Note 5 - Stockholders' Equity (Deficit)

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE 5 – STOCKHOLDERS' EQUITY (DEFICIT)

Common Stock

The Company is authorized to issue 50,000,000 shares of common stock, $0.00001 par value per share.

Equity Incentive Plans

In 2016, the Board of Directors adopted the HyreCar Inc. 2016 Incentive Plan (the “2016 Plan”). The 2016 Plan provides for the grant of equity awards to qualified personnel, including stock options, restricted stock, stock appreciation rights, and restricted stock units to purchase shares of common stock. The 2016 Plan is administered by the Compensation Committee, and expires ten years after adoption, unless terminated earlier by the Board of Directors. The Company does not currently utilize the 2016 Plan for equity award grants.

In 2018, the Board of Directors adopted the HyreCar Inc. 2018 Incentive Plan (the “2018 Plan”). The 2018 Plan provides for the grant of equity awards to acquire shares of common stock. Three million shares of common stock were initially reserved for issuance under the 2018 Plan, with the share reserve number subject to increases that occur starting in 2021. The 2018 Plan is administered by the Compensation Committee, and expires ten years after adoption, unless terminated earlier by the Board.

In 2021, the Board of Directors adopted the HyreCar Inc. 2021 Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the grant of equity awards to acquire shares of common stock. Three million shares of common stock were initially reserved for issuance under the 2021 Plan, with the share reserve number subject to increases that occur starting in 2024. The 2021 Plan is administered by the Compensation Committee, and expires ten years after adoption, unless terminated earlier by the Board.

Stock Options, Restricted Stock Units and Shares Issued for Services

No stock options were granted during the six months ended June 30, 2022 and 2021. Stock-based compensation expense for the vesting of stock options for the six months ended June 30, 2022 and 2021 was immaterial. As of June 30, 2022, there is no remaining stock-based compensation expense as all options are fully vested.

A summary of activity with our restricted stock units (“RSUs”) solely with service conditions for the six months ended June 30, 2022 is as follows:

	Number of shares			Weighted average grant date fair value per share
Unvested as of December 31, 2021		769,486		$	10.46
Granted		478,000			2.12
Vested		(234,239	)		9.53
Forfeited		(88,875	)		8.36
Unvested as of June 30, 2022		924,372		$	6.55

During the  six months ended June 30, 2022, the Company granted 478,000 RSUs to employees, which will vest over four years.

Stock-based compensation related to restricted stock units for the three months ended June 30, 2022 and 2021 was $942,600 and $1,939,736, respectively. Stock-based compensation related to restricted stock units for the six months ended   June 30, 2022 and 2021 was $2,121,888 and $5,700,793, respectively. As of June 30, 2022, unrecognized compensation expense related to the unvested restricted stock units is $5,353,131 and is expected to be recognized over approximately 3.1 years.

In addition to the service condition restricted stock units above, the Company has granted long-term equity incentive performance awards for a fixed monetary amount of $250,000 that will be settled through the issuance of a variable number of restricted stock units. The performance awards vest upon satisfaction of both a four-year service condition and the achievement of certain performance conditions. The performance conditions are based on various Company performance metrics, including but not limited to, the achievement of targeted revenue and EBITDA amounts. Compensation cost related to these awards is measured at the end of each reporting period if and when the awards are deemed probable of achievement based on the fixed monetary amount until settlement, forfeiture, or expiration. If compensation cost is required to be recognized, the amount recognized is based on the requisite service performed to date. As the performance metrics are not probable of achievement as of June 30, 2022, no compensation cost related to these performance awards has been recognized for the six months ended June 30, 2022.

During the six months ended June 30, 2022, the Company granted 13,000 shares of common stock as part of an employee severance agreement. The Company recognized stock-based compensation of $44,200 based on the closing price of the Company’s common stock on the date of grant.