized over 5 years, 10 years and 0.1 year, respectively on a straight line basis.

The Group engaged a third-party valuation firm to assist with the valuation of assets acquired, liabilities assumed and convertible promissory notes issued in this business combination. The goodwill resulting from the acquisition primarily attributed to the synergies and economic scale anticipated to be achieved from combining the operations of the Company and Ezbuy, and the assigned assembled workforce. None of the goodwill is expected to be deductible for income tax purpose.

For the purpose of impairment testing, goodwill is allocated to the product sales reporting unit that is expected to benefit from the combination. The Company performed the qualitative assessment as of December 31, 2020 having evaluated all relevant factors including, but not limited to, macroeconomic conditions, industry and market conditions, financial performance, and the share price of the Company. The Company weighed all factors in their entirety and concluded that it was not more-likely-than-not the fair value of the reporting unit was less than its carrying amount, thus further impairment testing on goodwill was unnecessary.

The following unaudited pro forma consolidated financial information for the year ended December 31, 2018 are presented as if the acquisition had been consummated on January 1, 2018 after giving effect to purchase accounting adjustments.

Unaudited pro forma consolidated statements of comprehensive loss for the year ended December 31, 2018:


	Pro Forma - Unaudited
		Year Ended December 31, 2018
Revenues	$	337,695
Net loss	$	70,884

The unaudited pro forma consolidated financial information was prepared in accordance with existing standards and is not necessarily indicative of the results of operations that would have occurred if the acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Group.

The unaudited pro forma results do not reflect events that either have occurred or may occur after the acquisition, including, but not limited to, the anticipated realization of ongoing savings from operating synergies in subsequent periods. They also do not give effect to certain charges that the Company incurred in connection with the acquisition, including, but not limited to, additional professional fees, employee integration, retention and severance costs, potential asset impairments, or product rationalization charges.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2020

PREPAID EXPENSES AND OTHER CURRENT ASSETS

PREPAID EXPENSES AND OTHER CURRENT ASSETS

4. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Components of other current assets which are included in the prepaid expenses and other current assets are as follows:


	As of December 31,
	2019		2020

Receivable from payment processing agencies (1)	$	217	$	185
Prepayment to suppliers		967		2,902
Rental deposits and prepaid rents		680		386
Deferred expenses		350		622
Others		1,405		1,081
Total	$	3,619	$	5,176

(1)

Receivables from payment processing agencies represented cash that had been received from customers but held by the payment processing agencies in the process of reconciliation as of December 31, 2019 and 2020. The receivables were collected by the Group subsequent to the respective year end.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2020

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

5. PROPERTY AND EQUIPMENT, NET

The components of property and equipment are as follows:


	As of December 31,
	2019		2020

Leasehold improvements	$	3,684	$	1,119
Furniture, fixtures and office equipment		2,739		3,055
IT equipment		2,438		2,450
Vehicles		1,698		1,889
Property and equipment, gross		10,559		8,513
Less: Accumulated depreciation		(7,057)		(4,701)
Property and equipment, net	$	3,502	$	3,812

Depreciation expenses incurred for the years ended December 31, 2018, 2019 and 2020 are $572, $1,254 and $1,040, respectively.

GOODWILL

12 Months Ended

Dec. 31, 2020

GOODWILL

GOODWILL

6. GOODWILL

On December 10, 2018, the Group acquired Ezbuy and the acquired assets were recorded at fair value at the date of acquisition, including goodwill of $27,479. See Note 3 for details of the acquisition of Ezbuy.

All goodwill are allocated to the product sales segment.

The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2020, are as follows:


	Ador Inc		Ezbuy		Total
Balance at January 1, 2019
Goodwill	$	690	$	27,479	$	28,169
Accumulated impairment loss		—		—		—
	$	690	$	27,479	$	28,169
Effect of exchange rate changes on goodwill		—		(247)		(247)
Impairment loss		—		—		—
Balance at December 31, 2019
Goodwill	$	690	$	27,232	$	27,922
Accumulated impairment loss		—		—		—
	$	690	$	27,232	$	27,922
Effect of exchange rate changes on goodwill		—		1,823		1,823
Impairment loss		—		—		—
Balance at December 31, 2020
Goodwill	$	690	$	29,055	$	29,745
Accumulated impairment loss		—		—		—
	$	690	$	29,055	$	29,745

INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2020

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET

7. INTANGIBLE ASSETS, NET

The carry amounts of intangible assets, as of December 31, 2019 and 2020, consists of the below:


	December 31, 2019								December 31, 2020
	Gross				Accumulated		Net		Gross				Accumulated		Net
	carrying		Accumulated		impairment		carrying		carrying		Accumulated		impairment		carrying
	amount		amortization		loss		amount		amount		amortization		loss		amount
Intangible assets not subject to amortization:
Trademark/domain name	$	1,220	$	—	$	(1,010)	$	210	$	1,220	$	—	$	(1,010)	$	210

Intangible assets subject to amortization:
- Technology platform		90		(90)		—		—		90		(90)		—		—
- Non-compete agreement		9		(7)		(2)		—		9		(7)		(2)		—
- Customer base		32		(22)		(10)		—		32		(22)		(10)		—
- Technology		2,915		(660)		—		2,255		3,108		(1,316)		—		1,792
- Branding		6,786		(735)		—		6,051		7,240		(1,508)		—		5,732
- In-progress orders		190		(190)		—		—		203		(203)		—		—
- Members		20		(20)		—		—		20		(20)		—		—
- Internal use software		—		—		—		—		1,821		(139)		—		1,682
	$	11,262	$	(1,724)	$	(1,022)	$	8,516	$	13,743	$	(3,305)	$	(1,022)	$	9,416

The total amortization expenses incurred for the years ended December 31, 2018, 2019 and 2020 were $298, $1,264 and $ 1,403, respectively. The amortization expenses of acquired intangible assets were $298, $1,264 and $1,265 for the years ended December 31, 2018, 2019 and 2020, respectively.

The estimated amortization expense for intangible assets in each of the next five years are $1,660, $1,660, $1,473, $684, and $684 respectively.

LEASES

12 Months Ended

Dec. 31, 2020

LEASES

LEASES

8. LEASES

The Group has operating leases for office space, warehouses and servers and finance leases for vehicles as a lessee.

The Group’s lease agreements include lease payments that are fixed, do not contain material residual value guarantees or variable lease payments. The leases have terms ranging from one to five years. Certain lease agreements include terms with options to extend the lease, however none of these have been recognized in the Company’s operating lease ROU assets or operating lease liabilities since those options were not reasonably certain to be exercised. The Group’s leases do not contain restrictions or covenants that restrict the Group from incurring other financial obligations. The Group’s lease agreements may contain lease and non-lease components. Non-lease components primarily include payments for maintenance.

The components of lease costs were as follows:


	For the year ended December 31, 2019	For the year ended December 31, 2020
Operating lease costs	4,956	4,846
Short-term lease costs	2,189	488
Financing lease costs:
Amortization of ROU assets	247	152
Interests	66	92
Total lease costs	7,458	5,578


Other information	For the year ended December 31, 2019		For the year ended December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	4,526		5,118
Operating cash flows from financing leases	290		991
Financing cash flows from financing leases	66		92
ROU assets obtained in exchange for new operating lease liabilities	10,060		10,261
ROU obtained in exchange for new finance lease liabilities	—		—
Weighted-average remaining lease term (in years):
Operating leases	6.45		3.47
Financing leases	3.65		3.72
Weighted-average discount rate:
Operating leases	5.03	%	4.92	%
Financing leases	5.44	%	5.70	%

Total expenses under operating leases were $5,258 for the year ended December 31, 2018. Assets under capital leases had a total cost and accumulated depreciation of approximately $1,760 and $14 as of December 31, 2018, respectively, are amortized over the estimated lives of the assets. Amortization of assets under capital leases is included in depreciation expense. The effective interest rates of the capital leases outstanding as of December 31,2018 vary from 4.30% to 7.40% per annum and are imputed based on the lessor’s implicit rate of return.

For the year ended December 31, 2019, total costs on operating lease and short-term lease of $3,995, $807, and $2,343 were recorded in fulfillment, selling and marketing, and general and administrative, respectively.

For the year ended December 31, 2020, total costs on operating lease and short-term lease of $2,893, $705, and $1,736 were recorded in fulfillment, selling and marketing, and general and administrative, respectively.

Future minimum lease payments for operating and financing leases as of December 31, 2020 are as follows:


	Operating Leases	Finance Leases
2021	4,772	49
2022	3,474	49
2023	2,296	49
2024	1,923	35
2025	1,072	—
Total minimum lease payments	13,537	182
Less: Imputed interest	(1,150)	(17)
Total lease liability balance	12,387	165

Minimum payments related to leases not yet commenced as of December 31,2020	—	—

LONG-TERM INVESTMENT	12 Months Ended
LONG-TERM INVESTMENT	Dec. 31, 2020
LONG-TERM INVESTMENT
LONG-TERM INVESTMENT	9. LONG-TERM INVESTMENTS Equity method investment In 2015, the Group acquired a 30% equity interest of Shantou Demon Network Technology Co., Ltd. (“Demon”), for $2,100 cash consideration. Demon owns an online website specialized in cross-border packages tracking. The Group has significant influence but does not have control over Demon. Accordingly, the Group recorded it as an equity method investment. For the years ended December 31, 2018 and 2019, the Group recorded its share of income of $221 and $124 in the consolidated statement of operations, respectively. On June 21, 2019, the Group transferred the 30% equity interest in Demon for proceeds of $4,223 to Wuhan Zall Interconnected Technologies Co., Ltd, a subsidiary of Zall Development (HK) Holding Company Limited, a principal shareholder of the Company (Note 20). The Group recorded a gain of $1,994 upon the disposal for the year ended December 31, 2019. Equity investments without readily determinable fair value In 2017, the Group entered into an agreement with Maikailai Technologies Co., Ltd (“Maikailai”) to acquire 10.53% equity interest of Maikailai for a total cash consideration of $2,950. The Group does not have significant influence over Maikailai. In accordance with ASU 2016-01, as readily determinable fair value is not available for Maikailai, the Company elected to use the measurement alternative to measure such investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. As of December 31, 2019 and 2020, the carrying amount of the Group’s equity investments in Maikailai was $2,873 and $17,297, net of $ nil and $ nil in accumulated impairment and downward adjustments, respectively. During the year ended December 31, 2020, the equity investment in Maikaikai were remeasured based on observable price changes in orderly transactions for an identical or similar investment of the same issuer with the assistance of third-party experts. Unrealized gains (upward adjustments) for the years ended December 31, 2018, 2019 and 2020 were $ nil and $ nil, $13,450, respectively. Unrealized losses (downward adjustments and impairment) for the years ended December 31, 2018, 2019 and 2020 were $ nil, $ nil, $ nil, respectively. As of December 31, 2019 and 2020, cumulative upward adjustments for equity securities held were $ nil and $13,450, respectively. Net unrealized gains and losses for equity securities held were $ nil, $ nil and $13,450 for the years ended December 31, 2018, 2019 and 2020. Net realized gains and losses on equity securities sold were $ nil, $ nil, and $ nil for the years ended December 31, 2018, 2019 and 2020, respectively.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2020

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	As of December 31,
	2019		2020

Accrued payroll and staff welfare	$	10,986	$	9,018
Individual income tax withheld		473		437
VAT and other taxes payable		2,484		7,586
Accrued professional fees		1,209		1,806
Accrued advertising fees		9,525		19,798
Credit card processing charges		323		429
Accrued sales return (1)		381		586
Current portion of finance lease liabilities		308		41
Others (2)		2,953		2,482
Total	$	28,642	$	42,183

(1)

Accrued sales return represents the estimated sales return at the end of each of the respective years. Movements during the respective years are as follows:

(2)

Others mainly include deposits from vendors and accrued utilities.


	Year ended December 31,
	2019		2020
Balance at January 1	$	1,336	$	381
Allowance for sales return accrued in the year		3,546		6,222
Utilization of accrued sales return allowance		(4,501)		(6,017)
Balance at December 31	$	381	$	586

Convertible promissory notes

12 Months Ended

Dec. 31, 2020

Convertible promissory notes

Convertible promissory notes

11. Convertible promissory notes

On December 10, 2018, the Company issued convertible promissory notes (the “Note”) to the original shareholders of Ezbuy (“Seller”) for business acquisition (Note 3). The aggregate par value of the convertible promissory notes is $85.55 million with zero interest rate and due in 365 days after the acquisition date (the “Conversion Period”).

Convertible promissory notes are to be converted as follows:

If prior to the end of the Conversion Period the trading average price per the Company’s American Depository Shares (“ADSs”) has been at or above US$3.85 during three consecutive days of trading, the Note shall be automatically converted into an aggregate of 22,220,779 ADSs of the Company; or

ii.

If the automatic issuance under (i) has not been triggered within the Conversion Period, the purchase price shall be payable in the amount equal to: (a) an aggregate of 22,220,779 ADSs by the way of the automatic issuance to each seller, and (ii) the difference between (x) US$85.55 million and (y) the product of 22,220,779 and the average of the ten highest closing prices of the trading days during the Conversion Period (the “Average High Closing Price”). However, the Average High Closing Price shall not be higher than US$3.85. By way of cash or new ADSs, or a combination, is determined by the Company’s Board of Directors. If by way of new ADSs calculated on the basis of the Average High Closing Price, the number of new ADSs compensated shall not exceed 22,220,779.

In particular, if the Average High Closing Price is not lower than US$3.85, the above mentioned (ii) will be applied. However, if the Average High Closing Price is lower than US$3.85, the number of new ADSs compensated shall be 44,441,558 ADSs.

As a result of the foregoing, the ADSs that may be issuable is no less than 22,220,779 ADSs and up to 44,441,558 ADSs.

Based on the features above, the Group classified the convertible promissory notes as a financial liability and elected to account for the financial instrument at fair value through profit or loss.

The Company adopted the Monte-Carlo Simulation based on a scenario-weighted average method to estimate the fair value of the convertible promissory notes as of the acquisition date and December 31, 2018. The estimate is based on the probability of each scenario and pay-off of the convertible promissory notes under each scenario. The scenarios include different timing and corresponding conversion price of the convertible promissory notes. The key assumptions adopted in the convertible promissory notes valuation at its initial measurement date and December 31, 2018 includes risk-free interest rate and expected stock price volatility in the conversion period.

The table below reflects the components effecting the change in fair value for the years ended December 31, 2018 and 2019:


	Year ended December 31, 2018		Year ended December 31, 2019
Balance at January 1	$	—	$	51,922
Issuance		29,131		—
Change in fair value		22,791		(14,591)
Conversion to ordinary shares		—		(21,562)
Forward contracts		—		(15,769)
Balance at December 31	$	51,922	$	—

Upon the maturity of the Conversion Period, the convertible promissory notes were fully allocated to Ezbuy’s shareholders, including 13,154,284 ordinary shares and 19,091,837 ADSs (representing 38,183,674 ordinary shares) that were issued on December 11, 2019 and 37,545,158 of ordinary shares were subsequently issued in January and March 2020, which were accounted for as Forward Contracts as of December 31, 2019 since the Company has committed to issue these shares before the year ended December 31, 2019. With the issuance of shares in 2020, Forward Contracts were transferred to ordinary shares of $3 and Additional Paid-in Capital of $15,766.

ORDINARY SHARES	12 Months Ended
ORDINARY SHARES	Dec. 31, 2020
ORDINARY SHARES
ORDINARY SHARES	12. ORDINARY SHARES On June 8, 2016, the Company announced that the implementation of a share repurchase program of up to $10 million worth of its outstanding ADSs representing its ordinary shares from June 15, 2016 through June 14, 2017. Our board of directors subsequently extended the existing share repurchase program for an additional twelve-month period, to June 14, 2018. Pursuant to the share repurchase plan, the Company repurchased 6,762,905 ADSs as of December 31, 2018, representing 13,525,810 ordinary shares with a total consideration of approximately $27,261. On December 23, 2019, the Company announced the implementation and the execution of a share repurchase program of up to US$3 million of our ordinary shares in the form of American Depositary Shares through June 28, 2020, and further extended to July 28, 2020. Pursuant to the share repurchase plan, the Company repurchased 242,990 ADSs and 2,461,599 ADSs during the year ended December 31, 2019 and 2020, representing 485,980 ordinary shares and 4,923,198 ordinary shares with a total consideration of approximately $251 and $2,695. The shares repurchased by the Company had not been retired or canceled and were accounted for at cost as treasury stock. In connection with the issuance of ordinary shares, the Group also granted a warrant to the investor to purchase up to 7,455,000 ordinary shares (equivalent to 3,727,500 ADS) at exercise price of $2.75 per ordinary share. The warrant is exercisable starting from September 30, 2016 and was terminated on March 30, 2018 without being exercised. The Group accounts for the warrant under the authoritative guidance in accounting for derivative financial instruments indexed to and potentially settled in, a company’s own stock and has determined the warrant should be classified as equity in its consolidated financial statements at fair value at the date of grant. No subsequent charges in fair value were recognized. The Group used the Black-Scholes pricing model to value the warrant and determined the fair value of the warrant at the date of the grant is immaterial. On December 11, 2019, the Company issued 13,154,284 ordinary shares and 19,091,837 ADSs (representing 38,183,674 ordinary shares) upon the maturity of the convertible promissory notes issued to certain of Ezbuy’s shareholders. In January and March 2020, the Company issued 37,545,158 ordinary shares to the rest of Ezbuy’s sharehoders (Note 11).

SHARE OPTIONS

12 Months Ended

Dec. 31, 2020

SHARE OPTIONS

SHARE OPTIONS

13. SHARE OPTIONS

In 2018, the Company adopted the 2008 Share Incentive Option Plan (“2008 Plan”) for the granting of share options to employees to reward them for services provided to the Company and to provide incentives for future services. Pursuant to the 2008 Plan, total shares that the 2008 Plan was authorized to grant were 4,444,444 shares. In May 2014, the Company authorized the issuance of an additional 6,900,000 ordinary shares to the 2008 Plan to support the Company’s business expansion and recruiting plans. The majority of the options will vest over four years where 25% of the options will vest at the end of the first year after the grant date through the fourth year. The share options expire 10 years from the date of grant.

In 2019, the Company adopted the 2019 Share Incentive Plan (“2019 Plan”). The 2019 Plan is intended to promote our success and to increase shareholder value by providing an additional means to attract, motivate, retain and reward selected directors, officers, employees and other eligible persons. Pursuant to the 2019 Plan, total shares that the 2019 Plan was authorized to grant were 2,867,382 ordinary shares.

The 2008 plan and 2019 plan are collectively referred to as the Plans.

In 2018, the Company granted 44,000 share options under the 2008 Plan to employees at exercise prices ranged from $0.33 to $1.92 per share. These share options vest over a period of four years.

In 2019, the Company didn’t grant share options.

In 2020, the Company granted 3,000,000 share options under the Plans to certain officers and employees at exercise prices of $0.40 per share. These share options vest immediately.

The fair value of each option granted was estimated on the date of grant using a binomial option pricing model with the following assumptions during the applicable periods:


	Year ended December 31,
	2018			2019		2020
Risk-free interest rate per annum		2.90-3.20	%		—		0.12	%
Exercise multiple		2.2			—		2.8
Expected volatility		66.4-69.5	%		—		91.3	%
Expected dividend yield		0	%		—		0	%
Fair value of ordinary shares	$	0.44-1.04		$	—	$	0.935
Expected terms (in years)		10			—		1

(1)

Risk-free interest rates

Risk-free interest rates were estimated based on the yield to maturity of China international government bonds and US treasury bonds with a maturity period close to the contractual term of the options for the years ended December 31, 2018 and 2020, respectively.

(2)

Exercise multiple

Exercise multiple represents the value of the underlying share as a multiple of exercise price of the option which, if achieved, results in exercise of the option.

(3)

Volatility

The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of the Company’s publicly traded stock.

(4)

Dividend yield

The dividend yield was estimated by the Group based on its expected dividend policy over the contractual term of the options.

(5)

Fair value of underlying ordinary shares

The fair value of the underlying ordinary shares is determined based on the closing market price of the ADS of the Company as of the grant date.

A summary of the share option activities under the Plans as of December 31, 2020, and changes during the year then ended is presented below:


		Weighted average
		exercise price
	Options granted	per option

Outstanding at January 1, 2020	204,700	$	2.39
Granted	3,000,000	$	0.40
Exercised	—	$	—
Forfeited	(136,600)	$	2.31
Outstanding at December 31, 2020	3,068,100	$	0.45

The following table summarizes information regarding the share options granted under the Plans as of December 31, 2020:


	As of December 31, 2020
				Weighted-
		Weighted-		average remaining	Weighted-
		average exercise		contractual	Average
	Options Number	price per option		life (years)	intrinsic value

Options
Outstanding	3,068,100	$	0.45	0.82	$	0.85
Exercisable	3,068,100	$	0.45	0.82	$	0.85
Expected to vest	—	$	—	—	$	—

The total intrinsic value of options exercised during the years ended December 31, 2018, 2019 and 2020 were $270, $539, and nil, respectively.

The weighted average grant date fair value of options granted during the years ended December 31, 2018, 2019 and 2020 was $0.50, nil and $0.56, respectively.

The total fair value of the equity awards vested during the years ended December 31, 2019 and 2020 were $9 and $1,688, respectively.

For the years ended December 31, 2018, 2019 and 2020, the Group recorded share-based compensation expense of $21, $66 and $1,689 related to the options under the Plans, respectively. As of December 31, 2020, there was no unrecognized compensation cost related to the options.

NONVESTED SHARES

12 Months Ended

Dec. 31, 2020

NONVESTED SHARES

NONVESTED SHARES

14. NONVESTED SHARES

In 2018, the Company granted 244,000 nonvested to certain officers and employees. These nonvested shares vest over a period of four years.

In 2019, the Company granted 1,829,000 nonvested to certain officers and employees. The nonvested shares of 280,000 vest over a period of two years and nonvested shares of 1,549,000 vest immediately.

In 2020, the Company granted 4,601,000 nonvested to certain officers and employees. The nonvested shares of 940,000 vest over a period of two years, nonvested shares of 218,000 vest over a period of one year and nonvested shares of 3,443,000 vest immediately.

The holders of the nonvested shares are entitled to voting rights, but shall not be entitled to dividends before vesting.

The following table summarizes information regarding the nonvested shares granted and vested:


		Weighted average
		grant date
	Number of Shares	fair value

Outstanding at January 1, 2020	460,000	$	5.74
Granted	4,601,000	$	0.47
Forfeited	(199,000)	$	0.56
Vested	(4,202,000)	$	0.45
Outstanding at December 31, 2020	660,000	$	4.21

The total fair value of shares vested during the years ended December 31, 2018, 2019 and 2020 was $379, $972 and $1,911, respectively.

For the years ended December 31, 2018, 2019 and 2020, the Group recorded share-based compensation expenses of $384, $1,995 and $1,917 related to the nonvested shares, respectively. As of December 31, 2020, there was $363 of unrecognized compensation costs related to nonvested shares, which are expected to be recognized over a weighted-average period of 1.28 years.

Total share-based compensation expenses for share options and nonvested shares for the years ended December 31, 2018, 2019 and 2020 were as follows:


	Year ended December 31,
	2018		2019		2020

Fulfillment	$	47	$	238	$	15
Selling and marketing		99		408		82
General and administrative		259		1,414		3,509
Total	$	405	$	2,060	$	3,606

INCOME TAXES

12 Months Ended

Dec. 31, 2020

INCOME TAXES

INCOME TAXES

15. INCOME TAXES

Cayman Islands

The Company and Ezbuy are two tax-exempted companies incorporated in the Cayman Islands and are not subject to tax on income or capital gains.

Hong Kong

Light In The Box, Lanting International Holding Limited (“Lanting International”), LightInTheBox International Logistic Co., Ltd. (“LightInTheBox Logistic”), Light Square Limited (“Light Square”), and Ezbuy HK are located in Hong Kong and subject to Hong Kong profits tax at 16.5% with respect to the profit generated from Hong Kong. It is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. A two-tiered profits tax rates regime was introduced since year 2018 where the first HK$2,000 of assessable profits earned by a company will be taxed at half of the current tax rate (8.25%) whilst the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to nominate only one company in the group to benefit from the progressive rates. The Group did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong for any of the years presented.

PRC

The Company’s subsidiaries and VIEs in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the ‘‘EIT Law’’), which was effective since January 1, 2008 except for the following entities eligible for preferential tax rates.

On December 22, 2016, Lanting Gaochuang obtained the High and New Technology Enterprise (“HNTE”) certificate with a validity term of three years. Lanting Gaochuang reapplied and obtained the HNTE certificate on December 2, 2019 and was eligible to an enterprise income tax rate of 15% from December 31, 2019 through December 31, 2021, provided that it meets the requirements.

For the year ended December 31, 2018, Lanting Huitong was subject to 25% statutory income tax rate in accordance with the Enterprise Income Tax Law (“EIT Law”). In 2019 and 2020, Lanting Huitong was qualified as a small and micro-sized enterprise (“SME”), and therefore was eligible for both the 50% reduction of taxable income and the reduced EIT rate of 20% for the years ended December 31, 2019 and 2020.

Keji Chengdu was qualified as a software enterprise which allows it to utilize a two-year 100% exemption for 2018 and 2019 followed by a three-year half-reduced EIT rate effective for years from 2020 to 2022.

Shenzhen Xuyi was qualified as a SME in 2018, 2019 and 2020, and Chongqing Xuyi qualified as a SME in 2019 and 2020, and therefore were subject to both the 50% reduction of taxable income and the reduced EIT rate of 20% for the respective years. Shanghai Lanting Jishi, Dongguan Herui, and Chongqing Ruizhihe qualified as SMEs in 2020, and therefore subjected to both the 25% reduction of taxable income and the reduced EIT rate of 20% for the year ended December 31, 2020.

Other entities of the Group domiciled in the PRC were subject to 25% statutory income tax rate in accordance with the EIT Law in the periods presented.

Singapore

Ching International service PTE.LTD, D2D Express PTE.LTD, Avant E-Commerce Service PTE.LTD and Avant Logistic Service PTE.LTD are located in Singapore and are subject to 17% statutory income tax rate with respect to the profit generated from Singapore.

The components of (loss) / income before income taxes are as follows:


	Year ended December 31,
	2018		2019		2020

Cayman Islands	$	(24,750)	$	11,403	$	(5,216)
Hong Kong SAR		(36,476)		(7,728)		9,010
PRC, excluding Hong Kong SAR, and other countries		1,436		(2,504)		12,970
Total	$	(59,790)	$	1,171	$	16,764

The income tax expense comprises:


	Year ended December 31,
	2018		2019		2020

Current	$	33	$	113	$	55
Deferred		—		—		3,363
Total	$	33	$	113	$	3,418

For the years ended December 31, 2018, 2019 and 2020, income tax expense included in the consolidated statements of operations were attributable to the Group’s PRC subsidiaries and VIEs and comprised current tax expense of $33, $113 and $55, and deferred tax expense of nil, nil and $3,363 for the years ended December 31, 2018, 2019 and 2020, respectively.

The principal components of the deferred tax assets and liabilities are as follows:


	As of December 31,
	2019		2020

Deferred tax assets:
Allowance for credit losses		—		14
Lease liabilities		—		1,662
Net operating loss carry forwards		33,267		31,312
Gross deferred tax assets		33,267		32,988
Less: Valuation allowance		(31,879)		(29,827)
Total deferred tax assets	$	1,388	$	3,161

Deferred tax liabilities:
Property and equipment, net	$	(18)	$	(319)
Acquired intangible assets		(1,370)		(1,180)
Operating lease ROU assets		—		(1,662)
Other income from equity investment		—		(3,558)
Total deferred tax liabilities	$	(1,388)	$	(6,719)
Net deferred tax assets		—		—
Net deferred tax liabilities		—		(3,558)

As of December 31, 2020, the Group had net operating losses from several of its PRC and overseas entities in the amount of $185,619, which can be carried forward to offset future taxable profits. As per filed tax returns, the net operating loss from PRC entities will expire between 2021 and 2025 and the period was extended to ten years for entities qualified as HNTE in 2019 and thereafter. For the net operating losses from overseas entities, there is no limitation of expiration according to applicable statutes of Hong Kong and Singapore.

The Group operates through its subsidiaries and VIEs and the valuation allowance is considered on each individual subsidiary and VIE basis. After netting off deferred tax liabilities with the same reversal pattern, the Group has recognized a full valuation allowance against deferred tax assets as the Group believes that it is more likely than not that its deferred tax assets will not be realized as it does not expect to generate sufficient taxable income in the near future.

Movement of valuation allowance


	Year ended December 31,
	2019		2020
Balance at beginning of the period	$	26,691	$	31,879
Additions / (Decrease)		5,188		(2,052)
Balance at end of the period	$	31,879	$	29,827

Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes is as follows:


	Year ended December 31,
	2018			2019			2020

(Loss) / Income before provision of income tax	$	(59,790)		$	1,171		$	16,764
Statutory tax rate in the PRC		25	%		25	%		25	%
Income tax at statutory tax rate		(14,948)			293			4,191
Non-deductible expenses		115			10			130
Effect of preferential tax rates		7			(135)			(211)
Effect of income tax rate differences in jurisdictions other than the PRC		9,154			(2,277)			352
Statutory expense		—			(653)			(305)
Deferred tax expense		—			(2,313)			1,313
Changes in valuation allowances		5,705			5,188			(2,052)
Income tax expense	$	33		$	113		$	3,418

As of December 31, 2018, 2019 and 2020, there were no material tax from tax uncertainties on the Company’s financial position.

The Company and its subsidiaries’ major tax jurisdictions are Hong Kong, PRC, and Singapore. Income tax returns of the Company and its subsidiaries remain open and subject to examination by the local tax authorities of Hong Kong, PRC and Singapore until the statute of limitations expire in each corresponding jurisdiction. The statute of limitations in Hong Kong, PRC and Singapore are six years, five years and five years, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

(LOSS) / INCOME PER SHARE

12 Months Ended

Dec. 31, 2020

(LOSS) / INCOME PER SHARE

(LOSS) / INCOME PER SHARE

16. (LOSS) / INCOME PER SHARE

The following table sets forth the computation of basic and diluted net (loss) / income per ordinary share for the following years:


	Year ended December 31,
	2018		2019		2020

Numerator:
Net (loss) / income attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd.	$	(59,602)	$	999	$	13,317
Net: Change in fair value of convertible promissory notes		—		14,591		—
Denominator:
Weighted average number of shares used in calculating net (loss) / income per ordinary share —basic	$	134,495,549	$	137,588,401	$	220,419,544
Weighted average number of shares used in calculating net (loss) / income per ordinary share —diluted	$	134,495,549	$	223,517,833	$	225,904,549
Net (loss) / income per ordinary share- basic	$	(0.44)	$	0.01	$	0.06
Net (loss) / income per ordinary share- diluted	$	(0.44)	$	(0.06)	$	0.06

As a result of the Group’s net loss for the years ended December 31, 2018, outstanding all options, nonvested shares and convertible promissory notes, were excluded from the computation of diluted net loss per share as their inclusion would have been anti-dilutive. For the year ended December 31, 2019, certain outstanding options and nonvested shares were excluded from the computation of diluted net loss per share as their inclusion would have been anti-dilutive. For the year ended December 31, 2020, certain outstanding options and nonvested shares were excluded from the computation of diluted net income per share as their inclusion would have been anti-dilutive.

EMPLOYEE BENEFIT PLANS	12 Months Ended
EMPLOYEE BENEFIT PLANS	Dec. 31, 2020
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	17. EMPLOYEE BENEFIT PLANS Full time employees in the PRC, Singapore and Malaysia participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The PRC labor regulations require the Group to make contributions based on certain percentages of the employees’ basic salaries. Other than the contribution, there is no further obligation under these plans. The total contribution for such employee benefits was $5,358, $6,774 and $3,147 for the years ended December 31, 2018, 2019 and 2020, respectively.

- Definition

The entire disclosure for retirement benefits.

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+ Details

STATUTORY RESERVES AND RESTRICTED NET ASSETS	12 Months Ended
STATUTORY RESERVES AND RESTRICTED NET ASSETS	Dec. 31, 2020
STATUTORY RESERVES AND RESTRICTED NET ASSETS
STATUTORY RESERVES AND RESTRICTED NET ASSETS	18. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the group is required to provide for certain statutory reserves, namely general reserve, enterprise expansion reserve, and staff welfare and bonus reserve, all of which are appropriated from net profit as reported in their PRC statutory accounts. The Group’s subsidiaries are required to allocate at least 10% of their after-tax profits to the general reserve until such reserve has reached 50% of their respective registered capital. Appropriations to the enterprise expansion reserve and the staff welfare and bonus reserve are to be made at the discretion of the board of directors of each of the Group’s subsidiaries. There are no appropriations to these reserves by the Group’s PRC (mainland) subsidiaries for the years ended December 31, 2018, 2019 and 2020. As a result of these PRC laws and regulations and the requirement that distributions by the PRC entities can only be paid out of distributable profits computed in accordance with the PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid-in capital and the statutory reserves of the Company’s PRC subsidiaries and VIEs. As of December 31, 2020, the amounts of capital represented the amount of net assets of the relevant subsidiaries and VIEs in the Group not available for distribution amounted to $5,362.

SEGMENT REPORTING

12 Months Ended

Dec. 31, 2020

SEGMENT REPORTING

SEGMENT REPORTING

19. SEGMENT REPORTING

The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. The Group uses the management approach to determine the operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker for making decisions, allocating resources and assessing the performance.

Prior to 2016, the Group’s operations were organized into one operating segment. In 2016, following the further expansion in service business and revenue generated from services beginning to account for a material portion of the total revenue, the Group operated and reviewed its performance in two segments: (i) Product sales which consisted of online retailing of consumer products, and (ii) Services which consisted of provision of services such as technical services and logistic services to other e-commerce retailers. Furthermore, the Group’s chief operating decision maker evaluates performance based on each reporting segment’s revenues, costs and gross profit and is not provided with asset information by segment.

There were no separate segment assets and segment liabilities information provided to the Group's Chief Executive Officer, as he does not use this information to allocate resources to or evaluate the performance of the segments.

The following table presents selected financial information relating to the Group’s segments:


	Year ended December 31, 2020
	Product sales		Services		Consolidated

Revenues	$	382,075	$	16,076	$	398,151
Cost of revenues		211,430		10,567		221,997
Gross profit		170,645		5,509		176,154
Unallocated operating expenses						172,299
Income from operations						3,855
Interest income						103
Interest expense						(92)
Other income, net						12,898
Income before income taxes					$	16,764


	Year ended December 31, 2019
	Product sales		Services		Consolidated

Revenues	$	236,705	$	6,921	$	243,626
Cost of revenues		144,061		1,968		146,029
Gross profit		92,644		4,953		97,597
Unallocated operating expenses						113,649
Loss from operations						(16,052)
Interest income						297
Interest expense						(66)
Change in fair value of convertible promissory notes						14,591
Other income, net						283
Loss before income taxes and share of income and gain from equity method investment					$	(947)


	Year ended December 31, 2018
	Product sales		Services		Consolidated

Revenues	$	216,407	$	11,132	$	227,539
Cost of revenues		156,326		10,017		166,343
Gross profit		60,081		1,115		61,196
Unallocated operating expenses						98,677
Loss from operations						(37,481)
Interest income						487
Interest expense						(5)
Change in fair value of convertible promissory notes						(22,791)
Loss before income taxes and share of income from equity method investment					$	(59,790)


	Year ended December 31,
	2018		2019		2020

Apparel	$	72,871	$	78,954	$	157,943
Other general merchandise (1)		143,536		157,751		224,132
Total product sales revenues	$	216,407	$	236,705	$	382,075

(1)Others mainly include products such as small accessories and gadgets, home garden, electronics and communication devices and others.

The following table summarizes the Group’s total revenues generated in different geographic locations and as a percentage of total revenues.


	Year ended December 31,
	2018			2019			2020
	Revenues		%	Revenues		%	Revenues		%

Europe	$	109,781	48.2	$	87,586	36.0	$	175,749	44.1
North America		51,206	22.5		37,932	15.6		81,203	20.4
Other countries		66,552	29.3		118,108	48.4		141,199	35.5
Total revenues	$	227,539	100.0	$	243,626	100.0	$	398,151	100.0

As of December 31, 2019 and 2020 substantially all of the Group's long-lived assets of the Group are located in the PRC and Singapore.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	20. RELATED PARTY TRANSACTIONS Zall E-commerce and its subsidiary Zall Development (HK) Holding Company Limited (collectively referred to “Zall”) became shareholders of the Company in 2016 and held 24.6% of the outstanding shares of the Company as of December 31, 2020. For the years ended December 31, 2018 and 2019 and 2020, the Group entered into the following contracts with the subsidiaries of Zall: The Group entered into sales contracts with Hankou North Import and Export Service Co., Ltd. ("Hankou North”) to sell cotton products in 2018, which is one of Zall’s subsidiaries. The total transaction amount in 2018 was $325 and all settled as of December 31, 2018. The Group entered into a logistics agency contract with Hankou North in 2018 and the total logistics service fee in 2018, 2019 and 2020 was $4,302, $1,952 and nil, respectively. As of December 31, 2019 and 2020, negative $62 has not been settled. The Group entered into a logistics agency contract with Zall Foreign Trade Service (Hong Kong) Company Limited (“Zall HK”) in 2018, which is one of Zall’s subsidiaries. The total logistic service fee in 2018, 2019 and 2020 was $4,186, $770 and nil, respectively. As of December 31, 2019 and 2020, negative $53 has not been settled. The Group entered into a network marketing technical services contract with Zall HK in 2018. The total advertising fee in 2018, 2019 and 2020 was $7,441, $8,334 and nil, respectively. As of December 31, 2019 and 2020, $220 has not been settled. The Group leased offices on behalf of Jiashi Financial Information Service (Hangzhou) Co., Ltd. ("Jiashi”) since October 1, 2018, which is one of Zall‘s subsidiaries. The total rental fee received from Jiashi was $26 in 2018. The Group signed a share transfer agreement with Wuhan Zall Internet Technology Co., Ltd, a subsidiary of Zall, in 2019. The total purchase price was $4,223 for a 30% equity interest in a long-term investment. As of December 31, 2019 and 2020, $4,223 and $2,820 has not been settled, respectively. See Note 9 for details of the share transfer. The Group entered into a GPS project technical services contract with Hankou North in 2019. The total technical services fee received from Hankou North was $123 in 2019, which was settled in full during 2019. The Group entered into a technical development services contract with Demon Network Technology (Hong Kong) Co., Ltd. (“Demon Hong Kong"), a subsidiary of Zall, in 2019. The total technical services fee received from Demon Hong Kong in 2019 was $749. As of December 31, 2019 and 2020, $315 and nil has not been received, respectively. The Group entered into a website maintenance services contract with Shanghai Zhijie E-Commerce Co., Ltd in 2018. Shanghai Zhijie E-Commerce Co., Ltd is an affiliate of the Group. The total service fee in 2019 and 2020 was $189 and $82, respectively. As of December 31, 2019 and 2020, $19 and nil has not been settled, respectively.

CONTINGENCIES	12 Months Ended
CONTINGENCIES	Dec. 31, 2020
CONTINGENCIES
CONTINGENCIES	21. CONTINGENCIES Prior to 2020, the Group’s PRC subsidiaries and VIEs, have not fully paid the contributions for employee benefit plans as required by applicable PRC regulations. While the Group believes it has made adequate provision of such outstanding amounts in the consolidated financial statements, prior failure to make payments may be in violation of applicable PRC labor-related laws and the Group may be subject to $5,330 as of December 31, 2020, and there had been no actions initiated by the relevant authorities. The Group is unable to reasonably estimate the actual amount of fines and penalties that may rise if the authorities were to become aware of the non-compliance and were to take action. The Group’s PRC subsidiaries and VIEs did not withhold appropriate amount of individual income tax prior to its IPO as required by applicable PRC tax laws. While the Group believes it has made adequate provision of such outstanding amounts in the consolidated financial statements, and in March 2013, the accrued amounts were substantially paid by the Group on a voluntary basis to the relevant tax authority, the Group may still be subject to future fines or levies for such non-compliance. As of December 31, 2020, there had been no actions initiated by the relevant authorities. The Group is unable to reasonably estimate the actual amount of fines or levies that may rise if the authorities were to take action. The Group is subject to periodic legal or administrative proceedings in the ordinary course of business. The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material effect on its business or financial condition.

PARENT ONLY INFORMATION

12 Months Ended

Dec. 31, 2020

PARENT ONLY INFORMATION

PARENT ONLY INFORMATION

22. PARENT ONLY INFORMATION

Basis of presentation

Condensed financial information is used for the presentation of the Company, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the parent company used the equity method to account for its investment in its subsidiaries and VIEs.

Investments in subsidiaries and VIEs

The Company and its subsidiaries and VIEs were included in the consolidated financial statements where the intercompany transactions and balances were eliminated upon consolidation. For purpose of the Company’s standalone financial statements, its investments in subsidiaries and VIEs were reported using the equity method of accounting. The Company’s deficit in subsidiaries and VIEs were reported as “Deficit of investment in subsidiaries and VIEs” in the condensed balance sheets.

Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this parent only information, the parent company has continued to reflect its share of losses, based on its proportionate interest, of the losses of its subsidiaries and VIEs subsidiary regardless of the carrying value of the investment as the Company intends to provide continuing support or fund losses of its subsidiaries and is obligated to provide continuing support or fund losses of its VIEs.

The following represents condensed unconsolidated financial information of LightInTheBox Holding Co., Ltd.

Condensed Balance Sheets:


	December 31,
	2019		2020
ASSETS
Current assets
Cash and cash equivalents	$	134	$	78
Prepaid expenses and other current assets		209		292
Amounts due from subsidiaries and VIEs		164,146		159,220
TOTAL ASSETS	$	164,489	$	159,590

LIABILITIES AND EQUITY

Current Liabilities
Accrued expenses and other current liabilities		618		1,299
Deficit of investment in subsidiaries and VIEs		132,044		108,997
TOTAL LIABILITIES	$	132,662	$	110,296

EQUITY
Ordinary shares	$	14	$	17
Additional paid-in capital		262,888		282,260
Forward contracts		15,769		—
Treasury shares, at cost		(27,512)		(30,207)
Accumulated deficit		(217,888)		(204,571)
Accumulated other comprehensive (loss) / income		(1,444)		1,795
TOTAL EQUITY		31,827		49,294
TOTAL LIABILITIES AND EQUITY	$	164,489	$	159,590

Condensed Statements of Operations and Comprehensive (Loss) / Income:


	Year ended December 31
	2018		2019		2020
General and administrative		1,145		1,113		2,885
Operating loss		(1,145)		(1,113)		(2,885)
Share of (loss) / income from subsidiaries and VIEs		(35,665)		(12,479)		16,202
Change in fair value of convertible promissory notes		(22,791)		14,591		—
(Loss) / Income before income taxes		(59,601)		999		13,317
Income tax expense		—		—		—
Net (loss) / income		(59,601)		999		13,317
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes		(733)		(512)		3,239
Total comprehensive (loss) / income	$	(60,334)	$	487	$	16,556

Condensed Statements of Cash Flows:


	Year ended December 31,
	2018		2019		2020

Net (loss) / income		(59,601)		999		13,317
Share of income / (loss) from subsidiaries and VIEs		35,665		12,479		(16,202)
Change in fair value of convertible promissory notes		22,791		(14,591)		—
Prepaid expenses and other current assets		283		(41)		(83)
Accrued expenses and other current liabilities		(1,469)		(1,262)		681
Net cash used in operating activities	$	(2,331)	$	(2,416)	$	(2,287)
Changes in amounts due from subsidiaries and VIEs		4,512		2,490		4,926
Net cash provided by investing activities	$	4,512	$	2,490	$	4,926
Proceeds from options exercised		13		—		—
Repurchase of ordinary shares		(3,354)		(251)		(2,695)
Net cash used in financing activities	$	(3,341)	$	(251)	$	(2,695)
Net decrease in cash and cash equivalents		(1,160)		(177)		(56)
Cash and cash equivalents at beginning of the year		1,471		311		134
Cash and cash equivalents at end of the year		311		134		78

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

(a) Basis of presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Basis of consolidation

(b) Basis of consolidation

Non-controlling Interests

Use of estimates

(d) Use of estimates

Cash and cash equivalents

(e) Cash and cash equivalents

Restricted cash

(f) Restricted cash

Accounts receivable, net of allowance for credit losses

(g) Accounts receivable, net of allowance for credit losses

Inventories

(h) Inventories

Property and equipment, net

(i) Property and equipment, net

Property and equipment, net, resulting from direct purchase, is stated at cost less accumulated depreciation.

Depreciation is calculated on a straight-line basis over the following estimated useful lives:


	Useful lives

Leasehold improvements	Lesser of the lease term or estimated useful life of the assets
Furniture, fixtures and office equipment	0.2 - 5	years
IT equipment	0.1 - 3	years
Vehicles	0.6 - 9	years

Acquired intangible assets, net

(j) Acquired intangible assets, net


	Useful lives

Domain name/Trade name	Indefinite life
Technology platform	1	years
Non-compete agreement	2	years
Customer base	4.3	years
Technology	3-5	years
Members	4	years
Branding	10	years
In-progress orders	0.1	year

Internal use software

(k) Internal use software

Long-term investments

(l) Long-term investments

The Group’s long-term investments consist of an equity investment without readily determinable fair value and equity method investment.

Equity investments without readily determinable fair value

Equity method investment

Impairment of long-lived assets and definite-lived intangible assets

(m) Impairment of long-lived assets and definite-lived intangible assets

Long-lived assets, such as property and equipment and definite-lived intangible assets, are stated at cost less accumulated depreciation or amortization.

Impairment of Goodwill and Indefinite-lived intangible assets

(n) Impairment of goodwill and indefinite-lived intangible assets

Business combinations

(o) Business combinations

Treasury shares

(p) Treasury shares

Revenue recognition

(q) Revenue recognition

Product sales

Services and others

Contract Balances

(r) Contract Balances

The movements in the allowance for credit losses were as follows:


	Year ended December 31,
	2018		2019		2020
Balance at beginning of the year		—		533		1,418
Additions		533		1,251		117
Reversals		—		—		(26)
Write-offs		—		(366)		(511)
Balance at end of the year	$	533	$	1,418	$	998

Changes in the Group’s contract liabilities are presented in the following table for the years ended December 31, 2019 and 2020:


	For the year ended
	December 31, 2019			December 31, 2020
Contract liabilities as of January 1	$	10,246	$	14,330
Cash received in advance, net of VAT		240,460		418,006
Revenue recognized from opening balance of contract liabilities		(10,246)		(14,330)
Revenue recognized from contract liabilities arising during current year		(226,130)		(392,192)
Contract liabilities as of December 31	$	14,330	$	25,814

Cost of revenues

(s) Cost of revenues

Product sales

Services

Fulfillment

(t) Fulfillment

Selling and marketing

(u) Selling and marketing

General and administrative

(v) General and administrative

Government subsidies

(w) Government subsidies

Fair value measurements

(x) Fair value measurements

Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

Financial instruments and fair value measurements

(y) Financial instruments and fair value measurements

The following table present the fair value hierarchy for the assets and liabilities at December 31, 2020:

Fair value measurement

at December 31, 2020 using

Quoted prices in

Significant

Carrying Value at

active markets

observable

unobservable

December 31, 2020

(Level 1)

inputs (Level 2)

inputs (Level 3)

Total gains

Non-recurring fair value measurements for:

Long-term investments

17,297

—

17,297

13,450

Foreign currency translation

(z) Foreign currency translation

Income taxes

(aa) Income taxes

Comprehensive (Loss ) / income

(bb) Comprehensive (loss) / income

Comprehensive (loss) / income includes net (loss) / income and foreign currency translation adjustments and is reported in the consolidated statements of comprehensive (loss) / income.

Share-based compensation

(cc) Share-based compensation

Leases

(dd) Leases

The Group’s accounting policy effective on the adoption date of ASU 2016-02 is as follows:

Leases are classified at the inception date as either a finance lease or an operating lease.

The Group classifies a lease as a finance lease when the lease meets any one of the following criteria at lease commencement:

a. The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.

b. The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.

c. The lease term is for a major part of the remaining economic life of the underlying asset.

e. The underlying asset is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term.

(Loss) / Income per share

(ee) (Loss) / Income per share

Basic (loss) / income per ordinary share is computed by dividing net (loss) / income attributable to ordinary shareholders by weighted average number of ordinary shares outstanding during the period.

Significant risks and uncertainties

(ff) Significant risks and uncertainties

Concentration of credit risk

(gg) Concentration of credit risk

Foreign currency risk

(hh) Foreign currency risk

Impact of COVID-19

(ii) Impact of COVID-19

Recent accounting pronouncements not yet adopted

(jj) Recent accounting pronouncements not yet adopted

ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2020

ORGANIZATION AND PRINCIPAL ACTIVITIES

Schedule of consolidated financial information of the Group's VIEs and its subsidiary included in consolidated financial statements after elimination of intercompany balances and transactions within the Group


	December 31,
	2019		2020

Total assets	$	9,734	$	24,667
Total liabilities	$	1,147	$	5,178


	Year ended December 31,
	2018		2019		2020

Revenues	$	3	$	1,054	$	6,827
Net loss	$	(7,490)	$	(8,496)	$	(187)


	Year ended December 31,
	2018		2019		2020

Net cash (used in) / provided by operating activities	$	(7,519)	$	1,193	$	632
Net cash provided by / (used in) investing activities	$	473	$	(188)	$	826
Net cash provided by financing activities	$	—	$	—	$	—

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of estimated useful lives of property and equipment


	Useful lives

Leasehold improvements	Lesser of the lease term or estimated useful life of the assets
Furniture, fixtures and office equipment	0.2 - 5	years
IT equipment	0.1 - 3	years
Vehicles	0.6 - 9	years

Schedule of estimated useful lives of identifiable intangible assets


	Useful lives

Domain name/Trade name	Indefinite life
Technology platform	1	years
Non-compete agreement	2	years
Customer base	4.3	years
Technology	3-5	years
Members	4	years
Branding	10	years
In-progress orders	0.1	year

Schedule of movements in the allowance for credit losses


	Year ended December 31,
	2018		2019		2020
Balance at beginning of the year		—		533		1,418
Additions		533		1,251		117
Reversals		—		—		(26)
Write-offs		—		(366)		(511)
Balance at end of the year	$	533	$	1,418	$	998

Schedule of changes in contract liabilities


	For the year ended
	December 31, 2019			December 31, 2020
Contract liabilities as of January 1	$	10,246	$	14,330
Cash received in advance, net of VAT		240,460		418,006
Revenue recognized from opening balance of contract liabilities		(10,246)		(14,330)
Revenue recognized from contract liabilities arising during current year		(226,130)		(392,192)
Contract liabilities as of December 31	$	14,330	$	25,814

Schedule of fair value hierarchy for the assets and liabilities

Fair value measurement

at December 31, 2020 using

Quoted prices in

Significant

Carrying Value at

active markets

observable

unobservable

December 31, 2020

(Level 1)

inputs (Level 2)

inputs (Level 3)

Total gains

Non-recurring fair value measurements for:

Long-term investments

17,297

—

17,297

13,450

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

ACQUISITION (Tables)

12 Months Ended

Dec. 31, 2020

ACQUISITION

Schedule of fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date


	As of December 10, 2018
Cash and cash equivalents	$	3,683
Accounts receivable		35
Inventories		4,694
Prepaid expenses and other current assets		1,418
Property and equipment, net		2,982
Intangible assets, net		9,895
Long-term rental deposits		400
Accounts payable		(6,601)
Advance from customers		(9,734)
Accrued expenses and other current liabilities		(3,954)
Long-term payable		(1,170)
Fair value of non-controlling interest		4
Goodwill		27,479
Total purchase consideration	$	29,131

Schedule of unaudited consolidated pro forma summary


	Pro Forma - Unaudited
		Year Ended December 31, 2018
Revenues	$	337,695
Net loss	$	70,884

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Schedule of components of other current assets which are included in the prepaid expenses and other current assets

Components of other current assets which are included in the prepaid expenses and other current assets are as follows:


	As of December 31,
	2019		2020

Receivable from payment processing agencies (1)	$	217	$	185
Prepayment to suppliers		967		2,902
Rental deposits and prepaid rents		680		386
Deferred expenses		350		622
Others		1,405		1,081
Total	$	3,619	$	5,176

(1)

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2020

PROPERTY AND EQUIPMENT, NET

Schedule of components of property and equipment


	As of December 31,
	2019		2020

Leasehold improvements	$	3,684	$	1,119
Furniture, fixtures and office equipment		2,739		3,055
IT equipment		2,438		2,450
Vehicles		1,698		1,889
Property and equipment, gross		10,559		8,513
Less: Accumulated depreciation		(7,057)		(4,701)
Property and equipment, net	$	3,502	$	3,812

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2020

GOODWILL

Schedule of changes in carrying amounts of goodwill and accumulated impairment losses


	Ador Inc		Ezbuy		Total
Balance at January 1, 2019
Goodwill	$	690	$	27,479	$	28,169
Accumulated impairment loss		—		—		—
	$	690	$	27,479	$	28,169
Effect of exchange rate changes on goodwill		—		(247)		(247)
Impairment loss		—		—		—
Balance at December 31, 2019
Goodwill	$	690	$	27,232	$	27,922
Accumulated impairment loss		—		—		—
	$	690	$	27,232	$	27,922
Effect of exchange rate changes on goodwill		—		1,823		1,823
Impairment loss		—		—		—
Balance at December 31, 2020
Goodwill	$	690	$	29,055	$	29,745
Accumulated impairment loss		—		—		—
	$	690	$	29,055	$	29,745

INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2020

INTANGIBLE ASSETS, NET

Schedule of carry amounts of intangible assets subject to amortization


	December 31, 2019								December 31, 2020
	Gross				Accumulated		Net		Gross				Accumulated		Net
	carrying		Accumulated		impairment		carrying		carrying		Accumulated		impairment		carrying
	amount		amortization		loss		amount		amount		amortization		loss		amount
Intangible assets not subject to amortization:
Trademark/domain name	$	1,220	$	—	$	(1,010)	$	210	$	1,220	$	—	$	(1,010)	$	210

Intangible assets subject to amortization:
- Technology platform		90		(90)		—		—		90		(90)		—		—
- Non-compete agreement		9		(7)		(2)		—		9		(7)		(2)		—
- Customer base		32		(22)		(10)		—		32		(22)		(10)		—
- Technology		2,915		(660)		—		2,255		3,108		(1,316)		—		1,792
- Branding		6,786		(735)		—		6,051		7,240		(1,508)		—		5,732
- In-progress orders		190		(190)		—		—		203		(203)		—		—
- Members		20		(20)		—		—		20		(20)		—		—
- Internal use software		—		—		—		—		1,821		(139)		—		1,682
	$	11,262	$	(1,724)	$	(1,022)	$	8,516	$	13,743	$	(3,305)	$	(1,022)	$	9,416

LEASES (Tables)

12 Months Ended

Dec. 31, 2020

LEASES

Schedule of components of lease costs


	For the year ended December 31, 2019	For the year ended December 31, 2020
Operating lease costs	4,956	4,846
Short-term lease costs	2,189	488
Financing lease costs:
Amortization of ROU assets	247	152
Interests	66	92
Total lease costs	7,458	5,578


Other information	For the year ended December 31, 2019		For the year ended December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	4,526		5,118
Operating cash flows from financing leases	290		991
Financing cash flows from financing leases	66		92
ROU assets obtained in exchange for new operating lease liabilities	10,060		10,261
ROU obtained in exchange for new finance lease liabilities	—		—
Weighted-average remaining lease term (in years):
Operating leases	6.45		3.47
Financing leases	3.65		3.72
Weighted-average discount rate:
Operating leases	5.03	%	4.92	%
Financing leases	5.44	%	5.70	%

Schedule of future minimum lease payments for operating and financing leases

Future minimum lease payments for operating and financing leases as of December 31, 2020 are as follows:


	Operating Leases	Finance Leases
2021	4,772	49
2022	3,474	49
2023	2,296	49
2024	1,923	35
2025	1,072	—
Total minimum lease payments	13,537	182
Less: Imputed interest	(1,150)	(17)
Total lease liability balance	12,387	165

Minimum payments related to leases not yet commenced as of December 31,2020	—	—

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	As of December 31,
	2019		2020

Accrued payroll and staff welfare	$	10,986	$	9,018
Individual income tax withheld		473		437
VAT and other taxes payable		2,484		7,586
Accrued professional fees		1,209		1,806
Accrued advertising fees		9,525		19,798
Credit card processing charges		323		429
Accrued sales return (1)		381		586
Current portion of finance lease liabilities		308		41
Others (2)		2,953		2,482
Total	$	28,642	$	42,183

(1)

Accrued sales return represents the estimated sales return at the end of each of the respective years. Movements during the respective years are as follows:

(2)

Others mainly include deposits from vendors and accrued utilities.

Schedule of movements in accrued sales return


	Year ended December 31,
	2019		2020
Balance at January 1	$	1,336	$	381
Allowance for sales return accrued in the year		3,546		6,222
Utilization of accrued sales return allowance		(4,501)		(6,017)
Balance at December 31	$	381	$	586

Convertible promissory notes (Tables)

12 Months Ended

Dec. 31, 2020

Convertible promissory notes

Schedule of components effecting the change in fair value


	Year ended December 31, 2018		Year ended December 31, 2019
Balance at January 1	$	—	$	51,922
Issuance		29,131		—
Change in fair value		22,791		(14,591)
Conversion to ordinary shares		—		(21,562)
Forward contracts		—		(15,769)
Balance at December 31	$	51,922	$	—

SHARE OPTIONS (Tables)

12 Months Ended

Dec. 31, 2020

SHARE OPTIONS

Schedule of assumptions used for estimating the fair value of each option granted on the date of grant


	Year ended December 31,
	2018			2019		2020
Risk-free interest rate per annum		2.90-3.20	%		—		0.12	%
Exercise multiple		2.2			—		2.8
Expected volatility		66.4-69.5	%		—		91.3	%
Expected dividend yield		0	%		—		0	%
Fair value of ordinary shares	$	0.44-1.04		$	—	$	0.935
Expected terms (in years)		10			—		1

(1)

Risk-free interest rates

(2)

Exercise multiple

Exercise multiple represents the value of the underlying share as a multiple of exercise price of the option which, if achieved, results in exercise of the option.

(3)

Volatility

The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of the Company’s publicly traded stock.

(4)

Dividend yield

The dividend yield was estimated by the Group based on its expected dividend policy over the contractual term of the options.

(5)

Fair value of underlying ordinary shares

The fair value of the underlying ordinary shares is determined based on the closing market price of the ADS of the Company as of the grant date.

Summary of the stock option activity under the 2008 Plan


		Weighted average
		exercise price
	Options granted	per option

Outstanding at January 1, 2020	204,700	$	2.39
Granted	3,000,000	$	0.40
Exercised	—	$	—
Forfeited	(136,600)	$	2.31
Outstanding at December 31, 2020	3,068,100	$	0.45

Summary of information regarding the share options granted


	As of December 31, 2020
				Weighted-
		Weighted-		average remaining	Weighted-
		average exercise		contractual	Average
	Options Number	price per option		life (years)	intrinsic value

Options
Outstanding	3,068,100	$	0.45	0.82	$	0.85
Exercisable	3,068,100	$	0.45	0.82	$	0.85
Expected to vest	—	$	—	—	$	—

NONVESTED SHARES (Tables)

12 Months Ended

Dec. 31, 2020

NONVESTED SHARES

Summary of information regarding the nonvested shares granted and vested


		Weighted average
		grant date
	Number of Shares	fair value

Outstanding at January 1, 2020	460,000	$	5.74
Granted	4,601,000	$	0.47
Forfeited	(199,000)	$	0.56
Vested	(4,202,000)	$	0.45
Outstanding at December 31, 2020	660,000	$	4.21

Schedule of share-based compensation expenses


	Year ended December 31,
	2018		2019		2020

Fulfillment	$	47	$	238	$	15
Selling and marketing		99		408		82
General and administrative		259		1,414		3,509
Total	$	405	$	2,060	$	3,606

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of components of (loss) / income before income taxes


	Year ended December 31,
	2018		2019		2020

Cayman Islands	$	(24,750)	$	11,403	$	(5,216)
Hong Kong SAR		(36,476)		(7,728)		9,010
PRC, excluding Hong Kong SAR, and other countries		1,436		(2,504)		12,970
Total	$	(59,790)	$	1,171	$	16,764

Schedule of income tax expense


	Year ended December 31,
	2018		2019		2020

Current	$	33	$	113	$	55
Deferred		—		—		3,363
Total	$	33	$	113	$	3,418

Schedule of principal components of the deferred tax assets and liabilities


	As of December 31,
	2019		2020

Deferred tax assets:
Allowance for credit losses		—		14
Lease liabilities		—		1,662
Net operating loss carry forwards		33,267		31,312
Gross deferred tax assets		33,267		32,988
Less: Valuation allowance		(31,879)		(29,827)
Total deferred tax assets	$	1,388	$	3,161

Deferred tax liabilities:
Property and equipment, net	$	(18)	$	(319)
Acquired intangible assets		(1,370)		(1,180)
Operating lease ROU assets		—		(1,662)
Other income from equity investment		—		(3,558)
Total deferred tax liabilities	$	(1,388)	$	(6,719)
Net deferred tax assets		—		—
Net deferred tax liabilities		—		(3,558)

Schedule of movement of valuation allowance


	Year ended December 31,
	2019		2020
Balance at beginning of the period	$	26,691	$	31,879
Additions / (Decrease)		5,188		(2,052)
Balance at end of the period	$	31,879	$	29,827

Schedule of reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes


	Year ended December 31,
	2018			2019			2020

(Loss) / Income before provision of income tax	$	(59,790)		$	1,171		$	16,764
Statutory tax rate in the PRC		25	%		25	%		25	%
Income tax at statutory tax rate		(14,948)			293			4,191
Non-deductible expenses		115			10			130
Effect of preferential tax rates		7			(135)			(211)
Effect of income tax rate differences in jurisdictions other than the PRC		9,154			(2,277)			352
Statutory expense		—			(653)			(305)
Deferred tax expense		—			(2,313)			1,313
Changes in valuation allowances		5,705			5,188			(2,052)
Income tax expense	$	33		$	113		$	3,418

(LOSS) / INCOME PER SHARE (Tables)

12 Months Ended

Dec. 31, 2020

(LOSS) / INCOME PER SHARE

Schedule of computation of basic and diluted net (loss)/income per ordinary share


	Year ended December 31,
	2018		2019		2020

Numerator:
Net (loss) / income attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd.	$	(59,602)	$	999	$	13,317
Net: Change in fair value of convertible promissory notes		—		14,591		—
Denominator:
Weighted average number of shares used in calculating net (loss) / income per ordinary share —basic	$	134,495,549	$	137,588,401	$	220,419,544
Weighted average number of shares used in calculating net (loss) / income per ordinary share —diluted	$	134,495,549	$	223,517,833	$	225,904,549
Net (loss) / income per ordinary share- basic	$	(0.44)	$	0.01	$	0.06
Net (loss) / income per ordinary share- diluted	$	(0.44)	$	(0.06)	$	0.06

SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2020

SEGMENT REPORTING

Schedule of components of net revenues


	Year ended December 31, 2020
	Product sales		Services		Consolidated

Revenues	$	382,075	$	16,076	$	398,151
Cost of revenues		211,430		10,567		221,997
Gross profit		170,645		5,509		176,154
Unallocated operating expenses						172,299
Income from operations						3,855
Interest income						103
Interest expense						(92)
Other income, net						12,898
Income before income taxes					$	16,764


	Year ended December 31, 2019
	Product sales		Services		Consolidated

Revenues	$	236,705	$	6,921	$	243,626
Cost of revenues		144,061		1,968		146,029
Gross profit		92,644		4,953		97,597
Unallocated operating expenses						113,649
Loss from operations						(16,052)
Interest income						297
Interest expense						(66)
Change in fair value of convertible promissory notes						14,591
Other income, net						283
Loss before income taxes and share of income and gain from equity method investment					$	(947)


	Year ended December 31, 2018
	Product sales		Services		Consolidated

Revenues	$	216,407	$	11,132	$	227,539
Cost of revenues		156,326		10,017		166,343
Gross profit		60,081		1,115		61,196
Unallocated operating expenses						98,677
Loss from operations						(37,481)
Interest income						487
Interest expense						(5)
Change in fair value of convertible promissory notes						(22,791)
Loss before income taxes and share of income from equity method investment					$	(59,790)

Schedule of components of the Group's cost


	Year ended December 31,
	2018		2019		2020

Apparel	$	72,871	$	78,954	$	157,943
Other general merchandise (1)		143,536		157,751		224,132
Total product sales revenues	$	216,407	$	236,705	$	382,075

(1)Others mainly include products such as small accessories and gadgets, home garden, electronics and communication devices and others.

Summary of total net revenues generated in different geographic locations and as a percentage of total net revenues


	Year ended December 31,
	2018			2019			2020
	Revenues		%	Revenues		%	Revenues		%

Europe	$	109,781	48.2	$	87,586	36.0	$	175,749	44.1
North America		51,206	22.5		37,932	15.6		81,203	20.4
Other countries		66,552	29.3		118,108	48.4		141,199	35.5
Total revenues	$	227,539	100.0	$	243,626	100.0	$	398,151	100.0

PARENT ONLY INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

PARENT ONLY INFORMATION

Condensed Balance Sheets


	December 31,
	2019		2020
ASSETS
Current assets
Cash and cash equivalents	$	134	$	78
Prepaid expenses and other current assets		209		292
Amounts due from subsidiaries and VIEs		164,146		159,220
TOTAL ASSETS	$	164,489	$	159,590

LIABILITIES AND EQUITY

Current Liabilities
Accrued expenses and other current liabilities		618		1,299
Deficit of investment in subsidiaries and VIEs		132,044		108,997
TOTAL LIABILITIES	$	132,662	$	110,296

EQUITY
Ordinary shares	$	14	$	17
Additional paid-in capital		262,888		282,260
Forward contracts		15,769		—
Treasury shares, at cost		(27,512)		(30,207)
Accumulated deficit		(217,888)		(204,571)
Accumulated other comprehensive (loss) / income		(1,444)		1,795
TOTAL EQUITY		31,827		49,294
TOTAL LIABILITIES AND EQUITY	$	164,489	$	159,590

Condensed Statements of Operations and Comprehensive (Loss) / Income


	Year ended December 31
	2018		2019		2020
General and administrative		1,145		1,113		2,885
Operating loss		(1,145)		(1,113)		(2,885)
Share of (loss) / income from subsidiaries and VIEs		(35,665)		(12,479)		16,202
Change in fair value of convertible promissory notes		(22,791)		14,591		—
(Loss) / Income before income taxes		(59,601)		999		13,317
Income tax expense		—		—		—
Net (loss) / income		(59,601)		999		13,317
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes		(733)		(512)		3,239
Total comprehensive (loss) / income	$	(60,334)	$	487	$	16,556

Condensed Statements of Cash Flows


	Year ended December 31,
	2018		2019		2020

Net (loss) / income		(59,601)		999		13,317
Share of income / (loss) from subsidiaries and VIEs		35,665		12,479		(16,202)
Change in fair value of convertible promissory notes		22,791		(14,591)		—
Prepaid expenses and other current assets		283		(41)		(83)
Accrued expenses and other current liabilities		(1,469)		(1,262)		681
Net cash used in operating activities	$	(2,331)	$	(2,416)	$	(2,287)
Changes in amounts due from subsidiaries and VIEs		4,512		2,490		4,926
Net cash provided by investing activities	$	4,512	$	2,490	$	4,926
Proceeds from options exercised		13		—		—
Repurchase of ordinary shares		(3,354)		(251)		(2,695)
Net cash used in financing activities	$	(3,341)	$	(251)	$	(2,695)
Net decrease in cash and cash equivalents		(1,160)		(177)		(56)
Cash and cash equivalents at beginning of the year		1,471		311		134
Cash and cash equivalents at end of the year		311		134		78

ORGANIZATION AND PRINCIPAL ACTIVITIES - Details of History of the Group (Details) - shareholder	1 Months Ended
	Nov. 30, 2014	Mar. 31, 2008	Jun. 30, 2007
Details of History of the Group
Number of founding shareholders		5
Ezbuy
Details of History of the Group
Number of founding shareholders	5
Light In The Box
Details of History of the Group
Number of founding shareholders			5

ORGANIZATION AND PRINCIPAL ACTIVITIES - VIE Arrangements and Loan Agreement (Details) $ in Thousands	1 Months Ended					12 Months Ended
	Sep. 30, 2020 CNY (¥)	Sep. 30, 2020 USD ($)	Jul. 31, 2019 USD ($)	Dec. 31, 2011 CNY (¥)	Dec. 31, 2011 USD ($)	Dec. 31, 2020
Details of History of the Group
Term of debt instrument						2 years
Qianghai Xuyi
Details of History of the Group
Term of debt instrument						10 years
Lanting Huitong \| Mr. Quji (Alan) Guo
Details of History of the Group
Ownership interest in VIE (as a percent)				51.00%	51.00%
Related party loan				¥ 255,000	$ 41
Lanting Huitong \| Mr. Jian He [Member]
Details of History of the Group
Ownership interest in VIE (as a percent)			51.00%
Related party loan			$ 40,492	¥ 255,000
Lanting Gaochuang \| Mr. Quji (Alan) Guo
Details of History of the Group
Ownership interest in VIE (as a percent)				51.00%	51.00%
Lanting Gaochuang \| Mr. Jian He [Member]
Details of History of the Group
Ownership interest in VIE (as a percent)			51.00%
Lanting Gaochuang \| Lanting Huitong
Details of History of the Group
Ownership interest in VIE (as a percent)			49.00%	49.00%	49.00%
Shenzhen Xuyi \| Qianneng Fu
Details of History of the Group
Ownership interest in VIE (as a percent)						67.00%
Shenzhen Xuyi \| Zicong ke
Details of History of the Group
Ownership interest in VIE (as a percent)						33.00%
Lanting Jishi
Details of History of the Group
Agreement Term						10 years
Lanting Jishi \| Shareholder of Dongguan Herui
Details of History of the Group
Related party loan	¥ 500,000	$ 77
Lanting Jishi \| Shareholder of Chongqing Ruizhihe
Details of History of the Group
Related party loan	¥ 1,000,000	$ 153

ORGANIZATION AND PRINCIPAL ACTIVITIES - Consolidated Financial Information of the Group's VIEs and Subsidiaries (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consolidated financial information of the Group's VIE and its subsidiaries included in consolidated financial statements
Total assets	$ 158,028	$ 113,201
Total liabilities	108,651	81,320
Revenues	398,151	243,626	$ 227,539
Net loss	13,317	999	(59,601)
Net cash (used in) / provided by operating activities	29,314	1,882	(29,868)
Net cash provided by / (used in) investing activities	(1,836)	(681)	3,296
Net cash provided by financing activities	(3,686)	(551)	(3,365)
Consolidated VIEs
Consolidated financial information of the Group's VIE and its subsidiaries included in consolidated financial statements
Total assets	24,667	9,734
Total liabilities	5,178	1,147
Revenues	6,827	1,054	3
Net loss	(187)	(8,496)	(7,490)
Net cash (used in) / provided by operating activities	632	1,193	(7,519)
Net cash provided by / (used in) investing activities	826	(188)	$ 473
Consolidated VIEs \| Pledge or collateralization
Consolidated financial information of the Group's VIE and its subsidiaries included in consolidated financial statements
Total assets	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of presentation and Accounts receivable, net (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Accumulated deficit	$ (204,571)		$ (217,888)
Adjustments due to the adoption of ASU 2016-02 \| Accounting Standards Update 2016-13 [Member]
Accumulated deficit		$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories and Property and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Inventories
Inventory write-down / (reversal when sold)	$ (108)	$ (458)	$ 2,456
Furniture, fixtures and office equipment \| Minimum
Property and equipment, net
Useful lives	2 months 12 days
Furniture, fixtures and office equipment \| Maximum
Property and equipment, net
Useful lives	5 years
IT equipment \| Minimum
Property and equipment, net
Useful lives	1 month 6 days
IT equipment \| Maximum
Property and equipment, net
Useful lives	3 years
Vehicles \| Minimum
Property and equipment, net
Useful lives	7 months 6 days
Vehicles \| Maximum
Property and equipment, net
Useful lives	9 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Acquired intangible assets, net (Details)		12 Months Ended
	Dec. 10, 2018	Dec. 31, 2020
Technology platform
Acquired intangible assets, net
Useful lives	5 years	1 year
Technology platform \| Minimum
Acquired intangible assets, net
Useful lives		1 year
Non-compete agreement
Acquired intangible assets, net
Useful lives		2 years
Customer base
Acquired intangible assets, net
Useful lives		4 years 3 months 18 days
Technology \| Minimum
Acquired intangible assets, net
Useful lives		3 years
Technology \| Maximum
Acquired intangible assets, net
Useful lives		5 years
Members
Acquired intangible assets, net
Useful lives		4 years
Branding
Acquired intangible assets, net
Useful lives	10 years	10 years
In-progress orders
Acquired intangible assets, net
Useful lives	1 month 6 days	1 month 6 days

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, General and Administrative Expense and Foreign Currency Risk (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue recognition
Accrued sales return				$ 586	$ 381	$ 1,336
Cost of goods sold	$ 221,997	$ 146,029	$ 166,343
Allowance of credit losses	$ 998	1,418	533	998	1,418	533
Return period, subsequent to the receipt of shipment with quality-related issues	12 months
Movements in the allowance for credit losses
Balance at beginning of the year	$ 1,418	533	0
Additions	117	1,251	533
Reversals	(26)
Write-offs	(511)	(366)
Balance at end of the year	998	1,418	533
Revenue included in advance from customers
Contract liabilities as of January 1	14,330	10,246
Cash received in advance, net of VAT	418,006	240,460
Revenue recognized from opening balance of contract liabilities	(14,330)	(10,246)
Revenue recognized from contract liability arising during current year	(392,192)	(226,130)
Contract liabilities as of December 31	$ 25,814	14,330	10,246
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false]	true
Selling and marketing
Advertising expense	$ 103,618	41,975	43,308
General and administrative
Research and development expense	15,156	17,871	5,694
Chargeback incurred	2,225	1,836	2,938
Income taxes
Income tax due to uncertain tax positions				0	0	$ 0
Accrued expenses and other current liabilities
Revenue recognition
Accrued sales return				586	381
Shipping and handling
Revenue recognition
Cost of goods sold	$ 74,896	$ 36,691	$ 51,731
Foreign currency risk \| Denominated in RMB
Foreign currency risk
Cash and cash equivalents, term deposit and restricted cash				$ 5,032	$ 3,952
Maximum
Revenue recognition
Return period, subsequent to the receipt of shipment with no quality-related issues		7 days	14 days
Return period, subsequent to the receipt of shipment with quality-related issues	30 days

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Financial instruments and fair value measurements (Details) - Nonrecurring $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Liabilities:
Total gains	$ 13,450
Carrying
Liabilities:
Long-term investments	17,297
Level 3 \| Fair value
Liabilities:
Long-term investments	$ 17,297

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Newly adopted accounting pronouncements (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Total cash, cash equivalents, and restricted cash in the statement of cash flows	$ 65,529	$ 40,445	$ 39,802	$ 70,014

ACQUISITION - Fair values of the identifiable assets acquired and liabilities (Details) - USD ($) $ in Thousands			12 Months Ended
	Dec. 10, 2018	Nov. 08, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
ACQUISITION
Revenues			$ 398,151	$ 243,626	$ 227,539
Net income			13,317	999	(59,601)
Fair values of the identifiable assets acquired and liabilities
Prepaid expenses and other current assets			5,176	3,619
Goodwill			$ 29,745	27,922	28,169
Technology platform
Fair values of the identifiable assets acquired and liabilities
Fair values of intangibles	$ 2,891
Amortization period	5 years		1 year
Branding
Fair values of the identifiable assets acquired and liabilities
Fair values of intangibles	$ 6,813
Amortization period	10 years		10 years
In-progress orders
Fair values of the identifiable assets acquired and liabilities
Fair values of intangibles	$ 191
Amortization period	1 month 6 days		1 month 6 days
Ezbuy
ACQUISITION
Revenues					6,785
Net income					365
Ezbuy
ACQUISITION
Percentage equity interest acquired		100.00%
Purchase consideration	$ 29,131
Fair values of the identifiable assets acquired and liabilities
Cash and cash equivalents	3,683
Accounts receivable	35
Inventories	4,694
Prepaid expenses and other current assets	1,418
Property and equipment, net	2,982
Intangible assets, net	9,895
Long-term rental deposits	400
Accounts payable	(6,601)
Advance from customers	(9,734)
Accrued expenses and other current liabilities	(3,954)
Long-term payable	(1,170)
Fair value of non-controlling interest	4
Goodwill	27,479		$ 29,055	$ 27,232	$ 27,479
Total purchase consideration	$ 29,131
Ezbuy \| Original Shareholders
ACQUISITION
Ownership percentage prior to acquisition		80.00%
Ezbuy \| third party
ACQUISITION
Ownership percentage prior to acquisition		20.00%

ACQUISITION - Pro-forma summary (Details) $ in Thousands	12 Months Ended
ACQUISITION - Pro-forma summary (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Consolidated pro forma summary
Revenues	$ 337,695
Net loss	$ 70,884

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Receivable from payment processing agencies (1)	$ 185	$ 217
Prepayment to suppliers	2,902	967
Rental deposits and prepaid rents	386	680
Deferred expenses	622	350
Others	1,081	1,405
Total	$ 5,176	$ 3,619

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property and equipment, net
Property and equipment, gross	$ 8,513	$ 10,559
Less: Accumulated depreciation	(4,701)	(7,057)
Property and equipment, net	3,812	3,502
Depreciation expense	1,040	1,254	$ 572
Leasehold improvements
Property and equipment, net
Property and equipment, gross	1,119	3,684
Furniture, fixtures and office equipment
Property and equipment, net
Property and equipment, gross	3,055	2,739
IT equipment
Property and equipment, net
Property and equipment, gross	2,450	2,438
Vehicles
Property and equipment, net
Property and equipment, gross	$ 1,889	$ 1,698

GOODWILL (Details) $ in Thousands	Dec. 10, 2018 USD ($)
Ezbuy
GOODWILL
Goodwill acquired during the year	$ 27,479

GOODWILL - Changes in the carrying amount of goodwill (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 10, 2018	Dec. 31, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
Goodwill, beginning balance		$ 27,922	$ 28,169
Goodwill, Beginning Balance		27,922	28,169
Effect of exchange rate changes on goodwill		1,823	(247)
Goodwill, ending balance		29,745	27,922
Goodwill, Ending Balance		29,745	27,922
Ador Inc.
Goodwill [Roll Forward]
Goodwill, beginning balance		690	690
Goodwill, Beginning Balance		690	690
Goodwill, ending balance		690	690
Goodwill, Ending Balance		690	690
Ezbuy
Goodwill [Roll Forward]
Goodwill, beginning balance		27,232	27,479
Goodwill, Beginning Balance		27,232	27,479
Goodwill acquired during the year	$ 27,479
Effect of exchange rate changes on goodwill		1,823	(247)
Goodwill, ending balance		29,055	27,232
Goodwill, Ending Balance	$ 27,479	$ 29,055	$ 27,232

INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	12 Months Ended
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Acquired intangible assets, net
Gross carrying amount	$ 13,743	$ 11,262
Accumulated amortization	(3,305)	(1,724)
Accumulated impairment loss	(1,022)	(1,022)
Net carrying amount	9,416	8,516
Total amortization expenses	1,403	1,264	$ 298
Amortization expenses of acquired intangible assets	1,265	1,264	$ 298
Expected amortization expenses
2021	1,660
2022	1,660
2023	1,473
2024	684
2025	684
Technology platform
Acquired intangible assets, net
Intangible assets subject to amortization	90	90
Accumulated amortization	(90)	(90)
Non-compete agreement
Acquired intangible assets, net
Intangible assets subject to amortization	9	9
Accumulated amortization	(7)	(7)
Accumulated impairment loss	(2)	(2)
Customer base
Acquired intangible assets, net
Intangible assets subject to amortization	32	32
Accumulated amortization	(22)	(22)
Accumulated impairment loss	(10)	(10)
Technology
Acquired intangible assets, net
Intangible assets subject to amortization	3,108	2,915
Accumulated amortization	(1,316)	(660)
Net carrying amount	1,792	2,255
Branding
Acquired intangible assets, net
Intangible assets subject to amortization	7,240	6,786
Accumulated amortization	(1,508)	(735)
Net carrying amount	5,732	6,051
In-progress orders
Acquired intangible assets, net
Intangible assets subject to amortization	203	190
Accumulated amortization	(203)	(190)
Members
Acquired intangible assets, net
Intangible assets subject to amortization	20	20
Accumulated amortization	(20)	(20)
Internal use software
Acquired intangible assets, net
Intangible assets subject to amortization	1,821
Accumulated amortization	(139)
Net carrying amount	1,682
Trademark/domain name
Acquired intangible assets, net
Intangible assets not subject to amortization	1,220	1,220
Accumulated impairment loss	(1,010)	(1,010)
Net carrying amount	$ 210	$ 210

LEASES - Components of lease cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating lease cost	$ 4,846	$ 4,956
Short-term lease costs	488	2,189
Amortization of ROU assets	152	247
Interests	92	66
Total lease costs	5,578	7,458
Operating cash flows from operating leases	5,118	4,526
Operating cash flows from financing leases	991	290
Financing cash flows from financing leases	92	66
ROU assets obtained in exchange for new operating lease liabilities	$ 10,261	$ 10,060
Weighted-average remaining operating lease term (in years)	3 years 5 months 19 days	6 years 5 months 12 days
Weighted-average remaining financing lease term (in years)	3 years 8 months 19 days	3 years 7 months 24 days
Weighted-average discount rate, operating leases	4.92%	5.03%
Weighted-average discount rate, financing leases	5.70%	5.44%
Total expenses under operating leases			$ 5,258
Minimum
Remaining lease term of leases	1 year
Maximum
Remaining lease term of leases	5 years

LEASES - Future minimum lease payments for operating and financing leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Future minimum lease payments under non-cancellable operating lease agreements
2021	$ 4,772
2022	3,474
2023	2,296
2024	1,923
2025	1,072
Total minimum operating lease payments	13,537
Less: Imputed interest	(1,150)
Total lease liability balance	12,387
Assets, cost value			$ 1,760
Assets, accumulated depreciation			$ 14
Minimum future lease payments under the Finance Leases
2021	49
2022	49
2023	49
2024	35
Total minimum lease payments	182
Less: Imputed interest	(17)
Total lease liability balance	165
Minimum
Minimum future lease payments under the Finance Leases
Capital leases, interest rate			4.30%
Maximum
Minimum future lease payments under the Finance Leases
Capital leases, interest rate			7.40%
Fulfillment
Minimum future lease payments under the Finance Leases
Total operating and short-term lease costs	2,893	$ 3,995
Selling and marketing
Minimum future lease payments under the Finance Leases
Total operating and short-term lease costs	705	807
General and administrative
Minimum future lease payments under the Finance Leases
Total operating and short-term lease costs	$ 1,736	$ 2,343

LONG-TERM INVESTMENT (Details) - USD ($) $ in Thousands		12 Months Ended
LONG-TERM INVESTMENT (Details) - USD ($) $ in Thousands	Jun. 21, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2015
LONG-TERM INVESTMENT
Share of income (loss) from equity method investment			$ 2,118	$ 221
Investment In Maikailai Technologies Co. Ltd.
LONG-TERM INVESTMENT
Long-term investments		$ 17,297	2,873
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount			0
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount		13,450	0
Equity Securities without Readily Determinable Fair Value, Downward Price Adjustment, Annual Amount		0
Equity Securities, FV-NI, Unrealized Gain (Loss)		13,450	0	0
Equity Securities, FV-NI, Realized Gain (Loss)		0	0	0
Equity Securities, FV-NI, Gain (Loss)		13,450	0	0
Equity Securities, FV-NI		$ 0	0	0
Demon
LONG-TERM INVESTMENT
Percentage of equity interest						30.00%
Total consideration						$ 2,100
Share of income (loss) from equity method investment			124	$ 221
Wuhan Zall Internet Technology Co. Ltd.
LONG-TERM INVESTMENT
Share of income (loss) from equity method investment			$ 1,994
Percentage Of Equity Interest Transferred	30.00%
Proceeds from equity interest	$ 4,223
Maikailai
LONG-TERM INVESTMENT
Percentage of equity interest					10.53%
Total consideration					$ 2,950

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued payroll and staff welfare			$ 9,018	$ 10,986
Individual income tax withheld			437	473
VAT and other taxes payable			7,586	2,484
Accrued professional fees			1,806	1,209
Accrued advertising fees			19,798	9,525
Credit card processing charges			429	323
Accrued sales return	$ 586	$ 381	586	381
Current portion of finance lease liabilities			41	308
Others			2,482	2,953
Total			$ 42,183	$ 28,642
Movements in accrued sales return
Balance at the beginning of the period	381	1,336
Allowance for sales return accrued in the year	6,222	3,546
Utilization of accrued sales return allowance	(6,017)	(4,501)
Balance at the end of the period	$ 586	$ 381

Convertible promissory notes (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	Dec. 11, 2019 shares	Dec. 10, 2018 USD ($) D item $ / shares shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
CONVERTIBLE NOTES
Term of debt instrument			2 years
Carrying amount of the convertible notes
Balance at the beginning of the period				$ 51,922
Issuance					$ 29,131
Change in fair value				(14,591)	22,791
Conversion to ordinary shares				(21,562)
Forward contracts				(15,769)
Balance at the end of the period					$ 51,922
Conversion of preferred shares upon IPO			$ 15,769	21,562
Ordinary Shares
Carrying amount of the convertible notes
Conversion of preferred shares upon IPO			3	3
Additional Paid-in Capital
Carrying amount of the convertible notes
Conversion of preferred shares upon IPO			$ 15,766	$ 21,559
Convertible promissory notes
CONVERTIBLE NOTES
Face amount of debt instrument		$ 85,550
Interest rate (as a percent)		0.00%
Term of debt instrument		365 days
Convertible promissory notes \| Ezbuy
Carrying amount of the convertible notes
Number of ordinary shares issued upon conversion of convertible notes \| shares	13,154,284
Convertible promissory notes \| ADSs
Carrying amount of the convertible notes
Trading price for 3 consecutive trading days \| $ / shares		$ 3.85
Number of trading days for calculation of trading price \| D		3
Number of ordinary shares issued upon conversion of convertible notes \| shares	19,091,837	22,220,779
Number of highest trading closing prices \| item		10
Convertible promissory notes \| ADSs \| Maximum
Carrying amount of the convertible notes
Number of ordinary shares issued upon conversion of convertible notes \| shares		44,441,558
Average trading price of the ten highest closing price \| $ / shares		$ 3.85
Convertible promissory notes \| Ordinary Shares
Carrying amount of the convertible notes
Number of ordinary shares issued upon conversion of convertible notes \| shares	38,183,674		37,545,158

ORDINARY SHARES (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 11, 2019	Jun. 08, 2016	Mar. 31, 2020	Sep. 30, 2016	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 23, 2019
Total consideration to share repurchase plan					$ 2,695	$ 251	$ 3,354
Private Placement \| Warrant
Maximum number of ordinary shares into which the warrant maybe converted				7,455,000
Exercise price of warrant per ordinary share				$ 2.75
ADS
Authorized stock repurchase		$ 10,000						$ 3,000
Period to repurchase shares		12 months
Repurchase of outstanding shares (in share)					2,461,599	242,990	6,762,905
Number of ordinary shares represented in ADS	19,091,837
ADS \| Private Placement \| Warrant
Issuance of shares (in shares)				3,727,500
Ordinary Shares
Repurchase of outstanding shares (in share)					4,923,198	485,980	13,525,810
Total consideration to share repurchase plan					$ 2,695	$ 251	$ 27,261
Issuance of shares (in shares)	13,154,284		37,545,158
Number of ordinary shares represented in ADS	38,183,674

SHARE OPTIONS - Options Details and Assumptions Used to Estimate Fair Value of Options Granted (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2014 shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares
Share options
Incremental compensation expenses \| $		$ 3,606	$ 2,060	$ 405
2008 Plan
Share options
Shares authorized to grant \| shares				4,444,444
Additional shares authorized to issue \| shares	6,900,000
2008 Plan \| Share options
Share options
Vesting period				4 years
Vesting percentage at the end of the first year through the fourth year				25.00%
Expiration period				10 years
Shares options granted \| shares		3,000,000		44,000
Exercise price of shares options granted (in dollars per share)		$ 0.40
Incremental compensation expenses \| $		$ 1,689	$ 66	$ 21
Unrecognized incremental compensation cost \| $		$ 0
Assumptions used for estimating the fair value of options granted on the date of grant
Risk-free interest rate per annum (as a percent)		0.12%	0.00%
Risk-free interest rate per annum, minimum (as a percent)				2.90%
Risk-free interest rate per annum, maximum (as a percent)				3.20%
Exercise multiple		2.8	0	2.2
Expected volatility (as a percent)		91.30%	0.00%
Expected volatility, minimum (as a percent)				91.30%
Expected volatility, maximum (as a percent)				69.50%
Expected dividend yield (as a percent)		0.00%	0.00%	0.00%
Fair value of ordinary shares (in dollars per share)		$ 0.935	$ 0.00
Expected terms (in years)		1 year		10 years
2008 Plan \| Share options \| Minimum
Share options
Exercise price of shares options granted (in dollars per share)				$ 0.33
Assumptions used for estimating the fair value of options granted on the date of grant
Expected volatility, minimum (as a percent)				66.40%
Fair value of ordinary shares (in dollars per share)				$ 0.44
2008 Plan \| Share options \| Maximum
Share options
Exercise price of shares options granted (in dollars per share)				1.92
Assumptions used for estimating the fair value of options granted on the date of grant
Fair value of ordinary shares (in dollars per share)				$ 1.04
2008 Plan \| Nonvested shares
Share options
Vesting period				4 years
Nonvested shares granted \| shares		4,601,000	1,829,000	244,000
Incremental compensation expenses \| $		$ 1,917	$ 1,995	$ 384
Weighted-average period of recognition of unrecognized compensation cost		1 year 3 months 11 days
2019 Plan
Share options
Shares authorized to grant \| shares			2,867,382

SHARE OPTIONS - Summary of Stock Option Activity (Details) - 2008 Plan - Share options - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2018
Options granted
Balance at the beginning of the period (in shares)	204,700
Granted (in shares)	3,000,000	44,000
Forfeited (in shares)	(136,600)
Balance at the end of the period (in shares)	3,068,100
Weighted average exercise price per option
Balance at the beginning of the period (in dollars per share)	$ 2.39
Granted (in dollars per share)	0.40
Forfeited (in dollars per share)	2.31
Balance at the end of the period (in dollars per share)	$ 0.45

SHARE OPTIONS - Details of Share Options Granted (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Additional disclosures
Total fair value of the equity awards vested	$ 1,688,000	$ 9,000
Share-based compensation expense	$ 3,606,000	$ 2,060,000	$ 405,000
2008 Plan \| Share options
Options Number
Outstanding (in shares)	3,068,100	204,700
Exercisable (in shares)	3,068,100
Weighted-average exercise price per option
Outstanding (in dollars per share)	$ 0.45	$ 2.39
Exercisable (in dollars per share)	$ 0.45
Weighted-average remaining contractual life (years)
Outstanding	9 months 26 days
Exercisable	9 months 26 days
Average intrinsic value
Outstanding (in dollars)	$ 0.85
Exercisable (in dollars)	$ 0.85
Additional disclosures
Total intrinsic value of options exercised		$ 539,000	$ 270,000
Weighted average grant date fair value of options (in dollars per share)	$ 0.56	$ 0.00	$ 0.50
Share-based compensation expense	$ 1,689,000	$ 66,000	$ 21,000
Unrecognized compensation cost	$ 0

NONVESTED SHARES (Details) - 2008 Plan - Nonvested shares - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Nonvested shares
Nonvested shares granted	4,601,000	1,829,000	244,000
Vesting period			4 years
Vest immediately
Nonvested shares
Nonvested shares granted	218,000	1,549,000
Vesting period	1 year
Vest over a period of two years
Nonvested shares
Nonvested shares granted	940,000	280,000
Vesting period	2 years	2 years
Vest over a period of three years
Nonvested shares
Nonvested shares granted	3,443,000

NONVESTED SHARES - Summary of Nonvested Shares Granted and Vested (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Weighted average grant date fair value
Incremental compensation expenses	$ 3,606	$ 2,060	$ 405
2008 Plan \| Nonvested shares
Number of Shares
Outstanding at the beginning of the period (in shares)	460,000
Granted (in shares)	4,601,000	1,829,000	244,000
Forfeited (in shares)	(199,000)
Vested (in shares)	(4,202,000)
Outstanding at the end of the period (in shares)	660,000	460,000
Weighted average grant date fair value
Outstanding at the beginning of the period (in dollars per share)	$ 5.74
Granted (in dollars per share)	0.47
Forfeited (in dollars per share)	0.56
Vested (in dollars per share)	0.45
Outstanding at the end of the period (in dollars per share)	$ 4.21	$ 5.74
Fair value of shares vested	$ 1,911	$ 972	$ 379
Incremental compensation expenses	1,917	$ 1,995	$ 384
Unrecognized compensation cost	$ 363
Weighted-average period of recognition of unrecognized compensation cost	1 year 3 months 11 days

NONVESTED SHARES - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based compensation expenses
Incremental compensation expenses	$ 3,606	$ 2,060	$ 405
Fulfillment
Share-based compensation expenses
Incremental compensation expenses	15	238	47
Selling and marketing
Share-based compensation expenses
Incremental compensation expenses	82	408	99
General and administrative
Share-based compensation expenses
Incremental compensation expenses	$ 3,509	$ 1,414	$ 259

INCOME TAXES (Details) $ in Thousands, $ in Thousands		12 Months Ended						24 Months Ended
INCOME TAXES (Details) $ in Thousands, $ in Thousands	Dec. 31, 2019 USD ($)	Dec. 31, 2020 HKD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 HKD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 HKD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Income taxes
Assessable profits						$ 2,000
Half of the current tax rate (as a Percent)						8.25	8.25
Current			$ 55		$ 113		$ 33
Deferred			3,363		0		0
Income tax expense			3,418		113		33
Schedule of Loss before income taxes
Loss before provision of income tax			16,764		1,171		(59,790)
Deferred tax assets:
Allowance for credit losses											$ 14
Lease liabilities											1,662
Net operating loss carry forwards											31,312	$ 33,267
Gross deferred tax assets											32,988	33,267
Less: Valuation allowance	$ (31,879)		(29,827)		(31,879)		(26,691)	$ (31,879)	$ (29,827)	$ (31,879)	(29,827)	(31,879)
Total deferred tax assets											3,161	1,388
Deferred tax liabilities:
Property and equipment, net											(319)	(18)
Acquired intangible assets											(1,180)	(1,370)
Operating lease ROU assets											(1,662)
Other income from equity investment											(3,558)
Total deferred tax liabilities											(6,719)	$ (1,388)
Total deferred tax liabilities											3,558
Net operating loss carry forwards											$ 185,619
Movement of valuation allowance
Balance at beginning of the period			31,879		26,691			$ 31,879	26,691
Additions / (Decrease)			(2,052)		5,188
Balance at end of the period	$ 31,879		29,827		31,879		26,691		$ 29,827	$ 31,879
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Loss before provision of income tax			$ 16,764		$ 1,171		$ (59,790)
Statutory tax rate in the PRC (as a percent)		25.00%	25.00%	25.00%	25.00%	25.00%	25.00%
Income tax at statutory tax rate			$ 4,191		$ 293		$ (14,948)
Non-deductible expenses			130		10		115
Effect of preferential tax rate			(211)		(135)		7
Effect of income tax rate differences in jurisdictions other than the PRC			352		(2,277)		9,154
Statutory expense			(305)		(653)
Deferred tax expense			1,313		(2,313)
Changes in valuation allowances			(2,052)		5,188		5,705
Income tax expense			$ 3,418		$ 113		$ 33
Hong Kong
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Statutory tax rate in the PRC (as a percent)		16.50%	16.50%
Statute of limitations		6 years	6 years
PRC
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Statutory tax rate in the PRC (as a percent)		25.00%	25.00%
Statute of limitations		5 years	5 years
PRC \| Lanting Gaochuang
Income taxes
Preferential income tax rate	15.00%							15.00%
PRC \| Lanting Huitong
Income taxes
Reduction of taxable income for small and micro-sized enterprise (as a percent)									50
Reduced tax rate for small and micro-sized enterprise		20	20	20	20
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Statutory tax rate in the PRC (as a percent)						25.00%	25.00%
PRC \| Keji Chengdu
Income taxes
Income tax exemption (as a percent)				100	100	100	100
PRC \| Shenzhen Xuyi
Income taxes
Reduction of taxable income for small and micro-sized enterprise (as a percent)				50	50	50	50
Reduced tax rate for small and micro-sized enterprise				20	20	20	20
PRC \| Chongqing Xuyi
Income taxes
Reduction of taxable income for small and micro-sized enterprise (as a percent)										50
Reduced tax rate for small and micro-sized enterprise										20
Singapore
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Statute of limitations		5 years	5 years
Singapore \| Ching International service PTE.LTD
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Statutory tax rate in the PRC (as a percent)		17.00%	17.00%
Singapore \| D2D Express PTE.LTD
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Statutory tax rate in the PRC (as a percent)		0.00%	0.00%
Singapore \| Avant E-Commerce Service PTE.LTD
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Statutory tax rate in the PRC (as a percent)		0.00%	0.00%
Singapore \| Avant Logistic Service PTE.LTD
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Statutory tax rate in the PRC (as a percent)		0.00%	0.00%
Cayman Islands
Schedule of Loss before income taxes
Loss before provision of income tax			$ (5,216)		$ 11,403		$ (24,750)
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Loss before provision of income tax			(5,216)		11,403		(24,750)
Hong Kong
Income taxes
Withholding taxes amount on remittance of dividends		$ 0
Assessable profits		$ 0		$ 0		$ 0
Schedule of Loss before income taxes
Loss before provision of income tax			9,010		(7,728)		(36,476)
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Loss before provision of income tax			9,010		(7,728)		(36,476)
PRC excluding Hong Kong SAR, and other countries
Schedule of Loss before income taxes
Loss before provision of income tax			12,970		(2,504)		1,436
Reconciliation between the expense of income taxes computed by applying the PRC tax rate to loss before income taxes and the actual provision for income taxes
Loss before provision of income tax			$ 12,970		$ (2,504)		$ 1,436

(LOSS) / INCOME PER SHARE - Computation of Basic and Diluted Net (Loss)/Income Per Ordinary Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net (loss) / income attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd.	$ 13,317	$ 999	$ (59,602)
Change in fair value of convertible promissory notes		$ 14,591	$ (22,791)
Denominator:
Weighted average number of shares used in calculating net (loss) / income per ordinary share -basic	220,419,544	137,588,401	134,495,549
Weighted average number of shares used in calculating net loss per ordinary share -diluted	225,904,549	223,517,833	134,495,549
Net (loss) / income per ordinary share - basic (in dollars per share)	$ 0.06	$ 0.01	$ (0.44)
Net loss per ordinary share-diluted	$ 0.06	$ (0.06)	$ (0.44)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
EMPLOYEE BENEFIT PLANS
Total contribution for employee benefits	$ 3,147	$ 6,774	$ 5,358

STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
STATUTORY RESERVES AND RESTRICTED NET ASSETS
Minimum percentage of after-tax profit required to be transferred to general reserve till such reserve reaches specified percentage of registered capital	10.00%
General reserve as a percentage of registered capital up to which after-tax profit of PRC subsidiaries and VIEs shall be transferred	50.00%
Discretionary appropriations to enterprise expansion reserve, staff welfare and bonus reserve	$ 0	$ 0	$ 0
Amount of restricted net assets of subsidiaries and VIE not available for distribution	$ 5,362

SEGMENT REPORTING (Details) $ in Thousands	12 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2016 segment	Dec. 31, 2015 segment
Segment reporting
Number of operating segments \| segment				2	1
Product sales	$ 398,151	$ 243,626	$ 227,539
Cost of revenues	221,997	146,029	166,343
Total	398,151	243,626	227,539
Cost of Product Sales	221,997	146,029	166,343
Gross profit	176,154	97,597	61,196
Unallocated operating expenses	172,299	113,649	98,677
Loss from operations	3,855	(16,052)	(37,481)
Foreign Currency Transaction Gain (Loss), Unrealized	1,407	129	(339)
Interest income	103	297	487
Interest expense	(92)	(66)	(5)
Change in fair value of convertible promissory notes		14,591	(22,791)
Other income, net	12,898	283
(Loss) / Income before income taxes and share of income and gain from equity method investment	16,764	(947)	(59,790)
Product sales
Segment reporting
Product sales	382,075	236,705	216,407
Cost of revenues	211,430	144,061	156,326
Total	382,075	236,705	216,407
Cost of Product Sales	211,430	144,061	156,326
Gross profit	170,645	92,644	60,081
Service and others
Segment reporting
Product sales	16,076	6,921	11,132
Cost of revenues	10,567	1,968	10,017
Total	16,076	6,921	11,132
Cost of Product Sales	10,567	1,968	10,017
Gross profit	$ 5,509	$ 4,953	$ 1,115

SEGMENT REPORTING - Components of product sales (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment reporting
Total product sales revenues	$ 398,151	$ 243,626	$ 227,539
Product sales
Segment reporting
Total product sales revenues	382,075	236,705	216,407
Apparel
Segment reporting
Total product sales revenues	157,943	78,954	72,871
Other general merchandise
Segment reporting
Total product sales revenues	$ 224,132	$ 157,751	$ 143,536

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

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+ Details

SEGMENT REPORTING - Summary of revenues and percentage of revenues by geographical locations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment reporting
Total product sales revenues	$ 398,151	$ 243,626	$ 227,539
Total revenues
Segment reporting
Revenues (as a percent)	100.00%	100.00%	100.00%
Europe
Segment reporting
Total product sales revenues	$ 175,749	$ 87,586	$ 109,781
Europe \| Total revenues
Segment reporting
Revenues (as a percent)	44.10%	36.00%	48.20%
North America
Segment reporting
Total product sales revenues	$ 81,203	$ 37,932	$ 51,206
North America \| Total revenues
Segment reporting
Revenues (as a percent)	20.40%	15.60%	22.50%
Other countries
Segment reporting
Total product sales revenues	$ 141,199	$ 118,108	$ 66,552
Other countries \| Total revenues
Segment reporting
Revenues (as a percent)	35.50%	48.40%	29.30%

- Definition

+ References

+ Details

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Zall E-commerce and its subsidiary Zall Development (HK) Holding Company Limited [Member]
Related Party Transactions
Percentage of outstanding shares held	24.60%
Hankou North Import And Export Service Co. Ltd. [Member]
Related Party Transactions
Amount of related party transaction			$ 325
Hankou North Import And Export Service Co. Ltd. [Member] \| Logistics services
Related Party Transactions
Amount of related party transaction	$ 0	$ 1,952	4,302
Amount due from related parties	62	62
Hankou North Import And Export Service Co. Ltd. [Member] \| Technical Services
Related Party Transactions
Amount of related party transaction		123
Zall Foreign Trade Service (Hong Kong) Company Limited [Member] \| Logistics services
Related Party Transactions
Amount of related party transaction	0	770	4,186
Amount due from related parties	53	53
Network Marketing Technical Services [Member] \| Advertising services
Related Party Transactions
Amount of related party transaction	0	8,334	7,441
Amounts due to related party	220	220
Jiashi Financial Information Service (Hangzhou) Co. Ltd. [Member] \| Rental services
Related Party Transactions
Amount of related party transaction			$ 26
Wuhan Zall Internet Technology Co. Ltd.
Related Party Transactions
Amount of related party transaction		$ 4,223
Percentage Of Equity Interest Transferred		30.00%
Amounts due to related party	2,820	$ 4,223
Demon Network Technology (Hong Kong) Co. Ltd. [Member] \| Technical Services
Related Party Transactions
Amount of related party transaction		749
Amounts due to related party	0	315
Shaghai Zhijie E-Commerce Co., Ltd [Member] \| Maintenance Services
Related Party Transactions
Amount of related party transaction	82	189
Amounts due to related party	$ 0	$ 19

CONTINGENCIES (Details) $ in Thousands	12 Months Ended
CONTINGENCIES (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Failure to make payments of contributions for employee benefit plans
Contingencies
Contributions for employee benefit plans	$ 5,330

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

PARENT ONLY INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current assets
Prepaid expenses and other current assets	$ 5,176	$ 3,619
Amounts due from subsidiaries and VIEs	2,882	4,600
TOTAL ASSETS	158,028	113,201
Current Liabilities
Convertible promissory notes			$ 51,922
Accrued expenses and other current liabilities	42,183	28,642
TOTAL LIABILITIES	108,651	81,320
EQUITY
Ordinary shares	17	14
Additional paid-in capital	282,260	262,888
Forward contracts		15,769
Treasury shares, at cost	(30,207)	(27,512)
Accumulated deficit	(204,571)	(217,888)
Accumulated other comprehensive (loss) / income	1,795	(1,444)
TOTAL EQUITY	49,377	31,881	$ (7,805)	$ 55,470
TOTAL LIABILITIES AND EQUITY	158,028	113,201
LightInTheBox Holding Co., Ltd.
Current assets
Cash and cash equivalents	78	134
Prepaid expenses and other current assets	292	209
Amounts due from subsidiaries and VIEs	159,220	164,146
TOTAL ASSETS	159,590	164,489
Current Liabilities
Accrued expenses and other current liabilities	1,299	618
Deficit of investment in subsidiaries and VIEs	108,997	132,044
TOTAL LIABILITIES	110,296	132,662
EQUITY
Ordinary shares	17	14
Additional paid-in capital	282,260	262,888
Forward contracts		15,769
Treasury shares, at cost	(30,207)	(27,512)
Accumulated deficit	(204,571)	(217,888)
Accumulated other comprehensive (loss) / income	1,795	(1,444)
TOTAL EQUITY	49,294	31,827
TOTAL LIABILITIES AND EQUITY	$ 159,590	$ 164,489

PARENT ONLY INFORMATION - Condensed Statements of Operations and Comprehensive (Loss) / Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fulfillment	$ 27,967	$ 24,900	$ 15,127
General and administrative	33,160	37,811	33,042
(Loss) / Income from operations	3,855	(16,052)	(37,481)
Change in fair value of convertible promissory notes		14,591	(22,791)
(Loss) / Income before income taxes and share of income and gain from equity method investment	16,764	(947)	(59,790)
Income tax expense	3,418	113	33
Net (loss) / income	13,346	1,058	(59,602)
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes	3,239	(512)	(733)
Total comprehensive (loss) / income	16,585	546	(60,335)
Foreign currency translation adjustment, net of income taxes	0	0	0
LightInTheBox Holding Co., Ltd.
General and administrative	2,885	1,113	1,145
(Loss) / Income from operations	(2,885)	(1,113)	(1,145)
Share of (loss) / income from subsidiaries and VIEs	16,202	(12,479)	(35,665)
Change in fair value of convertible promissory notes		14,591	(22,791)
(Loss) / Income before income taxes and share of income and gain from equity method investment	13,317	999	(59,601)
Net (loss) / income	13,317	999	(59,601)
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes	3,239	(512)	(733)
Total comprehensive (loss) / income	16,556	487	(60,334)
Foreign currency translation adjustment, net of income taxes	$ 0	$ 0	$ 0

PARENT ONLY INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net (loss) / income	$ 13,346	$ 1,058	$ (59,602)
Change in fair value of convertible promissory notes		(14,591)	22,791
Prepaid expenses and other current assets	(2,005)	3,416	10,298
Accrued expenses and other current liabilities	14,373	5,292	(1,584)
Net cash (used in)/provided by operating activities	29,314	1,882	(29,868)
Net cash provided by / (used in) investing activities	(1,836)	(681)	3,296
Repurchase of ordinary shares	(2,695)	(251)	(3,354)
Net cash used in financing activities	(3,686)	(551)	(3,365)
Net (decrease) / increase in cash, cash equivalents and restricted cash	23,792	650	(29,937)
Cash, cash equivalents and restricted cash at beginning of year	40,445	39,802	70,014
Cash, cash equivalents and restricted cash at end of year	65,529	40,445	39,802
LightInTheBox Holding Co., Ltd.
Net (loss) / income	13,317	999	(59,601)
Share of (loss) / income from subsidiaries and VIEs	(16,202)	12,479	35,665
Change in fair value of convertible promissory notes		(14,591)	22,791
Prepaid expenses and other current assets	(83)	(41)	283
Accrued expenses and other current liabilities	681	(1,262)	(1,469)
Net cash (used in)/provided by operating activities	(2,287)	(2,416)	(2,331)
Changes in amounts due from subsidiaries and VIEs	4,926	2,490	4,512
Net cash provided by / (used in) investing activities	4,926	2,490	4,512
Proceeds from private placement and options exercised			13
Repurchase of ordinary shares	(2,695)	(251)	(3,354)
Net cash used in financing activities	(2,695)	(251)	(3,341)
Net (decrease) / increase in cash, cash equivalents and restricted cash	(56)	(177)	(1,160)
Cash, cash equivalents and restricted cash at beginning of year	134	311	1,471
Cash, cash equivalents and restricted cash at end of year	$ 78	$ 134	$ 311