#1Oloverstock. Q1 2020 Earnings Call EFF#2Forward-Looking Statements The information presented herein may contain forward-looking statements. Such forward-looking statements include all statements other than statements of historical fact, including forecasts of trends. You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made. We undertake no obligation to update any forward-looking statements as a result of any new information, future developments or otherwise. Forward-looking statements are inherently difficult to predict. Accordingly, actual results could differ materially for a variety of reasons, including, but not limited to, the effects of the novel coronavirus (COVID-19) on market volatility, the world economy, government regulation, and our supply chain, including supply and demand for the products and services we offer and the ability of our third-party partners and carriers to provide products and services without interruption. Actual results could also differ materially for reasons, including, but not limited to initiatives to improve or maintain the performance of our business, adverse tax, regulatory or legal developments, competition, and any inability to achieve or maintain profitability, generate positive cash flow from operations, raise capital, or borrow funds on acceptable terms, the effects of new personnel filling key business roles, difficulties we may have with our infrastructure, our fulfillment partners or our payment processors, including cyber-attacks or data breaches affecting us or any of them, difficulties we may experience with increasing or maintaining our search engine optimization results or converting web traffic to sales, and difficulties we may experience in completing our dividend payable in shares of our Series A- 1 Preferred Stock. Other risks and uncertainties include, among others, the inherent risks associated with the businesses that Medici Ventures and tZERO are pursuing, including the effect of COVID-19 on capital markets, trading volatility, investor confidence and willingness to invest in blockchain technologies, whether tZERO's initiatives with Box Digital Markets, LLC and tZERO Markets, LLC will be able to achieve their objectives and the timing for doing such, and the regulatory, technical, operational and other obstacles tZERO faces in each of its initiatives. More information about factors that could potentially affect our financial results are included in our Form 10-K for the year ended December 31, 2019, which was filed with the Securities and Exchange Commission on March 13, 2020, and in our subsequent filings with the SEC. The Form 10-K and our subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in or contemplated by our projections, estimates and other forward-looking statements. overstock. 2#3Agenda 1. CEO Remarks 2. Business Updates a. Overstock Retail b. tZERO c. Medici Ventures 3. Summary and Q&A overstock. EFF 3#4Addition to Leadership ▪ Joined March 2020 ▪ Great addition to our team ■ ■ Formerly CFO of Hertz's North American Rental Car unit Previously with Best Buy and PepsiCo overstock. Adrianne Lee Chief Financial Officer 4#5COVID-19 and Our Organization Overstock continues to operate well April retail sales up over 120% YoY 100% work from home ▪ We are hiring Overstock Retail model optimally positioned. ▪ Our core products are increasingly in demand Online-only platform remains accessible. ▪ Our drop-ship model is well suited to current environment ■ overstock. 3,500 partners ▪ 4,500 drop-ship facilities. 5#6COVID-19 and the Retail Industry Landscape Overall retail industry decline by 30% due to COVID-191 overstock. 50% 40% 30% 20% 10% 0% H 5.7% 2010 6.7% 2011 Brick and mortar decline by 50% as sales shift to e-commerce² Furniture & Home Furnishings U.S. Online Penetration ³ 3 + 7.8% 2012 + 9.5% 2013 + 11.1% 2014 + 13.3% 2015 Online penetration of Home Furnishings ~42% during shutdown vs. 23% prior³ + 15.5% 2016 17.9% 2017 19.7% 2018 22.6% 2019 COVID-19 42.0% 2020 Sources: Data combined from the following sources: 1 NPD, NRF and eMarketer; 2 NRF, Common Thread Co.com and eMarketer; 3 NRF, Common Thread Co.com and eMarketer 6#7COVID-19 and Overstock Retail 140% 120% 100% 80% 60% 40% 20% 0% (20%) (40%) (21%) FY 2019 (6%) Sales Growth National Emergency Declared: March 13 Jan 1 Mar 12 20% Mar 13 Mar 31 120% + I Apr 1 - Apr 28 loverstock. Note: Sales growth reflects yearthovet var growth in stima (cross merchandise volume), calculated as the amount paid by customers for products (and shipping), measured at the time of order, after coupons and discounts, without reductions estimated returns 7#8COVID-19 and Overstock Retail New customer growth of 65% YTD Home furnishings are outsized beneficiary 300% 250% 200% 150% 100% 50% 0% -50% FY 2019 New Customer Yo Y Growth Jan 1 Mar 12 Mar 13 Mar 31 Apr 1 - Apr 28 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Sales Mix of Home Furnishings 85.5% 2019 85.6% Q1 '19 86.7% Q1 '20 86.5% Apr '19 88.1% Apr ¹20 loverstock. Noupons and discounts, without reductions for estiss merchandise volume), is calculated as the amount paid by customers for products (and shipping), measured at the time of order, after returns 8#9COVID-19 and tZERO SpeedRoute, our equity routing business, generated record revenues in Q1 Trading delays as a result of recent market volatility Slowdown in capital raises for public and private companies overstock. 9 tZERO#10COVID-19 and Medici Ventures Our blockchain businesses are working to solve pandemic-exacerbated issues "X!! 12 SSI Health Records overstock. VOTE VOTE Voting Supply Chain FOOT Sipas S FOT mm DO 15 00 Digital Currency A 10 MEDICI VENTURES#11COVID-19 and Challenges Near-term challenges: ▪ Customer service channels beyond capacity Social distancing guidelines at warehouses Carriers maxed out ▪ Market volatility Longer-term uncertainty remains: Economic outlook ▪ Partner capital constraints Carrier interruptions Non-essential business status Capital markets overstock. 11#12Digital Dividend - OSTKO Timeline: Declaration date - April 6 ✓ Ex-dividend date - April 24 ✓ ▪ Record date - April 27 ✓ ▪ Distribution date - May 19 ■ Benefits to shareholders: ▪ Face value: worth the open market trading price Preferential right to dividends when declared ($0.16/share last 3 years) ▪ Increases participation and long-term liquidity on the tZERO platform ▪ FAQ page: www.overstock.com/dividend overstock. 12#13Corporate Update ATM prospectus supplement Reflects loss of WKSI status and reallocation of shelf ▪ Have not used ATM in 2020 ■ Dividend prospectus supplement Registration of 4.1mm Series A-1 shares for the dividend No regulatory updates overstock. 13#14Sailing of the Ship ■ Q3'19 and Q4'19: Righting the ship Q1'20: Execution Now: We are sailing well (even in choppy waters) Overstock is a tech company at its core: Retail: machine learning and artificial intelligence Medici Ventures and tZERO: blockchain technology ■ overstock. 14#15overstock. Business Updates 15#16overstock. Oloverstock. Retail TM 16#17Q1 2020 Financial Results: Retail Revenue $339.6 Million (6%) vs. Q1'19 Contribution 1 $37.9 Million (3%) vs. Q1'19 overstock. Gross Profit $74.2 Million 3% vs. Q1'19 Contribution Margin1¹ 11.2% +40 bps vs. Q1'19 Gross Margin 21.9% +200 bps vs. Q1'19 Adjusted EBITDA 1 ($1.9) Million 24% vs. Q1'19 17 1 Retail Contribution, Contribution Margin, and Adjusted EBITDA are non-GAAP financial measures See Reconciliations in Appendix#18Retail Revenue: -6% YoY Revenue ($mm) $400 $300 $200 $100 $0 ㅏ overstock. $363 (17.6%) Q1 '19 $367 (23.1%) Q2 '19 $341 (21.8%) Q3 '19 $364 (18.5%) Q4 '19 $340 (6.4%) Q1 '20 YOY Revenue A (%) 0.0% (10.0%) (20.0%) (30.0%) (40.0%) 18#19Retail Gross Margin: +200bps YoY Gross Profit ($mm) $80 $70 $60 $50 $40 $30 $20 $10 $0 H overstock. $72 19.9% Q1 '19 $72 $68 20.0% ||||| Q3 '19 + 19.7% $75 Q2 '19 20.7% $74 Q4 '19 21.9% Q1 '20 Gross Margin (%) 30% 25% 20% 15% 10% 5% -0% 19#20Retail Contribution Margin: +40bps YoY Contribution ($mm) $40 $35 $30 $25 $20 $15 $10 $5 $0 H overstock. $39 10.8% Q1 '19 $39 10.5% Q2 '19 $35 10.2% Q3 '19 $35 9.7% Q4 '19 Contribution Margin (%) $38 11.2% Q1 '20 12% 10% 8% 6% 4% 2% -0% 20 Retail Contribution is a non-GAAP financial measure, calculated as gross profit less sales & marketing expense See Reconciliation in Appendix#21Retail Adjusted EBITDA: +24% YoY Adj. EBITDA ($mm) $4.0 $3.0 $2.0 $1.0 $0.0 ($1.0) ($2.0) ($3.0) ($4.0) overstock. (0.7%) ($2.5) Q1 '19 $1.6 0.4% Q2 '19 (0.2%) ($0.6) Q3 '19 (0.6%) ($2.2) Q4 '19 Adj. EBITDA Margin (%) (0.5%) ($1.9) Q1 '20 2.0% 1.0% H0.0% (1.0%) (2.0%) 21 Retail Adjusted EBITDA is a non-GAAP financial measure See Reconciliation in Appendix#22Home Furnishings Market Online Penetration 50% 40% 30% 20% 10% 0% H 5.7% 2010 + overstock. Furniture & Home Furnishings U.S. Online Penetration ¹ 6.7% 2011 7.8% 2012 9.5% 2013 11.1% 2014 13.3% 2015 15.5% 2016 17.9% 2017 19.7% 2018 22.6% 2019 COVID-19 42.0% 2020 Top US Home Furnishings Online Brands2,3 (Ranked by Online Revenue) 1. Amazon 2. Wayfair 3. Walmart 4. Target 5. Ooverstock. 1 Source: Data combined from the following: eMarketer, NRF and Common ThreadCo.com 2 Source: Statista 2019 publication of Jumpshot 2018 online furniture sales 3 Source: Overstock market sizing of public and third-party data with category definition including mattresses, outdoor furniture & décor, small appliances & electronics, furniture storage & organization products, kitchen & bath products, decorative lighting & lamps, and home accessories & décor items 22#23Playing to Our Strengths overstock. Savvy Shoppers overstock. Reluctant Refreshers $120B Market1,2 ▪ Over-index for shopping at Overstock ▪ Deal driven & low hassle ▪ Combined market spend is 40% of total market² 1 Source: eMarketer-Total US Retail Sales estimates, 2019 2 Source: Overstock customer segmentation research, 2019 Note: $300B Total Market Size x 40% Customer Segments Market Size = $120B Market 23#24Overstock 2020 Retail Strategy aspiration & positioning dream homes for all making beautiful & comfortable homes accesible by helping customers easily & confidently find just what financial goals target customers brand pillars constitutional principles overstock. sustainable, profitable growth as an indicator that our innovation is meeting target customers' needs primary segment savvy shopper values Overstock for helping them feel smart about finding a great deal from a compelling selection of stylish & quality home products product findability get inspired anywhere, but easily find it at Overstock world-class SEO enablers I smart value quality & style for less engaging email program OKR-driven focus & collaboration world-class ML & algorithm innovation initiatives ■ secondary segment reluctant refresher values Overstock for helping them easily & confidently find just what they want easy delivery + support fast, free, & predictable delivery, plus low-hassle returns & support rewarding Club O Loyalty program intuitive mobile experience partner-sponsored marketing discounting & pricing experience increase real-time data 24#25Product Findability Helping customers find products they want quickly and easily Site search improvements displaying more relevant products Improvements translating to purchase conversion. overstock. Search Attributed Conversion Q1'19 +8.3% YoY Q1'20 Page Load Time to Interactive Note: Search Attributed Conversion refers to orders of products that were clicked on from search and navigation divided by page visits Mobile Desktop Feb '19 Mar '19 Apr '19 May '19 Jun '19 Jul '19 Aug '19 Sep '19 Oct '19 Nov '19 Dec '19 Jan '20 Feb '20 Mar ¹20 25#26Product Findability ■ Customer shift to mobile: ■ Traffic is increasingly buying on our mobile platform ▪ Mobile purchases now represent almost half of total sales 13.5% YoY growth in unique visits in Q1 ▪ 7.8% YoY growth in sales in Q1 Oct Nov Dec Jan Feb Mar Q4 '18 Q1 '19 Visit % by Device Mobile Desktop Apr May Jun Jul Aug Sep Q2 '19 Q3 '19 Sales % by Device -Mobile Desktop Oct Nov Dec Jan Feb Mar Apr May Jun Q4 '18 Q1 '19 Q2 '19 Jul Aug Sep Q3 '19 Oct Nov Dec Q4 '19 Oct Nov Dec Q4 '19 Jan Feb Mar Q1 '20 Jan Feb Mar Q1 '20 loverstock. Note Sales reflects GMS (gross merchandise sales) calculated as the amount paid by customers for products (and shipping), measured at the time of order, before coupons and discounts, without reductions estimated returns 26#27Product Findability Demand for home furnishings continues to increase Customers are finding what they need ▪ Home furnishings represented 87% of total sales in Q1 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% H 85.6% Q1 '19 Sales Mix of Home Furnishings 86.7% Q1 '20 86.5% Apr '19 88.1% Apr ¹20 loverstock. Noupons and discounts, without reductions for estis merchandise volume), is calculated as the amount paid by customers for products (and shipping), measured at the time of order, after returns 27#28Smart Value Positive pricing perception contributes to customer satisfaction overstock. 1 Source: Bizrate Point-of-Sale Survey of Overstock purchasers, 2018-2020 Customer Perceived Price Advantage vs. Other Retailers ¹ Q1 '18 +0.3% YoY Q1 '19 +0.2% YoY Q1 '20 28#29Smart Value "Free Shipping on Everything" doubles shopping intent¹ "Free Shipping on Everything" is biggest purchase driver for Overstock shoppers, especially Savvy Shoppers² overstock. 9.50 9.00 8.50 8.00 7.50 7.00 12/29/19 1/5/20 1/12/20 Customer Rating of Shipping Charges³ 1/19/20 1/26/20 -Overstock Home & Garden Avg. 2/2/20 2/9/20 2/16/20 2/23/20 3/1/20 Launched "Free Shipping on Everything" 3/8/20 3/15/20 3/22/20 X 3/29/20 1 As compared to "Free shipping over $45." Source: Overstock survey of shoppers, January 2020. Question: "Thinking about shopping online for home furnishings (furniture or decor), how likely would you be to make a purchase based on the following offers?" Extremely likely responses tabulated 2 Savvy shoppers value Overstock for helping them feel smart about finding a great deal from a compelling selection of stylish & quality home products 3 Source: Bizrate Point-of-Sale survey administered to a sampling of all customers daily 29#30Smart Value Lower returns costs allow us to maintain competitive pricing 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Q1'15 Q2'15 Q3'15 Q4'15 Q 1'16 Q2'16 Net Returns Cost % Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Note: Net Returns Cost % = Net Returns Cost / GMS loverstock. Naty customers for products and shipping), and suction the sits less recovery amounts received from customers, carriers and suppliers, GMS (gross merchandise sales) is calculated as the amount paid by measured at time of coupons reductions for estimated 30#31Easy Delivery + Support Improving delivery speed and on-time accuracy increases customer satisfaction >65% of products ship the same day overstock. % of Page Views with 2-day Messaging Q1 '19 Q1 '19 ......... 198% increase + Same Day Ship% 4.4% increase Note: Same Day Ship refers to orders shipped same day if received prior to warehouse cutoff time, subject to limited exceptions Q1 '20 Q1 '20 H 31#32Easy Delivery + Support ■ Self-service improves customer satisfaction and reduces cost overstock. 45% 40% 35% 30% 25% 20% Aug '19 Self-Service % of Initiated Customer Contacts Sep '19 Oct '19 Nov '19 Dec '19 Jan '20 Feb '20 Mar '20 32#33Focus is Driving Results ▪ 19% increase in visitors translating into 9% increase in new customers Lifetime value of new customers also increasing Q1'19 overstock. First-Time Visitors Q2'19 19% increase mil Q3'19 Q4'19 Q1'20 Q1'19 New Customers Q2'19 9% increase Q3'19 Q4'19 Q1'20 33#342020 Focus Product Findability ▪ Enhance mobile web experience ▪ Refine ML model for better site search relevancy ▪ Improve new product content overstock. Smart Value Clarify promotional price messaging ▪ Transform promotional model ▪ Further reduce logistics costs Easy Delivery + Support ■ Optimize ML delivery models ▪ Position inventory for fastest delivery ▪ Improve customer support self-service experience. ▪ Launched "free shipping on everything" initiative in response to COVID-19 34#35Summary: Our Focus Home Furnishings Market Online Penetration 50% 30% 20% 10% 0% 5.7% 2010 overstock. Furniture & Home Furnishings U.S. Online Penetration¹ 6.7% 2011 7.8% 2012 9.5% 2013 11.1 % 2014 13.3% 15.5% overstock. 2015 2018 17.9% 2017 19.7% 2018 Source: Data combined from the following eMarketer, NRF and CommonThreadCo.com 2 Source: Statista 2019 publication of Jumpshot 2018 online fumiture sales 22,6% 2019 COVID-19 42,0% 2020 Top US Home Furnishings Online Brands2.3 (Ranked by Online Revenue) 1. Amazon 2. Wayfair 3. Walmart 4. Target 5.overstock. Source: Overstock market sizing of public and third-party data with category definition including mattresses, outdoor fumiture & décor, small appliances & electronics, furniture storage & organization products, kitchen & bath products, decorative lighting & lamps, and home accessories & décor items Overstock 2020 Retail Strategy aspiration & positioning dream homes for all financial goals target customers brand pillars itutional overstock. sustainable, profitable growth primary segment savvy shopper product findability get inspired anywhere, but easily find it at Overstock making beautiful & comfortable homes accessible by helping customers easily & confidently find just what they want for less for from a compelling selection of stylish & quality home products world-class SEO finding deal smart value as an indicator that our innovation is meeding target customers' needs quality & style for loss OKR-driven focus & collaboration enablers world-class ML & algorithm innovation engaging email program secondary segment reluctant refresher find just whomoasiy ply for helping easy delivery + support fast, free, & predictable delivery. plus low hassle returns & support rewarding Club Q Loyalty program intuitive mobile experience initiatives per-aponsored marketing discounting & pricing experience Increase real-time data Retail Gross Margin: +200bps YoY Gross Profic Emm] 380 360 380 340 $30 $10 30 overstock. $72 19.9% 01/19 872 19.7% 02:19 $68 20.0% 03/19 $75 20.7% 0419 $74 21.9% 0120 Gross Margin 30% 25% 20% 15% 35#36Identity evernym MINDS NETKI FinClusive Vital Chain overstock. A Land Titling MEDICI LAND GOVERNANCE MEDICI VENTURES Banking & Currency bitt PEERNOVA spera ripio Capital Markets tZERO symbiont Supply Chain Vinsent GRAN CHAIN FACTOM™ Voting Voatz Votem SettleMint A 36 MEDICI VENTURES#37Identity evernym MINDS NETKI FinClusive Vital Chain overstock. A Land Titling MEDICI LAND GOVERNANCE MEDICI VENTURES Banking & Currency bitt PEERNOVA spera ripio Capital Markets ‒‒‒‒‒ tZERO ‒‒‒‒‒‒‒ symbiont Supply Chain Vinsent GRAN CHAIN FACTOM™ Voting Voatz Votem SettleMint A 37 MEDICI VENTURES#38overstock. tZERO 38#39Record Quarter for Speed Route SpeedRoute, tZERO's broker-dealer subsidiary, is an established leader in the U.S. equity markets overstock. 6.9B Shares Traded 1 Compared to Q1 2019 131% Revenue Growth ¹ 100% System Uptime 39 tZERO#40Robust Crypto App User Growth 9:41 My Positions B a Portfolio tZERO CRYPTO $14,840.14 Bitcoin $6,840.98 Ethereum $170.30 Ravencoin $0.0161 ılı Market overstock. all $14,398.94 2.10 BTC $321.12 1.88 ETH $0.00 7,458.38509 RVN Account 9:41 < Bitcoin BTC $6,840.98 Buy My Position $14,398.94 1.5 BTC History Bought Nov 7, 2019 9:00 AM Sold Oct 11, 2019 4:22 AM Bought Oct 30, 2019 9:01 PM Portfolio Show More il. Market Sell Send Receive $10,420.21 1.1776 BTC $8,1293.00 1.2098 BTC $512.11 0.2031 BTC 8 Account 595 Q2 '19 2,617 Q3 '19 +40% 4,567 Q4 '19 6,404 Q1 '20 40 tZERO#412020 Priorities Assets Trade more high-quality digital securities on the tZERO ATS overstock. Liquidity Enhance liquidity for digital securities on our platform Experience Create a world class experience for digital securities 41 tZERO#42Opportunities Across Various Asset Classes Global pipeline consists of 200+ issuers with roughly a dozen in late-stage discussions # of companies in pipeline overstock. B (A) $ LA T Real Estate ● ● Other Private Companies/Assets Private Assets (i.e. equity, debt) Operating Companies Tech, Industrials, Sports, etc. ● ● Blockchain-Related Companies ● ● ● Single Assets & Portfolios Real Estate Funds Non-Traded REITs Yield Plays ● ● Healthcare Payments, Remittance, etc. Financial Products ● Dividend-Paying Assets Financial Products ETFs Indices (i.e. digital, growth, tech.) Investment Funds Royalty Streams P&L Monetization 60+ 55+ 40+ 30+ 20+ The largest near-term opportunity and majority of our current prospects span real estate and private companies 42 tZERO#43Assets ■ Recent Accomplishments Completed tech integration for 3rd token Awaiting regulatory approval to begin trading 3rd security token ▪ Completed Tezos integration ■ Tezos blockchain to be used by several issuers, including River Plaza overstock. Roadmap ▪ Tokenize additional assets. ▪ Support 3rd-party issuance protocols ▪ Will allow us to trade existing security tokens ▪ Enhance issuer token administration 43 tZERO#44Liquidity ■ Recent Accomplishments OSTKO digital dividend ▪ DTC eligibility has been granted, and the ex-dividend date has been received Technology enhancements and integration complete I - Completed Choice Trade integration Pending regulatory approval overstock. Roadmap ▪ Execute and distribute OSTKO digital dividend ▪ Subscribe and integrate additional broker-dealers OSTKO has resulted in increased interest from various broker-dealers ▪ Launch tZERO Markets and BSTX Expecting regulator decision in Q2 44 tZERO#45Experience Recent Accomplishments Enhanced investor onboarding on Dino Auto and bulk account approvals ▪ New experience for broker-dealers. ▪ Enable users to transfer their securities into Dino - Enhanced Crypto app ▪ Tiered membership program ▪ Enhanced Crypto app experience overstock. ■ Roadmap Trade digital securities in tZERO app Pending regulatory approval Support crypto trading on web platform. 45 tZERO#46tZERO 2020 Priorities W ■ Assets Trade more high-quality digital securities on the tZERO ATS Tokenize additional assets Support 3rd-party issuance protocols Enhance issuer token administration overstock. Liquidity Enhance liquidity for digital securities on our platform Execute OSTKO digital dividend Integrate additional broker-dealers ▪ Launch tZERO Markets and BSTX ■ Experience Create a world class experience for digital securities Trade digital securities in tZERO app Support crypto trading on web platform 46 tZERO#47Identity evernym MINDS NETKI FinClusive Vital Chain overstock. A Land Titling MEDICI LAND GOVERNANCE MEDICI VENTURES Banking & Currency bitt PEERNOVA spera ripio Capital Markets tZERO symbiont Supply Chain Vinsent GRAN CHAIN FACTOM™ Voting Voatz Votem SettleMint A 47 MEDICI VENTURES#48Identity evernym MINDS NETKI FinClusive Vital Chain overstock. A Land Titling MEDICI LAND GOVERNANCE MEDICI VENTURES Banking & Currency bitt PEERNOVA spera ripio Capital Markets tZERO ‒‒‒‒‒ symbiont Supply Chain Vinsent GRAN CHAIN FACTOM™ Voting ✔Voatz Votem SettleMint A 48 MEDICI VENTURES#49Self-Sovereign Identity in the COVID-19 Crisis evernym overstock. Vital Chain coindesk COVID-19 'Immunity Passport' Unites 60 Firms on Self- Sovereign ID Project Apr 13, 2020 at 14:05 UTC Updated Apr 13, 2020 at 16:08 UTC y fin lan Allison my NEWS -> LEARN RESEARCH A health worker conducts a COVID-19 test in Kuala Lumpur, April 12, 2020. (Credit: Shutterstock) EVENTS Q Technologists building blockchain-based self-sovereign identity (SSI) tools are collaborating on an "immunity passport" to help stop the spread of COVID-19 without compromising the privacy of users. Proving some level of immunity would help individuals return to everyday life. The COVID-19 Credentials Initiative (CCI) is working on a digital certificate, using the recently approved World Wide Web Consortium (W3C) Verifiable Credentials standard. The certificate lets individuals prove (and request proof from others) they've recovered from the novel coronavirus, have tested positive for antibodies or have received a vaccination, once one is available. A 49 MEDICI VENTURES#50✔Voatz & Voatz & Votem Mobile Voting is Important Now ▪ Traditional methods present concerns amidst the COVID-19 crisis ▪ Blockchain technology allows for anonymous, safe and secure voting Recent polling reflects significant uptick in voters' trust in mobile solutions ¹ Voatz has successfully conducted more than 60 safe and secure elections overstock. 1 Source: Morning Consult: 2 in 3 Voters at Least Somewhat Concerned About Voting in Person During Coronavirus, March 20, 2020 12:08 1 Verifications Options Jessica Anne Johnson Elections Voatz 12:27 1 Exit 1 of 3 Mayor (Vote for One) City Council Special Election Morin County, US | 13 Aug 2020 2 of 3 City Council Member (Vote for Two) al? YES/FOR Ballot NO/AGAINST 3 of 3 Proposition 1: Dogs on Leashes The City shall require that all dogs in public areas be on a leash at all times. Review 2 2 of 3 Answered Help 50 MEDICI VENTURES#51GRAN CHAIN symbiont overstock. E Forbes in CORONAVIRUS | 3,954 views | Apr 2, 2020, 07:51pm EDT Blockchain Brings Transparency To Struggling Market For Texas Grain Michael del Castillo Forbes Staff Crypto & Blockchain I cover enterprise adoption of blockchain and cryptocurrency. Supply Chain Optimization is Especially Relevant ■ Grain Chain completed its $8.2mm Series A funding round ▪ Grain Chain collaboration with Symbiont - using its Assembly enterprise blockchain ▪ Grain Chain selected as a finalist by Fast Company for its 2020 World Changing Ideas Awards A O 51 MEDICI VENTURES#52Closing CEO Remarks - Outlook April retail sales grew over 120% vs. prior year ▪ New customers increased by 249% over same period Early indications suggest strong performance in May ■ 140% 120% 100% 80% 60% 40% 20% 0% (20%) (40%) overstock. (21%) FY 2019 (6%) Sales Growth National Emergency Declared: March 13 Jan 1 Mar 12 20% Mar 13 - Mar 31 120%+ Apr 1 - Apr 28 Note: Sales growth reflects year-over-year growth in GMV (gross merchandise volume), calculated as the amount paid by customers for products (and shipping), measured at the time of order, after coupons and discounts, without reductions for estimated returns 52#53Summary and Q&A - Focused Execution. Overstock Retail Sustainable, profitable growth Relentless focus on initiatives. ● ● Retail Gross Margin: +200bps YoY Gross Profe 320 360 340 330 $10 30 overstock. $7.25 19.9% 01/19 $72 19.7% 02 19 loverstock. $7.5 20.7% 111 0419 20.0% 03:19 $7-4 21.9% 0120 Gross Margin 30%% 20% 15% 10% M FOR tZERO • OSTKO dividend driving adoption. ● Onboarding tokens & investors 2020 Priorities Assets Trade more high-quality digital securities on the tZERO ATS Overstock. Liquidity Enhance liquidity for digital securities on our platform Experience Create a world class experience for digital securities tZERO Medici Ventures • Seeking third-party investors • Products in production Identity evernym MINDS NETKI FinClusive Vital Chain overstock. Submit questions to [email protected] Land Titling MEDICI LAND GOVERNANCE MEDICI VENTURES Banking & Currency bitt PEERNOVA spera ripio Capital Markets tZERO symbiont Supply Chain Vinsent GRAWIN FACTOM Voting Voatz votem SettleMint MEDICI VENTURES 53#54overstock. Appendix#55Q1 2020 Financial Results: OSTK Total Revenue $351.6 Million (4%) vs. Q1'19 Sales & Marketing Expense $36.8 Million 10% vs. Q1'19 overstock. Gross Profit $75.8 Million 4% vs. Q1'19 Contribution ¹ $39.1 Million (1%) vs. Q1'19 1 Adjusted EBITDA1 ($16.4) Million +$7.3mm / +31% vs. Q1'19 Ending Cash $141.3 Million +$29.0mm vs. Q4'19 55 Adjusted EBITDA and Contribution are non-GAAP financial measures. See Reconciliations in Appendix#56Adjusted EBITDA Reconciliation overstock. Net loss Depreciation and amortization Stock-based compensation Interest income, net Other (income) expense, net Provision (benefit) for income taxes Special items (see table below) Adjusted EBITDA Segment Adjusted EBITDA Retail tZERO MVI Other Adjusted EBITDA Special items: Severance Gain on legal settlement Impairments on intangible assets Special legal expenses* Total Special Items $ Mar-2020 (19,565) 7,569 3,268 (72) (6,683) 176 (1,103) (16,410) $ (18,959) $ Dec-2019 1,398 $ (2,501) (1,103) Three months ended Sep-2019 $ (29,660) 7,998 4,606 (1,865) $ (8,250) (10,628) (2,498) (2,695) (3,797) (3,442) $ (16,410) $ (18,959) $ $ (262) (1,547) (94) (2,194) $ $ (392) (34,542) $ (27,626) $ (42,892) 7,518 7,464 6,614 4,467 5,171 3,985 4,781 23 185 (17,960) $ (575) $ (11,233) (2,691) (3,461) (17,960) 1,406 (1,221) 185 Jun-2019 $ (525) 2,995 (622) (13,143) 1,581 (8,729) (2,586) (3,409) $ (13,143) $ $ $ $ Mar-2019 $ (276) 6,272 878 1,757 (23,662) (2,460) (13,207) (4,008) (3,987) (23,662) 1,757 1,757 56 *Special legal expenses include charges and credits associated with our Delaware gift card escheatment matter and legal fees associated with pursuing our strategic alternatives. Adjusted EBITDA is a non-GAAP financial measure used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. You should review our financial statements and publicly-filed reports in their entirety and not rely on any single financial measure.#57Contribution Reconciliation Total net revenue Cost of goods sold Gross profit Less: Sales and marketing expense Contribution Contribution margin Total net revenue Cost of goods sold Gross profit Less: Sales and marketing expense Contribution Contribution margin overstock. $ $ $ $ Three months ended Mar-20 Other* Retail 339,598 $ 265,392 74,206 36,290 37,916 11.2% Retail $ 364,076 288,856 75,220 39,946 35,274 $ 9.7% $ 11,975 10,341 1,634 472 1,162 9.7% Dec-19 Other* 6,805 5,503 1,302 922 380 5.6% $ $ $ $ Total 351,573 275,733 75,840 36,762 39,078 11.1% Total 370,881 294,359 76,522 40,868 35,654 9.6% $ $ Retail 340,798 $ 272,545 68,253 33,551 34,702 10.2% $ Sep-19 Other* 6,301 5,006 1,295 664 631 10.0% $ $ Three months ended Total 347,099 277,551 69,548 34,215 35,333 10.2% $ $ Retail 367,475 294,984 72,491 33,947 38,544 10.5% $ $ Jun-19 Other* 6,234 $ 4,826 1,408 613 795 12.8% $ Total 373,709 299,810 73,899 34,560 39,339 10.5% $ $ Retail 362,625 290,640 71,985 32,933 $ 39,052 $ 10.8% Mar-19 Other* 5,104 $ 3,965 1,139 544 595 11.7% $ Total 367,729 294,605 73,124 33,477 39,647 10.8% 57 *Other includes our tZERO, MVI, and Other reportable segments. Contribution and contribution margin are non-GAAP financial measures used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. You should review our financial statements and publicly-filed reports in their entirety and not rely on any single financial measure.