CarParts.com, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity and Share-Based Compensation (Tables)

Stockholders' Equity and Share-Based Compensation (Tables)

9 Months Ended

Sep. 28, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

The following table summarizes the Company’s stock option activity for the thirty-nine weeks ended September 28, 2013, and details regarding the options outstanding and exercisable at September 28, 2013:


	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value ⁽¹⁾
Options outstanding, December 29, 2012		7,428		$	5.13		6.23
Granted ⁽²⁾		1,253		$	1.02
Exercised		(17	)	$	1.31
Cancelled:
Forfeited		(105	)	$	4.75
Expired		(299	)	$	4.42
Stock option exchange ⁽²⁾		(3,475	)	$	6.65

Options outstanding, September 28, 2013		4,785		$	3.01		6.56	$	328
Vested and expected to vest at September 28, 2013		4,184		$	3.26		6.09	$	186
Options exercisable, September 28, 2013		3,204		$	3.68		5.04	$	—

⁽¹⁾	These amounts represent the difference between the exercise price and the closing price of U.S. Auto Parts Network, Inc. common stock on September 28, 2013 as reported on the NASDAQ National Market, for all options outstanding that have an exercise price currently below the closing price.

⁽²⁾	Refer to discussion below under the heading “Stock Option Exchange Program” for details. For stock options granted during the period, 993 shares were issued from the stock option exchange program.

Summary of Assumptions Used for Fair Value of Surrendered Stock Options and New Stock Options

The fair value of the surrendered stock options and the new stock options was estimated on the date of the exchange using the Black-Scholes option pricing model with the following assumptions:


	Surrendered Stock Options	New Stock Options
Expected life	1.93 – 6.87 years	5.84 years
Risk-free interest rate	0.5% – 2.4%	2.0%
Expected volatility	55% – 73%	72%
Expected dividend yield	0%	0%

Summary of Assumptions Used for Fair Value of Option Grant

The fair value of each option grant, excluding those options issued from the stock option exchange program as discussed above, was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions for each of the periods ended:


	Thirteen Weeks Ended		Thirty-Nine Weeks Ended
	September 28, 2013	September 29, 2012	September 28, 2013	September 29, 2012
Expected life	5.21–5.73 years	5.73 years	5.21–5.73 years	5.73 years
Risk-free interest rate	1.4% – 1.8%	0.8% – 1.0%	1.0% – 1.8%	0.8% – 1.2%
Expected volatility	67% – 73%	74%	67% – 73%	73% – 74%
Expected dividend yield	0%	0%	0%	0%

Summary of Share-based Compensation from Options, Warrants and Stock Awards

Share-based compensation from options, warrants and stock awards is included in our consolidated statements of comprehensive operations, as follows:


	Thirteen Weeks Ended					Thirty-Nine Weeks Ended
	September 28, 2013		September 29, 2012			September 28, 2013		September 29, 2012
Marketing expense	$	77	$	225		$	230	$	421
General and administrative expense		191		265			693		841
Fulfillment expense		25		(54	)		81		82
Technology expense		22		14			61		64

Total share-based compensation expense	$	315	$	450		$	1,065	$	1,408