open-20210331
0001801169false2021Q112/31P3Y00018011692021-01-012021-03-310001801169us-gaap:CommonStockMember2021-01-012021-03-310001801169us-gaap:WarrantMember2021-01-012021-03-31xbrli:shares00018011692021-05-05iso4217:USD00018011692021-03-3100018011692020-12-31iso4217:USDxbrli:shares0001801169us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-03-310001801169us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-12-3100018011692020-01-012020-03-310001801169open:SeriesAConvertiblePreferredStockMember2019-12-310001801169open:SeriesBConvertiblePreferredStockMember2019-12-310001801169open:SeriesCConvertiblePreferredStockMember2019-12-310001801169open:SeriesDConvertiblePreferredStockMember2019-12-310001801169open:SeriesEConvertiblePreferredStockMember2019-12-310001801169us-gaap:CommonStockMember2019-12-310001801169us-gaap:AdditionalPaidInCapitalMember2019-12-310001801169us-gaap:RetainedEarningsMember2019-12-310001801169us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-12-3100018011692019-12-310001801169us-gaap:CommonStockMember2020-01-012020-03-310001801169us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001801169us-gaap:RetainedEarningsMember2020-01-012020-03-310001801169us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-03-310001801169open:SeriesAConvertiblePreferredStockMember2020-03-310001801169open:SeriesBConvertiblePreferredStockMember2020-03-310001801169open:SeriesCConvertiblePreferredStockMember2020-03-310001801169open:SeriesDConvertiblePreferredStockMember2020-03-310001801169open:SeriesEConvertiblePreferredStockMember2020-03-310001801169us-gaap:CommonStockMember2020-03-310001801169us-gaap:AdditionalPaidInCapitalMember2020-03-310001801169us-gaap:RetainedEarningsMember2020-03-310001801169us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-03-3100018011692020-03-310001801169open:SeriesAConvertiblePreferredStockMember2020-12-310001801169open:SeriesBConvertiblePreferredStockMember2020-12-310001801169open:SeriesCConvertiblePreferredStockMember2020-12-310001801169open:SeriesDConvertiblePreferredStockMember2020-12-310001801169open:SeriesEConvertiblePreferredStockMember2020-12-310001801169us-gaap:CommonStockMember2020-12-310001801169us-gaap:AdditionalPaidInCapitalMember2020-12-310001801169us-gaap:RetainedEarningsMember2020-12-310001801169us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310001801169us-gaap:CommonStockMember2021-01-012021-03-310001801169us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001801169us-gaap:RestrictedStockMemberus-gaap:CommonStockMember2021-01-012021-03-310001801169us-gaap:RestrictedStockMemberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001801169us-gaap:RestrictedStockMember2021-01-012021-03-310001801169us-gaap:CommonStockMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-310001801169us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-310001801169us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-03-310001801169us-gaap:RetainedEarningsMember2021-01-012021-03-310001801169open:SeriesAConvertiblePreferredStockMember2021-03-310001801169open:SeriesBConvertiblePreferredStockMember2021-03-310001801169open:SeriesCConvertiblePreferredStockMember2021-03-310001801169open:SeriesDConvertiblePreferredStockMember2021-03-310001801169open:SeriesEConvertiblePreferredStockMember2021-03-310001801169us-gaap:CommonStockMember2021-03-310001801169us-gaap:AdditionalPaidInCapitalMember2021-03-310001801169us-gaap:RetainedEarningsMember2021-03-310001801169us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-03-31open:homeopen:market0001801169open:SponsorWarrantsMember2020-12-180001801169open:SponsorWarrantsMember2020-12-310001801169open:SponsorWarrantsMember2020-12-182020-12-310001801169srt:RestatementAdjustmentMemberopen:PrivateWarrantsMember2020-12-310001801169srt:RestatementAdjustmentMember2020-12-310001801169srt:ScenarioPreviouslyReportedMember2020-12-310001801169us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-03-310001801169us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-03-310001801169open:SocialCapitalHedosophiaHoldingsCorpIIIPOMember2020-04-300001801169open:PublicWarrantsMember2020-04-300001801169open:SponsorWarrantsMember2020-04-300001801169open:PublicWarrantsMembersrt:MaximumMember2021-03-310001801169open:SocialCapitalHedosophiaHoldingsCorpIIMember2020-12-182020-12-180001801169open:SocialCapitalHedosophiaHoldingsCorpIIMember2020-12-18xbrli:pure0001801169open:OpendoorTechnologiesIncCommonStockMemberus-gaap:CommonStockMember2020-12-182020-12-180001801169us-gaap:CashMember2021-03-310001801169us-gaap:MoneyMarketFundsMember2021-03-310001801169us-gaap:CommercialPaperMember2021-03-310001801169us-gaap:CorporateDebtSecuritiesMember2021-03-310001801169us-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-310001801169us-gaap:AssetBackedSecuritiesMember2021-03-310001801169us-gaap:CashMember2020-12-310001801169us-gaap:MoneyMarketFundsMember2020-12-310001801169us-gaap:CommercialPaperMember2020-12-310001801169us-gaap:CorporateDebtSecuritiesMember2020-12-310001801169us-gaap:AssetBackedSecuritiesMember2020-12-310001801169us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310001801169us-gaap:USTreasurySecuritiesMember2020-12-310001801169us-gaap:InterestRateLockCommitmentsMember2021-03-310001801169us-gaap:InterestRateLockCommitmentsMember2020-12-310001801169us-gaap:TradingRevenueMember2021-01-012021-03-310001801169us-gaap:TradingRevenueMember2020-01-012020-03-310001801169us-gaap:OtherIncomeMember2021-01-012021-03-310001801169us-gaap:OtherIncomeMember2020-01-012020-03-310001801169open:RevolvingFacility20182Memberus-gaap:RevolvingCreditFacilityMember2021-03-310001801169us-gaap:RevolvingCreditFacilityMemberopen:RevolvingFacility20183Member2021-03-310001801169us-gaap:RevolvingCreditFacilityMemberopen:RevolvingFacility20191Member2021-03-310001801169us-gaap:RevolvingCreditFacilityMemberopen:RevolvingFacility20192Member2021-03-310001801169us-gaap:RevolvingCreditFacilityMemberopen:RevolvingFacility20193Member2021-03-310001801169us-gaap:RevolvingCreditFacilityMember2021-03-310001801169us-gaap:RevolvingCreditFacilityMemberopen:RevolvingFacility20181Member2020-12-310001801169open:RevolvingFacility20182Memberus-gaap:RevolvingCreditFacilityMember2020-12-310001801169us-gaap:RevolvingCreditFacilityMemberopen:RevolvingFacility20183Member2020-12-310001801169us-gaap:RevolvingCreditFacilityMemberopen:RevolvingFacility20191Member2020-12-310001801169us-gaap:RevolvingCreditFacilityMemberopen:RevolvingFacility20192Member2020-12-310001801169us-gaap:RevolvingCreditFacilityMemberopen:RevolvingFacility20193Member2020-12-310001801169us-gaap:RevolvingCreditFacilityMember2020-12-310001801169open:MultipleSeniorRevolvingCreditFacilitiesMemberus-gaap:RevolvingCreditFacilityMember2021-03-310001801169open:MultipleSeniorRevolvingCreditFacilitiesMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310001801169open:TermDebtFacility2016M1Memberus-gaap:LongTermDebtMember2021-03-310001801169us-gaap:LongTermDebtMemberopen:TermDebtFacility2019M1Member2021-03-310001801169us-gaap:LongTermDebtMember2021-03-310001801169open:RepoFacility2019R1Memberus-gaap:SecuredDebtMember2021-03-310001801169open:RepoFacility2019R1Memberus-gaap:SecuredDebtMember2020-12-310001801169us-gaap:SecuredDebtMember2021-03-310001801169us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001801169us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-03-310001801169us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001801169us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-03-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-03-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-03-310001801169us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-03-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-310001801169us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-03-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2021-03-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-03-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2021-03-310001801169us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2021-03-310001801169us-gaap:FairValueMeasurementsRecurringMember2021-03-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-03-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001801169us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001801169us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001801169us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-03-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001801169us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001801169us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001801169us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310001801169us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-310001801169us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001801169us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001801169us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001801169us-gaap:FairValueMeasurementsRecurringMember2020-12-310001801169us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001801169us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001801169us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001801169us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001801169us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001801169us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001801169us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310001801169us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310001801169us-gaap:FairValueInputsLevel1Member2021-03-310001801169us-gaap:FairValueInputsLevel2Member2021-03-310001801169open:RestrictedCashMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310001801169open:RestrictedCashMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310001801169open:RestrictedCashMemberus-gaap:FairValueInputsLevel1Member2021-03-310001801169open:RestrictedCashMemberus-gaap:FairValueInputsLevel2Member2021-03-310001801169us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001801169us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001801169us-gaap:FairValueInputsLevel1Member2020-12-310001801169us-gaap:FairValueInputsLevel2Member2020-12-310001801169open:RestrictedCashMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001801169open:RestrictedCashMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001801169open:RestrictedCashMemberus-gaap:FairValueInputsLevel1Member2020-12-310001801169open:RestrictedCashMemberus-gaap:FairValueInputsLevel2Member2020-12-310001801169us-gaap:WarrantMember2019-12-310001801169us-gaap:ConvertibleDebtMember2019-12-310001801169us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2019-12-310001801169us-gaap:WarrantMember2020-01-012020-03-310001801169us-gaap:ConvertibleDebtMember2020-01-012020-03-310001801169us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-01-012020-03-310001801169us-gaap:WarrantMember2020-03-310001801169us-gaap:ConvertibleDebtMember2020-03-310001801169us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-03-310001801169us-gaap:WarrantMember2020-12-310001801169us-gaap:ConvertibleDebtMember2020-12-310001801169us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-12-310001801169us-gaap:WarrantMember2021-01-012021-03-310001801169us-gaap:ConvertibleDebtMember2021-01-012021-03-310001801169us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2021-01-012021-03-310001801169us-gaap:WarrantMember2021-03-310001801169us-gaap:ConvertibleDebtMember2021-03-310001801169us-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2021-03-310001801169us-gaap:SoftwareDevelopmentMember2021-03-310001801169us-gaap:SoftwareDevelopmentMember2020-12-310001801169us-gaap:ComputerEquipmentMember2021-03-310001801169us-gaap:ComputerEquipmentMember2020-12-310001801169us-gaap:FurnitureAndFixturesMember2021-03-310001801169us-gaap:FurnitureAndFixturesMember2020-12-310001801169us-gaap:LeaseholdImprovementsMember2021-03-310001801169us-gaap:LeaseholdImprovementsMember2020-12-310001801169open:SoftwareImplementationCostsMember2021-03-310001801169open:SoftwareImplementationCostsMember2020-12-310001801169us-gaap:OfficeEquipmentMember2021-03-310001801169us-gaap:OfficeEquipmentMember2020-12-310001801169open:SecuritySystemsMember2021-03-310001801169open:SecuritySystemsMember2020-12-3100018011692020-01-012020-12-310001801169us-gaap:DevelopedTechnologyRightsMember2021-03-310001801169us-gaap:DevelopedTechnologyRightsMember2021-01-012021-03-310001801169us-gaap:CustomerRelationshipsMember2021-03-310001801169us-gaap:CustomerRelationshipsMember2021-01-012021-03-310001801169us-gaap:TrademarksMember2021-03-310001801169us-gaap:TrademarksMember2021-01-012021-03-310001801169us-gaap:NoncompeteAgreementsMember2021-03-310001801169us-gaap:NoncompeteAgreementsMember2021-01-012021-03-310001801169us-gaap:DevelopedTechnologyRightsMember2020-12-310001801169us-gaap:DevelopedTechnologyRightsMember2020-01-012020-12-310001801169us-gaap:CustomerRelationshipsMember2020-12-310001801169us-gaap:CustomerRelationshipsMember2020-01-012020-12-310001801169us-gaap:TrademarksMember2020-12-310001801169us-gaap:TrademarksMember2020-01-012020-12-310001801169us-gaap:NoncompeteAgreementsMember2020-12-310001801169us-gaap:NoncompeteAgreementsMember2020-01-012020-12-310001801169open:PublicOfferingAndOverAllotmentOptionMember2021-02-092021-02-090001801169open:PublicOfferingAndOverAllotmentOptionMember2021-02-090001801169us-gaap:OverAllotmentOptionMember2021-02-112021-02-110001801169us-gaap:EmployeeStockOptionMember2021-01-012021-03-310001801169open:IncentiveStockOptionsMember2021-01-012021-03-310001801169us-gaap:RestrictedStockUnitsRSUMember2020-12-310001801169us-gaap:RestrictedStockUnitsRSUMember2021-03-310001801169us-gaap:RestrictedStockMembersrt:MinimumMember2021-01-012021-03-310001801169us-gaap:RestrictedStockMembersrt:MaximumMember2021-01-012021-03-310001801169us-gaap:RestrictedStockMember2020-12-310001801169us-gaap:RestrictedStockMember2021-03-310001801169us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-03-310001801169us-gaap:SellingAndMarketingExpenseMember2021-01-012021-03-310001801169us-gaap:SellingAndMarketingExpenseMember2020-01-012020-03-310001801169us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-03-310001801169open:MarketConditionAwardMembersrt:ExecutiveOfficerMember2020-12-310001801169open:MarketConditionAwardMembersrt:ExecutiveOfficerMember2021-03-310001801169open:MarketConditionAwardMembersrt:ExecutiveOfficerMembersrt:MinimumMember2020-01-012020-12-310001801169open:MarketConditionAwardMembersrt:ExecutiveOfficerMembersrt:MaximumMember2020-01-012020-12-310001801169open:MarketConditionAwardMembersrt:ExecutiveOfficerMembersrt:MinimumMember2021-01-012021-03-310001801169open:MarketConditionAwardMembersrt:ExecutiveOfficerMembersrt:MaximumMember2021-01-012021-03-310001801169open:MarketConditionAwardMembersrt:ExecutiveOfficerMember2021-01-012021-03-310001801169open:UnvestedStockOptionsAndRestrictedSharesMember2021-03-310001801169open:UnvestedStockOptionsAndRestrictedSharesMember2021-01-012021-03-3100018011692020-04-300001801169open:SponsorWarrantsMember2020-04-302020-04-300001801169open:SponsorWarrantsMember2021-03-310001801169open:PublicWarrantsMember2021-01-012021-03-310001801169open:PublicWarrantsMembersrt:MinimumMember2021-03-310001801169open:SponsorWarrantsMember2021-03-310001801169open:SeriesDPreferredStockPennyWarrantsMember2018-06-120001801169open:SeriesDPreferredStockPennyWarrantsMember2020-11-122020-11-120001801169open:SeriesDPreferredStockPennyWarrantsMember2021-03-310001801169open:SeriesEWarrantsMember2020-06-300001801169open:SeriesEWarrantsMember2019-06-300001801169open:SeriesEWarrantsMember2020-11-072020-11-070001801169open:SeriesEWarrantsMember2021-03-310001801169open:SeriesEWarrantsMember2021-01-012021-03-310001801169open:SeriesEWarrantsMember2020-01-012020-03-310001801169srt:DirectorMember2021-03-310001801169srt:DirectorMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001801169srt:DirectorMember2021-01-012021-03-310001801169srt:ExecutiveOfficerMember2019-01-012019-12-310001801169srt:ExecutiveOfficerMember2019-12-310001801169us-gaap:CommonStockMemberus-gaap:WarrantMember2021-01-012021-03-310001801169us-gaap:CommonStockMemberus-gaap:WarrantMember2020-01-012020-03-310001801169open:SeriesDPreferredWarrantsMemberus-gaap:WarrantMember2021-01-012021-03-310001801169open:SeriesDPreferredWarrantsMemberus-gaap:WarrantMember2020-01-012020-03-310001801169open:SeriesEPreferredStockWarrantsMemberus-gaap:WarrantMember2021-01-012021-03-310001801169open:SeriesEPreferredStockWarrantsMemberus-gaap:WarrantMember2020-01-012020-03-310001801169us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-310001801169us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-03-310001801169us-gaap:EmployeeStockOptionMember2021-01-012021-03-310001801169us-gaap:EmployeeStockOptionMember2020-01-012020-03-310001801169open:UnvestedSharesFromEarlyExerciseMember2021-01-012021-03-310001801169open:UnvestedSharesFromEarlyExerciseMember2020-01-012020-03-310001801169us-gaap:RestrictedStockMember2021-01-012021-03-310001801169us-gaap:RestrictedStockMember2020-01-012020-03-310001801169us-gaap:RedeemableConvertiblePreferredStockMember2021-01-012021-03-310001801169us-gaap:RedeemableConvertiblePreferredStockMember2020-01-012020-03-310001801169open:SeniorTermDebtFacilityMemberus-gaap:SubsequentEventMemberus-gaap:LineOfCreditMember2021-04-01
TABLE OF CONTENTS
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ____________.
Commission file number 001-39253
Opendoor Technologies Inc.
(Exact name of registrant as specified in its charter)
Delaware98-1515020
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
410 N. Scottsdale Road,Suite 1600
Tempe,AZ85281
(Address of Principal Executive Offices)(Zip Code)
(415) 896-6737
Registrant's telephone number, including area code
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.0001 par value per shareOPENThe Nasdaq Stock Market LLC
Warrants to purchase common stockOPENWThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company


TABLE OF CONTENTS
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
The number of shares of registrant’s common stock outstanding as of May 5, 2021 was approximately 577,694,841.



TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
TABLE OF CONTENTS
Page

1

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
As used in this Quarterly Report on Form 10-Q, unless the context requires otherwise, references to “Opendoor,” the “Company,” “we,” “us,” and “our,” and similar references refer to Opendoor Technologies Inc. and its wholly owned subsidiaries following the Business Combination (as defined herein) and to Opendoor Labs Inc. prior to the Business Combination.
As a result of the Business Combination completed on December 18, 2020, Opendoor Labs Inc. share and per share amounts presented in this Quarterly Report on Form 10-Q, for periods prior to the Business Combination, have been retroactively converted by application of the exchange ratio of 1.618. For more information regarding the business combination, please see “Part I – Item2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – The Business Combination”.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition; business strategy and plans; expectations regarding the impact of COVID-19; market opportunity and expansion and objectives of management for future operations, including our statements regarding the benefits and timing of the roll out of new markets, products, or technology; and efforts to remediate our material weaknesses in internal control over financial reporting, are forward-looking statements. When used in this Quarterly Report on Form 10-Q, words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast”, “future”, “intend,” “may,” “might”, “opportunity”, “plan,” “possible”, “potential,” “predict,” “project,” “should,” “strategy”, “strive”, “target,” “will,” or “would”, including their antonyms or other similar terms or expressions may identify forward-looking statements. The absence of these words does not mean that a statement is not forward-looking.

These forward-looking statements are based on information available as of the date of this Quarterly Report on Form 10-Q and current expectations, forecasts and assumptions, which involve a number of judgments, risks and uncertainties, including without limitation, risks related to:
our public securities’ potential liquidity and trading;
our ability to raise financing in the future;
our success in retaining or recruiting, or changes required in, our officers, key employees or directors;
the impact of the regulatory environment and complexities with compliance related to such environment;
our ability to remediate our material weaknesses;
factors relating to our business, operations and financial performance, including:
the impact of the COVID-19 pandemic;
our ability to maintain an effective system of internal controls over financial reporting;
our ability to grow market share in our existing markets or any new markets we may enter;
our ability to respond to general economic conditions;
the health of the U.S. residential real estate industry;
risks associated with our real estate assets and increased competition in the U.S. residential real estate industry;
our ability to manage our growth effectively;
our ability to achieve and maintain profitability in the future;
our ability to access sources of capital, including debt financing and securitization funding to finance our real estate inventories and other sources of capital to finance operations and growth;
our ability to maintain and enhance our products and brand, and to attract customers;
our ability to manage, develop and refine our technology platform, including our automated pricing and valuation technology;
the success of our strategic relationships with third parties; and
other factors detailed under the section entitled “Risk Factors” in this Quarterly Report on Form 10-Q.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

1

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
As a result of a number of known and unknown risks and uncertainties, including without limitation the important factors described in the “Risk Factors” section of this Quarterly Report on Form 10-Q and on Part I. Item 1A “ Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “Annual Report”), our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements.



2

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
OPENDOOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
March 31, 2021December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$2,039,876 $1,412,665 
Restricted cash143,311 92,863 
Marketable securities58,619 47,637 
Mortgage loans held for sale pledged under agreements to repurchase8,307 7,529 
Escrow receivable19,264 1,494 
Real estate inventory, net840,632 465,936 
Other current assets ($414 and $373 carried at fair value)
33,292 24,987 
Total current assets3,143,301 2,053,111 
PROPERTY AND EQUIPMENT – Net31,042 29,228 
RIGHT OF USE ASSETS47,114 49,517 
GOODWILL30,945 30,945 
INTANGIBLES – Net8,104 8,684 
OTHER ASSETS ($10,000 and $0 carried at fair value)
11,206 4,097 
TOTAL ASSETS
(1)
$3,271,712 $2,175,582 
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable and other accrued liabilities$41,413 $25,270 
Current portion of credit facilities and other secured borrowings596,563 346,322 
Interest payable1,228 1,081 
Lease liabilities, current portion4,490 20,716 
Total current liabilities643,694 393,389 
CREDIT FACILITIES – Net of current portion136,473 135,467 
WARRANT LIABILITIES62,621 47,349 
LEASE LIABILITIES – Net of current portion45,241 46,625 
OTHER LIABILITIES122 94 
Total liabilities
(2)
888,151 622,924 
COMMITMENTS AND CONTINGENCIES (See Note 17)
SHAREHOLDERS’ EQUITY:
Common stock, $0.0001 par value; 3,000,000,000 shares authorized; 585,691,729 and 540,714,692 shares issued and outstanding, respectively
58 54 
Additional paid-in capital3,697,382 2,596,012 
Accumulated deficit(1,313,885)(1,043,449)
Accumulated other comprehensive income6 41 
Total shareholders’ equity 2,383,561 1,552,658 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$3,271,712 $2,175,582 
________________
(1)The Company’s consolidated assets at March 31, 2021 and December 31, 2020 include the following assets of certain variable interest entities (“VIEs”) that can only be used to settle the liabilities of those VIEs: Cash and cash equivalents, $9,108 and $15,849; Restricted cash, $133,887 and $81,408; Real estate inventory, net, $820,961 and $460,680; Escrow receivable, $18,839 and $1,364; Other current assets, $10,220 and $5,365; and Total assets of $993,015 and $564,666, respectively.
(2)The Company’s consolidated liabilities at March 31, 2021 and December 31, 2020 include the following liabilities for which the VIE creditors do not have recourse to Opendoor: Accounts payable and other accrued liabilities, $4,090 and $2,335; Interest payable, $1,220 and $1,059; Current portion of credit facilities and other secured borrowings, $588,774
3

TABLE OF CONTENTS

and $339,173; Credit facilities, net of current portion, $136,473 and $135,467; and Total liabilities, $730,557 and $478,034, respectively.
See accompanying notes to condensed consolidated financial statements.
4

TABLE OF CONTENTS

OPENDOOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
20212020
REVENUE$747,274 $1,255,795 
COST OF REVENUE650,142 1,164,748 
GROSS PROFIT97,132 91,047 
OPERATING EXPENSES:
Sales, marketing and operations69,066 81,689 
General and administrative222,084 29,583 
Technology and development50,677 15,787 
Total operating expenses341,827 127,059 
LOSS FROM OPERATIONS(244,695)(36,012)
DERIVATIVE AND WARRANT FAIR VALUE ADJUSTMENT(15,272)(1,012)
INTEREST EXPENSE(10,999)(27,727)
OTHER INCOME – Net624 2,675 
LOSS BEFORE INCOME TAXES(270,342)(62,076)
INCOME TAX EXPENSE(94)(120)
NET LOSS$(270,436)$(62,196)
Net loss per share attributable to common shareholders:
Basic$(0.48)$(0.74)
Diluted$(0.48)$(0.74)
Weighted-average shares outstanding:
Basic565,381 84,027 
Diluted565,381 84,027 

















See accompanying notes to condensed consolidated financial statements.
5

TABLE OF CONTENTS

OPENDOOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
Three Months Ended March 31,
20212020
NET LOSS$(270,436)$(62,196)
OTHER COMPREHENSIVE INCOME:
Unrealized loss on marketable securities(35)(299)
COMPREHENSIVE LOSS$(270,471)$(62,495)
See accompanying notes to condensed consolidated financial statements.
6

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TEMPORARY
EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT)
(In thousands, except number of shares)
(Unaudited)
Temporary EquityShareholders’ Equity (Deficit)
Series A
Convertible
Preferred Stock
Series B
Convertible
Preferred Stock
Series C
Convertible
Preferred Stock
Series D
Convertible
Preferred Stock

Series E
Convertible
Preferred Stock
Common StockAdditional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Income (Loss)
Total
Shareholders’
Equity (Deficit)
SharesAmountSharesAmountSharesAmountSharesAmountSharesAmountSharesAmount
BALANCE–December 31, 201940,089,513 $9,763 23,840,816 $20,049 29,070,700 $80,519 63,470,884 $257,951 157,952,523 $1,013,220 83,748,443  $57,362 $(790,483)$18 $(733,103)
Vesting of restricted stock— — — — — — — — — — 441,326 — 36 — — 36 
Exercise of stock options— — — — — — — — — — 237,548 — 426 — — 426 
Stock-based compensation— — — — — — — — — — — — 2,970  — 2,970 
Other comprehensive loss— — — — — — — — — — — — — — (299)(299)
Net loss— — — — — — — — — — — — — (62,196)— (62,196)
BALANCE–March 31, 202040,089,513 $9,763 23,840,816 $20,049 29,070,700 $80,519 63,470,884 $257,951 157,952,523 $1,013,220 84,427,317 $ $60,794 $(852,679)$(281)$(792,166)
Temporary EquityShareholders’ Equity (Deficit)
Series A
Convertible
Preferred Stock
Series B
Convertible
Preferred Stock
Series C
Convertible
Preferred Stock
Series D
Convertible
Preferred Stock

Series E
Convertible
Preferred Stock
Common StockAdditional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Income (Loss)
Total
Shareholders’
Equity (Deficit)
SharesAmountSharesAmountSharesAmountSharesAmountSharesAmountSharesAmount
BALANCE-December 31, 2020          540,714,692 54 2,596,012 (1,043,449)41 1,552,658 
Issuance of common stock in connection with the February 2021 Offering— — — — — — — — — — 32,817,421 3 857,219 — — 857,222 
Vesting of restricted stock— — — — — — — — — — 331,227 — 16 — — 16 
Vesting of restricted stock units— — — — — — — — — — 11,736,872 1 — — 1 
Exercise of stock options— — — — — — — — — — 91,517 — 266 — — 266 
Stock-based compensation— — — — — — — — — — — — 243,869 — — 243,869 
Other comprehensive loss— — — — — — — — — — — — — — (35)(35)
Net loss— — — — — — — — — — — — — (270,436)— (270,436)
BALANCE–March 31, 2021 $  $  $  $  $ 585,691,729 $58 $3,697,382 $(1,313,885)$6 $2,383,561 
See accompanying notes to condensed consolidated financial statements.
7

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March 31,
20212020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss$(270,436)$(62,196)
Adjustments to reconcile net loss to cash, cash equivalents, and restricted cash (used in) provided by operating activities:
Depreciation and amortization – net of accretion10,302 9,522 
Amortization of right of use asset2,457 3,660 
Stock-based compensation238,832 2,970 
Derivative and warrant fair value adjustment15,272 1,012 
Gain on settlement of lease liabilities(5,237) 
Inventory valuation adjustment20 6,221 
Changes in fair value of derivative instruments(41)(44)
Payment-in-kind interest 1,349 
Net fair value adjustments and gain (loss) on sale of mortgage loans held for sale(977)(355)
Origination of mortgage loans held for sale(32,082)(17,658)
Proceeds from sale and principal collections of mortgage loans held for sale32,281 15,453 
Changes in operating assets and liabilities:
Escrow receivable(17,770)(826)
Real estate inventories(374,665)480,170 
Other assets(9,128)6,379 
Accounts payable and other accrued liabilities15,680 (4,597)
Interest payable344 (1,590)
Lease liabilities(9,559)(3,088)
Net cash (used in) provided by operating activities(404,707)436,382 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment(4,141)(5,684)
Purchase of marketable securities(34,583)(69,778)
Proceeds from sales, maturities, redemptions and paydowns of marketable securities23,437 20,310 
Purchase of non-marketable equity securities(10,000) 
Net cash used in investing activities(25,287)(55,152)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options250 411 
Proceeds from the February 2021 Offering886,067  
Issuance cost of common stock(28,848) 
Proceeds from credit facilities and other secured borrowings704,047 662,268 
Principal payments on credit facilities and other secured borrowings(453,806)(1,008,407)
Payment of loan origination fees and debt issuance costs(57)(1,187)
Net cash provided by (used in) financing activities1,107,653 (346,915)
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH677,659 34,315 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – Beginning of period1,505,528 684,822 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – End of period$2,183,187 $719,137 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION – Cash paid during the period for interest$9,091 $25,186 
RECONCILIATION TO CONDENSED CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents$2,039,876 $409,257 
Restricted cash143,311 309,880 
Cash, cash equivalents, and restricted cash$2,183,187 $719,137 
See accompanying notes to condensed consolidated financial statements.
8

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
(Tabular amounts in thousands, except share and per share amounts, ratios, or as noted)
(Unaudited)

1.DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES
Description of Business
Opendoor Technologies Inc. (the “Company” and “Opendoor”) including its consolidated subsidiaries and certain variable interest entities (“VIEs”), is a leading digital platform for buying and selling homes. Opendoor streamlines the home selling and buying transaction and creates an end-to-end experience online. Since its inception through March 31, 2021, the Company had completed approximately 90,000 home transactions. As of March 31, 2021, the Company operated in 27 markets across the United States. The Company was incorporated in Delaware on December 30, 2013.
Correction of Prior Period Amounts
On April 12, 2021, subsequent to the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, the Acting Director of the Division of Corporation Finance and the Acting Chief Accountant of the SEC issued a Staff Statement (the “Staff Statement”) on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”).
The Company took into consideration the guidance in the Staff Statement and Accounting Standards Codification 815-40, Derivatives and Hedging-Contracts in Entity’s Own Equity ("ASC 815-40") and evaluated the Public and Sponsor Warrants (each as defined herein and collectively the "Warrants"). The Warrants were issued in a private placement simultaneously with the closing of the initial public offering of Social Capital Hedosophia Holdings Corp. II (“SCH”), assumed by the Company through the Business Combination (as defined herein) on December 18, 2020, and classified in shareholders' equity as of and for the year ended December 31, 2020. While the Company concluded the Public Warrants meet the criteria to continue to be classified in shareholders' equity, the Company concluded the Sponsor Warrants do not meet the scope exception from derivative accounting prescribed by ASC 815-40 and should therefore be recorded as a liability on the Company’s consolidated balance sheet at fair value as of the closing of the Business Combination, with subsequent changes in their fair value recognized in the Company’s consolidated statement of operations at each reporting date. The accounting for the Sponsor Warrants does not impact the Company's financial statements in any reporting periods prior to the Business Combination, as the Company assumed the Warrants through the Business Combination which was accounted for as a reverse recapitalization.
The fair value of the Sponsor Warrants as of the Closing Date on December 18, 2020 and December 31, 2020 amounted to $81.1 million and $47.3 million, respectively. The change in fair value from the Closing Date through December 31, 2020 amounted to a gain of $33.8 million. The impact of the misstatement as of December 31, 2020 resulted in an understatement of the private warrants liability of $47.3 million, and an overstatement of accumulated deficit and additional paid-in capital of $33.8 million and $81.1 million respectively.
The Company evaluated the impact of error related to the accounting treatment of Sponsor Warrants with respect to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and determined, based on consideration of quantitative and qualitative factors, that the error had an immaterial impact, individually and in aggregate. As such, the Company is correcting its accounting for Sponsor Warrants in this Quarterly Report on Form 10-Q.
The following table provides the impact of the correction on the Company's Condensed Consolidated Balance Sheet as of December 31, 2020, as presented herein (in thousands):
Previously StatedAdjustmentsAs Corrected
Warrant liabilities$ 47,349 $47,349 
Total liabilities$575,575 47,349 $622,924 
Additional paid-in capital$2,677,155 (81,143)$2,596,012 
Accumulated deficit(1,077,243)33,794 (1,043,449)
Total shareholders' equity$1,600,007 (47,349)$1,552,658 
9

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
(Tabular amounts in thousands, except share and per share amounts, ratios, or as noted)
(Unaudited)
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to generally accepted accounting principles in the United States of America (“GAAP”). The condensed consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three month periods ended March 31, 2021 and 2020 include the accounts of Opendoor, its wholly owned subsidiaries and VIEs where the Company is the primary beneficiary. The accompanying unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements herein.
As a result of the Business Combination completed on December 18, 2020, prior period share and per share amounts presented in the accompanying consolidated financial statements and these related notes have been retroactively converted. See “Note 2— Business Combination” for additional information.
The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“Annual Report”) filed on March 4, 2021.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ materially from such estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the fair value of common stock, share-based awards, warrants, derivatives, convertible notes, and inventory impairment (“real estate inventory valuation adjustment”). Management believes that the estimates and judgments upon which they rely are reasonable based upon information available to them at the time that these estimates and judgments are made. To the extent that there are material differences between these estimates and actual results, the Company’s financial statements will be affected. The COVID-19 pandemic introduced significant additional uncertainties with respect to estimates, judgments and assumptions, which may materially impact these estimates.
Significant Risks and Uncertainties
The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, the Company believes that changes in any of the following areas could have a significant negative effect on the Company in terms of its future financial position, results of operations or cash flows: public health crises, like the COVID-19 pandemic; its rates of revenue growth; its ability to manage advertising inventory or pricing; engagement and usage of its products; the effectiveness of its investment of resources to pursue strategies; competition in its market; the stability of the residential real estate market; the impact of interest rate changes on demand and its costs; changes in technology, products, markets or services by the Company or its competitors; the addition or loss of significant customers; its ability to maintain or establish relationships with listings and data providers; its ability to obtain or maintain licenses and permits to support its current and future businesses; actual or anticipated changes to its products and services; changes in government regulation affecting its business; the outcomes of legal proceedings; natural disasters and catastrophic events; scaling and adaptation of existing technology and network infrastructure; its management of its growth; its ability to attract and retain qualified employees and key personnel; its ability to successfully integrate and realize the benefits of its past or future strategic acquisitions or investments; the protection of customers’ information and other privacy concerns; the protection of its brand and intellectual property; and intellectual property infringement and other claims, among other things.
Concentrations of Credit Risk
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, investments in marketable securities, and mortgage loans held for sale pledged under agreements to repurchase (“MLHFS”). The Company places cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, in order to limit exposure of the Company’s investments.
10

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
(Tabular amounts in thousands, except share and per share amounts, ratios, or as noted)
(Unaudited)
Similarly, the Company’s credit risk on mortgage loans held for sale is mitigated due to a large number of customers. Further, the Company’s credit risk on mortgage loans held for sale is mitigated by the fact that the Company typically sells mortgages on the secondary market within a relatively short period of time after which the Company’s exposure is limited to borrower defaults within the initial few months of the mortgage.
The Company’s significant accounting policies are discussed in “Part II – Item 8 – Financial Statements and Supplementary Data – Note 1. Description of Business and Accounting Policies” in the Annual Report. There have been no changes to these significant accounting policies for the three month period ended March 31, 2021, except as noted below.
Derivative Instruments
The Company’s derivative instruments are comprised of interest rate caps, interest rate lock commitments (“IRLCs”), and embedded conversion options related to the convertible notes. The Company’s derivative instruments are freestanding in nature and some are utilized as economic hedges. These derivative instruments are recorded at fair value with changes recognized as a gain or loss to operations. Beginning in 2021, the Company changed the fair value classification of IRLCs from Level 2 to Level 3 as the Company began to adjust observable input data for the estimated pull-through rate, a Company specific input that is unobservable to market participants. See “Note 5 — Derivative Instruments” and "Note 8 — Fair Value Disclosures" for further discussion.
Non-marketable equity securities
Our non-marketable equity securities are strategic investments in a privately held company. Non-marketable equity securities are investments that do not have a readily determinable fair value, which are measured at cost minus impairment, if any, adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “Measurement Alternative”). All gains and losses on these investments, realized and unrealized, are recorded in Other income-net on our consolidated statements of operations. We assess whether an impairment loss on our non-marketable equity securities has occurred due to declines in fair value or other market conditions. If any impairment is identified for non-marketable equity securities, we write down the investment to its fair value.
Impairment of Long-Lived Assets
Long-lived assets, such as property and equipment and definite-lived intangible assets, among other long-term assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment loss is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. Impairment loss of $2.6 million was recognized for the three months ended March 31, 2021. Of this amount, $1.9 million and $0.7 million are included in Technology and development and General and administrative, respectively. There were no impairment charges recognized during the three months ended March 31, 2020. The impairment loss recognized for the three months ended March 31, 2021 is related to abandonment of property and equipment and sublease of certain right of use assets.

Public and Sponsor Warrants
On April 30, 2020, SCH consummated its initial public offering of 41,400,000 units, consisting of one share of Class A common stock and one third of one warrant exercisable for Class A common stock, at a price of $10.00 per unit. Each whole warrant entitles the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of the IPO, SCH completed the private sale of 6,133,333 warrants to SCH’s sponsor at a price of $1.50 per warrant (the “Sponsor Warrants”). Each Sponsor Warrant allows the sponsor to purchase one share of Class A common stock at $11.50 per share. As of December 31, 2020, there were 19,933,333 warrants outstanding.
The Sponsor Warrants and shares of common stock issuable upon the exercise of Sponsor Warrants may not be transferred, assigned, or sold until 30 days after the completion of a Business Combination. Additionally, the Sponsor Warrants are eligible for cash and cashless exercises, at the holder’s option, and are redeemable only if the reference value, as defined in the Warrant Agreement, is less than $18.00 per share. If the Sponsor Warrants are held by someone other than the sponsors and
11

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
Notes to Condensed Consolidated Financial Statements
(Tabular amounts in thousands, except share and per share amounts, ratios, or as noted)
(Unaudited)
certain permitted transferees, the Sponsor Warrants will be redeemable and exercisable on the same basis as the Public Warrants.
The Company evaluated the Public and Sponsor Warrants under ASC 815-40, Derivatives and Hedging-Contracts in Entity’s Own Equity, and concluded that the Sponsor Warrants do not meet the criteria to be classified in shareholders’ equity. Specifically, the exercise and settlement features for the Sponsor Warrants preclude them from being considered indexed to the Company’s own stock, given that a change in the holder of the Sponsor Warrants may alter the settlement of the Sponsor Warrants. Since the holder of the instrument is not an input to a standard option pricing model (a consideration with respect to the indexation guidance), the fact that a change in the holder may impact the value of the Sponsor Warrants means the Sponsor Warrants are not indexed to the Company’s own stock. Since the Private Warrants meet the definition of a derivative under ASC 815, the Company recorded these warrants as liabilities on the balance sheet at fair value upon the consummation of the Business Combination, with subsequent changes in their respective fair values recognized in the consolidated statement of operations at each reporting period. The Company concluded that the Public Warrants, which do not have the same exercise and settlement features as the Sponsor Warrants, meet the criteria to be classified in shareholders' equity.
Recently Issued Accounting Standards
Recently Adopted Accounting Standards
In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). ASU 2019-12 eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. This guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company adopted this ASU as of January 1, 2021 and the adoption of this ASU did not have a material impact to the Company’s consolidated financial statements given that the Company has a full valuation allowance and the scenarios for which the guidance offer simplification are not significant for the Company.
Recently Issued Accounting Standards Not Yet Adopted
In March 2020, the FASB issued ASU 2020-04 which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Inter- Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. This guidance is optional for a limited period of time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. This guidance is effective from March 12, 2020 through December 31, 2022. Entities may elect to adopt the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The Company may elect to take advantage of this optional guidance in its transition away from LIBOR within certain debt contracts. While the goal of the reference rate reform transition is for it to be economically neutral to entities, the Company has not yet adopted this standard nor has the Company determined the impact the adoption of this guidance will have on the Company’s financial position, results of operations or cash flows.
2.BUSINESS COMBINATION
Opendoor Labs Inc. entered into a merger agreement (the “Merger Agreement”) with Social Capital Hedosophia Holdings Corp. II, (“SCH”) on September 15, 2020. Pursuant to the Merger Agreement, Hestia Merger Sub Inc., a newly formed subsidiary of SCH (“Merger Sub”), merged with and into Opendoor Labs Inc. Upon the completion of the transactions contemplated by the terms of the Merger Agreement (the “Closing”) on December 18, 2020, the separate corporate existence of Merger Sub ceased and Opendoor Labs Inc. survived the merger and became a wholly owned subsidiary of SCH. On December 18, 2020, SCH also filed a notice of deregistration with the Cayman Islands Registrar of Companies, together with the necessary accompanying documents, and filed a certificate of incorporation and a certificate of corporate domestication with the Secretary of State of the State of Delaware, under which SCH was domesticated as a Delaware corporation, changing its name from “Social Capital Hedosophia Holdings Corp. II” to “Opendoor Technologies Inc.” These transactions are collectively referred to as the “Business Combination.”
12

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
Notes to Consolidated Financial Statements
(Tabular amounts in thousands, except share and per share amounts, ratios, or as noted)
The Business Combination was accounted for as a reverse recapitalization whereby SCH was determined as the accounting acquiree and Opendoor Labs Inc. as the accounting acquirer. This accounting treatment is equivalent to Opendoor Labs Inc. issuing stock for the net assets of SCH, accompanied by a recapitalization whereby no goodwill or other intangible assets are recorded. Operations prior to the Business Combination are those of Opendoor Labs Inc. At the Closing, the Company received consideration of $376.6 million in cash as a result of the reverse recapitalization.
In connection with the Business Combination, SCH entered into subscription agreements with certain investors, whereby it issued 60,005,000 shares of common stock at $10.00 per share (“PIPE Shares”) for an aggregate purchase price of $600.1 million (“PIPE Investment”), which closed simultaneously with the consummation of the Business Combination. Upon the Closing, the PIPE Shares were automatically converted into shares of the Company's common stock on a one-for-one basis.
Upon the Closing, holders of Opendoor Labs Inc. common stock received shares of Opendoor Technologies common stock in an amount determined by application of the exchange ratio of 1.618 (“Exchange Ratio”), which was based on Opendoor Labs Inc.’s implied price per share prior to the Business Combination. For periods prior to the Business Combination, the reported share and per share amounts have been retroactively converted (“Retroactive Conversion”) by applying the Exchange Ratio.
In connection with the Business Combination, the Company incurred approximately $43.6 million of equity issuance costs, consisting of underwriting, legal, and other professional fees, which are recorded to additional paid-in capital as a reduction of proceeds.
3.REAL ESTATE INVENTORY
The following table presents the components of inventory, net of applicable real estate inventory valuation adjustments, as of the dates presented (in thousands):
March 31,
2021
December 31,
2020
Work-in-process$206,943 $183,004 
Finished goods633,689 282,932 
Total real estate inventory$840,632 $465,936 
4.CASH, CASH EQUIVALENTS, AND INVESTMENTS
The amortized cost, gross unrealized gains and losses, and fair value of cash, cash equivalents, and marketable securities as of March 31, 2021 and December 31, 2020, are as follows (in thousands):
March 31, 2021
Cost
Basis
Unrealized
Gains
Unrealized
Losses
Fair Value
Cash and Cash
Equivalents
Marketable
Securities
Cash$718,476 $— $— $718,476 $718,476 $— 
Money market funds1,252,134 — — 1,252,134 1,252,134 — 
Commercial paper83,881 3  83,884 60,244 23,640 
Corporate debt securities30,209 8 (9)30,208 9,022 21,186 
U.S. agency securities6,996 3  6,999  6,999 
Asset-backed securities6,792 6 (4)6,794  6,794 
Total$2,098,488 $20 $(13)$2,098,495 $2,039,876 $58,619 
13

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
Notes to Consolidated Financial Statements
(Tabular amounts in thousands, except share and per share amounts, ratios, or as noted)
December 31, 2020
Cost
Basis
Unrealized
Gains
Unrealized
Losses
Fair Value
Cash and Cash
Equivalents
Marketable
Securities
Cash$709,924 $— $— $709,924 $709,924 $— 
Money market funds618,197 — — 618,197 618,197 — 
Commercial paper81,037 1  81,038 81,038 — 
Corporate debt securities29,891 26 (2)29,915 3,506 26,409 
Asset-backed securities12,518 19 (4)12,533  12,533 
U.S. agency securities6,993 2  6,995  6,995 
U.S. Treasury securities1,700   1,700  1,700 
Total$1,460,260 $48 $(6)$1,460,302 $1,412,665 $47,637 
A summary of debt securities with unrealized losses aggregated by period of continuous unrealized loss is as follows (in thousands):
Less than 12 Months12 Months or GreaterTotal
March 31, 2021Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Commercial paper$26,595 $ $ $ $26,595 $ 
Corporate debt securities22,450 (9)$ $ 22,450 (9)
Asset-backed securities3,277 (4)$ $ 3,277 (4)
Total$52,322 $(13)$ $ $52,322 $(13)
Less than 12 Months12 Months or GreaterTotal
December 31, 2020Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Commercial paper$19,296 $ $ $ $19,296 $ 
Corporate debt securities7,538 (2)$ $ 7,538 (2)
Asset-backed securities4,611 (4)$ $ 4,611 (4)
Total$31,445 $(6)$ $ $31,445 $(6)
The scheduled contractual maturities of debt securities as of March 31, 2021 are as follows (in thousands):
March 31, 2021Fair Value
Within
1 Year
After
1 Year
through
5 Years
Commercial paper$83,884 $83,884 $ 
Corporate-debt securities30,208 30,208  
U.S. agency securities6,999 6,999  
Asset-backed securities6,794 6,794  
Total$127,885 $127,885 $ 
As of March 31, 2021, the Company had $10.0 million of non-marketable equity securities without a readily determinable fair value, carried at cost under the Measurement Alternative. The Company did not record any adjustments to the carrying value of its non-marketable equity securities.
14

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
Notes to Consolidated Financial Statements
(Tabular amounts in thousands, except share and per share amounts, ratios, or as noted)
5.DERIVATIVE INSTRUMENTS
The Company uses certain types of derivative instruments in the normal course of business and the Company’s use of derivatives includes interest rate caps to manage interest rate risk, IRLCs with respect to our MLHFS, and embedded conversion options with respect to the Company’s convertible notes. Derivative transactions can be measured in terms of notional amount, but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which interest and other payments are determined.
Interest Rate Caps
The Company uses free-standing derivative instruments in the normal course of business as economic hedges to manage interest rate risks with respect to its variable senior revolving credit facilities. The interest rate caps were carried at fair value in Other current assets with changes in fair value included in Other income. The Company’s interest rate cap position expired in November 2020.
Interest Rate Lock Commitments
In originating mortgage loans, the Company enters into IRLCs with prospective borrowers which are freestanding derivative instruments. IRLCs are a commitment that binds the Company, subject to loan underwriting and approval process, to fund the loan at a specified interest rate, regardless of fluctuations in the market interest rates between commitment date and funding date. The interest rate risk associated with the fluctuations in market interest rates between commitment date and funding date with respect to IRLCs is mitigated as the Company operates under the best effort basis whereby at the time of commitment, the Company enters into a sales commitment with a third-party for the same prospective loan. The fair value of interest rate lock commitments is presented in Other current assets. The change in fair value on IRLCs is a component of Other revenue.
Embedded Conversion Options
In connection with the Company’s issuance of convertible notes in 2019 (the “Convertible Notes”), the Company bifurcated the embedded conversion features associated with the Convertible Notes. The Convertible Notes and the related bifurcated embedded conversion options were extinguished in September 2020. Prior to extinguishment, the embedded conversion options were measured at fair value and were presented in Derivative and warrant liabilities. The change in fair value of the embedded conversion options is a component of Derivative and warrant fair value adjustment.
The following table presents the total notional amounts and fair values for the Company’s derivatives (in thousands):
Notional
Amount
Fair Value Derivatives
March 31, 2021AssetLiability
Interest rate lock commitments$17,958 $414 $ 
Notional
Amount
Fair Value Derivatives
December 31, 2020AssetLiability
Interest rate lock commitments$15,130 $373 $ 
The following table presents the net gains and losses recognized on derivatives within the respective line items in the statement of operations for the periods indicated (in thousands):
Three Months Ended March 31,
20212020
Revenue$41 $48 
Other income, net$ $(4)
15

TABLE OF CONTENTS
OPENDOOR TECHNOLOGIES INC.
Notes to Consolidated Financial Statements
(Tabular amounts in thousands, except share and per share amounts, ratios, or as noted)
6.VARIABLE INTEREST ENTITIES
The Company utilizes VIEs in the normal course of business to support the Company’s financing needs. The Company determines whether the Company is the primary beneficiary of a VIE at the time it becomes involved with the VIE and reconsiders that conclusion on an on-going basis.
The Company established certain special purpose entities (“SPEs”) for the purpose of financing the Company’s purchase and renovation of real estate inventory through the issuance of senior revolving credit facility debt and mezzanine term debt. The Company is the primary beneficiary of the various VIEs within these financing structures and consolidates these VIEs. The Company is determined to be the primary beneficiary based on its power to direct the activities that most significantly impact the economic outcomes of the SPEs through its role in designing the SPEs and managing the real estate inventory they purchase and sell. The Company has a potentially significant variable interest in the entities based upon the equity interest the Company holds in the VIEs.
The following table summarizes the assets and liabilities related to the VIEs consolidated by the Company as of March 31, 2021 and December 31, 2020 (in thousands):