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. 27, 2014

The following table summarizes the Company’s stock option activity for the thirty-nine weeks ended September 27, 2014, and details regarding the options outstanding and exercisable at September 27, 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	840		$	2.32
Exercised	(129	)	$	2.06
Expired	(204	)	$	7.20
Forfeited	(383	)	$	1.80
Options outstanding, September 27, 2014	5,444		$	2.81	6.52	$	3,320
Vested and expected to vest at September 27, 2014	4,871		$	2.91	6.21	$	2,876
Options exercisable, September 27, 2014	3,242		$	3.36	4.79	$	1,592


(1)	These amounts represent the difference between the exercise price and the closing price of U.S. Auto Parts Network, Inc. stock on September 27, 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		Thirty-Nine Weeks Ended
	September 27, 2014	September 28, 2013	September 27, 2014	September 28, 2013
Expected life	5.37 years	5.21 – 5.73 years	5.30 – 5.37 years	5.21 – 5.73 years
Risk-free interest rate	1.7%	1.4% – 1.8%	1.5% – 1.8%	1.0% – 1.8%
Expected volatility	62%	67% – 73%	62% – 68%	67% – 73%
Expected dividend yield	—%	—%	—%	—%

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				Thirty-Nine Weeks Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Marketing expense	$	157	$	77	$	374	$	230
General and administrative expense	424		191		1,051		693
Fulfillment expense	72		25		170		81
Technology expense	34		22		96		61
Total share-based compensation expense	$	687	$	315	$	1,691	$	1,065

Surrendered Stock Options And New Stock Options

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	—	%	—	%