AGNT, Inc 10-Q for FY2020 Q3

AGNT, Inc. (AGNT)

10-Q 2020-11-09 For: 2020-09-30

Added on April 10, 2026

About this 10-Q

AGNT, Inc filed this 10-Q on November 9, 2020, covering the quarter ended September 30, 2020 (FY2020 Q3).

Headline figures

Quarter ended September 30, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $564.02M; up 99.9% from $282.18M a year earlier
Net income: $14.97M; compared with a net loss of $1.85M a year earlier
Diluted EPS: $0.20; compared with -$0.03 a year earlier

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Delaware		98-0681092
(State or other jurisdiction		(IRS Employer
of incorporation)		Identification No.)


Common Stock, par value $0.00001 per share	EXPI	NASDAQ
(Title of Each Class)	(Trading Symbol)	(Name of each exchange on which registered)


Large accelerated filer ☐	Accelerated filer ☒	Non-accelerated filer ☐	Smaller reporting company ☐
Emerging Growth Company ☐


		Page
	Forward Looking Statements	3

PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other information	30
Item 6.	Exhibits	30


	September 30, 2020	December 31, 2019
	(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$ 91,871	$ 40,087
Restricted cash	22,115	6,987
Accounts receivable, net of allowance for credit losses of $1,346 and allowance for bad debt of $137, respectively	93,482	28,196
Prepaids and other assets	3,056	3,549
TOTAL CURRENT ASSETS	210,524	78,819
Property, plant, and equipment, net	6,751	5,428
Operating lease right-of-use assets	839	1,264
Other noncurrent assets	7	16
Intangible assets, net	3,521	2,677
Goodwill	10,558	8,248
TOTAL ASSETS	$ 232,200	$ 96,452

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$ 2,610	$ 2,593
Customer deposits	22,115	6,987
Accrued expenses	91,333	31,034
Current portion of long-term payable	1,492	916
Current portion of lease obligation - operating lease	720	435
TOTAL CURRENT LIABILITIES	118,270	41,965
Long-term payable, net of current portion	2,749	1,530
Long-term lease obligation - operating lease, net of current portion	118	829
TOTAL LIABILITIES	121,137	44,324
EQUITY
Common Stock, $0.00001 par value 220,000,000 shares authorized; 72,321,867 issued and 69,952,115 outstanding in 2020; 66,199,308 issued and 65,273,944 outstanding in 2019	1	1
Additional paid-in capital	187,675	130,682
Treasury stock, at cost: 2,369,752 and 925,364 shares held, respectively	(29,953)	(8,623)
Accumulated deficit	(46,883)	(70,293)
Accumulated other comprehensive income	71	200
Total eXp World Holdings, Inc. stockholders' equity	110,911	51,967
Equity attributable to noncontrolling interest	152	161
TOTAL EQUITY	111,063	52,128
TOTAL LIABILITIES AND EQUITY	$ 232,200	$ 96,452


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Revenues	$ 564,017	$ 282,179	$ 1,188,963	$ 705,918
Operating expenses
Commissions and other agent-related costs	517,169	259,141	1,079,739	646,270
General and administrative expenses	30,130	23,597	82,145	66,503
Sales and marketing expenses	1,495	1,083	3,326	3,043
Total operating expenses	548,794	283,821	1,165,210	715,816
Operating income (loss)	15,223	(1,642)	23,753	(9,898)
Other expense
Other expense, net	80	173	129	198
Equity in losses of unconsolidated affiliates	-	-	34	-
Total other expense, net	80	173	163	198
Income (loss) before income tax expense	15,143	(1,815)	23,590	(10,096)
Income tax expense	225	32	295	243
Net income (loss)	14,918	(1,847)	23,295	(10,339)
Net loss attributable to noncontrolling interest	52	-	115	-
Net income (loss) attributable to eXp World Holdings, Inc.	$ 14,970	$ (1,847)	$ 23,410	$ (10,339)

Earnings (loss) per share
Basic	$ 0.22	$ (0.03)	$ 0.35	$ (0.17)
Diluted	$ 0.20	$ (0.03)	$ 0.32	$ (0.17)
Weighted average shares outstanding
Basic	69,256,733	63,197,495	67,603,551	61,834,376
Diluted	75,653,407	63,197,495	73,548,056	61,834,376

Comprehensive income (loss):
Net income (loss)	$ 14,918	$ (1,847)	$ 23,295	$ (10,339)
Comprehensive loss attributable to noncontrolling interests	52	-	115	-
Net income (loss) attributable to eXp World Holdings, Inc.	14,970	(1,847)	23,410	(10,339)
Other comprehensive income (loss):
Foreign currency translation (loss) gain, net of tax	(76)	77	(129)	140
Comprehensive income (loss) attributable to eXp World Holdings, Inc.	$ 14,894	$ (1,770)	$ 23,281	$ (10,199)



								Accumulated
						Additional		Other
	Common Stock		Treasury Stock			Paid-In	Accumulated	Comprehensive	Noncontrolling	Total
	Shares	Amount	Shares	Amount		Capital	Deficit	Income (Loss)	Interest	Equity
Balance, December 31, 2018	60,609,102	$ 1	-	$ -		$ 90,756	$ (60,765)	$ (11)	$ -	$ 29,981
Net loss	-	-	-	-		-	(6,296)	-	-	(6,296)
Shares issued for stock options exercised	134,260	-	-	-		216	-	-	-	216
Agent growth incentive stock compensation	136,194	-	-	-		3,669	-	-	-	3,669
Stock option compensation	-	-	-	-		1,215	-	-	-	1,215
Agent equity stock compensation	620,287	-	-	-		6,210	-	-	-	6,210
Foreign currency translation gain	-	-	-	-		-	-	15	-	15
Repurchase of common stock	-	-	357,752	(3,647)		-	-	-	-	(3,647)
Balance, March 31, 2019	61,499,843	$ 1	357,752	$ (3,647)		$ 102,066	$ (67,061)	$ 4	$ -	$ 31,363
Net loss	-	-	-	-		-	(2,195)	-	-	(2,195)
Shares issued for stock options exercised	536,613	-	-	-		690	-	-	-	690
Agent growth incentive stock compensation	149,008	-	-	-		3,587	-	-	-	3,587
Stock option compensation		-	-	-		1,831	-	-	-	1,831
Agent equity stock compensation	935,177	-	-	-		10,234	-	-	-	10,234
Foreign currency translation gain	-	-	-	-		-	-	48	-	48
Repurchase of common stock	-	-	460,093	(4,898)		-	-	-	-	(4,898)
Balance, June 30, 2019	63,120,641	$ 1	817,845	$ (8,545)		$ 118,408	$ (69,256)	$ 52	$ -	$ 40,660
Net loss	-	-	-	-		-	(1,847)	-	-	(1,847)
Shares issued for stock options exercised	1,224,756	-	-	-		646	-	-	-	646
Agent growth incentive stock compensation	878,083	-	-	-		2,603	-	-	-	2,603
Stock option compensation		-	-	-		1,060	-	-	-	1,060
Agent equity stock compensation	1,252,540	-	-	-		11,110	-	-	-	11,110
Foreign currency translation gain	-	-	-	-		-	-	77	-	77
Repurchase of common stock	-	-	968,100	(9,104)		-	-	-	-	(9,104)
Balance, September 30, 2019	66,476,020	$ 1	1,785,945	$ (17,649)		$ 133,827	$ (71,103)	$ 129	$ -	$ 45,205

								Accumulated
						Additional		Other
	Common Stock		Treasury Stock			Paid-In	Accumulated	Comprehensive	Noncontrolling	Total
	Shares	Amount	Shares	Amount		Capital	Deficit	Income (Loss)	Interest	Equity
Balance, December 31, 2019	66,199,308	$ 1	925,364	$ (8,623)		$ 130,682	$ (70,293)	$ 200	$ 161	$ 52,128
Net income (loss)	-	-	-	-	-	-	165	-	(23)	142
Shares issued for stock options exercised	1,785,048	-	-	-	-	1,828	-	-	-	1,828
Agent growth incentive stock compensation	127,106	-	-	-		2,551	-	-	-	2,551
Stock option compensation		-	-	-		1,073	-	-	-	1,073
Agent equity stock compensation	916,528	-	-	-		8,794	-	-	-	8,794
Foreign currency translation (loss)	-	-	-	-	-	-	-	(297)	-	(297)
Repurchase of common stock	-	-	991,241	(10,305)		-	-	-	-	(10,305)
Contributions by noncontrolling interests	-	-	-	-	-	-	-	-	86	86
Balance, March 31, 2020	69,027,990	$ 1	1,916,605	$ (18,928)		$ 144,928	$ (70,128)	$ (97)	$ 224	$ 56,000
Net income (loss)	-	-	-	-		-	8,275	-	(40)	8,235
Shares issued for stock options exercised	415,241	-	-	-		639	-	-	-	639
Agent growth incentive stock compensation	207,612	-	-	-		3,346	-	-	-	3,346
Stock option compensation	-	-	-	-		1,227	-	-	-	1,227
Agent equity stock compensation	928,320	-	-	-		10,503	-	-	-	10,503
Foreign currency translation gain	-	-	-	-		-	-	244	-	244
Repurchase of common stock	-	-	131,173	(1,682)		-	-	-	-	(1,682)
Contributions by noncontrolling interests	-	-	-	-		-	-	-	20	20
Balance, June 30, 2020	70,579,163	$ 1	2,047,778	$ (20,610)		$ 160,643	$ (61,853)	$ 147	$ 204	$ 78,532
Net income (loss)	-	-	-	-		-	14,970	-	(52)	14,918
Shares issued for stock options exercised	653,023	-	-	-		2,244	-	-	-	2,244
Agent growth incentive stock compensation	468,884	-	-	-		2,980	-	-	-	2,980
Stock option compensation	-	-	-	-		1,879	-	-	-	1,879
Agent equity stock compensation	620,797	-	-	-		19,929	-	-	-	19,929
Foreign currency translation (loss)	-	-	-	-		-	-	(76)	-	(76)
Repurchase of common stock	-	-	321,974	(9,343)		-	-	-	-	(9,343)
Balance, September 30, 2020	72,321,867	$ 1	2,369,752	$ (29,953)		$ 187,675	$ (46,883)	$ 71	$ 152	$ 111,063


	December 31, 2019	December 31, 2018
Cash and cash equivalents	$ 40,087	$ 20,538
Restricted cash	6,987	2,503
Total cash, cash equivalents, and restricted cash, beginning balance	$ 47,074	$ 23,041

	September 30, 2020	September 30, 2019
Cash and cash equivalents	$ 91,871	$ 34,736
Restricted cash	22,115	7,913
Total cash, cash equivalents, and restricted cash, ending balance	$ 113,986	$ 42,649


	September 30, 2020	December 31, 2019
Computer hardware and software	$ 11,890	$ 8,431
Furniture, fixture, and equipment	20	21
Total depreciable property and equipment	11,910	8,452
Less: accumulated depreciation	(5,845)	(3,378)
Depreciable property, net	6,065	5,074
Assets under development	686	354
Property, plant and equipment, net	$ 6,751	$ 5,428


	September 30, 2020			December 31, 2019
	Gross	Accumulated	Net Carrying	Gross	Accumulated	Net Carrying
	Amount	Amortization	Amount	Amount	Amortization	Amount
Trade name	$ 1,446	$ (214)	$ 1,232	$ 1,169	$ (127)	$ 1,042
Existing technology	1,267	(288)	979	559	(99)	460
Non-competition agreements	125	(77)	48	125	(45)	80
Customer relationships	980	(135)	845	740	(80)	660
Software	225	-	225	225	-	225
Licensing agreement	210	(18)	192	210	-	210
Total intangible assets	$ 4,253	$ (732)	$ 3,521	$ 3,028	$ (351)	$ 2,677


Balance, December 31, 2019		$ 277
Stock grant liability increase at March 31, 2020		1,042
Stock grants reclassified from liability to equity at March 31, 2020		(75)
Stock grant liability increase at June 30, 2020		483
Stock grants reclassified from liability to equity at June 30, 2020		(582)
Stock grant liability increase at September 30, 2020		731
Balance, September 30, 2020		$ 1,876


Remaining 2020		$ 124
2021		311
2022		282
2023		165
2024		5
2025 and thereafter		6
Total lease payments		893
Less: interest		(54)
Total operating lease liabilities		$ 839


	September 30, 2020	December 31, 2019
Assets
Cash	$ 337	$ 424
Prepaids and other assets	18	2
Total assets	$ 355	$ 426

Liabilities & Equity
Membership interests payable	52	45
Accounts payable	18	15
Total liabilities	70	60
Total equity	285	366
Total liabilities & equity	$ 355	$ 426

	Nine Months Ended September 30,
	2020	2019
Revenues	$ 122	$ -
Expenses	353	-
Net loss	$ (231)	$ -


	Three Months Ended	% of	Three Months Ended	% of	Change
	September 30, 2020	Revenue	September 30, 2019	Revenue	$	%

	(In thousands, except share amounts and per share data)
Statement of Operations Data:
Revenues	$ 564,017	100%	$ 282,179	100%	$ 281,838	100%
Operating expenses
Commissions and other agent-related costs	517,169	92%	259,141	92%	258,028	100%
General and administrative expenses	30,130	5%	23,597	8%	6,533	28%
Sales and marketing expenses	1,495	-%	1,083	-%	412	38%
Total operating expenses	548,794	97%	283,821	101%	264,973	93%
Operating income (loss)	15,223	3%	(1,642)	(1)%	16,865	1027%
Other expense
Other expense, net	80	-%	173	-%	(93)	54%
Total other expense, net	80	-%	173	-%	(93)	54%
Income (loss) before income tax expense	15,143	3%	(1,815)	(1)%	16,958	934%
Income tax expense	225	-%	32	-%	193	603%
Net income (loss)	14,918	3%	(1,847)	(1)%	16,765	908%
Net loss attributable to noncontrolling interest	52	-%	-	-%	52	-%
Net income (loss) attributable to eXp World Holdings, Inc.	14,970	3%	(1,847)	(1)%	16,817	911%
Adjusted EBITDA ⁽¹⁾	$ 21,818	4%	$ 3,563	1%	$ 18,255	512%
Earnings (loss) per share
Basic	$ 0.22		$ (0.03)		$ 0.25	833%
Diluted	$ 0.20		$ (0.03)		$ 0.23	767%
Weighted average shares outstanding
Basic	69,256,733		63,197,495
Diluted	75,653,407		63,197,495


	Nine Months Ended	% of	Nine Months Ended	% of	Change
	September 30, 2020	Revenue	September 30, 2019	Revenue	$	%

	(In thousands, except share amounts and per share data)
Statement of Operations Data:
Revenues	$ 1,188,963	100%	$ 705,918	100%	$ 483,045	68%
Operating expenses
Commissions and other agent-related costs	1,079,739	91%	646,270	92%	433,469	67%
General and administrative expenses	82,145	7%	66,503	9%	15,642	24%
Sales and marketing expenses	3,326	-%	3,043	-%	283	9%
Total operating expenses	1,165,210	98%	715,816	101%	449,394	63%
Operating income (loss)	23,753	2%	(9,898)	(1)%	33,651	340%
Other expense
Other expense, net	129	-%	198	-%	(69)	(35)%
Equity in losses of unconsolidated affiliates	34	-%	-	-%	34	100%
Total other expense, net	163	-%	198	-%	(35)	(18)%
Income (loss) before income tax expense	23,590	2%	(10,096)	(1)%	33,686	334%
Income tax expense	295	-%	243	-%	52	22%
Net income (loss)	23,295	2%	(10,339)	(1)%	33,634	325%
Net loss attributable to noncontrolling interest	115	-%	-	-%	115	100%
Net income (loss) attributable to eXp World Holdings, Inc.	23,410	2%	(10,339)	(1)%	33,749	326%
Adjusted EBITDA⁽¹⁾	$ 41,193	3%	$ 6,584	1%	$ 34,609	526%
Earnings (loss) per share
Basic	$ 0.35		$ (0.17)		$ 0.52	306%
Diluted	$ 0.32		$ (0.17)		$ 0.49	288%
Weighted average shares outstanding
Basic	67,603,551		61,834,376
Diluted	73,548,056		61,834,376


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Other information
Operating lease expense	$ 103	$ 77	$ 328	$ 136
Short-term lease expense	2	6	12	21
Cash paid for operating leases	103	77	327	136
Weighted-average remaining lease term (years) – operating leases⁽¹⁾	3.8	3	3.8	3
Weighted-average discount rate – operating leases	4.851%	4.850%	4.851%	4.850%


Period	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs⁽¹⁾	Approximate dollar value of shares that may yet be purchased under the plans or programs
7/1/20 - 7/31/20	165,967	$ 17.76	165,967	$ 60,658,232
8/1/20 - 8/31/20	87,055	34.24	87,055	60,571,177
9/1/20 - 9/30/20	68,952	41.17	68,952	60,502,225
Total	321,974	$ 31.06	321,974


		eXp World Holdings, Inc.
		(Registrant)

Date: November 9, 2020		/s/ Jeff Whiteside
		Jeff Whiteside
		Chief Financial Officer (Principal Financial Officer)


By:	/s/ Glenn Sanford
	Glenn Sanford
	Chief Executive Officer (Principal Executive Officer)


Exhibit		Exhibit
Number		Description

3.1		Amended and Restated Certificate of Incorporation (incorporated by reference from Appendix A to the Company’s Definitive Information Statement filed on October 9, 2018)

3.2		Certificate of Correction to the Amended and Restated Certificate of Incorporation (incorporated by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on March 24, 2020

3.3		Amended and Restated Bylaws (incorporated by reference from Appendix B to the Company’s Definitive Information Statement on Schedule 14C filed on October 9, 2018.

31.1		Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS		Inline XBRL Instance Document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)