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)

6 Months Ended

Jun. 28, 2014

Summary of Assumptions Used for Fair Value of 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 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 (in thousands):


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
Marketing expense	$	136	$	69	$	217	$	153
General and administrative expense		390		220		628		502
Fulfillment expense		60		25		98		56
Technology expense		43		27		62		39

Total share-based compensation expense	$	629	$	341	$	1,005	$	750

Surrendered Stock Options and New Stock Options [Member]

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity for the twenty-six weeks ended June 28, 2014, and details regarding the options outstanding and exercisable at June 28, 2014:


	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value ⁽¹⁾
Options outstanding, December 28, 2013		5,320		$	2.97
Granted		815		$	2.29
Exercised		(109	)	$	2.00
Expired		(92	)	$	4.68
Forfeited		(98	)	$	1.72

Options outstanding, June 28, 2014		5,836		$	2.88		6.79	$	7,681
Vested and expected to vest at June 28, 2014		4,991		$	3.06		6.35	$	6,121
Options exercisable, June 28, 2014		3,050		$	3.79		4.50	$	2,642

⁽¹⁾	These amounts represent the difference between the exercise price and the closing price of U.S. Auto Parts Network, Inc. stock on June 28, 2014 as reported on the NASDAQ National Market, for all options outstanding that have an exercise price currently below the closing price.

Summary of Assumptions Used for Fair Value of Options

The fair value of each option grant 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		Twenty-Six Weeks Ended
	June 28, 2014	June 29, 2013	June 28, 2014	June 29, 2013
Expected life	5.37 years	5.73 years	5.30 – 5.37 years	5.73 years
Risk-free interest rate	1.5% – 1.8%	1.7%	1.5% – 1.8%	1.0% – 1.7%
Expected volatility	65%	73%	65% – 68%	72% – 73%
Expected dividend yield	0%	0%	0%	0%