Asset Sale - ContextLogic Inc. completed the Asset Sale to Qoo10 on April 19, 2024, selling substantially all of its assets, including the Wish platform, while retaining net operating losses and certain cash equivalents[22]. - The Company completed an asset sale on April 19, 2024, with total proceeds of $214 million[48]. - Following the Asset Sale, the Company no longer has revenues from marketplace and logistics operations[42]. - Following the asset sale, the company received $162 million in cash from Qoo10, which included certain purchase price adjustments[113]. - Following the Asset Sale, all outstanding equity awards became fully vested, impacting the Company's stock-based compensation[73]. - Substantially all employees became employees of the buyer after the asset sale[83]. Financial Performance - The Company reported marketplace revenue of $24 million and logistics revenue of $36 million for 2023, totaling $60 million in revenue[41]. - Core marketplace revenue was $19 million in 2023, while ProductBoost revenue was $5 million, contributing to a total marketplace revenue of $24 million[41]. - The Company reported a net loss of $1 million for the three months ended September 30, 2024, compared to a net loss of $80 million for the same period in 2023[77]. - The provision for income taxes was $0 million for the three months ended September 30, 2024, compared to $3 million for the same period in 2023, primarily due to withholding taxes on intercompany dividends[75]. Cash and Assets - As of September 30, 2024, the Company held cash equivalents totaling $31 million and marketable securities of $117 million, resulting in total financial assets of $148 million[43]. - The Company’s marketable securities are classified as available-for-sale, with no identified credit loss or impairment in the periods presented[47]. - The Company had no operating lease liabilities as of September 30, 2024, due to the asset sale transferring all leases to Qoo10[61]. - The Company had no unrecognized tax benefits as of September 30, 2024, down from $4 million as of December 31, 2023[75]. Debt and Liabilities - The Company terminated its Revolving Credit Agreement, which previously allowed borrowing up to $280 million, on April 19, 2024[50]. - Following the asset sale, accrued liabilities decreased by 100% to $4 million, down from $90 million as of December 31, 2023[51][52]. - Other accrued liabilities decreased by 87% to $4 million primarily due to the asset sale[52]. - The Company reduced its Revolving Credit Facility from $280 million to $7 million as of March 2024, with a minimum liquidity covenant of $350 million[63]. Accounting and Reporting - The interim financial statements for the three and nine months ended September 30, 2024, are unaudited and include all normal recurring adjustments necessary for fair presentation[25]. - There have been no changes to the Company's significant accounting policies that have materially impacted its condensed consolidated financial statements since the 2023 Form 10-K filing[36]. - The Company expects no material impact from the adoption of recent accounting standards updates related to segment reporting and income tax disclosures[37]. - The Company identified material weaknesses in internal control over financial reporting, including insufficient management oversight and inadequate IT general controls[112]. Workforce and Compensation - The company reduced its workforce by approximately 17% in January 2023 and 34% in August 2023, resulting in charges of approximately $13 million for severance and personnel reduction costs[82]. - The total stock-based compensation expense for the nine months ended September 30, 2024, was $12 million, a decrease from $54 million for the same period in 2023[74]. - The Company’s CEO, Jun Yan, received RSUs and options with a total grant date fair value of $6 million, which became fully vested upon the Asset Sale[69]. - The fair value of stock options was estimated at $11.27 per share for the nine months ended September 30, 2023, with a risk-free interest rate of 4.15%[72]. Revenue Recognition - The Company recognized logistics revenue on a gross basis, while marketplace revenue was generally recognized on a net basis[38]. - The Company evaluated revenue recognition based on control of goods or services, fulfillment responsibility, inventory risk, and pricing latitude[38]. - The Company’s logistics services required merchants to prepay on a per order basis, with revenue recognized over time as services were performed[40].

Financial Performance - Net loss for Q3 2024 was $1 million, a significant improvement from a net loss of $80 million in Q3 2023[1] - The net loss per share for Q3 2024 was $0.04, compared to $3.35 in Q3 2023[11] - Net loss for September 30, 2024, was $73 million, a significant improvement from a net loss of $249 million in the same period of 2023[12] - Net cash used in operating activities decreased to $92 million from $266 million year-over-year[12] Cash and Liquidity - As of September 30, 2024, the company had $33 million in cash and cash equivalents and $117 million in marketable securities[2] - Total cash, cash equivalents, and restricted cash at the end of the period was $40 million, down from $310 million at the end of the previous year[12] - Cash flows from investing activities resulted in a net cash outflow of $103 million, compared to a net inflow of $75 million in the prior year[12] - Cash paid for income taxes was negligible, with no payments made in the current period compared to $1 million in the previous year[12] - The company had a foreign currency effect on cash of $(2) million, compared to $(7) million in the prior year[12] Expenses and Liabilities - The company incurred $3 million in general and administrative expenses during Q3 2024, primarily due to legal and employee expenses[4] - Total liabilities as of September 30, 2024, were $5 million, with expectations to remain low until future targets are identified[7] - The company reported a depreciation and amortization expense of $1 million for the current period, down from $3 million in the same period last year[12] - Stock-based compensation decreased to $12 million from $54 million year-over-year[12] - The company experienced a decrease in accounts payable by $15 million compared to a decrease of $17 million in the previous year[12] Strategic Focus - The company is focused on identifying and evaluating strategic opportunities to enhance stockholder value[3] - The company had eight full-time employees at the end of Q3 2024[4] Assets - Total current assets decreased from $410 million in 2023 to $158 million in 2024[10] - The company reported a deferred tax asset of $609 million as of December 31, 2023, subject to a full valuation allowance[6] Interest Income - Interest income for Q3 2024 was $2 million, with an expectation to earn approximately $2 million in Q4 2024[5] Asset Sales - Proceeds from asset sales resulted in a cash outflow of $133 million, with no comparable figure from the previous year[12]