Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2018 shares
Document and Entity Information
Entity Registrant Name	LightInTheBox Holding Co., Ltd.
Entity Central Index Key	0001523836
Document Type	20-F
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	134,456,369
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 38,808	$ 68,441
Restricted cash	994	1,573
Accounts receivable, net of allowance for doubtful accounts	1,463	3,433
Inventories	8,481	11,841
Prepaid expenses and other current assets	5,811	15,696
Total current assets	55,557	100,984
Property and equipment, net	3,652	920
Intangible assets, net	9,890	210
Goodwill	28,169	690
Long-term rental deposits	1,131	671
Long-term investments	5,188	5,262
TOTAL ASSETS	103,587	108,737
Current Liabilities
Accounts payable (including accounts payable of the consolidated VIEs without recourse to LightInTheBox Holding Co., Ltd. of $22 and $5 as of December 31, 2017 and 2018, respectively)	12,941	22,430
Amounts due to related parties	4,953
Convertible promissory notes	51,922
Advance from customers	17,732	10,110
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 $3,909 and $4,673 as of December 31, 2017 and 2018, respectively)	22,688	20,727
Total current liabilities	110,236	53,267
Long-term payable	1,156
TOTAL LIABILITIES	111,392	53,267
EQUITY
Ordinary shares ($0.000067 par value; 750,000,000 shares authorized; 169,675,522 and 150,011,929 shares issued as of December 31, 2017 and 2018 respectively; 135,664,877 and 134,465,369 shares outstanding as of December 31, 2017 and 2018 respectively)	11	11
Additional paid-in capital	239,269	238,851
Treasury shares, at cost (10,820,822 and 13,525,810 shares as of December 31, 2017, and 2018 respectively)	(27,261)	(23,907)
Accumulated other comprehensive loss	(932)	(199)
Accumulated deficit	(218,887)	(159,286)
Non-controlling interests	(5)
TOTAL EQUITY / (DEFICIT)	(7,805)	55,470
TOTAL LIABILITIES AND EQUITY / (DEFICIT)	$ 103,587	$ 108,737

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accounts payable	$ 12,941	$ 22,430
Advance from customers	17,732	10,110
Accrued expenses and other current liabilities	$ 22,688	$ 20,727
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	150,011,929	169,675,522
Ordinary shares, shares outstanding	134,456,369	135,664,877
Treasury stock, shares	13,525,810	10,820,822
Consolidated VIEs
Accounts payable	$ 5	$ 22
Accrued expenses and other current liabilities	$ 4,673	$ 3,909

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net revenues
Revenues	$ 227,539	$ 319,881	$ 292,487
Cost of revenues
Cost of revenues	166,343	214,261	188,937
Gross profit	61,196	105,620	103,550
Operating expenses:
Fulfillment	15,127	17,291	17,052
Selling and marketing	50,508	68,891	61,090
General and administrative	33,042	29,605	34,492
Total operating expenses	98,677	115,787	112,634
Loss from operations	(37,481)	(10,167)	(9,084)
Exchange loss on offshore bank accounts		(89)	(120)
Interest income	487	581	518
Interest expense	(5)
Change in fair value of convertible promissory notes	(22,791)
Total other income/ (loss)	(22,309)	492	398
Loss before income taxes and gain from equity method investment	(59,790)	(9,675)	(8,686)
Income tax expense	(33)	(81)	(54)
Gain (Loss) from equity method investment	221	208	17
Net loss	(59,602)	(9,548)	(8,723)
Less: Net loss attributable to non-controlling interests	(1)
Net loss attributable to LightInTheBox Holding Co., Ltd.	$ (59,601)	$ (9,548)	$ (8,723)
Net loss per ordinary share-basic and diluted (in dollars per share)	$ (0.44)	$ (0.07)	$ (0.07)
Product sales
Net revenues
Revenues	$ 216,407	$ 293,951	$ 262,083
Cost of revenues
Cost of revenues	156,326	189,816	160,566
Service and others
Net revenues
Revenues	11,132	25,930	30,404
Cost of revenues
Cost of revenues	$ 10,017	$ 24,445	$ 28,371

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (59,602)	$ (9,548)	$ (8,723)
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes	(733)	380	(270)
Total comprehensive loss	(60,335)	(9,168)	(8,993)
Less: comprehensive loss attributable to non-controlling interests	(1)
Comprehensive loss attributable to LightInTheBox Holding Co., Ltd.	$ (60,334)	$ (9,168)	$ (8,993)

- Definition

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

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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
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	Total
Balance at Dec. 31, 2015	$ 7	$ 159,190	$ (19,996)	$ (309)	$ (141,015)		$ (2,123)
Balance (in shares) at Dec. 31, 2015	94,456,773
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon private placement	$ 3	75,420					75,423
Issuance of ordinary shares upon private placement (in shares)	42,500,000
Issuance of ordinary shares upon vesting of nonvested shares (in shares)	1,367,560
Exercise of share options		22					22
Exercise of share options (in shares)	39,500
Share-based compensation		2,317					2,317
Repurchase of ordinary shares			(810)				(810)
Repurchase of ordinary shares (in shares)	(543,228)
Net loss					(8,723)		(8,723)
Foreign currency translation adjustment, net of nil income taxes				(270)			(270)
Balance at Dec. 31, 2016	$ 10	236,949	(20,806)	(579)	(149,738)		65,836
Balance (in shares) at Dec. 31, 2016	137,820,605
Increase (Decrease) in Stockholders' Equity
Issuance of ordinary shares upon vesting of nonvested shares	$ 1						1
Issuance of ordinary shares upon vesting of nonvested shares (in shares)	437,830
Exercise of share options		37					37
Exercise of share options (in shares)	293,362
Share-based compensation		1,865					1,865
Repurchase of ordinary shares			(3,101)				(3,101)
Repurchase of ordinary shares (in shares)	(2,886,920)
Net loss					(9,548)		(9,548)
Foreign currency translation adjustment, net of nil income taxes				380			380
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 for acquisition of Ezbuy						$ (4)	(4)
Net loss					(59,601)	(1)	(59,602)
Minority equity at Dec. 31, 2018							(5)
Increase (Decrease) in Stockholders' Equity
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

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY / (DEFICIT) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
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, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities
Net loss	$ (59,602)	$ (9,548)	$ (8,723)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	870	769	1,395
Loss on disposal of property, plant and equipment	36
Share-based compensation	405	1,865	2,317
Unrealized foreign exchange loss	339	89	120
Gain from equity method investment	(221)	(208)	(17)
Change in fair value of convertible promissory notes	22,791
Bad debt expense	533	0
Inventory write down	2,456	2,065	3,286
Changes in operating assets and liabilities, net of effect of acquisition of Ezbuy:
Accounts receivable	1,860	(973)	(1,707)
Inventories	5,638	(3,293)	(2,642)
Prepaid expenses and other current assets	10,298	(5,985)	(4,659)
Long-term rental deposits	(81)	(12)	(2)
Accounts payable	(16,185)	(108)	(6,813)
Amounts due to related parties	4,953
Advance from customers	(2,374)	1,345	476
Accrued expenses and other current liabilities	(1,584)	(837)	1,635
Net cash used in operating activities	(29,868)	(14,831)	(15,334)
Cash flows from investing activities
Purchase of property and equipment	(387)	(556)	(334)
Cash acquired from acquisition of Ezbuy	3,683
Payment for long term investment		(2,950)
Net cash (used in) / provided by investing activities	3,296	(3,506)	(334)
Cash flows from financing activities
Proceeds from exercise of share options	13	37	22
Proceeds from private placement			75,423
Repayment of long-term payable under capital leases	(24)
Repurchase of ordinary shares	(3,354)	(3,101)	(810)
Net cash provided by / (used in) financing activities	(3,365)	(3,064)	74,635
Net increase / (decrease) in cash, cash equivalents and restricted cash	(29,937)	(21,401)	58,967
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(275)	340	(398)
Cash, cash equivalents and restricted cash at beginning of year	70,014	91,075	32,506
Cash, cash equivalents and restricted cash at end of year	39,802	70,014	91,075
Supplemental cash flow information:
Income taxes paid	(55)	$ (81)	$ (54)
Interest expense paid	(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)

ORGANIZATION AND PRINCIPAL ACTIVITIES

12 Months Ended

Dec. 31, 2018

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 has been accounted for in a manner akin to a pooling of interest as if the Company had been in existence and owned Light In The Box since June 2007.

Lightinthebox Trading (Shenzhen) Co., Ltd. (“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 March 17, 2016, Zall Cross-border E-commerce Investment Company Limited (“Zall E-Commerce”), an indirect wholly-owned subsidiary of Zall Group Ltd. (“Zall Group”), a developer and operator of large-scale consumer-focused product wholesale shopping malls in China, acquired a strategic equity interest in the Group.

On December 10, 2018, the Company acquired 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.

(b)

The VIE arrangements

The PRC regulations currently limit 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”) and Beijing Lanting Gaochuang Technologies Co.Ltd. (“Lanting Gaochuang”) , Shenzhen Xuyi International logistics Co., Ltd. (“Shenzhen Xuyi”), Chongqing Xuyi E-Commerce Co., Ltd. (“Chongqing Xuyi”), and Jiaxing Xuyang Logistics Co., Ltd. (“Jiaxing Xuyang”), 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 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, respectively, in the China Beijing Wangjing Overseas Students Pioneer Park.

Through a series of contractual arrangements (as described below) among 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 acquisition on December 10, 2018.

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 on December 10, 2018.

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 on December 10, 2018.

(c)

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

Powers of Attorney / Proxy agreement: Each shareholder of the VIEs has executed a power of attorney appointing Lanting Jishi or Qianhai Xuyi (the “pledgees”) or their designees to be his or her attorney and irrevocably authorizing them to vote on his or her behalf on all of the matters concerning the VIEs that may require shareholders’ approval. The powers of attorney will be valid as long as the shareholders remain as shareholders of the VIEs.

Equity disposal agreement / exclusive option agreement: The agreements granted pledgees or their designated parties exclusive options to purchase, when and to the extent permitted under PRC law, all or part of the equity interests in the VIEs. The exercise price for the options to purchase all or part of the equity interests will be the minimum amount of consideration permissible under the then applicable PRC law. The agreements will be valid until pledgees or their designated parties purchase all the shares from shareholders of the VIEs.

Spousal consent letters: Pursuant to spousal consent letters, the spouses of shareholders of the VIEs acknowledged that the equity interests of the VIEs held by and registered in the name of his/her spouse will be disposed of pursuant to the equity disposal and share pledge agreements. These spouses understand that such equity interests are held by their respective spouse on behalf of pledgees, and they will not take any action to interfere with the disposition of such equity interests, including, without limitation, claiming that such equity interests constitute communal property of marriage. The spousal consent letters will be valid until the liquidation of the VIEs, unless terminated earlier at pledgees’ sole discretion.

Loan Agreement: Under the loan agreement entered into in December 2011 between Lanting Jishi and Mr. Quji (Alan) Guo , Lanting Jishi 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 agrees that without prior written consent from Lanting Jishi, 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. This loan can only be repaid by transferring all of Mr. Quji (Alan) Guo’s equity interest in Lanting Gaochuang to Lanting Jishi or a third party designated by Lanting Jishi, and submitting all proceeds from such transaction to Lanting Jishi. The loan agreement has a term of ten years and will be extended automatically, unless indicated otherwise by Lanting Jishi in writing three months prior to the contract expiration date.

(d)

Agreements that transfer economic benefits to pledgees

Business operation agreements: The shareholders of the VIEs and the VIEs agreed that the VIEs may not enter into any transaction that could materially affect the assets, liabilities, interests or operations of the VIEs, without prior written consent from Lanting Jishi or other party designated by Lanting Jishi. In addition, directors, supervisors, chairman, general managers, financial controllers or other senior managers of the VIEs must be Lanting Jishi’s nominees. Lanting Jishi is entitled to any dividend declared by the VIEs. The business operation agreement will be valid until the liquidation of the VIEs, unless terminated earlier at Lanting Jishi’s sole discretion.

Exclusive technical support and consulting service agreements: Pledgees agreed to provide the VIEs with technology support and consulting services. The VIEs agreed to pay a service fee annually equal to substantially all of the net income of the VIEs. The exclusive technical support and consulting service agreement will be valid until the liquidation of the VIEs, unless terminated earlier at pledgees’ sole discretion.

Share pledge agreement: The shareholders of the VIEs pledged all of their respective equity interests in favor of pledgees to secure the obligations of the VIEs, and the shareholders under the VIE agreements, including the business operation agreements, and the exclusive technical support and consulting service agreements described above. If the VIEs or any of the shareholders of the VIEs breaches any of their respective contractual obligations under these agreements, Lanting Jishi and Qianhai Xuyi, as pledgees will be entitled to certain rights, including the right to sell the pledged equity interests. The shareholders of the VIEs agreed not to transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their respective equity interests in the VIEs, without pledgees’ prior written consent. Unless terminated at pledgees’ sole discretion, each share pledge agreement will be valid till the completion of all the contractual obligations of the VIEs, or any of the shareholders of the VIEs under the various agreements, including the business operation agreements, the technical support and consulting service agreements and equity disposal agreements.

Since the Company, through pledgees, its wholly owned subsidiaries, has (1) the power to direct the activities of VIEs that most significantly affect their economic performance and (2) the right to receive the benefits from them, the Company is the primary beneficiary of both entities and has consolidated them as VIEs since their respective inceptions.

(e)

Risks in relation to 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 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;

revoke the benefits provided by the China Beijing Wangjing Overseas Students Pioneer Park;

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 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,
	2017		2018

Total assets	$	6,117	$	6,492
Total liabilities	$	3,931	$	4,678


	Year ended December 31,
	2016		2017		2018

Revenues	$	5	$	—	$	3
Net loss	$	(52)	$	(7,507)	$	(7,490)


	Year ended December 31,
	2016		2017		2018

Net cash (used in) / provided by operating activities	$	(131)	$	3,073	$	(7,519)
Net cash (used in) / provided by investing activities	$	—	$	(3,069)	$	473
Net cash provided by financing activities	$	—	$	—	$	—

As of December 31, 2018, there was no pledge or collateralization of the consolidated VIEs’ assets. None of the consolidated VIEs’ assets 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, 2018

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”).

The accompanying consolidated financial statements contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Group's ability to operate profitably, to generate cash flows from operations, and its ability to attract investors and to borrow funds on reasonable economic terms.

The Company has suffered recurring losses from operations in the past 3 years. As of December 31, 2018, the Company's consolidated current liabilities exceed current assets in the amount of $ 54,679, and there was accumulated deficit in amount of $ 218,887. Historically, the Group has relied principally on equity financing to fund its operations and business development. In addition, the Group can adjust the pace of its operation expansion and control the operating expenses of the Group. On February 20, 2019, the Company obtained letter of support from its principal shareholder, Zall Cross-border E-commerce Investment Company Limited ("Zall”), pursuant to which Zall has agreed to provide the Company additional financial support to continue business operations. Therefore, the Group's consolidated financial statements have been prepared on a going concern basis.

(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 / (deficit) in the consolidated balance sheets and consolidated statements of changes in equity / (deficit). Additionally, net loss attributable to non-controlling interests is reflected separately from consolidated net loss in the consolidated statements of operations and comprehensive loss and changes in equity / (deficit).

The Company records the non-controlling interest’s share of income or loss based on the percentage of ownership interest retained by the respective non-controlling interest holders. The net loss attributable to the Company is the total consolidated net loss less the net loss 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 amount 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 useful lives of property, plant and equipment and intangibles with definite lives, the fair value determinations of share-based compensation awards and convertible promissory notes, the fair value determinations of identifiable assets acquired and liabilities assumed, inventory valuation, impairment of goodwill and intangible assets, and realization of deferred income tax assets.

(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 account as deposits withheld by third party payment processing agencies and the deposits fluctuate with the volume of payment processed.

(g) Inventories

Inventories represent products available for sale and are accounted for using the first-in-first-out 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 is dependent upon factors such as historical trends with similar merchandise, inventory aging, and historical and forecasted consumer demand. Write downs of $3,286, $2,065 and $2,456 were recorded in cost of revenues in the consolidated statements of operations for the years ended December 31, 2016, 2017 and 2018, respectively.

(h) 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 are 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
Software and IT equipment	0.1 - 3	years
Vehicles	0.6 - 9	years

(i) 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	3-5	years
Members	4	years
Branding	10	years
In-progress orders	0.1	year

(j) Long-term investments

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

Equity investments without readily determinable fair value

Prior to adopting ASU 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, on January 1, 2018, investment in an entity where the Group does not have readily determinable fair value and the Group does not have significant influence, is accounted for using the cost method. The Group only adjusts for other-than-temporary declines in fair value and distributions of earnings that exceed the Group’s share of earnings since its investment.

Management regularly evaluated the impairment of the cost method investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation included, but was not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. The Group did not record any impairment loss on its cost method investment during the years ended December 31, 2016 and 2017.

Subsequent to the Group’s adoption of ASU 2016-01 on January 1, 2018, 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 Accounting Standards Codification (“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.

Pursuant to ASU 2016-01, for equity investments 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 income equal to the difference between the carrying value and fair value. The Group did not record any impairment loss on its equity investment without readily determinable fair value during the year ended December 31, 2018.

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, 2016, 2017 and 2018.

(k) Impairment of long-lived assets and intangible assets with definite life

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.

(l) 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 event 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. ASC 350-20, Goodwill, permits the Group to first assess qualitative factors to determine whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative impairment test, using a two - step approach. If this is the case, the two-step goodwill impairment test is required. If it is more likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required.

If the two-step goodwill impairment test is required, 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. In estimating the fair value of each reporting unit the Group estimates the future cash flows of each reporting unit, the Group has taken into consideration the overall and industry economic conditions and trends, market risk of the Group and historical information.

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.

(m) 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.

(n) Treasury shares, at cost

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.

(o) 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 logistic services to small businesses in China.

Periods prior to January 1, 2018

Product sales

The Group recognizes revenue from the sale of apparel and other general merchandise through its websites and other online platforms.

Prior to January 1, 2018, the Group recognizes revenue when the following four revenue recognition criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the selling price is fixed or determinable, and (iv) collectability is reasonably assured.

Revenue is stated net of value added tax (“VAT”), discounts and return allowances.

The Group defers the recognition of revenue and the related product costs for shipments that are in-transit to the customer. Payments received in advance of delivery are classified as advances from customers. The Group recognizes the revenue at the time the customers receive the products even for international shipment. Amounts collected by delivery service providers but not remitted to the Group are classified as accounts receivable on the consolidated balance sheets.

Certain employees of the Group register in supplemental online outlets under their own name as these websites require registration using identity cards of individuals to sell the Group’s product on behalf of the Group. The Group has contractual arrangements with these employees which require them to transfer customers’ payments received to the Group for the sale of the products. The Group evaluates the sales transactions performed by these employees on behalf of the Group to determine whether to recognize the revenues on a gross or net basis. The determination is based upon an assessment as to whether the Group acts as a principal or agent when selling the products. All of the revenues involving employees performing sales transactions on the supplemental online outlets on behalf of the Group are currently accounted for on a gross basis since the Group is the primary obligor, has general and physical inventory risk, latitude in establishing prices, discretion in supplier selection and credit risks. Such sales transactions ceased in the year ended December 31, 2018.

In arrangements whereby certain suppliers place the products at the Group’s premises, the risk and rewards of ownership of the products passed to the Group upon confirmation of orders by the Group’s customers. All of the revenues involving these arrangement are accounted for on a gross basis since the Group is the primary obligor, has physical inventory risk, latitude in establishing prices, discretion in supplier selection and credit risks.

The Group periodically provides incentive offers to its customers to encourage purchases. Current discount offers, when accepted by its customers, are treated as a reduction to the purchase price of the related transaction and are included as a net amount in revenue. The Group also provides discount reward, which may only be used in the future, to customers who have made a current purchase. As the right of receiving future discount does not represent a significant and incremental discount to the customer, the discount is treated as a reduction of revenue when the future transaction takes place.

Promotional free products, which cannot be redeemed for cash are normally shipped together with current qualified sales. Cost of these promotional items or free products are recorded as cost of sales when the revenue of the current qualified sales is recognized.

The Group allows customers to return goods within a period of time subsequent to the delivery of the goods purchased. The Group changed its sales return policy in 2017 to offer returns for items from 30 days to 14 days of receipt of shipment. The Group estimates return allowance based on historical experience. The estimation of return allowances is adjusted to the extent that actual returns differ, or are expected to differ. Changes in the estimated return allowance are recognized through a cumulative catch-up adjustment in the period of change and will impact the amount of revenues in that period.

Outbound shipping charges to customers are included as a part of the revenues. Outbound shipping-related costs are included in the cost of product sales.

Prior to January 1, 2018, VAT on sales is calculated at 17% on revenue from sale of products in the PRC and paid after deducting input-VAT on purchases. The net VAT balance between input-VAT and output-VAT is reflected in the consolidated financial statement as prepaid expenses and other current assets or accrued expenses and other current liabilities.

Service

The Group derive services revenue mainly from provision of logistic services to small businesses in China. Prior to January 1, 2018, service revenue is recognized when persuasive evidence of an arrangement exists, service has been performed, the fee is fixed or determinable and collectability is reasonably assured. Revenue for logistic services are recognized when the packages are delivered to the recipients.

Period commencing January 1, 2018

The Group adopted Accounting Standards Update (or ASU) 2014-09 - Revenue from Contracts with Customers on January 1, 2018. The Company applied ASU 2014-09 using the modified retrospective method for contracts which were not completed at the date of initial adoption. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue recognition, while prior period amounts are not adjusted and continue to be reported in accordance with ASC 605, Revenue Recognition.

Since the adoption of Accounting Standards Update (or ASU) 2014-09 - Revenue from Contracts with Customers, starting from January 1, 2018, the Group recognizes revenues upon the satisfaction of its performance obligation (upon transfer of control of promised goods or services to customers) in an amount 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.

The adoption of new revenue standard did not impact retained earnings as of January 1, 2018.

Product sales

The Group identified one performance obligation which is to sell products to customers through its websites and other online platforms. Revenue of product sales is 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; (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 revenue at the time of future purchase. Since the points were earned not based on past sales transactions, no accrual was made at the time when earned by the registered members.

Product sales, net of discounts, return allowances 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. Return allowances, which reduce revenue, are estimated utilizing the expected value method based on historical experience of returns. The Group allows customers to return the goods with no quality-related issues within 14 days of receipt of shipment, and to return the goods with quality-related issues within 12 months of receipt of shipment. Liabilities for return allowances are included in “Accrued expenses and other” and were $1,236, and $1,336 as of December 31, 2017, and 2018.

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 $59,964, $60,131 and $51,731 for the years ended December 31, 2016, 2017 and 2018, respectively.

Service

The Group derive services revenue mainly from provision of logistic services to small businesses in China. Revenues 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.

(p) 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. Accounts receivable consist of accounts receivable for logistic services, account receivable for cash collected by the delivery service providers on behalf of the Group and accounts receivable for 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. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. As of December 31, 2017 and 2018, the allowance of doubtful accounts were nil and $533, respectively.

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.

In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the consolidated balance sheet was as follows:


					Amounts without
	As of				adoption of
	December 31, 2018		Adjustments		ASU 2014-09
Contract liability	$	10,246	$	209	$	10,455
Accrued expenses and other current liabilities	$	22,688	$	(209)	$	22,479

Changes in the Group’s contract liability are presented in the following table for the year ended December 31, 2018:


	For the year ended
	December 31, 2018
Contract liability as of January 1, 2018	$	5,248
Cash received in advance, net of VAT		199,899
Revenue recognized from opening balance of contract liability		(5,248)
Revenue recognized from contract liability arising during current year		(189,653)
Contract liability as of December 31, 2018	$	10,246

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.

(q) 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-down. Shipping charges to receive products from its suppliers are included in inventory cost, and recognized as cost of sales upon sale of products to its 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 revenue over the delivery period when the goods are delivered to destination.

(r) 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.

(s) Selling and marketing

Selling and marketing expenses consist primarily of search engine marketing and advertising, affiliate market program expenditure, 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 fee is 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 paid at fixed rate or calculated based on volume directed to the Group’s website. The advertising expense for the years ended December 31, 2016, 2017 and 2018 were $53,827, $62,767 and $43,308, respectively.

(t) 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 expense for the years ended December 31, 2016, 2017 and 2018 were $6,702, $5,207 and $5,694, 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 expense for the years ended December 31, 2016, 2017 and 2018 were $2,354, $2,929 and $2,938, respectively.

(u) Fair value

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.

(v) Financial instruments and fair value measurements

Financial instruments of the Group primarily consist of cash and cash equivalents, restricted cash, accounts receivable, receivable from processing agencies, long-term rental deposits, accounts payable, amounts due to related parties, convertible promissory notes, deposit liability, accrued expenses and other current liabilities and long-term payable.

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, receivable from processing agencies, accounts payable, amounts due to related parties, deposit liability and accrued expenses and other current liabilities as of December 31, 2017 and 2018 approximate their fair values due to short-term maturities.

The Group no longer uses the cost method of accounting for long-term investments as it was applied before, since the Group adopted the ASU 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, since January 1, 2018. After management's assessment of each of the equity investments except those accounted for under the equity method described in Note 8, management concluded that investments do not have readily determinable fair values, and elects the measurement alternative.

The Group measures convertible promissory notes at fair value on a recurring basis. Convertible promissory notes being recognized in its entirety at fair value were measured at fair value using unobservable inputs. It is categorized in Level 3 of the fair value hierarchy.

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, and the Group discloses the fair value of its long-term payable based on Level 2 inputs in Note 20.

Goodwill, long-term investments and other intangible assets are measured at fair value on a nonrecurring basis 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 were based on five years financial forecasts developed by management for planning purposes and estimated discount rates. Cash flows beyond the forecasted period were estimated using a terminal value calculation. The fair values of intangible asset 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 liabilities measured at fair value on a recurring basis at December 31, 2018:


	December 31, 2018
	Level 1		Level 2		Level 3		Total Fair Value
Liabilities:
Convertible promissory notes	$	—	$	—	$	51,922	$	51,922

(w) 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.

(x) 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, 2016, 2017 or 2018, respectively.

(y) Comprehensive loss

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

(z) 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 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.

(aa) Leases

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

The Group assesses a lease to be a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the property’s estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease.

All other leases are accounted for as operating leases wherein rental payments are expensed on a straight-line basis over the periods of their respective lease terms. The Group leases office space and warehouses under operating lease agreements. Certain of the lease agreements contain rent holidays. Rent holidays are considered in determining the straight-line rental expense to be recorded over the lease term. The lease term begins on the date of initial possession of the lease property for purposes of recognizing lease expense on straight-line basis over the term of the lease.

(bb) Earnings / (loss) per share

Basic earnings / (loss) per ordinary share is computed by dividing net income / (loss) 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.

(cc) 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.

(dd) 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 processing agencies and long-term rental deposits. The Group places its cash and cash equivalents with financial institutions and third party payment processing agencies located in the PRC, Hong Kong, United States, Netherland, Singapore, Malaysia, Thailand and Indonesia. Accounts receivable primarily comprise 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. 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 suppliers. Receivable from processing agencies represented cash that had been received from customers but held by the processing agencies in the process of reconciliation and are collected by the Group subsequent to the year end.

(ee) 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 denominated in RMB amounted to $4,829 and $4,368 at December 31, 2017 and 2018, respectively.

(ff) Newly adopted accounting pronouncements

In May 2014, the Financial Accounting Standards Board (or FASB) issued ASU 2014-09, Revenue from Contracts with Customers, (or ASU 2014-09). ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue as each performance obligation is satisfied. ASU 2014-09 became effective for the Company as of January 1, 2018 and may be applied, at the Company’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of such date. The Company has adopted ASU 2014-09 using the modified retrospective method for contracts which were not completed at the date of initial adoption. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue recognition, while prior period amounts are not adjusted and continue to be reported in accordance with ASC 605, Revenue Recognition.

In January 2016, the FASB issued ASU 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 was further amended in February 2018 by ASU 2018-03, "Technical Corrections and Improvements to Financial Instruments-

Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". This update was issued to clarify certain narrow aspects of guidance concerning the recognition of financial assets and liabilities established in ASU 2016-01. This includes an amendment to clarify that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair valuation method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issued. ASU 2016-01 and ASU 2018-03 are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. Adoption of the amendment must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except for amendments related to equity instruments that do not have readily determinable fair values, which should be applied prospectively. The Group has adopted the new standards as of January 1, 2018, which did not result in a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash. ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities are also required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 became effective for the Company as of January 1, 2018. Adoption of ASU 2016-18 resulted in the Group including in its consolidated statements of cash flows changes in cash, cash equivalents and restricted cash. The Group adopted this ASU on January 1, 2018 on a retrospective basis. The adoption of this guidance impacted the presentation and classification of restricted cash in the Group’s consolidated statements of cash flows. For the years ended December 31, 2017 and 2016, substantially all the changes in restricted cash amounting to $15 and $47 previously reported in investing activities were reclassified to total cash, cash equivalents, and restricted cash in the statement of cash flows.

(gg) Recent accounting pronouncements not yet adopted

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires that a lessee should recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expenses for such lease generally on a straight-line basis over the lease term. The new leases standard also provides lessees with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component. If a lessee makes that accounting policy election, it is required to account for the non-lease components together with the associated lease component as a single lease component and to provide certain disclosures. Entities were initially required to adopt the new leases standard using a modified retrospective transition method. Under that transition method, an entity initially applies the new leases standard (subject to specific transition requirements and optional practical expedients) at the beginning of the earliest period presented in the financial statements. In July 2018, the FASB issued ASU 2018-11, which provides another transition method in addition to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public entities. The Group adopted ASU 2016-02 on January 1, 2019. The Group estimates approximately $9,880 would be recognized as a right-of-use asset and a lease liability on consolidated balance sheet as of January 1, 2019.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequently in November 2018, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. The ASUs amend the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. In addition, these amendments require the measurement of all expected credit losses for financial assets, including trade accounts receivable, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This guidance and related amendments is effective for annual reporting periods beginning after December 15, 2019, including interim periods therein. Early application is permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Group is currently assessing the impact this guidance will have on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. Under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this Update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Group does not expect the adoption of this guidance will have a significant effect on the Group’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement to ASC Topic 820, Fair Value Measurement ("ASC 820"). ASU 2018-13 modifies the disclosure requirements for fair value measurements by removing, modifying, and/or adding certain disclosures. ASU 2018-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019. An entity is permitted to early adopt by modifying existing disclosures and delay adoption of the additional disclosures until the effective date. 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, 2018

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 is $29,131, which is 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 for Ezbuy which have been 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. Total amortization expense of these intangible assets is $298.

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.

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, 2017 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,
	2017		2018
Revenues	$	477,326	$	337,695
Net loss	$	21,593	$	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, 2018

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,
	2017		2018

Receivable from processing agencies (1)	$	2,460	$	1,386
Prepayment to suppliers		11,880		838
Rental deposits and prepaid rents		211		268
Deferred expense		341		686
Others (2)		804		2,633
Total	$	15,696	$	5,811

(1)

Receivables from processing agencies represented cash that had been received from customers but held by the processing agencies in the process of reconciliation as of December 31, 2017 and 2018. The receivables were collected by the Group subsequent to the respective year end.

(2)

Others mainly include payments on behalf of small businesses customers for purchasing and staff advances.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2018

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,
	2017		2018

Leasehold improvements	$	4,069		3,688
Furniture, fixtures and office equipment		2,715		2,852
Software and IT equipment		3,088		2,736
Vehicles		—		1,760
Property and equipment, gross		9,872		11,036
Less: Accumulated depreciation		(8,952)		(7,384)
Property and equipment, net	$	920	$	3,652

Depreciation expenses incurred for the years ended December 31, 2016, 2017 and 2018 are $1,378, $764 and $572, respectively.

GOODWILL

12 Months Ended

Dec. 31, 2018

GOODWILL

GOODWILL

6. GOODWILL

On December 31, 2013, the Group acquired the fashion-focused site business from Ador Inc. The acquired assets were recorded at fair value at the date of acquisition, including net working capital of $44, goodwill of $690 and other intangible assets of $266. There was no change to the carrying amount of goodwill since acquisition.

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 in details of acquisition of Ezbuy.

All the goodwill was allocated to the product sales segment.

The changes in the carrying amount of goodwill for the years ended December 31, 2016, 2017 and 2018, are as follows.


	Ador Inc		Ezbuy		Total
Balance at January 1, 2018
Goodwill	$	690	$	—	$	690
Accumulated impairment loss		—		—
	$	690	$	—	$	690
Goodwill acquired during the year		—		27,479		27,479
Impairment loss		—		—		—
Balance at December 31, 2018
Goodwill	$	690	$	27,479	$	28,169
Accumulated impairment loss		—		—		—
	$	690	$	27,479	$	28,169

ACQUIRED INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2018

ACQUIRED INTANGIBLE ASSETS, NET

ACQUIRED INTANGIBLE ASSETS, NET

7. ACQUIRED INTANGIBLE ASSETS, NET

The Group’s intangible assets, presented in the following table, arose from the acquisition of Shanghai Ouku on May 24, 2010 , the acquisition of the fashion-focused site business from Ador Inc. on December 31, 2013 and the acquisition of Ezbuy on December 10, 2018.


	December 31, 2017								December 31, 2018
	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		36		(36)		—		—		2,951		(85)		—		2,866
- Branding		—		—		—		—		6,871		(57)		—		6,814
- In-progress orders		—		—		—		—		192		(192)		—		—
- Members		20		(20)		—		—		20		(20)		—		—
	$	1,407	$	(175)	$	(1,022)	$	210	$	11,385	$	(473)	$	(1,022)	$	9,890

The amortization expenses incurred for the years ended December 31, 2016, 2017 and 2018 were $17, $5 and $298, respectively.

The estimated amortization expense for intangible assets in each of the next five years are $1,270, $1,270, $1,270, $1,270 and $1,221, respectively.

LONG-TERM INVESTMENT	12 Months Ended
LONG-TERM INVESTMENT	Dec. 31, 2018
LONG-TERM INVESTMENT
LONG-TERM INVESTMENT	8. LONG-TERM INVESTMENTS On February 6, 2015, the Group acquired 30% equity interest of Shantou Demon Network Technology Co., Ltd. (“Demon”), with $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, 2016, 2017 and 2018, the Group recorded its share of income of $17, $208 and $221 in the consolidated statement of operations, respectively. On March 31, 2017, the Group entered into an agreement with Maikailai Technologies Co., Ltd (“Maikailai”) to acquire 10.53% equity interest of Maikailai with a total cash consideration of $2,950. As the Group does not have readily determinable fair value of Maikailai and the Group does not have significant influence over Maikailai, the investment is recorded as a cost method investment prior to adopting ASU 2016-01. In accordance with ASU 2016-01, the Company elected to use the measurement alternative to measure such 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. It did not result in any impact on the carrying amount of the Company’s equity investment in Maikailai measured at fair value using the measurement alternative.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2018

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

9. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	As of December 31,
	2017		2018

Accrued payroll and staff welfare	$	11,150	$	12,716
Individual income tax withheld		593		487
VAT payable		271		880
Accrued professional fees		3,303		1,971
Accrued advertising fees		1,666		2,950
Credit card processing charges		483		441
Accrued sales return (2)		1,236		1,336
Others (1)		2,025		1,907
Total	$	20,727	$	22,688

(1)

Others mainly include deposits from vendors, current portion of minimum lease and accrued utilities.

(2)

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:


	Year ended December 31,
	2017		2018
Balance at January 1	$	1,927	$	1,236
Allowance for sales return accrued in the year		7,929		9,257
Utilization of accrued sales return allowance		(8,620)		(9,157)
Balance at December 31	$	1,236	$	1,336

Convertible promissory notes

12 Months Ended

Dec. 31, 2018

Convertible promissory notes

Convertible promissory notes

10. 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. 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 (Conversion Period). See Note 3 in details of the acquisition of Ezbuy.

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 board of the Company. 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.

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 designated the above convertible promissory notes as financial liabilities at fair value through profit or loss.

The Company adopted 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 include risk-free rate of interest and expected stock price volatility in the conversion period.

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


	Year ended December 31, 2018
Balance at January 1	$	—
Issuance		29,131
Change in fair value		22,791
Balance at December 31	$	51,922

ORDINARY SHARES	12 Months Ended
ORDINARY SHARES	Dec. 31, 2018
ORDINARY SHARES
ORDINARY SHARES	11. ORDINARY SHARES In December 2013, the board of directors approved the Company to repurchase up to $20,000 of its own outstanding ADSs within one year from December 2013. On December 16, 2014, the Company extended its existing share repurchase program for an additional 12-month through December 15, 2015. On June 8, 2016, the Company announced that the implementation of a share repurchase program of up to $10 million worth of its outstanding ADS representing its ordinary shares from June 15, 2016 through June 14, 2017. Pursuant to the share repurchase plan, the Company repurchased 3,966,951 ADSs, 5,410,411 ADSs and 6,762,905 ADSs during the year ended December 31, 2016, 2017 and 2018, representing 7,933,902 ordinary shares, 10,820,822 ordinary shares and 13,525,810 ordinary shares with a total consideration of approximately $20,806, $23,907 and $27,261. The shares repurchased by the Company had not been retired or canceled and were accounted for at cost as treasury stock. In March 2016, the Company issued and sold 21,250,000 ADSs (representing 42,500,000 ordinary shares) though a private placement offering. The proceeds, net of issuance cost of $1,077, were $75,423. 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 statements 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.

SHARE OPTIONS

12 Months Ended

Dec. 31, 2018

SHARE OPTIONS

SHARE OPTIONS

12. SHARE OPTIONS

On October 27, 2008, 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 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 2013, the Company granted 307,250 share options under the 2008 Plan to employees at exercise price of $4.75 per share. These share options vest over a period ranged from three to four years.

In 2014, the Company granted 1,797,300 share options under the 2008 Plan to employees at exercise prices ranged from $1.84 to $3.26 per share. These share options vest over a period ranged from three to four years.

In 2015, the Company granted 546,400 share options under the 2008 Plan to employees at exercise prices at $2.25 per share. These share options vest over a period from three months to four years.

In 2016, the Company granted 4,000 share options under the 2008 Plan to employees at exercise prices at $1.40 per share. These share options vest over a period of four years.

In 2017, the Company granted 120,000 share options under the 2008 Plan to employees at exercise prices ranged from $0.89 to $1.49 per share. These share options vest over a period of four years.

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.

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


	Year ended December 31
	2017			2018

Risk-free interest rate per annum		2.45	%		2.90-3.20	%
Exercise multiple		2.2			2.2
Expected volatility		71.7	%		66.4-69.5	%
Expected dividend yield		0	%		0	%
Fair value of ordinary shares	$	0.70		$	0.44-1.04
Expected terms (in years)		10			10

(1)

Risk-free interest rate

Risk-free interest rate was estimated based on the yield to maturity of China international government bonds with a maturity period close to the contractual term of the options.

(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 2008 Plan as of December 31, 2018, and changes during the year then ended is presented below:


		Weighted average
		exercise price
	Options granted	per option

Outstanding at January 1, 2018	890,500	$	1.83
Granted	44,000	$	1.11
Exercised	(52,000)	$	0.73
Forfeited	(262,850)	$	2.10
Outstanding at December 31, 2018	619,650	$	1.61

The following table summarizes information regarding the share options granted as of December 31, 2018:


	As of December 31, 2018
				Weighted-
		Weighted-		average remaining
		average exercise		contractual	Aggregate
	Options Number	price per option		life (years)	intrinsic value

Options
Outstanding	619,650	$	1.61	4.62	$	62
Exercisable	507,525	$	1.66	3.87	$	56
Expected to vest	10,045	$	1.41	8.01	$	1

The total intrinsic value of options exercised during the years ended December 31, 2016, 2017 and 2018 were $26, $324, and $270, respectively.

The weighted average grant date fair value of options granted during the years ended December 31, 2016, 2017 and 2018 was $0.83, $0.70 and $0.50, respectively.

For the years ended December 31, 2016, 2017 and 2018, the Group recorded share-based compensation expense of $102, $97 and $21 related to the options under the 2008 Plan, respectively. As of December 31, 2018, there was $276 of unrecognized compensation cost related to the options, which is expected to be recognized over a weighted-average period of 0.53 years.

NONVESTED SHARES

12 Months Ended

Dec. 31, 2018

NONVESTED SHARES

NONVESTED SHARES

13. NONVESTED SHARES

In 2013, the Company granted 711,571 nonvested shares to certain officers and employees. These nonvested shares vest over a period ranged from two to four years.

In 2014, the Company granted 2,800,300 nonvested shares to certain officers and employees. These nonvested shares vest over a period ranged from three to four years.

In 2015, the Company granted 3,154,800 nonvested to certain officers and employees. These nonvested shares vest over a period from three months to four years.

In 2016, the Company granted 296,000 nonvested to certain officers and employees. These nonvested shares vest over a period from three months to four years.

In 2017, the Company granted 272,000 nonvested to certain officers and employees. These nonvested shares vest over a period of four years.

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

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, 2018	1,084,284	$	3.28
Granted	244,000	$	0.60
Forfeited	(325,852)	$	1.67
Vested	(453,652)	$	0.84
Outstanding at December 31, 2018	548,780	$	5.07

The total fair value of shares vested during the years ended December 31, 2016, 2017 and 2018 was $3,070, $808 and $379, respectively.

For the years ended December 31, 2016, 2017 and 2018, the Group recorded share-based compensation expenses of $2,215, $1,768 and $384 related to the nonvested shares, respectively. As of December 31, 2018, there was $1,487 of unrecognized compensation costs related to nonvested shares, which are expected to be recognized over a weighted-average period of 2.36 years.

Total share-based compensation expenses for share options and nonvested shares for the years ended December 31, 2016, 2017 and 2018 were as follows:


	Year ended December 31,
	2016		2017		2018

Fulfillment	$	211	$	214	$	47
Selling and marketing		458		456		99
General and administrative		1,648		1,195		259
Total	$	2,317	$	1,865	$	405

INCOME TAXES

12 Months Ended

Dec. 31, 2018

INCOME TAXES

INCOME TAXES

14. 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

Lanting Gaochuang was qualified as a “software enterprise” in 2012 and therefore was entitled to a two-year income tax exemption starting from 2013, its first profit making year, following by a reduced tax rate of 12.5% for the subsequent three years ended December 31, 2017. On December 22, 2016, Lanting Gaochuang obtained the High and New Technology Enterprise ("HNTE”) certificate with a validity term of three years, hence was entitled to the preferential income tax rate of 15% in the year ended December 2018 and 2019.

Lanting Huitong was qualified as a “technology-advanced service enterprise” for the years ended December 31, 2016 and 2017, therefore was entitled to the preferential income tax rate of 15% for the years. 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”).

Shenzhen Xuyi and Qianhai Xuyi Hunan Branch are qualified as “Small Profit Enterprises” in 2018, and therefore are subject to the preferential income tax rate of 10%.

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

Netherland

LITB Netherlands B.V is located in Netherland and subject to Netherland profits tax at 25% with respect to the profit generated from Netherland.

United States

LITB, Inc. is located in the State of Delaware of the United States and subject to profits tax at 8.7% with respect to the profit generated from the United States.

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.

Malaysia

Ching International Service (Malaysia) SDN.BHD and Avant Ecommerce Malaysia SDN.BHD are located in Malaysia, and subject to 24% statutory income tax rate with respect to the profit generated from Malaysia.

Thailand

Ezbuy (Thailand) Co., Ltd is located in Thailand and subject to 20% statutory income tax rate with respect to the profit generated from Thailand.

Indonesia

PT ezbuy Holdings Indonesia is located in Indonesia and subject to 25% statutory income tax rate with respect to the profit generated from Indonesia.

The components of loss before income taxes are as follows:


	Year ended December 31,
	2016		2017		2018

Cayman Islands	$	(6,348)	$	(3,705)	$	(24,750)
Hong Kong SAR		(2,914)		(7,205)		(36,476)
PRC, excluding Hong Kong SAR, and other countries		576		1,235		1,436
Total	$	(8,686)	$	(9,675)	$	(59,790)

For the years ended December 31, 2016, 2017 and 2018, 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 $54, $81 and $33, respectively. There was no material deferred tax expense for the years ended December 31, 2016, 2017 and 2018.

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


	As of December 31,
	2017		2018

Deferred tax assets:
Bad debt allowance		—		88
Accrued inventory provision		925		348
Net operating loss carry forwards		20,061		27,852
Less: Valuation allowance		(20,986)		(26,691)
Deferred tax asset, net	$	—	$	1,597

Deferred tax liabilities:
Acquired intangible assets	$	—	$	(1,597)

Net deferred tax assets	$	—	$	—
Net deferred tax liabilities	$	—	$	—

The Group operates through its subsidiaries and VIEs and the valuation allowance is considered on each individual subsidiary and VIE basis. As of December 31, 2018, the Group has $10,052 of net operating loss carry forwards of the subsidiaries and VIEs registered in the PRC. Net operating loss of $1,890, $813, $5,201, $878 and $1,270 will expire, if unused, by 2019, 2020, 2021, 2022 and 2023, respectively which will expire between 2019 and 2023 if not utilized. 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,
	2017		2018
Balance at beginning of the period	$	19,818	$	20,986
Additions		1,168		5,705
Balance at end of the period	$	20,986	$	26,691

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,
	2016			2017			2018

Loss before provision of income tax	$	(8,686)		$	(9,675)		$	(59,790)
Statutory tax rate in the PRC		25	%		25	%		25	%
Income tax at statutory tax rate		(2,172)			(2,419)			(14,948)
Non-deductible expenses		20			42			115
Effect of preferential tax rates		(11)			(67)			7
Utilization of tax loss previously not recognized		(124)			(99)			—
Effect of income tax rate differences in jurisdictions other than the PRC		1,843			1,456			9,154
Changes in valuation allowances		498			1,168			5,705
Income tax expense	$	54		$	81		$	33

The Group did not identify significant unrecognized tax benefits for the years ended December 31, 2016, 2017 and 2018. The Group did not incur any interest related to unrecognized tax benefits, did not recognized any penalties as income tax expenses and also does not anticipate any significant change in unrecognized tax benefits within 12 months from December 31, 2018.

Uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese Income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the new EIT law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties occurs within the PRC. On April 22, 2009, the State Administration of Taxation (the “SAT”) issued the Notice Regarding the Determination of Chinese-Controlled Offshore Incorporated Enterprises as PRC Tax Resident Enterprises on the Basis of De Facto Management Bodies, or Circular 82, which provides certain specific criteria for determining whether the “de facto management body” of a Chinese-controlled offshore-incorporated enterprise is located in China. Circular 82, though technically only applies to China-controlled overseas registered enterprises, has made detailed explanations and clarification with respect to “substantial and overall management and control” over production and business operations, personnel, accounting and properties which provides a general guidance for the determination of PRC tax resident. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. However, if the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income taxes, at a rate of 25%.

If any entity within the Group that is outside the PRC were to be a non-resident for PRC tax purposes dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax at a rate of 10%, subject to reduction by an applicable tax treaty with the PRC. As of December 31, 2017 and 2018, the Company’s subsidiaries located in the PRC recorded aggregate accumulated deficits. Accordingly, no deferred tax liability has been accrued for the Chinese dividend withholding taxes. In the future, aggregate undistributed earnings of the Company’s subsidiaries located in the PRC, if any, that are taxable upon distribution to the Company, will be considered to be indefinitely reinvested, because the Group does not have any plan to pay cash dividends on its ordinary shares in the foreseeable future and intends to retain most of its available funds and any future earnings for use in the operation and expansion of its business.

In accordance with relevant the PRC tax administration laws, tax years from 2013 to 2017 of the Group’s PRC entities remain subject to tax audits as of December 31, 2018, at the tax authority’s discretion.

LOSS PER SHARE

12 Months Ended

Dec. 31, 2018

LOSS PER SHARE

LOSS PER SHARE

15. LOSS PER SHARE

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


		Year ended December 31,
	2016		2017		2018

Numerator:
Net loss attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd.	$	(8,723)	$	(9,548)	$	(59,602)
Denominator:
Weighted average number of shares used in calculating net loss per ordinary share—basic and diluted		127,180,801		137,641,562		134,495,549
Net loss per ordinary share-basic and diluted	$	(0.07)	$	(0.07)	$	(0.44)

As a result of the Group’s net loss for each of the years ended December 31, 2018, 965,850, 890,500 and 619,650 options outstanding, 1,906,167, 1,084,284 and 548,780 nonvested shares outstanding, nil, nil and 88,883,116 shares upon convertible promissory notes as of December 31, 2016, 2017 and 2018, respectively, were excluded from the computation of diluted net loss per share as their inclusion would have been anti-dilutive.

STATUTORY RESERVES AND RESTRICTED NET ASSETS	12 Months Ended
STATUTORY RESERVES AND RESTRICTED NET ASSETS	Dec. 31, 2018
STATUTORY RESERVES AND RESTRICTED NET ASSETS
STATUTORY RESERVES AND RESTRICTED NET ASSETS	17. 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, 2016, 2017 and 2018. 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, 2018, 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 $6,195.

SEGMENT REPORTING

12 Months Ended

Dec. 31, 2018

SEGMENT REPORTING

SEGMENT REPORTING

18. 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 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, 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 a convertible promissory notes						(22,791)
Loss before income tax expense					$	(59,790)


	Year ended December 31, 2017
	Product sales		Services		Consolidated

Revenues	$	293,951	$	25,930	$	319,881
Cost of revenues		189,816		24,445		214,261
Gross profit		104,135		1,485		105,620
Unallocated operating expenses						115,787
Loss from operations						(10,167)
Exchange loss on offshore bank accounts						(89)
Interest income						581
Loss before income tax expense					$	(9,675)


	Year ended December 31, 2016
	Product sales		Services		Consolidated

Revenues	$	262,083	$	30,404	$	292,487
Cost of revenues		160,566		28,371		188,937
Gross profit		101,517		2,033		103,550
Unallocated operating expenses						112,634
Loss from operations						(9,084)
Exchange loss on offshore bank accounts						(120)
Interest income						518
Loss before income tax expense					$	(8,686)


	Year ended December 31,
	2016		2017		2018

Apparel	$	89,291	$	99,160	$	72,871
Other general merchandise (1)		172,792		194,791		143,536
Total product sales revenues	$	262,083	$	293,951	$	216,407

(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,
	2016			2017			2018
	Revenues		%	Revenues		%	Revenues		%

Europe	$	145,185	49.6	$	153,697	48.1	$	109,781	48.2
North America		77,814	26.6		73,339	22.9		51,206	22.5
Other countries		69,488	23.8		92,845	29.0		66,552	29.3
Total revenues	$	292,487	100.0	$	319,881	100.0	$	227,539	100.0

Europe’s revenues include revenues from France of $31,321, $34,693 and $22,900 during the years ended December 31, 2016, 2017 and 2018, respectively. North America’s revenues include revenues from the United States of, $66,475, $60,810 and $40,148 during the years ended December 31, 2016, 2017 and 2018, respectively.

As of December 31, 2016, 2017 and 2018 substantially all of long-lived assets of the Group are located in the PRC and Singapore.

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	19. RELATED PARTY TRANSACTIONS Zhejiang Aokang Shoes Co., Ltd. (“Aokang”) became a shareholder of the Company in 2015 and held 18.1% of the outstanding shares of the Company as of December 31, 2017. In 2017, the Company purchased goods from Aokang amounted to $0.4. 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 41.0% of the outstanding shares of the Company as of December 31, 2018. For the year ended December 31, 2018, 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 logistic service fee in 2018 was $4,302. As of December 31, 2018, $1,550 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 was $4,186. As of December 31, 2018, about $1,007 has not been settled. The Group entered into a Contract of Network Marketing Technical Services with Zall HK in 2018. The total advertising fee in 2018 was $7,441. As of December 31, 2018, $2,396 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.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

20. COMMITMENTS AND CONTINGENCIES

(1)Commitments

Operating lease commitment

The Group has operating lease agreements for warehouses and offices. Rent expenses under operating leases for the years ended December 31, 2016, 2017 and 2018.were $4,247, $4,282 and $5,258, respectively. Future minimum lease payments under non-cancellable lease agreements as of December 31, 2018 are as follows:


For the year ending December 31,
2019	$	4,646
2020		2,153
2021		740
	$	7,539

Capital lease commitment

The Group has vehicles under various capital leases expiring through September 2024, which are acquired by the Company through acquisition of Ezbuy. The assets and liabilities under the capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets.

The assets, with costs 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.

As of December 31, 2018, annual minimum future lease payments under the capital leases are as follows:


For the year ending December 31,
2019	$	369
2020		367
2021		362
2022		321
2023		185
2024		34
Total minimum lease payments		1,638
Less amount representing interest		(183)
Present value of minimum lease payments		1,455
Less current portion of minimum lease		(299)
Long-term present value of minimum lease payment		1,156

The effective interest rates on the capital leases vary from 4.30% to 7.40% per annum and are imputed based on the lessor’s implicit rate of return.

(2)Contingencies

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 fines up to maximum of 3 times if it fails to rectify any such breaches within the period prescribed by the relevant authorities. As of December 31, 2018, there had been no actions initiated by the relevant authorities. The Group is unable to reasonably estimate the actual amount of fines and penalty 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, 2018, 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, 2018

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 equity in losses of subsidiaries and VIEs in the accompanying parent company financial statements.

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, based on its proportionate interest, of the losses of subsidiaries, VIEs and VIEs’ subsidiary regardless of the carrying value of the investment even though the Parent Company is not obligated to provide continuing support or fund losses.

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

Condensed Balance Sheets:


	December 31,
	2017		2018
ASSETS
Current assets
Cash and cash equivalents	$	1,471	$	311
Prepaid expenses and other current assets		452		168
Amounts due from subsidiaries and VIEs		171,148		166,636
TOTAL ASSETS	$	173,071	$	167,115

LIABILITIES AND EQUITY / (DEFICIT)

Current Liabilities
Convertible promissory notes		—		51,922
Accrued expenses and other current liabilities		3,350		1,880
Deficit of investment in subsidiaries and VIEs		114,251		121,113
TOTAL LIABILITIES	$	117,601	$	174,915

EQUITY / (DEFICIT)
Ordinary shares	$	11	$	11
Additional paid-in capital		238,851		239,269
Treasury shares, at cost		(23,907)		(27,261)
Accumulated deficit		(159,286)		(218,887)
Accumulated other comprehensive loss		(199)		(932)
TOTAL EQUITY / (DEFICIT)		55,470		(7,800)
TOTAL LIABILITIES AND EQUITY / (DEFICIT)	$	173,071	$	167,115

Condensed Statements of Operations and Comprehensive Loss:


	Year ended December 31
	2016		2017		2018
General and administrative		4,385		2,246		1,145
Operating loss		(4,385)		(2,246)		(1,145)
Share of loss from subsidiaries and VIEs		(4,692)		(7,407)		(35,665)
Interest income		354		105		—
Change in fair value of convertible promissory notes		—		—		(22,791)
Loss before income taxes		(8,723)		(9,548)		(59,601)
Income tax expense		—		—		—
Net loss		(8,723)		(9,548)		(59,601)
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes		(270)		380		(733)
Total comprehensive loss	$	(8,993)	$	(9,168)	$	(60,334)

Condensed Statements of Cash Flows:


	Year ended December 31,
	2016		2017		2018

Net loss		(8,723)		(9,548)		(59,601)
Share of loss from subsidiaries and VIEs		4,692		7,407		35,665
Change in fair value of convertible promissory notes		—		—		22,791
Prepaid expenses and other current assets		(344)		112		283
Accrued expenses and other current liabilities		1,267		(126)		(1,469)
Net cash used in operating activities	$	(3,108)	$	(2,155)	$	(2,331)
Changes in amounts due from subsidiaries and VIEs		(51,037)		(23,883)		4,512
Net cash (used in) / provided by investing activities	$	(51,037)	$	(23,883)	$	4,512
Proceeds from private placement and option exercised		75,445		37		13
Repurchase of ordinary shares		(810)		(3,101)		(3,354)
Net cash provided by / (used in) financing activities	$	74,635	$	(3,064)	$	(3,341)
Net increase/ (decrease) in cash and cash equivalents		20,490		(29,102)		(1,160)
Cash and cash equivalents at beginning of the year		10,083		30,573		1,471
Cash and cash equivalents at end of the year		30,573		1,471		311

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2018

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-controling Interests

Use of estimates

(d) Use of estimates

Cash and cash equivalents

(e) Cash and cash equivalents

Restricted cash

(f) Restricted cash

Inventories

(g) Inventories

Property and equipment, net

(h) Property and equipment, net

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

Depreciation are 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
Software and IT equipment	0.1 - 3	years
Vehicles	0.6 - 9	years

Acquired intangible assets, net


	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
Software and IT equipment	0.1 - 3	years
Vehicles	0.6 - 9	years

(i) Acquired intangible assets, net


	Useful lives

Domain name/Trade name	Indefinite life
Technology	3-5	years
Members	4	years
Branding	10	years
In-progress orders	0.1	year

Long-term investments


	Useful lives

Domain name/Trade name	Indefinite life
Technology	3-5	years
Members	4	years
Branding	10	years
In-progress orders	0.1	year

(j) Long-term investments

The Group’s long-term investments consist of 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 intangible assets with definite life

(k) Impairment of long-lived assets and intangible assets with definite life

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

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

Business combinations

(m) Business combinations

Treasury shares, at cost

(n) Treasury shares, at cost

Revenue recognition

(o) Revenue recognition

Periods prior to January 1, 2018

Product sales

The Group recognizes revenue from the sale of apparel and other general merchandise through its websites and other online platforms.

Revenue is stated net of value added tax (“VAT”), discounts and return allowances.

Outbound shipping charges to customers are included as a part of the revenues. Outbound shipping-related costs are included in the cost of product sales.

Service

Period commencing January 1, 2018

The adoption of new revenue standard did not impact retained earnings as of January 1, 2018.

Product sales

Service

Contract Balances

(p) Contract Balances

In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the consolidated balance sheet was as follows:


					Amounts without
	As of				adoption of
	December 31, 2018		Adjustments		ASU 2014-09
Contract liability	$	10,246	$	209	$	10,455
Accrued expenses and other current liabilities	$	22,688	$	(209)	$	22,479

Changes in the Group’s contract liability are presented in the following table for the year ended December 31, 2018:


	For the year ended
	December 31, 2018
Contract liability as of January 1, 2018	$	5,248
Cash received in advance, net of VAT		199,899
Revenue recognized from opening balance of contract liability		(5,248)
Revenue recognized from contract liability arising during current year		(189,653)
Contract liability as of December 31, 2018	$	10,246

Cost of revenues

(q) Cost of revenues

Product sales

Services

Fulfillment

(r) Fulfillment

Selling and marketing

(s) Selling and marketing

General and administrative

(t) General and administrative

Fair value

(u) Fair value

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

Fair value measurement of financial instruments

(v) Financial instruments and fair value measurements

The following table present the fair value hierarchy for the liabilities measured at fair value on a recurring basis at December 31, 2018:


	December 31, 2018
	Level 1		Level 2		Level 3		Total Fair Value
Liabilities:
Convertible promissory notes	$	—	$	—	$	51,922	$	51,922

Foreign currency translation

(w) Foreign currency translation

Income taxes

(x) Income taxes

Comprehensive loss

(y) Comprehensive loss

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

Share-based compensation

(z) Share-based compensation

Leases

(aa) Leases

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

Earnings / (loss) per share

(bb) Earnings / (loss) per share

Significant risks and uncertainties

(cc) Significant risks and uncertainties

Concentration of credit risk

(dd) Concentration of credit risk

Foreign currency risk

(ee) Foreign currency risk

Newly adopted accounting pronouncements and Recent accounting pronouncements not yet adopted

(ff) Newly adopted accounting pronouncements

(gg) Recent accounting pronouncements not yet adopted

ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2018

ORGANIZATION AND PRINCIPAL ACTIVITIES

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


	December 31,
	2017		2018

Total assets	$	6,117	$	6,492
Total liabilities	$	3,931	$	4,678


	Year ended December 31,
	2016		2017		2018

Revenues	$	5	$	—	$	3
Net loss	$	(52)	$	(7,507)	$	(7,490)


	Year ended December 31,
	2016		2017		2018

Net cash (used in) / provided by operating activities	$	(131)	$	3,073	$	(7,519)
Net cash (used in) / provided by investing activities	$	—	$	(3,069)	$	473
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, 2018

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
Software and 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	3-5	years
Members	4	years
Branding	10	years
In-progress orders	0.1	year

Schedule of changes in contract liability


	For the year ended
	December 31, 2018
Contract liability as of January 1, 2018	$	5,248
Cash received in advance, net of VAT		199,899
Revenue recognized from opening balance of contract liability		(5,248)
Revenue recognized from contract liability arising during current year		(189,653)
Contract liability as of December 31, 2018	$	10,246

Schedule of liabilities measured at fair value on a recurring basis


	December 31, 2018
	Level 1		Level 2		Level 3		Total Fair Value
Liabilities:
Convertible promissory notes	$	—	$	—	$	51,922	$	51,922

ASU 2014-09

Schedule of the impact of adoption of the new revenue standard requirements on the consolidated balance sheet


					Amounts without
	As of				adoption of
	December 31, 2018		Adjustments		ASU 2014-09
Contract liability	$	10,246	$	209	$	10,455
Accrued expenses and other current liabilities	$	22,688	$	(209)	$	22,479

ACQUISITION (Tables)

12 Months Ended

Dec. 31, 2018

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,
	2017		2018
Revenues	$	477,326	$	337,695
Net loss	$	21,593	$	70,884

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2018

PREPAID EXPENSES AND OTHER CURRENT ASSETS

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


	As of December 31,
	2017		2018

Receivable from processing agencies (1)	$	2,460	$	1,386
Prepayment to suppliers		11,880		838
Rental deposits and prepaid rents		211		268
Deferred expense		341		686
Others (2)		804		2,633
Total	$	15,696	$	5,811

(1)

(2)

Others mainly include payments on behalf of small businesses customers for purchasing and staff advances.

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2018

PROPERTY AND EQUIPMENT, NET

Schedule of components of property and equipment


	As of December 31,
	2017		2018

Leasehold improvements	$	4,069		3,688
Furniture, fixtures and office equipment		2,715		2,852
Software and IT equipment		3,088		2,736
Vehicles		—		1,760
Property and equipment, gross		9,872		11,036
Less: Accumulated depreciation		(8,952)		(7,384)
Property and equipment, net	$	920	$	3,652

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2018

GOODWILL

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


	Ador Inc		Ezbuy		Total
Balance at January 1, 2018
Goodwill	$	690	$	—	$	690
Accumulated impairment loss		—		—
	$	690	$	—	$	690
Goodwill acquired during the year		—		27,479		27,479
Impairment loss		—		—		—
Balance at December 31, 2018
Goodwill	$	690	$	27,479	$	28,169
Accumulated impairment loss		—		—		—
	$	690	$	27,479	$	28,169

ACQUIRED INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2018

ACQUIRED INTANGIBLE ASSETS, NET

Schedule of intangible assets


	December 31, 2017								December 31, 2018
	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		36		(36)		—		—		2,951		(85)		—		2,866
- Branding		—		—		—		—		6,871		(57)		—		6,814
- In-progress orders		—		—		—		—		192		(192)		—		—
- Members		20		(20)		—		—		20		(20)		—		—
	$	1,407	$	(175)	$	(1,022)	$	210	$	11,385	$	(473)	$	(1,022)	$	9,890

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2018

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	As of December 31,
	2017		2018

Accrued payroll and staff welfare	$	11,150	$	12,716
Individual income tax withheld		593		487
VAT payable		271		880
Accrued professional fees		3,303		1,971
Accrued advertising fees		1,666		2,950
Credit card processing charges		483		441
Accrued sales return (2)		1,236		1,336
Others (1)		2,025		1,907
Total	$	20,727	$	22,688

(1)

Others mainly include deposits from vendors, current portion of minimum lease and accrued utilities.

(2)

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:

Schedule of movements in accrued sales return


	Year ended December 31,
	2017		2018
Balance at January 1	$	1,927	$	1,236
Allowance for sales return accrued in the year		7,929		9,257
Utilization of accrued sales return allowance		(8,620)		(9,157)
Balance at December 31	$	1,236	$	1,336

Convertible promissory notes (Tables)

12 Months Ended

Dec. 31, 2018

Convertible promissory notes

Schedule of components effecting the change in fair value


	Year ended December 31, 2018
Balance at January 1	$	—
Issuance		29,131
Change in fair value		22,791
Balance at December 31	$	51,922

SHARE OPTIONS (Tables)

12 Months Ended

Dec. 31, 2018

SHARE OPTIONS

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


	Year ended December 31
	2017			2018

Risk-free interest rate per annum		2.45	%		2.90-3.20	%
Exercise multiple		2.2			2.2
Expected volatility		71.7	%		66.4-69.5	%
Expected dividend yield		0	%		0	%
Fair value of ordinary shares	$	0.70		$	0.44-1.04
Expected terms (in years)		10			10

(1)

Risk-free interest rate

Risk-free interest rate was estimated based on the yield to maturity of China international government bonds with a maturity period close to the contractual term of the options.

(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, 2018	890,500	$	1.83
Granted	44,000	$	1.11
Exercised	(52,000)	$	0.73
Forfeited	(262,850)	$	2.10
Outstanding at December 31, 2018	619,650	$	1.61

Summary of information regarding the share options granted


	As of December 31, 2018
				Weighted-
		Weighted-		average remaining
		average exercise		contractual	Aggregate
	Options Number	price per option		life (years)	intrinsic value

Options
Outstanding	619,650	$	1.61	4.62	$	62
Exercisable	507,525	$	1.66	3.87	$	56
Expected to vest	10,045	$	1.41	8.01	$	1

NONVESTED SHARES (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018	1,084,284	$	3.28
Granted	244,000	$	0.60
Forfeited	(325,852)	$	1.67
Vested	(453,652)	$	0.84
Outstanding at December 31, 2018	548,780	$	5.07

Schedule of share-based compensation expenses


	Year ended December 31,
	2016		2017		2018

Fulfillment	$	211	$	214	$	47
Selling and marketing		458		456		99
General and administrative		1,648		1,195		259
Total	$	2,317	$	1,865	$	405

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

INCOME TAXES

Schedule of loss before income taxes


	Year ended December 31,
	2016		2017		2018

Cayman Islands	$	(6,348)	$	(3,705)	$	(24,750)
Hong Kong SAR		(2,914)		(7,205)		(36,476)
PRC, excluding Hong Kong SAR, and other countries		576		1,235		1,436
Total	$	(8,686)	$	(9,675)	$	(59,790)

Schedule of principal components of the deferred tax assets and liabilities


	As of December 31,
	2017		2018

Deferred tax assets:
Bad debt allowance		—		88
Accrued inventory provision		925		348
Net operating loss carry forwards		20,061		27,852
Less: Valuation allowance		(20,986)		(26,691)
Deferred tax asset, net	$	—	$	1,597

Deferred tax liabilities:
Acquired intangible assets	$	—	$	(1,597)

Net deferred tax assets	$	—	$	—
Net deferred tax liabilities	$	—	$	—

Schedule of movement of valuation allowance


	Year ended December 31,
	2017		2018
Balance at beginning of the period	$	19,818	$	20,986
Additions		1,168		5,705
Balance at end of the period	$	20,986	$	26,691

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,
	2016			2017			2018

Loss before provision of income tax	$	(8,686)		$	(9,675)		$	(59,790)
Statutory tax rate in the PRC		25	%		25	%		25	%
Income tax at statutory tax rate		(2,172)			(2,419)			(14,948)
Non-deductible expenses		20			42			115
Effect of preferential tax rates		(11)			(67)			7
Utilization of tax loss previously not recognized		(124)			(99)			—
Effect of income tax rate differences in jurisdictions other than the PRC		1,843			1,456			9,154
Changes in valuation allowances		498			1,168			5,705
Income tax expense	$	54		$	81		$	33

LOSS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2018

LOSS PER SHARE

Schedule of computation of basic and diluted net loss per ordinary share


		Year ended December 31,
	2016		2017		2018

Numerator:
Net loss attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd.	$	(8,723)	$	(9,548)	$	(59,602)
Denominator:
Weighted average number of shares used in calculating net loss per ordinary share—basic and diluted		127,180,801		137,641,562		134,495,549
Net loss per ordinary share-basic and diluted	$	(0.07)	$	(0.07)	$	(0.44)

SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 31, 2018

SEGMENT REPORTING

Schedule of components of net revenues


	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 a convertible promissory notes						(22,791)
Loss before income tax expense					$	(59,790)


	Year ended December 31, 2017
	Product sales		Services		Consolidated

Revenues	$	293,951	$	25,930	$	319,881
Cost of revenues		189,816		24,445		214,261
Gross profit		104,135		1,485		105,620
Unallocated operating expenses						115,787
Loss from operations						(10,167)
Exchange loss on offshore bank accounts						(89)
Interest income						581
Loss before income tax expense					$	(9,675)


	Year ended December 31, 2016
	Product sales		Services		Consolidated

Revenues	$	262,083	$	30,404	$	292,487
Cost of revenues		160,566		28,371		188,937
Gross profit		101,517		2,033		103,550
Unallocated operating expenses						112,634
Loss from operations						(9,084)
Exchange loss on offshore bank accounts						(120)
Interest income						518
Loss before income tax expense					$	(8,686)

Schedule of components of the Group's cost


	Year ended December 31,
	2016		2017		2018

Apparel	$	89,291	$	99,160	$	72,871
Other general merchandise (1)		172,792		194,791		143,536
Total product sales revenues	$	262,083	$	293,951	$	216,407

(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,
	2016			2017			2018
	Revenues		%	Revenues		%	Revenues		%

Europe	$	145,185	49.6	$	153,697	48.1	$	109,781	48.2
North America		77,814	26.6		73,339	22.9		51,206	22.5
Other countries		69,488	23.8		92,845	29.0		66,552	29.3
Total revenues	$	292,487	100.0	$	319,881	100.0	$	227,539	100.0

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2018

COMMITMENTS AND CONTINGENCIES

Schedule of future minimum lease payments under non-cancellable operating lease agreements


For the year ending December 31,
2019	$	4,646
2020		2,153
2021		740
	$	7,539

Schedule of minimum future lease payments under the capital leases


For the year ending December 31,
2019	$	369
2020		367
2021		362
2022		321
2023		185
2024		34
Total minimum lease payments		1,638
Less amount representing interest		(183)
Present value of minimum lease payments		1,455
Less current portion of minimum lease		(299)
Long-term present value of minimum lease payment		1,156

PARENT ONLY INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

PARENT ONLY INFORMATION

Condensed Balance Sheets


	December 31,
	2017		2018
ASSETS
Current assets
Cash and cash equivalents	$	1,471	$	311
Prepaid expenses and other current assets		452		168
Amounts due from subsidiaries and VIEs		171,148		166,636
TOTAL ASSETS	$	173,071	$	167,115

LIABILITIES AND EQUITY / (DEFICIT)

Current Liabilities
Convertible promissory notes		—		51,922
Accrued expenses and other current liabilities		3,350		1,880
Deficit of investment in subsidiaries and VIEs		114,251		121,113
TOTAL LIABILITIES	$	117,601	$	174,915

EQUITY / (DEFICIT)
Ordinary shares	$	11	$	11
Additional paid-in capital		238,851		239,269
Treasury shares, at cost		(23,907)		(27,261)
Accumulated deficit		(159,286)		(218,887)
Accumulated other comprehensive loss		(199)		(932)
TOTAL EQUITY / (DEFICIT)		55,470		(7,800)
TOTAL LIABILITIES AND EQUITY / (DEFICIT)	$	173,071	$	167,115

Condensed Statements of Comprehensive Income


	Year ended December 31
	2016		2017		2018
General and administrative		4,385		2,246		1,145
Operating loss		(4,385)		(2,246)		(1,145)
Share of loss from subsidiaries and VIEs		(4,692)		(7,407)		(35,665)
Interest income		354		105		—
Change in fair value of convertible promissory notes		—		—		(22,791)
Loss before income taxes		(8,723)		(9,548)		(59,601)
Income tax expense		—		—		—
Net loss		(8,723)		(9,548)		(59,601)
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes		(270)		380		(733)
Total comprehensive loss	$	(8,993)	$	(9,168)	$	(60,334)

Condensed Statements of Cash Flows


	Year ended December 31,
	2016		2017		2018

Net loss		(8,723)		(9,548)		(59,601)
Share of loss from subsidiaries and VIEs		4,692		7,407		35,665
Change in fair value of convertible promissory notes		—		—		22,791
Prepaid expenses and other current assets		(344)		112		283
Accrued expenses and other current liabilities		1,267		(126)		(1,469)
Net cash used in operating activities	$	(3,108)	$	(2,155)	$	(2,331)
Changes in amounts due from subsidiaries and VIEs		(51,037)		(23,883)		4,512
Net cash (used in) / provided by investing activities	$	(51,037)	$	(23,883)	$	4,512
Proceeds from private placement and option exercised		75,445		37		13
Repurchase of ordinary shares		(810)		(3,101)		(3,354)
Net cash provided by / (used in) financing activities	$	74,635	$	(3,064)	$	(3,341)
Net increase/ (decrease) in cash and cash equivalents		20,490		(29,102)		(1,160)
Cash and cash equivalents at beginning of the year		10,083		30,573		1,471
Cash and cash equivalents at end of the year		30,573		1,471		311

ORGANIZATION AND PRINCIPAL ACTIVITIES - VIE Arrangements and Loan Agreement (Details) - 12 months ended Dec. 31, 2011 - Consolidated VIEs $ in Thousands	CNY (¥)	USD ($)
Lanting Gaochuang \| Mr. Quji (Alan) Guo
The VIE arrangements
Ownership interest in VIE (as a percent)	51.00%
Lanting Gaochuang \| Lanting Huitong
The VIE arrangements
Ownership interest in VIE (as a percent)	49.00%
Lanting Jishi \| Mr. Quji (Alan) Guo
Loan Agreement
Amount of loan extended	¥ 255,000	$ 41
Loan agreement term	10 years

ORGANIZATION AND PRINCIPAL ACTIVITIES - Consolidated Financial Information of the Group's VIEs and Subsidiaries (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Consolidated financial information of the Group's VIE and its subsidiaries included in consolidated financial statements
Revenues	$ 227,539	$ 319,881	$ 292,487
Net loss	(59,601)	(9,548)	(8,723)
Net cash (used in) / provided by operating activities	(29,868)	(14,831)	(15,334)
Net cash (used in) / provided by investing activities	3,296	(3,506)	(334)
Net cash provided by financing activities	(3,365)	(3,064)	74,635
VIE and its subsidiaries
Consolidated financial information of the Group's VIE and its subsidiaries included in consolidated financial statements
Total assets	6,492	6,117
Total liabilities	4,678	3,931
Revenues	3		5
Net loss	(7,490)	(7,507)	(52)
Net cash (used in) / provided by operating activities	(7,519)	3,073	$ (131)
Net cash (used in) / provided by investing activities	473	$ (3,069)
Amount of consolidated VIEs' assets that are collateral for the VIEs' obligations	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories and Property and Equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Inventories
Inventory write down	$ 2,456	$ 2,065	$ 3,286
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
Software and IT equipment \| Minimum
Property and equipment, net
Useful lives	1 month 6 days
Software and 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. 31, 2018
Technology
Acquired intangible assets, net
Useful lives	5 years
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
In progress orders
Acquired intangible assets, net
Useful lives	1 month 6 days

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, General and Administrative Expense and Foreign Currency Risk (Details) $ in Thousands		12 Months Ended
	Jan. 01, 2018 USD ($) item	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jan. 01, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Revenue recognition
Number of criteria to be met prior to recognition of revenue \| item	4
Cost of goods sold		$ 166,343	$ 214,261	$ 188,937
Allowance of doubtful accounts		$ 533	0
VAT on sales as a percentage on revenue from the sale of products		17.00%
Accrued sales return				1,927		$ 1,336	$ 1,236
Contract Balances
Advance from customers						17,732	10,110
Contract liability	$ 5,248	$ 5,248	5,248			10,246	5,248
Accrued expenses and other current liabilities						22,688	20,727
Revenue included in advance from customers
Contract liability as of January 1, 2018	$ 5,248	5,248
Cash received in advance, net of VAT		199,899
Revenue recognized from opening balance of contract liability		(5,248)
Revenue recognized from contract liability arising during current year		(189,653)
Contract liability as of December 31, 2018		10,246	5,248
Selling and marketing
Advertising expense		43,308	62,767	53,827
General and administrative
Research and development expense		5,694	5,207	6,702
Chargeback incurred		$ 2,938	2,929	2,354
Income taxes
Income tax due to uncertain tax positions				0		0	0
Leases
Property's estimated remaining economic life, minimum (in percentage)		75.00%
Minimum lease payments of fair value (in percentage)		90.00%
Adjustment
Contract Balances
Contract liability					$ 209
Accrued expenses and other current liabilities					(209)
Without adoption of ASC 606 \| ASU 2014-09
Contract Balances
Contract liability					10,455
Accrued expenses and other current liabilities					$ 22,479
Accrued expenses and other
Revenue recognition
Accrued sales return				1		1,336	236
Product sales
Revenue recognition
Cost of goods sold		$ 156,326	189,816	160,566
Shipping and handling
Revenue recognition
Cost of goods sold		$ 51,731	$ 60,131	$ 59,964
Foreign currency risk \| Denominated in RMB
Foreign currency risk
Cash and cash equivalents, term deposit and restricted cash						$ 4,368	$ 4,829
Maximum
Revenue recognition
Return period, subsequent to the receipt of shipment		14 days		30 days
Return period, subsequent to the receipt of shipment with no quality-related issues		14 days
Return period, subsequent to the receipt of shipment with quality-related issues		12 months

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Newly adopted accounting pronouncements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2015
Newly adopted accounting pronouncements
Total cash, cash equivalents, and restricted cash in the statement of cash flows	$ 70,014	$ 91,075	$ 39,802	$ 32,506
ASU 2016-18
Newly adopted accounting pronouncements
Changes in restricted cash	(15)	(47)
Total cash, cash equivalents, and restricted cash in the statement of cash flows	$ 15	$ 47

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent accounting pronouncements not yet adopted (Details) - Forecast - ASU 2016-02 $ in Thousands	Jan. 01, 2019 USD ($)
Recently adopted accounting standards
Right-of-use assets	$ 9,880
Lease liabilities	$ 9,880

ACQUISITION - Fair values of the identifiable assets acquired and liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 10, 2018	Nov. 08, 2018
ACQUISITION
Revenues	$ 227,539	$ 319,881	$ 292,487
Net income	(59,601)	(9,548)	(8,723)
Fair values of the identifiable assets acquired and liabilities
Prepaid expenses and other current assets	5,811	15,696
Goodwill	28,169	690
Amortization expenses	298	$ 5	$ 17
Ezbuy brand
ACQUISITION
Percentage equity interest acquired					80.00%
Revenues	6,785
Net income	365
third party
ACQUISITION
Percentage equity interest acquired					20.00%
Technology
Fair values of the identifiable assets acquired and liabilities
Fair values of intangibles	$ 2,891
Amortization period	5 years
Branding
Fair values of the identifiable assets acquired and liabilities
Fair values of intangibles	$ 6,813
Amortization period	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
Ezbuy
ACQUISITION
Percentage equity interest acquired					100.00%
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			27,479
Total purchase consideration				$ 29,131

ACQUISITION - pro-forma summary (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
ACQUISITION
Revenues	$ 227,539	$ 319,881	$ 292,487
Net profit	(59,601)	(9,548)	$ (8,723)
Consolidated pro forma summary
Revenues	337,695	477,326
Net loss	$ 70,884	$ 21,593

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Receivable from processing agencies	$ 1,386	$ 2,460
Prepayment to suppliers	838	11,880
Rental deposits and prepaid rents	268	211
Deferred expense	686	341
Others	2,633	804
Total	$ 5,811	$ 15,696

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property and equipment, net
Property and equipment, gross	$ 11,036	$ 9,872
Less: Accumulated depreciation	(7,384)	(8,952)
Property and equipment, net	3,652	920
Depreciation expense	572	764	$ 1,378
Leasehold improvements
Property and equipment, net
Property and equipment, gross	3,688	4,069
Furniture, fixtures and office equipment
Property and equipment, net
Property and equipment, gross	2,852	2,715
Software and IT equipment
Property and equipment, net
Property and equipment, gross	2,736	$ 3,088
Vehicles
Property and equipment, net
Property and equipment, gross	$ 1,760

GOODWILL (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
GOODWILL (Details) - USD ($) $ in Thousands	Dec. 10, 2018	Dec. 31, 2013	Dec. 31, 2018
GOODWILL
Goodwill acquired during the year			$ 27,479
Ador Inc.
GOODWILL
Net working capital		$ 44
Goodwill acquired during the year		690
Other intangible assets		$ 266
Changes to carrying amount of goodwill			0
Ezbuy
GOODWILL
Goodwill acquired during the year	$ 27,479		$ 27,479
Other intangible assets	$ 9,895

GOODWILL - Changes in the carrying amount of goodwill (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
	Dec. 10, 2018	Dec. 31, 2013	Dec. 31, 2018
Goodwill [Roll Forward]
Goodwill, beginning balance			$ 690
Goodwill, Beginning Balance			690
Goodwill acquired during the year			27,479
Goodwill, ending balance			28,169
Goodwill, Ending Balance			28,169
Ador Inc.
Goodwill [Roll Forward]
Goodwill, beginning balance			690
Goodwill, Beginning Balance			690
Goodwill acquired during the year		$ 690
Goodwill, ending balance			690
Goodwill, Ending Balance			690
Ezbuy
Goodwill [Roll Forward]
Goodwill acquired during the year	$ 27,479		27,479
Goodwill, ending balance			27,479
Goodwill, Ending Balance	$ 27,479		$ 27,479

ACQUIRED INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Acquired intangible assets, net
Gross carrying amount	$ 11,385	$ 1,407
Accumulated amortization	(473)	(175)
Accumulated impairment loss	(1,022)	(1,022)
Net carrying amount	9,890	210
Amortization expenses	298	5	$ 17
Expected amortization expenses
2019	1,270
2020	1,270
2021	1,270
2022	1,270
2023	1,221
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	2,951	36
Accumulated amortization	(85)	(36)
Net carrying amount	2,866
Branding
Acquired intangible assets, net
Intangible assets subject to amortization	6,871
Accumulated amortization	(57)
Net carrying amount	6,814
In progress orders
Acquired intangible assets, net
Intangible assets subject to amortization	192
Accumulated amortization	(192)
Members
Acquired intangible assets, net
Intangible assets subject to amortization	20	20
Accumulated amortization	(20)	(20)
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

LONG-TERM INVESTMENT (Details) - USD ($) $ in Thousands			12 Months Ended
LONG-TERM INVESTMENT (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Feb. 06, 2015	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
LONG-TERM INVESTMENT
Share of income (loss) from equity method investment			$ 221	$ 208	$ 17
Demon
LONG-TERM INVESTMENT
Percentage of equity interest		30.00%
Total consideration		$ 2,100
Share of income (loss) from equity method investment			$ 221	$ 208	$ 17
Maikailai
LONG-TERM INVESTMENT
Total consideration	$ 2,950
Percentage of equity interest under cost method investment	10.53%

- Definition

This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. This item includes income or expense related to stock-based compensation based on the investor's grant of stock to employees of an equity method investee.

+ References + Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued payroll and staff welfare			$ 12,716	$ 11,150
Individual income tax withheld			487	593
VAT payable			880	271
Accrued professional fees			1,971	3,303
Accrued advertising fees			2,950	1,666
Credit card processing charges			441	483
Accrued sales return	$ 1,236	$ 1,927	1,336	1,236
Other accrued expenses			1,907	2,025
Total			$ 22,688	$ 20,727
Movements in accrued sales return
Balance at the beginning of the period	1,236	1,927
Allowance for sales return made in the year	9,257	7,929
Utilization of accrued sales return	(9,157)	(8,620)
Balance at the end of the period	$ 1,336	$ 1,236

Convertible promissory notes (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Dec. 10, 2018 USD ($) D item $ / shares shares	Dec. 31, 2018 USD ($)
CONVERTIBLE NOTES
Face amount of debt instrument	$ 85,550
Interest rate (as a percent)	0.00%
Term of debt instrument	365 days
Carrying amount of the convertible notes
Issuance		$ 29,131
Change in fair value		22,791
Balance at the end of the period		$ 51,922
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	22,220,779
Number of highest trading closing prices \| item	10
ADSs \| Minimum
Carrying amount of the convertible notes
Number of ordinary shares issued upon conversion of convertible notes \| shares	22,220,779
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

ORDINARY SHARES (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	9 Months Ended	12 Months Ended
	Dec. 16, 2014	Mar. 31, 2016	Sep. 30, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2013	Jun. 08, 2016
Total consideration to share repurchase plan				$ 3,354	$ 3,101	$ 810
Net proceeds from offering upon private placement						$ 75,423
Warrant
Maximum number of ordinary shares into which the warrant maybe converted			7,455,000
Issuance of ordinary shares (in ADS)			3,727,500
Exercise price of warrant per ordinary share			$ 2.75
Private Placement
Net issuance costs		$ 1,077
Net proceeds from offering upon private placement		$ 75,423
ADS
Amount of stock repurchase plan authorized by the board of directors							$ 20,000	$ 10,000
Period to repurchase shares							1 year
Additional Period to repurchase shares	12 months
Repurchase of outstanding shares (in share)					5,410,411	3,966,951
ADS \| Private Placement
Repurchase of outstanding shares (in share)				6,762,905
Issuance of ordinary shares upon private placement (in shares)		21,250,000
Ordinary Shares
Repurchase of outstanding shares, equivalent to ordinary shares (in shares)				13,525,810	10,820,822	7,933,902
Total consideration to share repurchase plan				$ 27,261	$ 23,907	$ 20,806
Ordinary Shares \| Private Placement
Issuance of ordinary shares upon private placement (in shares)		42,500,000

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
	Oct. 27, 2008 shares	May 31, 2014 shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 $ / shares shares	Dec. 31, 2014 $ / shares shares	Dec. 31, 2013 $ / shares shares
Share options
Incremental compensation expenses \| $			$ 405	$ 1,865	$ 2,317
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		4 years	4 years	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			44,000	120,000	4,000	546,400	1,797,300	307,250
Exercise price of shares options granted (in dollars per share)			$ 1.11		$ 1.40	$ 2.25		$ 4.75
Incremental compensation expenses \| $			$ 21	$ 97	$ 102
Unrecognized incremental compensation cost \| $			$ 276
Weighted-average period of recognition of unrecognized compensation cost			6 months 11 days
Assumptions used for estimating the fair value of options granted on the date of grant
Risk-free interest rate per annum (as a percent)				2.45%
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			2.2	2.2
Expected volatility (as a percent)				71.70%
Expected volatility, minimum (as a percent)			66.40%
Expected volatility, maximum (as a percent)			69.50%
Expected dividend yield (as a percent)			0.00%	0.00%
Fair value of ordinary shares (in dollars per share)				$ 0.70
Expected terms (in years)			10 years	10 years
2008 Plan \| Share options \| Minimum
Share options
Vesting period						3 months	3 years	3 years
Exercise price of shares options granted (in dollars per share)			$ 0.33	$ 0.89			$ 1.84
Assumptions used for estimating the fair value of options granted on the date of grant
Fair value of ordinary shares (in dollars per share)			0.44
2008 Plan \| Share options \| Maximum
Share options
Vesting period						4 years	4 years	4 years
Exercise price of shares options granted (in dollars per share)			1.92	$ 1.49			$ 3.26
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	4 years
Nonvested shares granted \| shares			244,000	272,000	296,000	3,154,800	2,800,300	711,571
Incremental compensation expenses \| $			$ 384	$ 1,768	$ 2,215
Weighted-average period of recognition of unrecognized compensation cost			2 years 4 months 10 days
2008 Plan \| Nonvested shares \| Minimum
Share options
Vesting period					3 months	3 months	3 years	2 years
2008 Plan \| Nonvested shares \| Maximum
Share options
Vesting period					4 years	4 years	4 years	4 years

SHARE OPTIONS - Summary of Stock Option Activity (Details) - 2008 Plan - Share options - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Options granted
Balance at the beginning of the period (in shares)	890,500
Granted (in shares)	44,000	120,000	4,000	546,400	1,797,300	307,250
Exercised (in shares)	(52,000)
Forfeited (in shares)	(262,850)
Balance at the end of the period (in shares)	619,650	890,500
Weighted average exercise price per option
Balance at the beginning of the period (in dollars per share)	$ 1.83
Granted (in dollars per share)	1.11		$ 1.40	$ 2.25		$ 4.75
Exercised (in dollars per share)	0.73
Forfeited (in dollars per share)	2.10
Balance at the end of the period (in dollars per share)	$ 1.61	$ 1.83

SHARE OPTIONS - Details of Share Options Granted (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Additional disclosures
Share-based compensation expense	$ 405	$ 1,865	$ 2,317
2008 Plan \| Share options
Options Number
Outstanding (in shares)	619,650	890,500
Exercisable (in shares)	507,525
Expected to vest (in shares)	10,045
Weighted-average exercise price per option
Outstanding (in dollars per share)	$ 1.61	$ 1.83
Exercisable (in dollars per share)	1.66
Expected to vest (in dollars per share)	$ 1.41
Weighted-average remaining contractual life (years)
Outstanding	4 years 7 months 13 days
Exercisable	3 years 10 months 13 days
Expected to vest	8 years 4 days
Aggregate intrinsic value
Outstanding (in dollars)	$ 62
Exercisable (in dollars)	56
Expected to vest (in dollars)	1
Additional disclosures
Total intrinsic value of options exercised	$ 270	$ 324	$ 26
Weighted average grant date fair value of options (in dollars per share)	$ 0.50	$ 0.70	$ 0.83
Share-based compensation expense	$ 21	$ 97	$ 102
Unrecognized compensation cost	$ 276
Weighted-average period of recognition of unrecognized compensation cost	6 months 11 days

NONVESTED SHARES (Details) - 2008 Plan - Nonvested shares - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Nonvested shares
Nonvested shares granted	244,000	272,000	296,000	3,154,800	2,800,300	711,571
Vesting period	4 years	4 years
Minimum
Nonvested shares
Vesting period			3 months	3 months	3 years	2 years
Maximum
Nonvested shares
Vesting period			4 years	4 years	4 years	4 years

NONVESTED SHARES - Summary of Nonvested Shares Granted and Vested (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Weighted average grant date fair value
Incremental compensation expenses	$ 405	$ 1,865	$ 2,317
2008 Plan \| Nonvested shares
Number of Shares
Outstanding at the beginning of the period (in shares)	1,084,284
Granted (in shares)	244,000	272,000	296,000	3,154,800	2,800,300	711,571
Forfeited (in shares)	(325,852)
Vested (in shares)	(453,652)
Outstanding at the end of the period (in shares)	548,780	1,084,284
Weighted average grant date fair value
Outstanding at the beginning of the period (in dollars per share)	$ 3.28
Granted (in dollars per share)	0.60
Forfeited (in dollars per share)	1.67
Vested (in dollars per share)	0.84
Outstanding at the end of the period (in dollars per share)	$ 5.07	$ 3.28
Fair value of shares vested	$ 379	$ 808	$ 3,070
Incremental compensation expenses	384	$ 1,768	$ 2,215
Unrecognized compensation cost	$ 1,487
Weighted-average period of recognition of unrecognized compensation cost	2 years 4 months 10 days

NONVESTED SHARES - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based compensation expenses
Incremental compensation expenses	$ 405	$ 1,865	$ 2,317
Fulfillment
Share-based compensation expenses
Incremental compensation expenses	47	214	211
Selling and marketing
Share-based compensation expenses
Incremental compensation expenses	99	456	458
General and administrative
Share-based compensation expenses
Incremental compensation expenses	$ 259	$ 1,195	$ 1,648

INCOME TAXES (Details) $ in Thousands, $ in Thousands	12 Months Ended
INCOME TAXES (Details) $ in Thousands, $ in Thousands	Dec. 31, 2018 HKD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Income taxes
Assessable profits	$ 2,000
Half of the current tax rate (as a Percent)	8.25	8.25
Current tax expense (benefit)		$ 33	$ 81	$ 54
Schedule of Loss before income taxes
Loss before income tax expense		(59,790)	(9,675)	(8,686)
Deferred tax assets:
Bad debt allowance					$ 88
Accrued inventory provision					348	$ 925
Net operating loss carry forwards					27,852	20,061
Less: Valuation allowance		(20,986)	(19,818)	(19,818)	(26,691)	(20,986)
Deferred tax asset, net					1,597
Deferred tax liabilities:
Acquired intangible assets					(1,597)
Net operating loss carry forwards					10,052
Net operating loss expire by 2019					1,890
Net operating loss expire by 2020					813
Net operating loss expire by 2021					5,201
Net operating loss expire by 2022					878
Net operating loss expire by 2023					1,270
Movement of valuation allowance
Balance at beginning of the period		20,986	19,818
Additions		5,705	1,168
Balance at end of the period		26,691	20,986	19,818
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		$ (59,790)	$ (9,675)	$ (8,686)
Statutory tax rate in the PRC (as a percent)	25.00%	25.00%	25.00%	25.00%
Income tax at statutory tax rate		$ (14,948)	$ (2,419)	$ (2,172)
Non-deductible expenses		115	42	20
Effect of preferential tax rates		(7)	(67)	(11)
Utilization of tax loss previously not recognized			(99)	(124)
Effect of income tax rate differences in jurisdictions other than the PRC		9,154	1,456	1,843
Changes in valuation allowances		5,705	1,168	498
Income tax expense		33	81	54
Income tax paid		$ 55	81	54
Shenzhen Xuyi
Income taxes
Preferential income tax rate	10.00%	10.00%
Qianhai Xuyi Hunan
Income taxes
Preferential income tax rate	10.00%	10.00%
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%
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%
Additional disclosures
Withholding tax rate on dividends distributed to non-resident entities (as a percent)	10.00%	10.00%
Deferred tax liability accrued for the Chinese dividend withholding taxes					$ 0	$ 0
PRC \| Lanting Gaochuang
Income taxes
Reduced tax rate for the years subsequent the exemption period (as a percent)	12.50%	12.50%
Preferential income tax rate	15.00%	15.00%
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%
Netherland \| LITB Netherlands B.V.
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%
United States \| LITB, INC
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)	8.70%	8.70%
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)	17.00%	17.00%
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)	17.00%	17.00%
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)	17.00%	17.00%
Malaysia \| Ching International Service (Malaysia) SDN.BHD
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)	24.00%	24.00%
Malaysia \| Avant Ecommerce Malaysia SDN.BHD
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)	24.00%	24.00%
Thailand \| Ezbuy (Thailand) Co., 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)	20.00%	20.00%
Indonesia \| PT ezbuy Holdings
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%
CAYMAN ISLANDS
Schedule of Loss before income taxes
Loss before income tax expense		$ (24,750)	(3,705)	(6,348)
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		(24,750)	(3,705)	(6,348)
Hong Kong
Schedule of Loss before income taxes
Loss before income tax expense		(36,476)	(7,205)	(2,914)
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		(36,476)	(7,205)	(2,914)
PRC excluding Hong Kong SAR, and other countries
Schedule of Loss before income taxes
Loss before income tax expense		1,436	1,235	576
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		$ 1,436	$ 1,235	$ 576

LOSS PER SHARE - Computation of Basic and Diluted Net Loss Per Ordinary Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Numerator:
Net loss attributable to ordinary shareholders of LightInTheBox Holding Co., Ltd.	$ (59,602)	$ (9,548)	$ (8,723)
Denominator:
Weighted average number of shares used in calculating net loss per ordinary share -basic and diluted	134,495,549	137,641,562	127,180,801
Net loss per ordinary share-basic and diluted (in dollars per share)	$ (0.44)	$ (0.07)	$ (0.07)

LOSS PER SHARE - Shares Excluded From the Calculation of Diluted Loss Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share options
Shares excluded from the calculation of diluted loss per share
Shares excluded from the calculation of diluted loss per share	619,650	890,500	965,850
Nonvested shares
Shares excluded from the calculation of diluted loss per share
Shares excluded from the calculation of diluted loss per share	548,780	1,084,284	1,906,167
Convertible promissory notes
Shares excluded from the calculation of diluted loss per share
Shares excluded from the calculation of diluted loss per share	88,883,116	0	0

STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
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	$ 6,195

SEGMENT REPORTING (Details) $ in Thousands	12 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) segment	Dec. 31, 2015 segment
Segment reporting
Number of operating segments \| segment			2	1
Product sales	$ 227,539	$ 319,881	$ 292,487
Cost of revenues	166,343	214,261	188,937
Total	227,539	319,881	292,487
Cost of Product Sales	166,343	214,261	188,937
Gross profit	61,196	105,620	103,550
Unallocated operating expenses	98,677	115,787	112,634
Loss from operations	(37,481)	(10,167)	(9,084)
Foreign Currency Transaction Gain (Loss), Unrealized	(339)	(89)	(120)
Interest income	487	581	518
Interest expense	(5)
Change in fair value of convertible promissory notes	(22,791)
Loss before income taxes and gain from equity method investment	(59,790)	(9,675)	(8,686)
Product sales
Segment reporting
Product sales	216,407	293,951	262,083
Cost of revenues	156,326	189,816	160,566
Total	216,407	293,951	262,083
Cost of Product Sales	156,326	189,816	160,566
Gross profit	60,081	104,135	101,517
Services
Segment reporting
Product sales	11,132	25,930	30,404
Cost of revenues	10,017	24,445	28,371
Total	11,132	25,930	30,404
Cost of Product Sales	10,017	24,445	28,371
Gross profit	$ 1,115	$ 1,485	$ 2,033

SEGMENT REPORTING - Components of product sales (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment reporting
Total product sales revenues	$ 227,539	$ 319,881	$ 292,487
Apparel
Segment reporting
Total product sales revenues	72,871	99,160	89,291
Other general merchandise
Segment reporting
Total product sales revenues	143,536	194,791	172,792
Product sales
Segment reporting
Total product sales revenues	$ 216,407	$ 293,951	$ 262,083

SEGMENT REPORTING - Summary of revenues and percentage of revenues by geographical locations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment reporting
Total product sales revenues	$ 227,539	$ 319,881	$ 292,487
Total revenues
Segment reporting
Revenues (as a percent)	100.00%	100.00%	100.00%
Europe
Segment reporting
Total product sales revenues	$ 109,781	$ 153,697	$ 145,185
Europe \| Total revenues
Segment reporting
Revenues (as a percent)	48.20%	48.10%	49.60%
France
Segment reporting
Total product sales revenues	$ 22,900	$ 34,693	$ 31,321
North America
Segment reporting
Total product sales revenues	$ 51,206	$ 73,339	$ 77,814
North America \| Total revenues
Segment reporting
Revenues (as a percent)	22.50%	22.90%	26.60%
United States
Segment reporting
Total product sales revenues	$ 40,148	$ 60,810	$ 66,475
Other countries
Segment reporting
Total product sales revenues	$ 66,552	$ 92,845	$ 69,488
Other countries \| Total revenues
Segment reporting
Revenues (as a percent)	29.30%	29.00%	23.80%

RELATED PARTY TRANSACTIONS (Details)	12 Months Ended
RELATED PARTY TRANSACTIONS (Details)	Dec. 31, 2018 USD ($)
Zhejiang AoKang Shoes Co., Ltd
Related Party Transactions
Percentage of outstanding shares held	18.10%
Goods purchased	$ 400
Zall
Related Party Transactions
Percentage of outstanding shares held	41.00%
Hankou North Import and Export Service Co., Ltd.
Related Party Transactions
Amount of related party transaction	$ 325,000
Hankou North Import and Export Service Co., Ltd. \| Logistics services
Related Party Transactions
Amount of related party transaction	4,302,000
Amounts due to related party	1,550,000
Zall Foreign Trade Service (Hong Kong) Company Limited \| Logistics services
Related Party Transactions
Amount of related party transaction	4,186,000,000
Amounts due to related party	1,007,000
Network Marketing Technical Services \| Advertising services
Related Party Transactions
Amount of related party transaction	7,441,000
Amounts due to related party	2,396,000
Jiashi Financial Information Service (Hangzhou) Co., Ltd. \| Rental services
Related Party Transactions
Amount of related party transaction	$ 26,000

COMMITMENTS AND CONTINGENCIES - Lease Commitment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Rent expenses under operating leases	$ 5,258	$ 4,282	$ 4,247
Future minimum lease payments under non-cancellable operating lease agreements
2019	4,646
2020	2,153
2021	740
Total	7,539
Assets, cost value	1,760
Assets, accumulated depreciation	14
Minimum future lease payments under the capital leases
2019	369
2020	367
2021	362
2022	321
2023	185
2024	34
Total minimum lease payments	1,638
Less amount representing interest	(183)
Present value of minimum lease payments	1,455
Less current portion of minimum lease	(299)
Long-term present value of minimum lease payment	$ 1,156
Maximum
Minimum future lease payments under the capital leases
Capital leases, interest rate	7.40%
Minimum
Minimum future lease payments under the capital leases
Capital leases, interest rate	4.30%

SUBSEQUENT EVENTS (Details)	Jan. 20, 2019 shares
Subsequent event \| 2019 Plan \| Ordinary Shares
Subsequent Event [Line Items]
Maximum number of ordinary shares available for issuance	2,867,382

PARENT ONLY INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current assets
Prepaid expenses and other current assets	$ 5,811	$ 15,696
TOTAL ASSETS	103,587	108,737
Current Liabilities
Convertible promissory notes	51,922
Accrued expenses and other current liabilities	22,688	20,727
TOTAL LIABILITIES	111,392	53,267
EQUITY / (DEFICIT)
Ordinary shares	11	11
Additional paid-in capital	239,269	238,851
Treasury shares, at cost	(27,261)	(23,907)
Accumulated deficit	(218,887)	(159,286)
Accumulated other comprehensive loss	(932)	(199)
Stockholders' Equity Attributable to Noncontrolling Interest	(5)
TOTAL EQUITY / (DEFICIT)	(7,805)	55,470	$ 65,836	$ (2,123)
TOTAL LIABILITIES AND EQUITY / (DEFICIT)	103,587	108,737
LightInTheBox Holding Co., Ltd.
Current assets
Cash and cash equivalents	311	1,471
Prepaid expenses and other current assets	168	452
Amounts due from subsidiaries and VIEs	166,636	171,148
TOTAL ASSETS	167,115	173,071
Current Liabilities
Convertible promissory notes	51,922
Accrued expenses and other current liabilities	1,880	3,350
Deficit of investment in Subsidiaries and VIEs	121,113	114,251
TOTAL LIABILITIES	174,915	117,601
EQUITY / (DEFICIT)
Ordinary shares	11	11
Additional paid-in capital	(239,269)	(238,851)
Treasury shares, at cost	(27,261)	(23,907)
Accumulated deficit	(218,887)	(159,286)
Accumulated other comprehensive loss	(932)	(199)
TOTAL EQUITY / (DEFICIT)	(7,800)	55,470
TOTAL LIABILITIES AND EQUITY / (DEFICIT)	$ 167,115	$ 173,071

PARENT ONLY INFORMATION - Condensed Statements of Operatins and Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
General and administrative	$ 33,042	$ 29,605	$ 34,492
Loss from operations	(37,481)	(10,167)	(9,084)
Interest income	487	581	518
Change in fair value of a convertible promissory notes	(22,791)
Loss before income taxes and gain from equity method investment	(59,790)	(9,675)	(8,686)
Income tax expense	33	81	54
Net loss	(59,602)	(9,548)	(8,723)
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes	(733)	380	(270)
Total comprehensive loss	(60,335)	(9,168)	(8,993)
Foreign currency translation adjustment, net of income taxes	0	0	0
LightInTheBox Holding Co., Ltd.
General and administrative	1,145	2,246	4,385
Loss from operations	(1,145)	(2,246)	(4,385)
Share of loss from subsidiaries and VIEs	(35,665)	(7,407)	(4,692)
Interest income		105	354
Change in fair value of a convertible promissory notes	(22,791)
Loss before income taxes and gain from equity method investment	(59,601)	(9,548)	(8,723)
Net loss	(59,601)	(9,548)	(8,723)
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes	(733)	380	(270)
Total comprehensive loss	(60,334)	(9,168)	(8,993)
Foreign currency translation adjustment, net of income taxes	$ 0	$ 0	$ 0

PARENT ONLY INFORMATION - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net loss	$ (59,602)	$ (9,548)	$ (8,723)
Change in fair value of convertible promissory notes	22,791
Prepaid expenses and other current assets	10,298	(5,985)	(4,659)
Accrued expenses and other current liabilities	(1,584)	(837)	1,635
Net cash used in operating activities	(29,868)	(14,831)	(15,334)
Net cash (used in) / provided by investing activities	3,296	(3,506)	(334)
Repurchase of ordinary shares	(3,354)	(3,101)	(810)
Net cash provided by / (used in) financing activities	(3,365)	(3,064)	74,635
Net increase / (decrease) in cash, cash equivalents and restricted cash	(29,937)	(21,401)	58,967
Cash, cash equivalents and restricted cash at beginning of year	70,014	91,075	32,506
Cash, cash equivalents and restricted cash at end of year	39,802	70,014	91,075
LightInTheBox Holding Co., Ltd.
Net loss	(59,601)	(9,548)	(8,723)
Share of loss from subsidiaries and VIEs	35,665	7,407	4,692
Change in fair value of convertible promissory notes	22,791
Prepaid expenses and other current assets	283	112	(344)
Accrued expenses and other current liabilities	(1,469)	(126)	1,267
Net cash used in operating activities	(2,331)	(2,155)	(3,108)
Changes in amounts due from subsidiaries and VIEs	4,512	(23,883)	(51,037)
Net cash (used in) / provided by investing activities	4,512	(23,883)	(51,037)
Proceeds from private placement and option exercised	13	37	75,445
Repurchase of ordinary shares	(3,354)	(3,101)	(810)
Net cash provided by / (used in) financing activities	(3,341)	(3,064)	74,635
Net increase / (decrease) in cash, cash equivalents and restricted cash	(1,160)	(29,102)	20,490
Cash, cash equivalents and restricted cash at beginning of year	1,471	30,573	10,083
Cash, cash equivalents and restricted cash at end of year	$ 311	$ 1,471	$ 30,573

EMPLOYEE BENEFIT PLANS	12 Months Ended
EMPLOYEE BENEFIT PLANS	Dec. 31, 2018
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	16. EMPLOYEE BENEFIT PLANS Full time employees in the PRC 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 $3,711, $5,258 and $5,358 for the years ended December 31, 2016, 2017 and 2018, respectively.

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2018
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	21. SUBSEQUENT EVENTS On January 20, 2019, the board of the Company approved a 2019 Share Incentive Plan (the “2019 Plan”) to incentivize directors, executive officers, employees and consultants of the Company. 2,867,382 ordinary shares are authorized and reserved for issuance pursuant to all awards granted under the 2019 Plan.

ORGANIZATION AND PRINCIPAL ACTIVITIES - Details of History of the Group (Details) - shareholder	1 Months Ended
	Nov. 30, 2014	Jun. 30, 2007
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

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
EMPLOYEE BENEFIT PLANS
Total contribution for employee benefits	$ 5,358	$ 5,258	$ 3,711

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of presentation (Details) $ in Thousands	Dec. 31, 2018 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Current liabilities exceed current assets	$ 54,679
Accumulated deficit	$ 218,887

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Financial instruments and fair value measurements (Details) - Recurring $ in Thousands	Dec. 31, 2018 USD ($)
Liabilities:
Convertible promissory notes	$ 51,922
Level 3
Liabilities:
Convertible promissory notes	$ 51,922

COMMITMENTS AND CONTINGENCIES - Contingencies (Details)	12 Months Ended
COMMITMENTS AND CONTINGENCIES - Contingencies (Details)	Dec. 31, 2018
Failure to make payments of contributions for employee benefit plans
Contingencies
Maximum fines ( as a percent)	300.00%