Financial Performance - Total revenue for the year ended December 31, 2024, was 244 million or 85% compared to 79 million, compared to a loss of 86 million in 2024, down from 301 million or 78%[156] - Interest and other income, net decreased by 6 million for the year ended December 31, 2024, compared to 4 million, or 100%, to 1 million, or 20%, to 5 million in 2023, representing 14% of revenue in 2024 versus 2% in 2023[167] Operating Expenses - Sales and marketing expenses decreased by 18 million in 2024, compared to 192 million or 84% to 228 million in 2023[160] - Product development expenses decreased by 26 million for the year ended December 31, 2024, compared to 50 million, or 54%, to 92 million in 2023, accounting for 98% of revenue in 2024 versus 32% in 2023[164] Asset Sale Impact - Following the Asset Sale on April 19, 2024, the company no longer earns operating revenue from its previous marketplace and logistics operations[142] - The Asset Sale involved selling substantially all assets to Qoo10, with the company retaining certain tax attributes and cash equivalents[139] - Following the Asset Sale, the company no longer has revenue or deferred revenue, as it has no marketplace and logistics operations[183][184] Cash Flow and Financial Position - As of December 31, 2024, the company had cash and cash equivalents of 83 million, which are expected to meet anticipated cash needs for at least the next 12 months[169] - Net operating cash outflows were 341 million in 2023, primarily driven by a net loss of 68 million for the year ended December 31, 2024, primarily due to 1 million for the year ended December 31, 2024, due to payments of taxes related to employee restricted stock unit settlements[179] Tax and Valuation - The company is subject to income taxes in the U.S. and various international jurisdictions, requiring significant judgment and estimation[198] - Deferred tax liabilities and assets are recognized for expected future tax consequences of temporary differences and net operating loss carryforwards[199] - The company utilizes the Black-Scholes option pricing model and Monte Carlo Simulation model for estimating the fair value of stock options and PSUs, respectively[196] - The assumptions in the valuation models are based on management's estimates, which involve uncertainties and could lead to materially different stock-based compensation expenses in the future[197] Future Outlook - The company anticipates continued losses from operations as it incurs costs related to identifying and completing an acquisition[134] - The company expects to incur minimal administrative costs in overseeing and curating the remaining assets post-Asset Sale[142] - The company had an accumulated deficit of $3.3 billion as of December 31, 2024[134] - As a "smaller reporting company," the company is not required to provide quantitative and qualitative disclosures about market risk[200]
Contextlogic Inc.(LOGC) - 2024 Q4 - Annual Report