UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 2, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-33264

CARPARTS.COM, INC.

(Exact name of registrant as specified in its charter)

Delaware

68-0623433

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer

Identification No.)

2050 W. 190^th Street, Suite 400, Torrance, CA 90504

(Address of Principal Executive Office) (Zip Code)

(424) 702-1455

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	PRTS	The NASDAQ Stock Market LLC (NASDAQ Global Market)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☐	Accelerated Filer	☒
Non-Accelerated Filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

As of October 28, 2021, the registrant had 52,540,398 shares of common stock outstanding, $0.001 par value.

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CARPARTS.COM, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE THIRTEEN AND THIRTY-NINE WEEKS ENDED OCTOBER 2, 2021

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		Page
	PART I. FINANCIAL INFORMATION

ITEM 1.	Financial Statements	4
	Consolidated Balance Sheets (Unaudited) at October 2, 2021 and January 2, 2021	4
	Consolidated Statements of Operations and Comprehensive Operations (Unaudited) for the Thirteen and Thirty-nine Weeks Ended October 2, 2021 and September 26, 2020	5
	Consolidated Statements of Stockholders’ Equity (Unaudited) for the Thirteen and Thirty-nine Weeks Ended October 2, 2021 and September 26, 2020	6
	Consolidated Statements of Cash Flows (Unaudited) for the Thirty-nine Weeks Ended October 2, 2021 and September 26, 2020	7
	Notes to Consolidated Financial Statements (Unaudited)	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	21
ITEM 4.	Controls and Procedures	21

	PART II. OTHER INFORMATION

ITEM 1.	Legal Proceedings	22
ITEM 1A.	Risk Factors	22
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
ITEM 3.	Defaults Upon Senior Securities	44
ITEM 4.	Mine Safety Disclosures	44
ITEM 5.	Other Information	44
ITEM 6.	Exhibits	45

Unless the context requires otherwise, as used in this report, the terms “CarParts.com,” the “Company,” “we,” “us” and “our” refer to CarParts.com, Inc. and its subsidiaries. Unless otherwise stated, all amounts are presented in thousands.

Carparts.com^™, Kool-Vue^®, JC Whitney^®, Evan Fischer^®, SureStop^®, TrueDrive^®, DriveWire^™, and DriveMotive^™, amongst others, are our current and pending trademarks in the United States. All other trademarks and trade names appearing in this report are the property of their respective owners.

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The statements included in this report, other than statements or characterizations of historical or current fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and we intend that such forward-looking statements be subject to the safe harbors created thereby. Any forward-looking statements included herein are based on management’s beliefs and assumptions and on information currently available to management. We have attempted to identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” “will likely continue,” “will likely result” and variations of these words or similar expressions. These forward-looking statements include, but are not limited to, statements regarding future events, our future operating and financial results, financial expectations, expected growth and strategies, current business indicators, capital needs, financing plans, capital deployment, liquidity, contracts, litigation, product offerings, customers, acquisitions, competition and the status of our facilities. Forward-looking statements, no matter where they occur in this document or in other statements attributable to the Company involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. We discuss many of these risks in greater detail under the heading “Risk Factors” in Part II, Item 1A of this report. Given these uncertainties, you should not place undue reliance on these forward-looking statements. You should read this report and the documents that we reference in this report and have filed as exhibits to the report completely and with the understanding that our actual future results may be materially different from what we expect. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this report. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

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PART I. FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

CARPARTS.COM, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited, In Thousands, Except Par Value and Per Share Liquidation Value)


	October 2,		January 2,
	2021		2021
ASSETS
Current assets:
Cash and cash equivalents	$	20,680	$	35,802
Accounts receivable, net		8,055		6,318
Inventory, net		131,768		89,316
Other current assets		6,351		7,939
Total current assets		166,854		139,375
Property and equipment, net		19,069		14,742
Right-of-use - assets - operating leases, net		18,856		17,507
Right-of-use - assets - finance leases, net		14,813		12,457
Other non-current assets		2,217		2,892
Total assets	$	221,809	$	186,973
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	59,430	$	45,302
Accrued expenses		23,446		18,190
Customer deposits		708		630
Right-of-use - obligation - operating, current		3,467		2,527
Right-of-use - obligation - finance, current		2,484		1,583
Other current liabilities		3,935		3,747
Total current liabilities		93,470		71,979
Right-of-use - obligation - operating, non-current		17,077		16,046
Right-of-use - obligation - finance, non-current		12,836		11,428
Other non-current liabilities		3,956		4,031
Total liabilities		127,339		103,484
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value; 100,000 shares authorized; 52,415 and 48,091 shares issued and outstanding as of October 2, 2021 and January 2, 2021 (of which 2,525 are treasury stock)		55		51
Treasury stock		(7,146)		(7,146)
Additional paid-in capital		276,388		260,260
Accumulated other comprehensive loss		(57)		(215)
Accumulated deficit		(174,770)		(169,461)
Total stockholders’ equity		94,470		83,489
Total liabilities and stockholders' equity	$	221,809	$	186,973

See accompanying notes to consolidated financial statements (unaudited).

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CARPARTS.COM, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS

(Unaudited, in Thousands, Except Per Share Data)


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 2,		September 26,		October 2,		September 26,
	2021		2020		2021		2020
Net sales	$	141,846	$	117,406	$	444,184	$	324,154
Cost of sales ⁽¹⁾		94,513		74,285		294,328		210,425
Gross profit		47,333		43,121		149,856		113,729
Operating expense		51,668		41,389		154,353		110,174
(Loss) income from operations		(4,335)		1,732		(4,497)		3,555
Other income (expense):
Other, net		24		6		221		80
Interest expense		(309)		(308)		(826)		(1,461)
Total other expense, net		(285)		(302)		(605)		(1,381)
(Loss) income before income taxes		(4,620)		1,430		(5,102)		2,174
Income tax provision		39		45		207		199
Net (loss) income		(4,659)		1,385		(5,309)		1,975
Other comprehensive gain (loss):
Foreign currency translation adjustments		60		(38)		90		(73)
Unrealized (loss) gain on deferred compensation trust assets		(5)		35		68		(2)
Total other comprehensive gain (loss)		55		(3)		158		(75)
Comprehensive (loss) income	$	(4,604)	$	1,382	$	(5,151)	$	1,900
Net (loss) income per share:
Basic net (loss) income per share	$	(0.09)	$	0.03	$	(0.10)	$	0.05
Diluted net (loss) income per share	$	(0.09)	$	0.03	$	(0.10)	$	0.04
Weighted-average common shares outstanding:
Shares used in computation of basic net (loss) income per share		52,264		44,686		50,903		40,314
Shares used in computation of diluted net (loss) income per share		52,264		53,573		50,903		50,386

(1)	Excludes depreciation and amortization expense which is included in operating expense.

See accompanying notes to consolidated financial statements (unaudited).

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CARPARTS.COM, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, In Thousands)


											Accumulated
							Additional				Other				Total
	Preferred Stock			Common Stock			Paid-in-		Treasury		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Capital		Stock		Income (Loss)		Deficit		Equity
Balance, December 28, 2019	2,771	$	3	36,167	$	38	$	187,147	$	(7,146)	$	214	$	(167,876)	$	12,380
Net loss	—		—	—		—		—		—		—		(978)		(978)
Issuance of shares in connection with stock option exercise	—		—	523		1		1,119		—		—		—		1,120
Issuance of shares in connection with restricted stock units vesting	—		—	1,809		2		(86)		—		—		—		(84)
Issuance of shares in connection with BOD fees	—		—	3		—		6		—		—		—		6
Share-based compensation	—		—	—		—		2,819		—		—		—		2,819
Common stock dividend on preferred stock	—		—	20		—		38		—		—		(39)		(1)
Conversion of preferred stock	(150)		—	150		—		—		—		—		—		—
Unrealized loss on deferred compensation trust assets	—		—	—		—		—		—		(95)		—		(95)
Effect of changes in foreign currencies	—		—	—		—		—		—		(6)		—		(6)
Balance, March 28, 2020	2,621		3	38,672		41		191,043		(7,146)		113		(168,893)		15,161
Net income	—		—	—		—		—		—		—		1,568		1,568
Issuance of shares in connection with stock option exercise	—		—	907		1		1,772		—		—		—		1,773
Issuance of shares in connection with restricted stock units vesting	—		—	183		—		(2)		—		—		—		(2)
Issuance of shares in connection with BOD fees	—		—	3		—		6		—		—		—		6
Share-based compensation	—		—	—		—		1,874		—		—		—		1,874
Issuance of series A convertible preferred stock	—		—	—		—		—		—		—		—		—
Dividend on preferred stock	—		—	25		—		—		—		—		(33)		(33)
Conversion of preferred stock	(2,621)		(3)	2,621		3		—		—		—		—		—
Unrealized gain on deferred compensation trust assets	—		—	—		—		—		—		58		—		58
Effect of changes in foreign currencies	—		—	—		—		—		—		(29)		—		(29)
Balance, June 27, 2020	—		—	42,411		45		194,693		(7,146)		142		(167,358)		20,376
Net income	—		—	—		—		—		—		—		1,385		1,385
Issuance of common stock, net of underwriters' offering expenses and commissions	—		—	4,900		5		60,526		—		—		—		60,531
Issuance of shares in connection with stock option exercise	—		—	459		—		504		—		—		—		504
Issuance of shares in connection with restricted stock units vesting	—		—	1		—		(5)		—		—		—		(5)
Issuance of shares in connection with BOD fees	—		—	1		—		6		—		—		—		6
Share-based compensation	—		—	—		—		1,773		—		—		—		1,773
Unrealized gain on deferred compensation trust assets	—		—	—		—		—		—		35		—		35
Effect of changes in foreign currencies	—		—	—		—		—		—		(38)		—		(38)
Balance, September 26, 2020	—		—	47,772		50		257,497		(7,146)		139		(165,973)		84,567

Balance, January 2, 2021	—		—	48,091		51		260,260		(7,146)		(215)		(169,461)		83,489
Net loss	—		—	—		—		—		—		—		(2,722)		(2,722)
Issuance of shares in connection with stock option exercise	—		—	130		—		163		—		—		—		163
Issuance of shares in connection with restricted stock units vesting	—		—	2,382		2		(6)		—		—		—		(4)
Issuance of shares in connection with BOD fees	—		—	—		—		6		—		—		—		6
Share-based compensation	—		—	—		—		4,080		—		—		—		4,080
Unrealized gain on deferred compensation trust assets	—		—	—		—		—		—		35		—		35
Effect of changes in foreign currencies	—		—	—		—		—		—		14		—		14
Balance, April 3, 2021	—		—	50,603		53		264,503		(7,146)		(166)		(172,183)		85,061
Net income	—		—	—		—		—		—		—		2,072		2,072
Issuance of shares in connection with stock option exercise	—		—	1,463		2		2,615		—		—		—		2,617
Issuance of stock awards	—		—	118		—		389		—		—		—		389
Issuance of shares in connection with BOD fees	—		—	—		—		6		—		—		—		6
Share-based compensation	—		—	—		—		3,821		—		—		—		3,821
Unrealized gain on deferred compensation trust assets	—		—	—		—		—		—		38		—		38
Effect of changes in foreign currencies	—		—	—		—		—		—		16		—		16
Balance, July 3, 2021	—	$	—	52,184	$	55	$	271,334	$	(7,146)	$	(112)	$	(170,111)	$	94,020
Net loss	—		—	—		—		—		—		—		(4,659)		(4,659)
Issuance of shares in connection with stock option exercise	—		—	108		—		451		—		—		—		451
Issuance of shares in connection with restricted stock units vesting	—		—	109		—		—		—		—		—		—
Issuance of stock awards	—		—	14		—		233		—		—		—		233
Issuance of shares in connection with BOD fees	—		—	—		—		6		—		—		—		6
Share-based compensation	—		—	—		—		4,364		—		—		—		4,364
Unrealized loss on deferred compensation trust assets	—		—	—		—		—		—		(5)		—		(5)
Effect of changes in foreign currencies	—		—	—		—		—		—		60		—		60
Balance, October 2, 2021	—	$	—	52,415	$	55	$	276,388	$	(7,146)	$	(57)	$	(174,770)	$	94,470

See accompanying notes to consolidated financial statements (unaudited).

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CARPARTS.COM, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, In Thousands)


	Thirty-Nine Weeks Ended
	October 2,		September 26,
	2021		2020
Operating activities
Net (loss) income	$	(5,309)	$	1,975
Adjustments to reconcile net (loss) income to net cash (used) provided by operating activities:
Depreciation and amortization expense		7,123		5,298
Amortization of intangible assets		83		75
Share-based compensation expense		11,277		5,991
Stock awards issued for non-employee director service		17		18
Loss from disposition of assets		15		1
Amortization of deferred financing costs		13		14
Changes in operating assets and liabilities:
Accounts receivable		(1,737)		(4,306)
Inventory		(42,453)		(24,229)
Other current assets		1,580		(1,927)
Other non-current assets		556		(622)
Accounts payable and accrued expenses		19,477		18,062
Other current liabilities		266		380
Right-of-use obligation - operating leases - current		960		902
Right-of-use obligation - operating leases - long-term		(331)		(354)
Other non-current liabilities		114		332
Net cash (used) provided by operating activities		(8,349)		1,610
Investing activities
Additions to property and equipment		(8,434)		(6,936)
Proceeds from sale of property and equipment		27		—
Net cash used in investing activities		(8,407)		(6,936)
Financing activities
Borrowings from revolving loan payable		105		1,394
Payments made on revolving loan payable		(105)		(1,394)
Proceeds from notes payable		—		4,107
Payments of notes payable		—		(5,333)
Payments on finance leases		(1,566)		(560)
Net proceeds from issuance of common stock		—		60,531
Statutory tax withholding payment for share-based compensation		(3)		(91)
Proceeds from exercise of stock options		3,230		3,398
Preferred stock dividends paid		—		(33)
Net cash provided by financing activities		1,661		62,019
Effect of exchange rate changes on cash		(27)		5
Net change in cash and cash equivalents		(15,122)		56,698
Cash and cash equivalents, beginning of period		35,802		2,273
Cash and cash equivalents, end of period	$	20,680	$	58,971
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use operating asset acquired	$	4,075	$	14,785
Right-of-use finance asset acquired	$	4,257	$	1,900
Accrued asset purchases	$	1,727	$	735
Share-based compensation expense capitalized in property and equipment	$	1,610	$	475
Stock issued for services	$	622	$	—
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	$	77	$	113
Cash paid during the period for interest	$	811	$	1,603

See accompanying notes to consolidated financial statements (unaudited).

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CARPARTS.COM, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(In Thousands, Except Per Share Data)

Note 1 – Basis of Presentation and Description of Company

CarParts.com, Inc. (including its subsidiaries) is a leading online provider of aftermarket auto parts and accessories. The Company sells its products primarily to individual consumers through its flagship website located at www.carparts.com and online marketplaces. Our corporate website is also located at www.carparts.com/investor. References to the “Company,” “we,” “us,” or “our” refer to CarParts.com, Inc. and its consolidated subsidiaries.

The Company’s products consist of replacement parts serving the wear and tear and body repair market, hard parts to serve the maintenance and repair market, and performance parts and accessories. The replacement parts category is primarily comprised of body parts for the exterior of an automobile as well as certain other mechanical or electrical parts that are not related to the functioning of the engine or drivetrain. Our parts in this category typically replace original body parts that have been damaged as a result of general wear and tear or a collision. In addition, we sell an extensive line of mirror products, including parts from our own house brand called Kool-Vue^®, which are marketed and sold as aftermarket replacement parts and as upgrades to existing parts. The hard parts category is primarily comprised of engine components and other mechanical and electrical parts including our house brand of catalytic converters called Evan Fischer^®. These hard parts serve as replacement parts that are generally used by professionals and do-it-yourselfers for engine and mechanical maintenance and repair. We also offer performance versions of many parts sold in each of the above categories, including parts from our own house brand, JC Whitney^®. Performance parts and accessories generally consist of parts that enhance the performance of the automobile, upgrade existing functionality of a specific part or improve the physical appearance or comfort of the automobile.

The Company is a Delaware C corporation and is headquartered in Torrance, California. The Company has employees located in both the United States and the Philippines.

Basis of Presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to U.S. Securities and Exchange Commission (“SEC”) Form 10-Q and Article 10 of SEC Regulation S-X. In the opinion of management, the accompanying consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position of the Company as of October 2, 2021 and the consolidated results of operations and cash flows for the thirteen and thirty-nine weeks ended October 2, 2021 and September 26, 2020. The Company’s results for the interim periods are not necessarily indicative of the results that may be expected for any other interim period, or for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended January 2, 2021, which was filed with the SEC on March 16, 2021 and all our other periodic filings, including Current Reports on Form 8-K, filed with the SEC after the end of our 2020 fiscal year, and throughout the date of this report.

During the thirteen and thirty-nine weeks ended October 2, 2021, the Company incurred a net loss of $4,659 and $5,309, respectively, compared to net income of $1,385 and $1,975, respectively, during the thirteen and thirty-nine weeks ended September 26, 2020. Based on our current operating plan, we believe that our existing cash, cash equivalents, investments, cash flows from operations and available debt financing will be sufficient to finance our operational cash needs through at least the next twelve months.

Note 2 – Borrowings

The Company maintains an asset-based revolving credit facility ("Credit Facility") that provides for, among other things, a revolving commitment in an aggregate principal amount of up to $30,000, which is subject to a borrowing base derived from certain receivables, inventory, and property and equipment. Our Credit Facility also provides for an option to increase the aggregate principal amount from $30,000 to $40,000 subject to lender approval. As of October 2, 2021,

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our outstanding revolving loan balance was $0. The outstanding standby letters of credit balance as of October 2, 2021 was $1,435, and we had $0 of our trade letters of credit outstanding in accounts payable in our consolidated balance sheet.

Loans drawn under the Credit Facility bear interest, at the Company’s option, at a per annum rate equal to either (a) LIBOR plus an applicable margin of 1.25% to 1.75% per annum based on the Company's fixed charge coverage ratio, or (b) an “alternate prime base rate” subject to a reduction by 0.25% to 0.75% per annum based on the Company’s fixed charge coverage ratio. As of October 2, 2021, the Company’s LIBOR based interest rate was 1.38% (on $0 principal) and the Company’s prime based rate was 3.00% (on $0 principal). A commitment fee, based upon undrawn availability under the Credit Facility bearing interest at a rate of 0.25% per annum, is payable monthly. Under the terms of the credit agreement with JPMorgan Chase Bank (the "Credit Agreement"), cash receipts are deposited into a lock-box, which are at the Company’s discretion unless the “cash dominion period” is in effect, during which cash receipts will be used to reduce amounts owing under the Credit Agreement. The cash dominion period is triggered in an event of default or if excess availability is less than the $3,600 for three consecutive business days and will continue until, during the preceding 45 consecutive days, no event of default existed and excess availability has been greater than $3,600 at all times (with such trigger subject to adjustment based on the Company’s revolving commitment). In addition, in the event that “excess availability,” as defined under the Credit Agreement, is less than $3,000, the Company shall be required to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 (with the trigger subject to adjustment based on the Company’s revolving commitment). The Credit Agreement requires us to obtain a prior written consent from JPMorgan Chase Bank when we determine to pay any dividends on or make any distribution with respect to our common stock. The Credit Facility matures on December 16, 2022.

Note 3 – Stockholders’ Equity and Share-Based Compensation

Options and Restricted Stock Units

The Company had the following common stock option activity during the thirty-nine weeks ended October 2, 2021:

●

Granted options to purchase 0 common shares.

●

Exercise of 1,701 options to purchase common shares.

●

Forfeiture of 58 options to purchase common shares.

●

Expiration of 3 options to purchase common shares.

The following table summarizes the Company’s restricted stock unit ("RSU") activity for the thirty-nine weeks ended October 2, 2021, and details regarding the awards outstanding and exercisable as of October 2, 2021 (in thousands):


				Weighted Average
		Weighted		Remaining
		Average		Contractual	Aggregate
	Shares	Exercise Price		Term (in years)	Intrinsic Value
Vested and expected to vest as of January 2, 2021	3,143	$	—
Awarded	2,568	$	—
Vested	(2,588)	$	—
Forfeited	(22)	$	—
Awards outstanding, October 2, 2021	3,101	$	—	10.65	$	49,061
Vested and expected to vest as of October 2, 2021	3,101	$	—	10.65	$	49,061

During the thirty-nine weeks ended October 2, 2021, 63 RSUs that vested were time-based and 2,525 were performance-based.

Table of Contents

For the thirteen and thirty-nine weeks ended October 2, 2021, we recorded compensation costs related to stock options and RSUs of $4,597 and $12,887, respectively, of which $233 and $622, respectively, related to common shares issued to consultants as part of their compensation for services provided during the periods. For the thirteen and thirty-nine weeks ended September 26, 2020, we recorded compensation costs related to stock options and RSUs of $1,773 and $6,466, respectively. As of October 2, 2021, there was unrecognized compensation expense related to stock options and RSUs of $26,318 that will be expensed through September 2025.

Note 4 – Net (Loss) Income Per Share

The following table sets forth the computation of basic and diluted net (loss) income per share (in thousands, except per share data):

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

October 2, 2021

September 26, 2020

October 2, 2021

September 26, 2020

Net (loss) income per share:

Numerator:

Net (loss) income

(4,659)

1,385

(5,309)