PARTS iD (ID) 10-Q 10 May 22 2022 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 02, 2022
Document Information Line Items
Entity Registrant Name	PARTS iD, INC.
Trading Symbol	ID
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		33,965,804
Amendment Flag	false
Entity Central Index Key	0001698113
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-38296
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3674868
Entity Address, Address Line One	1 Corporate Drive
Entity Address, Address Line Two	Suite C
Entity Address, City or Town	Cranbury
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08512
City Area Code	(609)
Local Phone Number	642-4700
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash	$ 15,827,503	$ 23,203,230
Accounts receivable	3,090,131	2,157,108
Inventory	5,972,282	5,754,748
Prepaid expenses and other current assets	5,534,506	4,874,704
Total current assets	30,424,422	35,989,790
Property and equipment, net	14,024,686	13,700,876
Intangible assets	262,966	262,966
Deferred tax assets	3,195,973	2,314,907
Operating lease right-of-use	1,074,390
Other assets	267,707	267,707
Total assets	49,250,144	52,536,246
Current liabilities
Accounts payable	35,606,725	40,591,938
Customer deposits	17,941,597	15,497,857
Accrued expenses	6,948,508	6,221,330
Other current liabilities	4,046,351	3,930,841
Operating lease liabilities	680,173
Total current liabilities	65,223,354	66,241,966
Other non-current liabilities
Operating lease, net of current portion	394,217
Total liabilities	65,617,571	66,241,966
COMMITMENTS AND CONTINGENCIES (Note 6)
SHAREHOLDERS’ DEFICIT
Preferred stock, $0.0001 par value per share; 1,000,000 shares authorized and 0 issued and outstanding
Common stock, $0.0001 par value per share; 10,000,000 Class F shares authorized and 0 issued and outstanding
100,000,000 Class A shares authorized and 33,965,804 issued and outstanding, as of March 31, 2022 and December 31, 2021	3,396	3,396
Additional paid in capital	8,265,021	6,973,541
Accumulated deficit	(24,635,844)	(20,682,657)
Total shareholders’ deficit	(16,367,427)	(13,705,720)
Total liabilities and shareholders’ deficit	$ 49,250,144	$ 52,536,246

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Preferred stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class F Common Stock
Common stock, par value per share (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Class A Common Stock
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	33,965,804	33,965,804
Common stock, shares outstanding	33,965,804	33,965,804

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net revenue	$ 94,892,148	$ 109,073,628
Cost of goods sold	76,397,920	86,240,019
Gross profit	18,494,228	22,833,609
Operating expenses:
Advertising	9,701,292	10,499,386
Selling, general and administrative	11,672,727	11,358,707
Depreciation	1,954,462	1,773,773
Total operating expenses	23,328,481	23,631,866
Loss from operations	(4,834,253)	(798,257)
Interest expense		6,490
Loss before income tax benefit	(4,834,253)	(804,747)
Income tax benefit	(881,066)	(159,934)
Net loss	$ (3,953,187)	$ (644,813)
Loss per common share
Loss per share (basic and diluted) (in Dollars per share)	$ (0.12)	$ (0.02)
Weighted average number of shares (basic and diluted) (in Shares)	33,965,804	32,873,457

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Shareholders’ Deficit (Unaudited) - USD ($)	Class ACommon Stock	Additional Paid In Capital	Accumulated Deficit Amount	Total
Balance at Dec. 31, 2020	$ 3,287		$ (12,719,857)	$ (12,716,570)
Balance (in Shares) at Dec. 31, 2020	32,873,457
Share based compensation		28,824		28,824
Net loss			(644,813)	(644,813)
Balance at Mar. 31, 2021	$ 3,287	28,824	(13,364,670)	(13,332,559)
Balance (in Shares) at Mar. 31, 2021	32,873,457
Balance at Dec. 31, 2021	$ 3,396	6,973,541	(20,682,657)	(13,705,720)
Balance (in Shares) at Dec. 31, 2021	33,965,804
Share based compensation		1,291,480		1,291,480
Net loss			(3,953,187)	(3,953,187)
Balance at Mar. 31, 2022	$ 3,396	$ 8,265,021	$ (24,635,844)	$ (16,367,427)
Balance (in Shares) at Mar. 31, 2022	33,965,804

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows from Operating Activities:
Net loss	$ (3,953,187)	$ (644,813)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation	1,954,462	1,773,773
Deferred tax benefit	(881,066)
Amortization of right-of-use-assets	248,391
Share based compensation expense	867,370	28,824
Changes in operating assets and liabilities:
Accounts receivable	(933,023)	(1,812,046)
Inventory	(217,534)	(3,399,458)
Prepaid expenses and other current assets	(659,802)	1,717,564
Accounts payable	(4,985,213)	5,641,863
Customer deposits	2,443,740	11,080,694
Accrued expenses	727,178	1,298,977
Operating lease liabilities	(248,391)
Other current liabilities	115,510	1,332,584
Net cash (used in) provided by operating activities	(5,521,565)	17,017,962
Cash Flows from Investing Activities:
Purchase of property and equipment	(16,200)	(13,099)
Website and software development costs	(1,837,962)	(1,759,175)
Net cash used in investing activities	(1,854,162)	(1,772,274)
Cash Flows from Financing Activities:
Principal paid on notes payable		(5,156)
Net cash used in financing activities		(5,156)
Net change in cash	(7,375,727)	15,240,532
Cash, beginning of period	23,203,230	22,202,706
Cash, end of period	15,827,503	37,443,238
Supplemental disclosure of cash flows information:
Operating cash outflow from operating leases	$ 249,838
Cash paid for interest		6,490
Cash paid for income taxes		$ 4,000

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Note 1 – Organization and Description of Business Description of Business PARTS iD, Inc., a Delaware corporation (the “Company,” “PARTS iD,” “we” or “us”), is a technology-driven, digital commerce company focused on creating custom infrastructure and unique user experiences within niche markets. PARTS iD has a product portfolio comprising more than 18 million SKUs, an end-to-end digital commerce platform for both digital commerce and fulfillment, and a virtual shipping network comprising over 2,500 locations, over 5,000 active brands, and machine-learning algorithms for complex fitment industries such as vehicle parts and accessories. Management believes that the Company is a market leader and proven brand-builder, fueled by its commitment to delivering an engaging shopping experience; comprehensive, accurate and varied product offerings; and continued digital commerce innovation. References herein to the “Business Combination” refer to business combination that closed on November 20, 2020, resulting in the Company’s current corporate composition.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements are presented in U.S. dollars and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The December 31, 2021, condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Results for interim periods should not be considered indicative of results for any other interim period or for the full year. The consolidated financial statements include the accounts of PARTS iD, Inc. and its wholly-owned subsidiary PARTS iD, LLC. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the level of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements include revenue recognition, return allowances, allowance for doubtful accounts, depreciation, inventory valuation, valuation of deferred income tax assets and the capitalization and recoverability of software development costs. Recently Adopted Accounting Pronouncements On January 1, 2022, the Company adopted ASC 842 – Leases (“ASC 842”), which requires lessees to record right-of-use (“ROU”) assets and related lease obligations on the balance sheet, as well as disclose key information regarding leasing arrangements. The Company adopted the standard by applying the new transition alternative (ASU 2018-11) where an entity initially applies the new standard to all existing leases at the adoption date without restatement to prior periods. Adoption of the new standard resulted in no adjustment to the opening balance of retained earnings as of the adoption date but did result in the recognition of ROU assets and related lease obligations as of January 1, 2022 of $1,322,781. The adoption of this standard did not have a significant impact on the Company’s operating results or cash flows. The Company elected the package of practical expedients which permits a lessee to not reassess under the new standard its prior conclusions regarding lease identification, lease classification and initial direct costs. The Company did not elect the practical expedient which permits the use of hindsight when determining the lease term and assessing ROU assets for impairment. As permitted by the transition guidance, the Company used the remaining lease term as of the date of adoption of the standard to estimate discount rates. As permitted by the standard, the Company elected, for all asset classes, the short-term lease exemption. A short-term lease is a lease that, at the commencement date, has a term of twelve months or less and does not include an option to purchase the underlying asset. The Company generally leases office and certain equipment under noncancelable agreements. Upon each agreement’s commencement date, the Company determines if the agreement is part of an arrangement that is or that contains a lease, determines the lease classification, and recognizes ROU assets and lease liabilities for all leases except for leases with terms of 12 months or less. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term at the lease commencement date. The Company used an estimated incremental borrowing rate (“IBR”) based on the information available at the commencement date of the respective lease to determine the present value of future payments as most of our leases do not provide an implicit rate. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a comparable lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The Company reviews ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the ROU asset may not be recoverable. When such events occur, we compare the carrying amount of the ROU asset to the undiscounted expected future cash flows related to the ROU asset. If the comparison indicates that an impairment exists, the amount of the impairment is calculated as the difference between the excess of the carrying amount over the fair value of the ROU asset. If a readily determinable market price does not exist, fair value is estimated using discounted expected cash flows attributable to the ROU asset. Certain Significant Risks and Uncertainties In February 2022, the Russian Federation launched a full-scale invasion against Ukraine, and sustained conflict and disruption in the region is ongoing. The Company’s engineering and product data development team as well as back office and part of its customer service center are located in Ukraine. Significant Accounting Policies There have been no significant changes from the significant accounting policies disclosed in Note 2 of the “Notes to Consolidated Financial Statements” included in our Annual Report on Form 10-K for the year ended December 31, 2021 (our “2021 Form 10-K”).

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 3 – Property and equipment Property and equipment consisted of the following as of: March 31, December 31, Website and software development $ 45,527,865 $ 43,265,793 Furniture and fixtures 851,926 851,926 Computers and electronics 1,001,625 994,925 Vehicles 439,662 430,162 Leasehold improvements 237,190 237,190 Video and equipment 176,903 176,903 Total - Gross 48,235,171 45,956,899 Less: accumulated depreciation (34,210,485 ) (32,256,023 ) Total - Net $ 14,024,686 $ 13,700,876 Depreciation of property and equipment for the three months ended March 31, 2022 and 2021 amounted to $1,954,462 and $1,773,773, respectively.

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	Note 4 – Leases Operating Leases The Company has lease arrangements for office spaces and an equipment lease. These leases expire at various dates through 2024. As of and Operating Lease Expense $ 248,391 Additional Lease information: Weighted average remaining lease term-operating leases (in years) 1.60 Weighted average discount rate-operating leases 7 % Future minimum lease payments under non-cancellable leases as of March 31, 2022, were as follows: April 1, 2022 to March 31, 2023 $ 710,952 April 1, 2023 to March 31, 2024 441,534 Thereafter - Total future minimum lease payments $ 1,152,486 Less portion representing interest 78,096 Present value of lease obligations $ 1,074,390 Less current portion of lease obligations 680,173 Long term portion of lease obligations $ 394,217

Shareholders_ Deficit

Shareholders’ Deficit	3 Months Ended
	Mar. 31, 2022
Stockholders' Equity Note [Abstract]
Shareholders’ Deficit	Note 5 – Shareholders’ Deficit Preferred Stock As of March 31, 2022, the Company had authorized for issuance a total of 1,000,000 shares of preferred stock, par value of $0.0001 per share (“Preferred Stock”). As of March 31, 2022 and 2021, no shares of Preferred Stock were issued or were outstanding. The Certificate of Incorporation of the Company authorizes the Board to fix the voting rights, if any, designations, powers, preferences and relative, participating, optional, special, and other rights at the time of issue of any Preferred Stock. Common Stock As of March 31, 2022 and 2021, the Company had 33,965,804 and 32,873,457, respectively, shares of Class A common stock outstanding. As of March 31, 2022 and 2021, the Company had reserved 6,905,830 and 7,998,178, respectively, shares of Class A common stock for issuance as follows: Nature of Reserve As of As of a. Indemnification reserve: Upon the expiration of the indemnification period of two years as described in the Business Combination agreement, subject to the payments of indemnity claims, if any, the Company will issue up to 750,000 shares to former Onyx shareholders 750,000 750,000 b. Adjustment reserve: Upon finalizing the merger consideration, in 2021, the Company issued 299,999 shares to former Onyx shareholders - 300,000 c. EIP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Equity Incentive Plan 4,112,248 4,904,596 d ESPP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Employee Stock Purchase Plan 2,043,582 2,043,582 Total shares reserved for future issuance 6,905,830 7,998,178 Further, pursuant to the Business Combination agreement, the sponsor has a right to 1,502,129 shares of Class A common stock should its price exceed $15.00 per share for any thirty-day trading period during the 730 calendar days after the effective date of the Business Combination.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6 Commitments and Contingencies As of March 31, 2022, there were no material changes to the Company’s legal matters and other contingencies disclosed in the Note 5 of the “Notes to Consolidated Financial Statements” included in our 2021 Form 10-K.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 7 - Stock-Based Compensation During the three months ended March 31, 2022, and 2021, selling, general and administrative expenses included $867,370 and $28,824 of stock-based compensation expense, respectively. During the three months ended March 31, 2022 and 2021, the Company capitalized $424,110 and $0, respectively, of stock-based compensation expense associated with awards issued to consultants who are directly associated with and who devote time to our internal-use software. Equity Incentive Plan In October 2020, in connection with the Business Combination, the Company’s stockholders approved the Parts iD, Inc. 2020 Equity Incentive Plan (the “2020 EIP”). The 2020 EIP became effective immediately upon the closing of the Business Combination. As of March 31, 2022 and 2021, of the 4,904,596 shares of Class A common stock reserved for issuance under the 2020 EIP in the aggregate, 4,112,248 shares remained available for issuance. The 2020 EIP provides for the grant of stock options, restricted stock, restricted stock units (“RSUs”), performance shares, performance units (“PSUs”), stock appreciation rights, other stock-based awards and cash awards (collectively “awards”). The awards may be granted to employees, directors and consultants of the Company. Restricted Stock Units The following table summarizes the activity related to RSUs during the three months ended March 31, 2022: Restricted Weighted Unvested balance at January 1, 2022 1,551,033 $ 6.52 Granted 38,000 $ 2.20 Vested - - Forfeited (4,000 ) $ 7.22 Unvested balance at March 31, 2022 1,585,033 $ 6.41 As of March 31, 2022, approximately $8.1 million of unamortized stock-based compensation expense was associated with outstanding RSUs, which is expected to be recognized over a remaining weighted average period of 1.62 years. Performance Based Restricted Stock Units The following table summarizes the activity related to PSUs during the three months ended March 31, 2022: PSU Type Balance at Granted Forfeited Balance at Net revenue based 495,200 29,600 (1,600 ) 523,200 Weighted average grant date fair value $ 8.00 $ 2.20 $ 7.22 $ 7.67 Cash flow based 123,800 7,400 (400 ) 130,800 Weighted average grant date fair value $ 2.44 $ 2.14 $ 2.14 $ 2.14 Total 619,000 37,000 (2,000 ) 654,000 As of March 31, 2022, approximately $1.4 million of unamortized stock-based compensation expense was associated with outstanding PSUs, which is expected to be recognized over a weighted average period of 1.81 years. Employee Stock Purchase Plan In October 2020, in connection with the Business Combination, the Company’s stockholders approved the Parts iD, Inc. 2020 Employee Stock Purchase Plan (the “2020 ESPP”). There are 2,043,582 shares of Class A common stock available for issuance under the 2020 ESPP. The 2020 ESPP became effective immediately upon the closing of the Business Combination, but it has not yet been implemented. As of March 31, 2022, no shares had been issued under the 2020 ESPP.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 8 – Income Taxes For the three months ended March 31, 2022, and 2021, the effective income tax rate of (18.23)% and (19.87)%, respectively, differs from the federal statutory rate of 21% primarily due to the effect of state income taxes, share-based compensation and expenses not deductible for income tax purposes. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in the United Sates. The CARES Act contains several tax provisions, including modifications to the net operating loss (“NOL”) and business interest limitations as well as a technical correction to the recovery period for qualified improvement property. The Company has evaluated these provisions in the CARES Act and does not expect a material impact to its tax provision, except for the 80% of taxable income limitation in the future on the utilization of the Company’s NOLs. The Company does not currently anticipate any significant increase or decrease of the total amount of unrecognized tax benefits within the next twelve months. None of the Company’s U.S. federal or state income tax returns are currently under examination by the Internal Revenue Service (the “IRS”) or state authorities. However, fiscal years 2017 and later remain subject to examination by the IRS and respective states.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The consolidated financial statements are presented in U.S. dollars and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The December 31, 2021, condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Results for interim periods should not be considered indicative of results for any other interim period or for the full year. The consolidated financial statements include the accounts of PARTS iD, Inc. and its wholly-owned subsidiary PARTS iD, LLC. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the level of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Company’s critical accounting estimates and assumptions affecting the financial statements include revenue recognition, return allowances, allowance for doubtful accounts, depreciation, inventory valuation, valuation of deferred income tax assets and the capitalization and recoverability of software development costs.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements On January 1, 2022, the Company adopted ASC 842 – Leases (“ASC 842”), which requires lessees to record right-of-use (“ROU”) assets and related lease obligations on the balance sheet, as well as disclose key information regarding leasing arrangements. The Company adopted the standard by applying the new transition alternative (ASU 2018-11) where an entity initially applies the new standard to all existing leases at the adoption date without restatement to prior periods. Adoption of the new standard resulted in no adjustment to the opening balance of retained earnings as of the adoption date but did result in the recognition of ROU assets and related lease obligations as of January 1, 2022 of $1,322,781. The adoption of this standard did not have a significant impact on the Company’s operating results or cash flows. The Company elected the package of practical expedients which permits a lessee to not reassess under the new standard its prior conclusions regarding lease identification, lease classification and initial direct costs. The Company did not elect the practical expedient which permits the use of hindsight when determining the lease term and assessing ROU assets for impairment. As permitted by the transition guidance, the Company used the remaining lease term as of the date of adoption of the standard to estimate discount rates. As permitted by the standard, the Company elected, for all asset classes, the short-term lease exemption. A short-term lease is a lease that, at the commencement date, has a term of twelve months or less and does not include an option to purchase the underlying asset. The Company generally leases office and certain equipment under noncancelable agreements. Upon each agreement’s commencement date, the Company determines if the agreement is part of an arrangement that is or that contains a lease, determines the lease classification, and recognizes ROU assets and lease liabilities for all leases except for leases with terms of 12 months or less. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term at the lease commencement date. The Company used an estimated incremental borrowing rate (“IBR”) based on the information available at the commencement date of the respective lease to determine the present value of future payments as most of our leases do not provide an implicit rate. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a comparable lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The Company reviews ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the ROU asset may not be recoverable. When such events occur, we compare the carrying amount of the ROU asset to the undiscounted expected future cash flows related to the ROU asset. If the comparison indicates that an impairment exists, the amount of the impairment is calculated as the difference between the excess of the carrying amount over the fair value of the ROU asset. If a readily determinable market price does not exist, fair value is estimated using discounted expected cash flows attributable to the ROU asset.
Certain Significant Risks and Uncertainties	Certain Significant Risks and Uncertainties In February 2022, the Russian Federation launched a full-scale invasion against Ukraine, and sustained conflict and disruption in the region is ongoing. The Company’s engineering and product data development team as well as back office and part of its customer service center are located in Ukraine.
Significant Accounting Policies	Significant Accounting Policies There have been no significant changes from the significant accounting policies disclosed in Note 2 of the “Notes to Consolidated Financial Statements” included in our Annual Report on Form 10-K for the year ended December 31, 2021 (our “2021 Form 10-K”).

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	March 31, December 31, Website and software development $ 45,527,865 $ 43,265,793 Furniture and fixtures 851,926 851,926 Computers and electronics 1,001,625 994,925 Vehicles 439,662 430,162 Leasehold improvements 237,190 237,190 Video and equipment 176,903 176,903 Total - Gross 48,235,171 45,956,899 Less: accumulated depreciation (34,210,485 ) (32,256,023 ) Total - Net $ 14,024,686 $ 13,700,876

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Schedule of office spaces and an equipment lease	As of and Operating Lease Expense $ 248,391 Additional Lease information: Weighted average remaining lease term-operating leases (in years) 1.60 Weighted average discount rate-operating leases 7 % Future minimum lease payments under non-cancellable leases as of March 31, 2022, were as follows: April 1, 2022 to March 31, 2023 $ 710,952 April 1, 2023 to March 31, 2024 441,534 Thereafter - Total future minimum lease payments $ 1,152,486 Less portion representing interest 78,096 Present value of lease obligations $ 1,074,390 Less current portion of lease obligations 680,173 Long term portion of lease obligations $ 394,217

Shareholders_ Deficit (Tables)

Shareholders’ Deficit (Tables)	3 Months Ended
	Mar. 31, 2022
Stockholders' Equity Note [Abstract]
Schedule of shares of Class A common stock for issuance	Nature of Reserve As of As of a. Indemnification reserve: Upon the expiration of the indemnification period of two years as described in the Business Combination agreement, subject to the payments of indemnity claims, if any, the Company will issue up to 750,000 shares to former Onyx shareholders 750,000 750,000 b. Adjustment reserve: Upon finalizing the merger consideration, in 2021, the Company issued 299,999 shares to former Onyx shareholders - 300,000 c. EIP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Equity Incentive Plan 4,112,248 4,904,596 d ESPP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Employee Stock Purchase Plan 2,043,582 2,043,582 Total shares reserved for future issuance 6,905,830 7,998,178

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of summarizes the activity related to RSU	Restricted Weighted Unvested balance at January 1, 2022 1,551,033 $ 6.52 Granted 38,000 $ 2.20 Vested - - Forfeited (4,000 ) $ 7.22 Unvested balance at March 31, 2022 1,585,033 $ 6.41
Schedule of summarizes the activity related to PSU	PSU Type Balance at Granted Forfeited Balance at Net revenue based 495,200 29,600 (1,600 ) 523,200 Weighted average grant date fair value $ 8.00 $ 2.20 $ 7.22 $ 7.67 Cash flow based 123,800 7,400 (400 ) 130,800 Weighted average grant date fair value $ 2.44 $ 2.14 $ 2.14 $ 2.14 Total 619,000 37,000 (2,000 ) 654,000

Organization and Description _2

Organization and Description of Business (Details)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of business	PARTS iD has a product portfolio comprising more than 18 million SKUs, an end-to-end digital commerce platform for both digital commerce and fulfillment, and a virtual shipping network comprising over 2,500 locations, over 5,000 active brands, and machine-learning algorithms for complex fitment industries such as vehicle parts and accessories.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Details) - USD ($)	Mar. 31, 2022	Jan. 01, 2022
Accounting Policies [Abstract]
ROU assets and related lease obligations		$ 1,322,781
Short-term lease term	12 months

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,954,462	$ 1,773,773

Property and Equipment (Detai_2

Property and Equipment (Details) - Schedule of property and equipment - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Property and Equipment (Details) - Schedule of property and equipment [Line Items]
Property and Equipment, Gross	$ 48,235,171	$ 45,956,899
Less: accumulated depreciation	(34,210,485)	(32,256,023)
Total - Net	14,024,686	13,700,876
Website and software development [Member]
Property and Equipment (Details) - Schedule of property and equipment [Line Items]
Property and Equipment, Gross	45,527,865	43,265,793
Furniture and fixtures [Member]
Property and Equipment (Details) - Schedule of property and equipment [Line Items]
Property and Equipment, Gross	851,926	851,926
Computers and electronics [Member]
Property and Equipment (Details) - Schedule of property and equipment [Line Items]
Property and Equipment, Gross	1,001,625	994,925
Vehicles [Member]
Property and Equipment (Details) - Schedule of property and equipment [Line Items]
Property and Equipment, Gross	439,662	430,162
Leasehold improvements [Member]
Property and Equipment (Details) - Schedule of property and equipment [Line Items]
Property and Equipment, Gross	237,190	237,190
Video and equipment [Member]
Property and Equipment (Details) - Schedule of property and equipment [Line Items]
Property and Equipment, Gross	$ 176,903	$ 176,903

Leases (Details) - Schedule of

Leases (Details) - Schedule of office spaces and an equipment lease	3 Months Ended
	Mar. 31, 2022USD ($)
Schedule of office spaces and an equipment lease [Abstract]
Operating Lease Expense	$ 248,391
Additional Lease information:
Weighted average remaining lease term-operating leases (in years)	1 year 7 months 6 days
Weighted average discount rate-operating leases	7.00%
Future minimum lease payments under non-cancellable leases as of March 31, 2022, were as follows:
April 1, 2022 to March 31, 2023	$ 710,952
April 1, 2023 to March 31, 2024	441,534
Thereafter
Total future minimum lease payments	1,152,486
Less portion representing interest	78,096
Present value of lease obligations	1,074,390
Less current portion of lease obligations	680,173
Long term portion of lease obligations	$ 394,217

Shareholders_ Deficit (Details)

Shareholders’ Deficit (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Shareholders’ Deficit (Details) [Line Items]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Business Combination [Member]
Shareholders’ Deficit (Details) [Line Items]
Business combination, description	Further, pursuant to the Business Combination agreement, the sponsor has a right to 1,502,129 shares of Class A common stock should its price exceed $15.00 per share for any thirty-day trading period during the 730 calendar days after the effective date of the Business Combination.
Class A Common Stock [Member]
Shareholders’ Deficit (Details) [Line Items]
Shares of common stock outstanding	33,965,804	32,873,457
Shares of common stock issued	6,905,830	7,998,178

Shareholders_ Deficit (Detail_2

Shareholders’ Deficit (Details) - Schedule of shares of Class A common stock for issuance - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Schedule of shares of Class A common stock for issuance [Abstract]
Indemnification reserve: Upon the expiration of the indemnification period of two years as described in the Business Combination agreement, subject to the payments of indemnity claims, if any, the Company will issue up to 750,000 shares to former Onyx shareholders	750,000	750,000
Adjustment reserve: Upon finalizing the merger consideration, in 2021, the Company issued 299,999 shares to former Onyx shareholders		300,000
EIP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Equity Incentive Plan	4,112,248	4,904,596
ESPP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Employee Stock Purchase Plan	2,043,582	2,043,582
Total shares reserved for future issuance	6,905,830	7,998,178

Shareholders_ Deficit (Detail_3

Shareholders’ Deficit (Details) - Schedule of shares of Class A common stock for issuance (Parentheticals)	Mar. 31, 2022shares
Indemnification Reserve [Member]
Shareholders’ Deficit (Details) - Schedule of shares of Class A common stock for issuance (Parentheticals) [Line Items]
Common shares to former Onyx shareholders	750,000
Adjustment Reserve [Member]
Shareholders’ Deficit (Details) - Schedule of shares of Class A common stock for issuance (Parentheticals) [Line Items]
Common shares to former Onyx shareholders	299,999

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	1 Months Ended	3 Months Ended
	Oct. 31, 2020	Mar. 31, 2022	Mar. 31, 2021
Stock-Based Compensation (Details) [Line Items]
Selling, general and administrative expenses		$ 867,370	$ 28,824
Amount of capitalized		$ 424,110	$ 0
Shares remained available for issuance (in Shares)		4,112,248	4,112,248
Unamortized stock based compensation expense		$ 1,400,000
Weighted average period		1 year 9 months 21 days
Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation (Details) [Line Items]
Unamortized stock based compensation expense		$ 8,100,000
Weighted average period		1 year 7 months 13 days
Class A Common Stock [Member]
Stock-Based Compensation (Details) [Line Items]
Common stock reserved for issuance (in Shares)		4,904,596	4,904,596
Issuance of common stock shares (in Shares)	2,043,582

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - Schedule of summarizes the activity related to RSU	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Schedule of summarizes the activity related to RSU [Abstract]
Restricted Stock Units, Beginning balance | shares	1,551,033
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares	$ 6.52
Restricted Stock Units, Granted | shares	38,000
Weighted Average Grant Date Fair Value, Granted | $ / shares	$ 2.2
Restricted Stock Units, Vested | shares
Weighted Average Grant Date Fair Value, Vested | $ / shares
Restricted Stock Units, Forfeited | shares	(4,000)
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	$ 7.22
Restricted Stock Units, Ending balance | shares	1,585,033
Weighted Average Grant Date Fair Value, Ending balance | $ / shares	$ 6.41

Stock-Based Compensation (Det_3

Stock-Based Compensation (Details) - Schedule of summarizes the activity related to PSU	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Stock-Based Compensation (Details) - Schedule of summarizes the activity related to PSU [Line Items]
Balance Beginning	619,000
Granted	37,000
Forfeited	(2,000)
Balance Ending	654,000
Net revenue based [Member]
Stock-Based Compensation (Details) - Schedule of summarizes the activity related to PSU [Line Items]
Balance Beginning	495,200
Granted	29,600
Forfeited	(1,600)
Balance Ending	523,200
Weighted average grant date fair value [Member]
Stock-Based Compensation (Details) - Schedule of summarizes the activity related to PSU [Line Items]
Balance Beginning (in Dollars per share) | $ / shares	$ 8
Granted (in Dollars per share) | $ / shares	2.2
Forfeited (in Dollars per share) | $ / shares	7.22
Balance Ending (in Dollars per share) | $ / shares	$ 7.67
Cash flow based [Member]
Stock-Based Compensation (Details) - Schedule of summarizes the activity related to PSU [Line Items]
Balance Beginning	123,800
Granted	7,400
Forfeited	(400)
Balance Ending	130,800
Weighted average grant date fair value [Member]
Stock-Based Compensation (Details) - Schedule of summarizes the activity related to PSU [Line Items]
Balance Beginning (in Dollars per share) | $ / shares	$ 2.44
Granted (in Dollars per share) | $ / shares	2.14
Forfeited (in Dollars per share) | $ / shares	2.14
Balance Ending (in Dollars per share) | $ / shares	$ 2.14

Income Taxes (Details)

Income Taxes (Details)	1 Months Ended	3 Months Ended
	Mar. 27, 2020	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate		(18.23%)	(19.87%)
Federal statutory rate		21.00%
Percentage of taxable income	80.00%