Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.22.2.2
Stock-Based Compensation
9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

Note 7 – Stock-Based Compensation

 

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

 

During the three and nine months ended September 30, 2022, the Company capitalized $435,238 and $1,291,572 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 September 30, 2022 and 2021, 3,963,603 and 4,904,596 shares of Class A common stock, respectively, are reserved for issuance under the 2020 EIP in the aggregate.

 

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 nine months ended September 30, 2022:

 

    Restricted
Stock Units
    Weighted
Average
Grant
Date Fair
Value
 
Unvested balance at January 1, 2022     1,551,033     $ 6.52  
Granted     414,582     $ 1.13  
Vested     (148,645 )   $ 4.91  
Forfeited     (52,001 )   $ 7.62  
Unvested balance at September 30, 2022     1,764,969     $ 5.35  

 

As of September 30, 2022, approximately $5.5 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 1.08 years.

 

Performance Based Restricted Stock Units

 

The following table summarizes the activity related to PSUs during the nine months ended September 30, 2022:

 

PSU Type   Balance at
January 1,
2022
    Granted     Forfeited     Balance at
September 30,
2022
 
Net revenue based     495,200       29,600       (103,200 )     421,600  
Weighted average grant date fair value   $ 8.00     $ 2.20     $ 7.92     $ 7.61  
Cash flow based     123,800       7,400       (25,800 )     105,400  
Weighted average grant date fair value   $ 1.55     $ 1.55     $ 1.55     $ 1.55  
Total     619,000       37,000       (129,000 )     527,000  

 

As of September 30, 2022, the performance criteria included in the PSUs plan are unlikely to be achieved and accordingly the company has no accrual of stock-based compensation expenses associated with the outstanding PSUs. The weighted average period of 1.32 years is still remaining before the outstanding PSUs expire.

 

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