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CONDENSED FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION
CONDENSED BALANCE SHEETS
(In millions, except share data)
December 31,
20222021
ASSETS
Intangibles - net$1 $1 
Investment in subsidiaries2,046 3,202 
TOTAL ASSETS$2,047 $3,203 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable and other accrued liabilities$1 $— 
Interest payable1 1 
Convertible senior notes959 954 
Total liabilities961 955 
Shareholders’ equity:
Common stock, $0.0001 par value; 3,000,000,000 shares authorized; 637,387,025 and 616,026,565 shares issued, respectively; 637,387,025 and 616,026,565 shares outstanding, respectively
— — 
Additional paid-in capital4,148 3,955 
Accumulated deficit(3,058)(1,705)
Accumulated other comprehensive income (loss)(4)(2)
Total shareholders’ equity1,086 2,248 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$2,047 $3,203 
CONDENSED STATEMENTS OF OPERATIONS
(In millions)

Year Ended December 31,
202220212020
Operating expenses:
General and administrative$7 $7 $— 
Total operating expenses7 7 — 
Loss from operations(7)(7)— 
Warrant fair value adjustment— 12 34 
Interest expense(8)(2)— 
(Loss) income before income taxes(15)3 34 
Income tax expense— — — 
Earnings of subsidiaries(1,338)(665)(287)
Net loss$(1,353)$(662)$(253)



See accompanying note to condensed financial statements.
CONDENSED STATEMENTS OF CASH FLOWS
(In millions)
Year Ended December 31,
202220212020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income$(1,353)$(662)$(253)
Adjustments to reconcile net (loss) income to cash, cash equivalents (used in) provided by operating activities:
Earnings of subsidiaries1,338 665 287 
Depreciation and amortization, net of accretion7 2 — 
Warrant fair value adjustment— (12)(34)
Interest payable— 1 — 
Other(2)— — 
Net cash used in operating activities(10)(6)— 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of intangible assets— (1)— 
Investment in subsidiary(6)(1,860)(977)
Distribution from subsidiary10 139 6 
Net cash provided by (used in) investing activities4 (1,722)(971)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible senior notes— 953 — 
Purchase of capped calls related to convertible senior notes— (119)— 
Proceeds from exercise of stock options4 15 — 
Proceeds from issuance of common stock for ESPP2 — — 
Proceeds from warrant exercises— 22 — 
Proceeds from Business Combination and PIPE offering— — 1,014 
Proceeds from February 2021 Offering— 886 — 
Issuance of common stock— (29)(43)
Net cash provided by financing activities6 1,728 971 
NET INCREASE IN CASH AND CASH EQUIVALENTS— — — 
CASH AND CASH EQUIVALENTS - Beginning of year— — — 
CASH AND CASH EQUIVALENTS - End of year$— $— $— 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION – Cash paid during the period for interest$2 $— $— 
DISCLOSURES OF NONCASH FINANCING ACTIVITIES:
Recognition of warrant liability$— $— $81 
Issuance of common stock in extinguishment of warrant liabilities$— $(35)$— 
See accompanying note to condensed financial statements.
INTRODUCTION AND BASIS OF PRESENTATION
The accompanying condensed financial statements, including the note thereto, should be read in conjunction with the consolidated financial statements and notes thereto of Opendoor Technologies Inc. found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. For purposes of these condensed financial statements, the Company’s wholly-owned subsidiaries are accounted for using the equity method of accounting.
Opendoor Labs, Inc. entered into a merger agreement (the “Merger Agreement”) with Social Capital Hedosophia Holdings Corp. II, (“SCH”) on September 15, 2020, which was consummated on December 18, 2020. Upon consummation of the transactions contemplated by the terms of the Merger Agreement, Opendoor Labs Inc. became a wholly owned subsidiary of SCH, which domesticated from the Cayman Islands to Delaware and changed its name to Opendoor Technologies Inc. The merger and the domestication transactions, collectively referred to as the “Business Combination.” were accounted for as a reverse recapitalization whereby Opendoor Labs Inc. was the accounting acquirer. Operations prior to the Business Combination are those of Opendoor Labs Inc. and therefore are attributed to the Parent Company of Opendoor Technologies Inc. See “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 2. Business Combinations” for additional information