Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

v3.23.3
Share-Based Compensation
9 Months Ended
Sep. 30, 2023
Share-Based Compensation [Abstract]  
Share-Based Compensation

Note 8 – Share-Based Compensation

 

During the three months ended September 30, 2023 and 2022, selling, general and administrative expenses included $575,299 and $915,007 of share-based compensation expense, respectively. During the nine months ended September 30, 2023 and 2022, selling general and administrative expenses included $1,689,867 and $1,601,848 of share-based compensation expense, respectively.

 

During the three months ended September 30, 2023 and 2022, the Company capitalized $326,780 and $435,238, respectively, of share-based compensation expense associated with awards issued to consultants who are directly associated with and who devote time to our internal-use software. During the nine months ended September 30, 2023 and 2022, the Company capitalized $1,114,610 and $1,291,572, respectively, of share based compensation expense associated with awards issued to consultants who are directly associated with and who devote time to our internal-use software.

 

Equity Incentive Plan

 

In October 2020, in connection with the Business Combination, the Company’s stockholders approved the Parts iD, Inc. 2020 Equity Incentive Plan (the “2020 EIP”). The 2020 EIP became effective immediately upon the closing of the Business Combination. As of September 30, 2023, of the 4,904,596 shares of Class A common stock reserved for issuance under the 2020 EIP in the aggregate, 2,935,496 shares remained available for issuance.

 

The 2020 EIP provides for the grant of stock options, restricted stock, restricted stock units (“RSUs”), PSUs, stock appreciation rights, other stock-based awards, and cash awards (collectively, “awards”). The awards may be granted to employees, directors, and consultants of the Company.

 

Restricted Stock Units

 

The following table summarizes the activity related to RSUs during the nine months ended September 30, 2023:

 

    Restricted
Stock Units
    Weighted
Average
Grant
Date Fair
Value
 
Unvested balance on January 1, 2023     1,053,445     $ 4.67  
Granted    
-
    $
-
 
Vested     (276,582 )   $ 1.02  
Forfeited     (173,364 )   $ 5.81  
Unvested balance on September 30, 2023     603,499     $ 5.98  

 

As of September 30, 2023, approximately $0.4 million of unamortized share-based compensation expense was associated with outstanding RSUs, which is expected to be recognized over a remaining weighted average period of 0.18 years.

  

Performance-Based Restricted Stock Units

 

The following table summarizes the activity related to PSUs during the nine months ended September 30, 2023:

 

PSU Type   Balance at
January 1,
2023
    Granted     Forfeited     Balance at
September 30,
2023
 
Net revenue based     495,200            -       230,000       265,200  
Weighted average grant date fair value   $ 8.00     $ -     $ 6.71     $ 9.12  
Cash flow based     123,800       -       57,500       66,300  
Weighted average grant date fair value   $ 2.44     $ -     $ 2.35     $ 2.52  
Total     619,000       -       287,500       331,500  

 

As of September 30, 2023, the performance criteria included in the PSUs plan are unlikely to be achieved, and accordingly, the Company has no accrual of share-based compensation expenses associated with the outstanding PSUs. The weighted average period of 0.32 years was remaining before the expiration of outstanding PSUs.

 

Employee Stock Purchase Plan

 

In October 2020, in connection with the Business Combination, the Company’s stockholders approved the Parts iD, Inc. 2020 Employee Stock Purchase Plan (the “2020 ESPP”). There are 2,043,582 shares of Class A common stock available for issuance under the 2020 ESPP. The 2020 ESPP became effective immediately upon the closing of the Business Combination, but it has not yet been implemented. As of September 30, 2023, no shares had been issued under the 2020 ESPP.