23. 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,
	2018		2019
ASSETS
Current assets
Cash and cash equivalents	$	311	$	134
Prepaid expenses and other current assets		168		209
Amounts due from subsidiaries and VIEs		166,636		164,146
TOTAL ASSETS	$	167,115	$	164,489

LIABILITIES AND (DEFICIT) / EQUITY

Current Liabilities
Convertible promissory notes		51,922		—
Accrued expenses and other current liabilities		1,880		618
Deficit of investment in subsidiaries and VIEs		121,113		132,044
TOTAL LIABILITIES	$	174,915	$	132,662

(DEFICIT) / EQUITY
Ordinary shares	$	11	$	14
Additional paid-in capital		239,269		262,888
Forward contracts		—		15,769
Treasury shares, at cost		(27,261)		(27,512)
Accumulated deficit		(218,887)		(217,888)
Accumulated other comprehensive loss		(932)		(1,444)
TOTAL (DEFICIT) / EQUITY		(7,800)		31,827
TOTAL LIABILITIES AND (DEFICIT) / EQUITY	$	167,115	$	164,489

Condensed Statements of Operations and Comprehensive (Loss)/Income:


	Year ended December 31
	2017		2018		2019
General and administrative		2,246		1,145		1,113
Operating loss		(2,246)		(1,145)		(1,113)
Share of loss from subsidiaries and VIEs		(7,407)		(35,665)		(12,479)
Interest income		105		—		—
Change in fair value of convertible promissory notes		—		(22,791)		14,591
(Loss) / Income before income taxes		(9,548)		(59,601)		999
Income tax expense		—		—		—
Net (loss) / income		(9,548)		(59,601)		999
Other comprehensive (loss) / income:
Foreign currency translation adjustment, net of nil income taxes		380		(733)		(512)
Total comprehensive (loss) / income	$	(9,168)	$	(60,334)	$	487

Condensed Statements of Cash Flows:


	Year ended December 31,
	2017		2018		2019

Net (loss) / income		(9,548)		(59,601)		999
Share of loss from subsidiaries and VIEs		7,407		35,665		12,479
Change in fair value of convertible promissory notes		—		22,791		(14,591)
Prepaid expenses and other current assets		112		283		(41)
Accrued expenses and other current liabilities		(126)		(1,469)		(1,262)
Net cash used in operating activities	$	(2,155)	$	(2,331)	$	(2,416)
Changes in amounts due from subsidiaries and VIEs		(23,883)		4,512		2,490
Net cash (used in) / provided by investing activities	$	(23,883)	$	4,512	$	2,490
Proceeds from private placement and options exercised		37		13		—
Repurchase of ordinary shares		(3,101)		(3,354)		(251)
Net cash used in financing activities	$	(3,064)	$	(3,341)	$	(251)
Net decrease in cash and cash equivalents		(29,102)		(1,160)		(177)
Cash and cash equivalents at beginning of the year		30,573		1,471		311
Cash and cash equivalents at end of the year		1,471		311		134