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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
The Company has two stock incentive plans, the Cognical Holdings, Inc. 2014 Stock Incentive Plan, (the “2014 Plan”) and the Katapult Holdings, Inc. 2021 Stock Incentive Plan, (the “2021 Plan”).

2014 Plan

In accordance with the 2014 Plan, the board of directors of Legacy Katapult could grant equity awards to officers, employees, directors and consultants for common stock. There were no stock options or other equity awards granted to non-employees during 2022 and 2021. The 2014 Plan has specific vesting for each stock option grant allowing vesting of the options over one to four years. Upon consummation of the Merger, no additional equity awards are being granted under the 2014 Plan. No awards have been granted under the 2014 Plan since October 2020.

Stock Options

A summary of the status of the stock options under the 2014 Plan as of September 30, 2022, and changes during the nine months then ended is presented below:
Number of
Shares		Weighted- Average
 Exercise Price		Weighted-Average
 Remaining
 Contractual Term
 (In Years)		Aggregate
Intrinsic Value
Balance - December 31, 20218,371,097 $0.29 7.33$25,773 
Granted— — 
Exercised(284,321)0.23 
Forfeited— — 
Balance - September 30, 20228,086,776 0.30 6.58$5,488 
Exercisable - September 30, 20228,077,089 0.29 6.58$5,488 
Unvested - September 30, 20229,687 $3.50 8.04$— 
There were no options granted under the 2014 Plan during the nine months ended September 30, 2022 and 2021. The total intrinsic value of stock options exercised during the nine months ended September 30, 2022 and 2021 was $214 and $10,644, respectively.
As of September 30, 2022, total compensation cost not yet recognized related to unvested stock options was $21, which is expected to be recognized over a period of 1.71 years.
2021 Plan

On June 9, 2021, the 2021 Plan, which was previously approved by the FinServ board of directors and FinServ stockholders in connection with the Merger, became effective.

In accordance with the 2021 Plan, directors may issue equity awards, including restricted stock awards, restricted stock unit awards and stock options to officers, employees, directors and consultants to purchase common stock. The awards granted are subject to service-based and/or performance-based vesting conditions.

Stock Options

A summary of the status of the stock options under the 2021 Plan as of September 30, 2022, and changes during the nine months then ended is presented below:

Number of SharesWeighted- Average Exercise PriceWeighted-Average Remaining Contractual Term (In Years)Aggregate Intrinsic Value
Balance - December 31, 2021346,603 $10.45 9.50$— 
Granted - service conditions— — 
Granted - performance conditions— — 
Exercised— — 
Forfeited— — 
Balance - September 30, 2022346,603 10.45 8.75$— 
Exercisable - September 30, 2022158,859 10.45 8.75$— 
Unvested - September 30, 2022187,744 $10.45 8.75$— 
As of September 30, 2022, total compensation cost not yet recognized related to unvested stock options was $1,137, which is expected to be recognized over a period of 2.13 years.
No stock options were granted under the 2021 Plan during the three and nine months ended September 30, 2022 and 2021.

Restricted Stock Units

Restricted stock units (“RSUs”) are equity awards granted to employees that entitle the holder to shares of common stock when the awards vest. RSUs are measured based on the fair value of the Company’s common stock on the date of grant.

A summary of the status of the RSUs under the 2021 Plan as of September 30, 2022, and changes during the nine months then ended is presented below:
Number of RSUsWeighted Average Grant Date Fair Value
Outstanding - December 31, 20212,115,162$6.10 
Granted5,625,5921.84 
Vested(750,823)6.27 
Forfeited(985,925)3.30 
Outstanding - September 30, 20226,004,006$2.54 

Stock-Based Compensation Expense— Stock-based compensation expense was $1,807 and $3,097 for the three months ended September 30, 2022 and 2021, respectively. Stock-based compensation expense was $4,753 and $12,862 for the nine months ended September 30, 2022 and 2021, respectively. Stock-based compensation expense is included in compensation costs.
On August 26, 2020, the Company granted a total of 19,000,000 restricted shares of the Company’s common stock to certain employees (the “Award Shares”). The Award Shares vest only upon a Liquidation Event, which is defined as any liquidation, dissolution, or winding up of the Company, including a consolidation, stock exchange, or merger with another Company. The number of Award Shares that will be forfeited or will vest will depend upon the achieved liquidation price per common share. Vesting of the Award Shares is contingent upon the recipient’s continuous employment with the Company through a Liquidation Event. The Liquidation Event represented a performance condition that was satisfied as a result of the Merger discussed in Note 3. The Award Shares had a grant date fair value of $3.28 per share which resulted in the recognition of $9,348 of stock-based compensation expense during the nine months ended September 30, 2021. Based on the liquidation price per common share, 15% of the total Award Shares vested as a result of the Merger.