Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.22.1
Stock-Based Compensation
3 Months Ended
Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

Note 7 - Stock-Based Compensation

 

During the three months ended March 31, 2022, and 2021, selling, general and administrative expenses included $867,370 and $28,824 of stock-based compensation expense, respectively.

 

During the three months ended March 31, 2022 and 2021, the Company capitalized $424,110 and $0, respectively, of stock-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 March 31, 2022 and 2021, of the 4,904,596 shares of Class A common stock reserved for issuance under the 2020 EIP in the aggregate, 4,112,248 shares remained available for issuance.

 

The 2020 EIP provides for the grant of stock options, restricted stock, restricted stock units (“RSUs”), performance shares, performance units (“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 three months ended March 31, 2022:

 

      Restricted
Stock Units
    Weighted
Average
Grant
Date Fair
Value
 
Unvested balance at January 1, 2022       1,551,033     $ 6.52  
Granted       38,000     $ 2.20  
Vested      
-
     
-
 
Forfeited       (4,000 )   $ 7.22  
Unvested balance at March 31, 2022       1,585,033     $ 6.41  

 

As of March 31, 2022, approximately $8.1 million of unamortized stock-based compensation expense was associated with outstanding RSUs, which is expected to be recognized over a remaining weighted average period of 1.62 years.

 

Performance Based Restricted Stock Units

 

The following table summarizes the activity related to PSUs during the three months ended March 31, 2022:

 

PSU Type   Balance at
January 1,
2022
    Granted     Forfeited     Balance at
March 31,
2022
 
Net revenue based     495,200       29,600       (1,600 )     523,200  
Weighted average grant date fair value   $ 8.00     $ 2.20     $ 7.22     $ 7.67  
Cash flow based     123,800       7,400       (400 )     130,800  
Weighted average grant date fair value   $ 2.44     $ 2.14     $ 2.14     $ 2.14  
Total     619,000       37,000       (2,000 )     654,000  

 

As of March 31, 2022, approximately $1.4 million of unamortized stock-based compensation expense was associated with outstanding PSUs, which is expected to be recognized over a weighted average period of 1.81 years.

 

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 March 31, 2022, no shares had been issued under the 2020 ESPP.