PARTS iD (ID) 10-Q 8 Dec 23 2023 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Nov. 27, 2023
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		42,932,553
Amendment Flag	false
Entity Central Index Key	0001698113
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	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 ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash	$ 1,491,856	$ 3,796,267
Accounts receivable	736,843	1,330,521
Inventory	1,229,548	2,505,259
Prepaid expenses and other current assets	4,134,425	3,775,055
Total current assets	7,592,672	11,407,102
Property and equipment, net	10,287,508	12,915,773
Intangible assets	12,966	262,966
Right-of-use assets	556,390	1,075,157
Security deposits	247,708	247,708
Total assets	18,697,244	25,908,706
Current liabilities
Accounts payable	35,359,411	36,404,249
Customer deposits	815,527	3,098,119
Accrued expenses	6,952,521	5,793,044
Other current liabilities	1,414,764	2,279,138
Operating lease liabilities	310,177	688,188
Convertible notes payable, net	8,777,632	4,203,282
Derivative liabilities	1,150,000	551,000
Total current liabilities	54,780,032	53,017,020
Other non-current liabilities
Operating lease, net of current portion	246,214	386,866
Total liabilities	55,026,246	53,403,886
COMMITMENTS AND CONTINGENCIES (Note 7)
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 37,838,931 issued and outstanding as of September 30, 2023 and 34,825,971 issued and outstanding as of December 31, 2022	3,789	3,411
Additional paid in capital	18,434,085	11,107,946
Accumulated deficit	(54,766,876)	(38,606,537)
Total shareholders’ deficit	(36,329,002)	(27,495,180)
Total liabilities and shareholders’ deficit	$ 18,697,244	$ 25,908,706

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
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	37,838,931	34,825,971
Common stock, shares outstanding	37,838,931	34,825,971

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net revenue	$ 15,711,394	$ 79,884,740	$ 48,032,207	$ 279,034,366
Cost of goods sold	11,395,872	63,962,534	36,225,160	224,034,701
Gross profit	4,315,522	15,922,206	11,807,047	54,999,665
Operating expenses:
Advertising	486,254	7,329,172	2,053,547	26,468,121
Selling, general and administrative	5,863,379	9,458,749	17,021,120	31,072,365
Depreciation	1,899,995	2,113,695	5,877,025	6,210,590
Total operating expenses	8,249,628	18,901,616	24,951,692	63,751,076
Loss from operations	(3,934,106)	(2,979,410)	(13,144,645)	(8,751,411)
Loss on extinguishment of debt			879,045
Loss on extinguishment of warrants	317,000		317,000
Change in fair value of derivatives	(93,000)		(634,000)
Interest and financing expense	1,513,483	50,000	2,452,649	50,000
Loss before income taxes	(5,671,589)	(3,029,410)	(16,159,339)	(8,801,411)
Income tax expense		3,241,618	1,000	2,322,515
Net loss	$ (5,671,589)	$ (6,271,028)	$ (16,160,339)	$ (11,123,926)
Loss per common share
Loss per share (basic and diluted) (in Dollars per share)	$ (0.16)	$ (0.18)	$ (0.46)	$ (0.33)
Weighted average number of shares (basic and diluted) (in Shares)	35,868,525	34,064,266	35,357,877	34,004,944

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Loss per share diluted	$ (0.15)	$ (0.18)	$ (0.45)	$ (0.33)
Weighted average number of shares diluted	35,868,525	34,064,266	35,357,877	34,004,944

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Shareholders’ Deficit (Unaudited) - USD ($)	Class A Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
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	$ 15	2,893,405		2,893,420
Share-based compensation (in Shares)	148,645
Net loss			(11,123,926)	(11,123,926)
Balance at Sep. 30, 2022	$ 3,411	9,866,946	(31,806,583)	(21,936,226)
Balance (in Shares) at Sep. 30, 2022	34,114,449
Balance at Jun. 30, 2022	$ 3,406	8,516,706	(25,535,555)	(17,015,443)
Balance (in Shares) at Jun. 30, 2022	34,062,616
Share-based compensation	$ 5	1,350,240		1,350,245
Share-based compensation (in Shares)	51,833
Net loss			(6,271,028)	(6,271,028)
Balance at Sep. 30, 2022	$ 3,411	9,866,946	(31,806,583)	(21,936,226)
Balance (in Shares) at Sep. 30, 2022	34,114,449
Balance at Dec. 31, 2022	$ 3,411	11,107,946	(38,606,537)	(27,495,180)
Balance (in Shares) at Dec. 31, 2022	34,825,971
Vesting of RSUs	$ 104	(104)
Vesting of RSUs (in Shares)	276,582
Share-based compensation		2,804,477		2,804,477
Note payable allocated to warrants		526,955		526,955
Common stock issued in exchange for services rendered	$ 14	65,583		65,597
Common stock issued in exchange for services rendered (in Shares)	138,977
Conversion of debt to common stock	$ 260	85,365		85,625
Conversion of debt to common stock (in Shares)	2,597,401
Issuance of warrants		3,843,863		3,843,863
Net loss			(16,160,339)	(16,160,339)
Balance at Sep. 30, 2023	$ 3,789	18,434,085	(54,766,876)	(36,329,002)
Balance (in Shares) at Sep. 30, 2023	37,838,931
Balance at Jun. 30, 2023	$ 3,515	13,537,195	(49,095,287)	(35,554,577)
Balance (in Shares) at Jun. 30, 2023	35,102,553
Share-based compensation		902,079		902,079
Common stock issued in exchange for services rendered	$ 14	65,583		65,597
Common stock issued in exchange for services rendered (in Shares)	138,977
Conversion of debt to common stock	$ 260	85,365		85,625
Conversion of debt to common stock (in Shares)	2,597,401
Issuance of warrants		3,843,863		3,843,863
Net loss			(5,671,589)	(5,671,589)
Balance at Sep. 30, 2023	$ 3,789	$ 18,434,085	$ (54,766,876)	$ (36,329,002)
Balance (in Shares) at Sep. 30, 2023	37,838,931

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows from Operating Activities:
Net loss	$ (16,160,339)	$ (11,123,926)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	5,877,025	6,210,590
Deferred tax expense		2,314,907
Amortization of right-of-use assets	518,767	239,879
Share-based compensation expense	1,689,867	1,601,848
Change in fair value of derivatives	(634,000)
Amortization of debt discount	1,003,935
Gain on sale of property and equipment		(63,524)
Loss on extinguishment of debt	879,045
Payment for services in Company’s stock	65,597
Write-off of debt discount due to repayment of notes	440,823
Loss on extinguishment of warrants	317,000
Changes in operating assets and liabilities:
Accounts receivable	593,678	(266,366)
Inventory	1,275,711	1,059,967
Prepaid expenses and other current assets	(359,370)	(1,763,818)
Accounts payable	(1,044,838)	(4,391,427)
Customer deposits	(2,282,592)	(6,659,044)
Accrued expenses	1,159,477	(281,434)
Operating lease liabilities	(518,663)	(239,879)
Other current liabilities	(1,253,172)	(1,013,363)
Net cash used in operating activities	(8,432,049)	(14,375,590)
Cash Flows from Investing Activities:
Proceeds from sale of fixed assets		90,250
Purchase of property and equipment	(2,892)	(64,882)
Proceeds from sale of intangible asset	250,000
Website and software development costs	(2,084,470)	(4,669,002)
Net cash used in investing activities	(1,837,362)	(4,643,634)
Cash Flows from Financing Activities:
Repayment of note payable	(6,410,000)
Proceeds from convertible notes and sale of future receivable, net	14,375,000
Net cash provided by financing activities	7,965,000
Net change in cash	(2,304,411)	(19,019,224)
Cash, beginning of period	3,796,267	23,203,230
Cash, end of period	1,491,856	4,184,006
Supplemental non-cash disclosure:
Conversion of debt to common stock	85,625
Issuance of convertible warrants related to notes payable	4,370,818
Supplemental disclosure of cash flows information:
Cash paid for interest	1,429,725
Cash paid for taxes	$ 1,000	$ 5,000

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2023
Organization and Description of Business [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,” “our” or “us”), is a technology-driven, digital commerce company focused on creating custom infrastructure and unique user experience within niche markets. PARTS iD has a product portfolio comprised of approximately 18 million SKUs, when fully available, an end-to-end digital commerce platform for both digital commerce and fulfillment, and a virtual shipping network comprising over 2,500 locations, approximately 4,500 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The unaudited condensed 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, 2022 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 unaudited condensed 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 credit losses, depreciation, inventory valuation, valuation of deferred income tax assets and the capitalization and recoverability of software development costs. Stock Compensation Compensation expense related to stock option awards and restricted stock units granted to certain employees, directors and consultants is based on the fair value of the awards on the grant date. If the service inception date precedes the grant date, accrual of compensation cost for periods before the grant date is based on the fair value of the award at the reporting date. In the period in which the grant date occurs, cumulative compensation cost is adjusted to reflect the cumulative effect of measuring compensation cost based on fair value at the grant date rather than the fair value previously used at the service inception date or any subsequent reporting date. Forfeitures are recorded as they occur. The Company recognizes compensation cost related to time-vested options and restricted stock units with graded vesting features on a straight-line basis over the requisite service period. Compensation cost related to performance-vesting options and performance-based units, where a performance condition or a market condition that affects vesting exists, is recognized over the shortest of the explicit, implicit, or defined service periods. Compensation cost is adjusted depending on whether the performance condition is achieved. If the achievement of the performance condition is probable or becomes probable, the full fair value of the award is recognized. If the achievement of the performance condition is not probable or ceases to be probable, then no compensation cost is recognized or amounts previously recognized are reversed. Concentration of Credit Risk Financial instruments that expose the Company to a concentration of credit risk principally include cash and accounts receivable balances. The Company has significant cash balances at financial institutions which throughout the year regularly exceed the federally insured limit of $250,000. Any loss incurred or lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows. The Company manages accounts receivable credit risk through its policy of limiting extensions of credit to customers. Substantially all customer orders are paid by credit card at the point of sale. Going Concern These condensed consolidated financial statements have been prepared in accordance with GAAP assuming the Company will continue as a going concern. The going concern assumption contemplates the realization of assts and satisfaction of liabilities in the normal course of business. We have operated with a negative working capital model since our inception. The Company has a working capital deficiency of approximately $47 million. We continue to face macro-economic headwinds and the resulting declining revenue and profitability, which increased the working capital deficit, and resulted in the use of approximately $8.4 million in cash from operating activities, of which $2.4 million was attributable to changes in working capital during the nine months ended September 30, 2023. With this, substantial doubt exists about the Company’s ability to continue as a going concern within one year from the date of the issuance of these condensed consolidated financial statements. The accompanying condensed consolidated financial statements have been prepared assuming we will continue to operate as a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business, and does not reflect any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from uncertainty related to our ability to continue as a going concern. To address liquidity concerns, the Company is pursuing additional financing and continues to restructure and optimize its operations including moderating capital investments, improving gross margin, reducing expenses, and renegotiating vendor payment terms. In addition, to address its liquidity needs, the Company recently obtained an aggregate of approximately $14 million from the sale and issuance of convertible notes and warrants (as discussed below). In addition, the Company obtained additional financing in October and November 2023. See Note 10 – Subsequent Events for more information. Additionally, management is implementing cost saving initiatives to reduce operating costs and plans to continue to implement further cost saving initiatives where appropriate. The Company’s plans are dependent on conditions and factors, many of which are outside of the Company’s control. There can be no assurance that the Company will be successful in implementing its plans or that it will be able to generate positive cash flow from operations in any future period, nor can there be any assurance that it will be able to raise additional capital. The result of such inability, whether individually or in the aggregate, will adversely impact the Company’s financial condition and could cause the Company to curtail or cease operations or to pursue other strategic alternatives, including commencing a case under the U.S. Bankruptcy Code. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Liquidity and Capital Resources” below for additional details. PARTS iD has also retained Canaccord Genuity Group, Inc. (“Canaccord”) as its financial advisor and DLA Piper LLP (US) as its legal counsel to assist in evaluating potential strategic alternatives. There can be no assurance that the evaluation of strategic alternatives will result in any potential transaction, or any assurance as to its outcome or timing. PARTS iD has not set a timetable for completion of the process and does not intend to disclose developments related to the process unless and until PARTS iD executes a definitive agreement with respect thereto, or the Board of Directors otherwise determines that further disclosure is appropriate or required. Accounts Receivable Accounts receivable balances include amounts due from customers. The Company periodically reviews its accounts receivable balances to determine whether an allowance for credit losses is necessary based on an analysis of past due accounts, historical occurrences of credit losses, existing economic conditions, and other circumstances that may indicate that the realization of an account is in doubt. As of September 30, 2023 and December 31, 2022, the Company determined that an allowance for credit losses was not necessary. On September 11, 2023, the Company entered into a Purchase and Sale of Future Receivables Agreement (the “Riverside Agreement”) with Riverside Capital NY (“RCNY”). Pursuant to the terms of the Riverside Agreement, the Company agreed to sell, and RCNY agreed to purchase, the Company’s right, title and interest in and to $700,000 of the Company’s future receivables, for a purchase price of $500,000. Pursuant to the terms of the Riverside Agreement, the Company agreed to pay RCNY $35,000 each week until such time as RCNY has been repaid. Additionally, on September 11, 2023, the Company also entered into a Standard Merchant Cash Advance Agreement (the “WAVE Agreement”) with WAVE ADVANCE INC (“WAVE”). Pursuant to the terms of the WAVE Agreement, the Company agreed to sell, and WAVE agreed to purchase, the Company’s right, title and interest in and to $700,000 of the Company’s future receivables, for a purchase price of $500,000. Pursuant to the terms of the WAVE Agreement, the Company agreed to pay WAVE $35,000 each week until such time as WAVE has been repaid. Each of the Riverside Agreement and the Wave Agreement provides for the grant of a junior security interest in the future receivables and other related collateral under the Uniform Commercial Code in accounts and proceeds, subordinated to the indebtedness incurred under that certain Securities Purchase Agreement, dated as of July 14, 2023, by and between the Company and Lind Global Fund II LP, as amended. Inventor Inventory consists of purchased goods that are immediately available-for-sale and are stated at the lower cost or net realizable value, determined using the first-in, first-out method. Merchandise-in-transit directly from suppliers to customers is recorded in inventory until the product is delivered to the customer. As of September 30, 2023, and December 31, 2022, merchandise-in-transit amounted to $258,935 and $957,735, respectively. The risk of loss is transferred from the supplier to the Company at the shipping point. Since the purchased goods are immediately shipped directly from suppliers to customers the Company deemed that an inventory reserve for obsolete or slow-moving goods was unnecessary. Other Current Assets Other current assets include advances to vendors amounting to $2,584,464 and $1,796,680 as of September 30, 2023, and December 31, 2022, respectively, which are included in prepaid expenses and other current assets on the condensed consolidated balance sheets. Website and Software Development The Company capitalizes certain costs associated with website and software developed for internal use in accordance with ASC 350-50, Intangibles – Goodwill and Other – Website Development Costs, Intangibles – Goodwill and Other – Internal Use Software, Intan ible Assets Intangible assets consist of indefinite-lived domain names and are stated at cost less impairment losses, if any. The Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. When such events occur, the Company compares the carrying amount of the asset to the undiscounted expected future cash flows related to the 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 asset. The Company has determined that there were no triggering events in the nine months ended September 30, 2023 and 2022, and no impairment charges were necessary. During the nine months ended September 30, 2023, the Company sold its Onyx.com domain name for $250,000. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is calculated on a straight-line basis over the estimated useful lives of the assets as follows: Asset Class Estimated useful lives Video and studio equipment 5 years Website and internally developed software 3 years Computer and electronics 5 years Vehicles 5 years Furniture and fixtures 5 years Leasehold improvements Lesser of useful life or lease term Accounts Payable Accounts payable as of September 30, 2023, consisted of amounts payable to vendors of $33.2 million and credit card payable of $2.2 million payable to a credit card company. As of December 31, 2022, accounts payable consisted of amounts payable to vendors of $33.1 million and $3.3 million credit card payable to the same credit card company mentioned above. Revenue Reco nition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identifies contracts with customers; (ii) identifies performance obligation(s); (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligation(s); and (v) recognizes revenue when (or as) the Company satisfies each performance obligation. The Company recognizes revenue on product sales through its website as the principal in the transaction as the Company has concluded it controls the product before it is transferred to the customer. The Company controls products when it is the entity responsible for fulfilling the promise to the customer and takes responsibility for the acceptability of the goods, assumes inventory risk from shipment through the delivery date, has discretion in establishing prices, and selects the suppliers of products sold. Sales discounts earned by customers at the time of purchase and taxes collected from customers, which are remitted to governmental authorities, are deducted from gross revenue in determining net revenue. Allowances for sales returns are estimated and recorded based on historical experience and reduce product revenue, inclusive of shipping fees, by expected product returns. Allowances for sales returns at September 30, 2023 and December 31, 2022, were $243,099 and $549,250, respectively. The Company has two types of contractual liabilities: (a) amounts received from customers prior to the delivery of products are recorded as customer deposits in the accompanying condensed consolidated balance sheets and are recognized as revenue when the products are delivered, which amounted to $815,527 and $3,098,119 at September 30, 2023 and December 31, 2022, respectively, and (ii ) Cost of Goods Sold Cost of goods sold consists of the cost of product sold to customers, plus shipping and handling costs and shipping supplies, net of vendor rebates. Advertising Costs Advertising costs are expensed as incurred. The Company incurred $0.5 million in advertising costs during the three months ended September 30, 2023, and $7.3 million during the three months ended September 30, 2022. For the nine months ended September 30, 2023, advertising costs were $2.1 million and $26.5 for the nine months ended September 30, 2022. Income Taxes The Company is a C corporation for U.S. federal income tax purposes. Accordingly, the Company accounts for income taxes in accordance with the provisions of ASC 740, Income Taxes ASC 740 also provides guidance on the accounting for uncertain tax positions recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Based on the Company’s evaluation, management concluded that there are no significant uncertain tax positions requiring recognition in the Company’s condensed consolidated financial statements. The Company files U.S. federal and State of New Jersey state tax returns and had no unrecognized tax benefits at September 30, 2023 and December 31, 2022. The Company’s policy for recording interest and penalties associated with audits is to record such expenses as a component of income tax expense. There were no amounts accrued for penalties or interest as of or during the nine months ended September 30, 2023 and 2022. Management is currently unaware of any issues under review that could result in significant payments, accruals, or material deviations from its filing positions. Loss Per Share For the three and nine months ended September 30, 2023 and 2022, basic net loss per common share was determined by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. For purposes of calculating diluted net loss per common share, the denominator includes both the weighted average common shares outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents would be dilutive. Dilutive common stock equivalents potentially include performance-based stock units, unvested restricted stock units, and warrants using the treasury stock method. For all periods presented, there is no difference in the number of shares used to compute basic and diluted net loss per common share due to the Company’s net loss. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), 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 in Ukraine. The Company’s ability to maintain adequate liquidity for its operations is dependent upon several factors, including its revenue and earnings, the impacts of COVID-19 and Russian-Ukraine conflict on macroeconomic conditions, and its ability to take further cost savings and cash conservation measures if necessary. The Russian-Ukraine conflict could have a material adverse effect upon the Company. 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, 2022 (our “2022 Form 10-K”).

Property and equipment

Property and equipment	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 3 – Property and Equipment Property and equipment consists of the following as of: September 30, December 31, Website and software development $ 53,943,353 $ 50,697,486 Furniture and fixtures 854,818 851,926 Computers and electronics 1,015,853 1,015,853 Vehicles 325,504 325,504 Leasehold improvements 300,673 300,673 Video and equipment 176,903 176,903 Total - Gross 56,617,104 53,368,345 Less: Accumulated depreciation (46,329,596 ) (40,452,572 ) Total - Net $ 10,287,508 $ 12,915,773 Depreciation of property and equipment for three months ended September 30, 2023 and 2022 was $1,899,995 and $2,113,695, respectively. Depreciation of property and equipment for the nine months ended September 30, 2023 and 2022 was $5,877,025 and $6,210,590, respectively.

Leases

Leases	9 Months Ended
	Sep. 30, 2023
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 2025. As of and Operating Lease Expense – 3 months ended September 30, 2023 $ 91,106 Operating Lease Expense – 9 months ended September 30, 2023 $ 287,958 Additional Lease Information: Weighted average remaining lease term-operating leases (in years) 1.50 Weighted average discount rate-operating leases 7 % Future minimum lease payments under non-cancellable leases as of September 30, 2023, were as follows: October 1, 2023 to December 31, 2023 $ 170,502 January 1, 2024 to December 31, 2024 276,358 January 1, 2025 to September 30, 2025 197,940 Sub-total 644,800 Less: Portion representing interest (88,409 ) Total future minimum lease payments 556,391 Less: Current portion of lease obligations (310,177 ) Long-term portion of lease obligations $ 246,214

Debt

Debt	9 Months Ended
	Sep. 30, 2023
Debt [Abstract]
Debt	Note 5 – Debt JGB Collateral, LLC Convertible Notes and Warrants On October 21, 2022, the Company entered into a Loan and Security Agreement with JGB Collateral, LLC (as amended, the “JGB Loan Agreement”), a Delaware limited liability company (“JGB”), in its capacity as collateral agent (the “Agent”) and the several financial institutions or entities that from time to time become parties to the JGB Loan Agreement as lenders (collectively, the “Lender”). As collateral for the obligations, the Company has granted the Lender senior security interest in all the Company’s right, title and interest in, to and under all of the Company’s property. The loan agreement provided for term loans in an aggregate principal amount of up to $11.0 million under two tranches. The tranches consist of (a) a first tranche consisting of term loans in the aggregate principal amount of $5.5 million, of which the entire amount was funded to the Company on the closing date (the “Initial Term Loan Advance”); and (ii) a second tranche consisting of term loans in the aggregate principal amount of an additional $5.5 million, which may funded to the Company by the Lender in its sole and absolute discretion (subject to the terms and conditions of the Loan Agreement) until the date that is six months after the Closing Date (the “Second Term Loan Advance” and together with the Initial Term Loan Advance, the “Term Loan Advances”). Each of the Term Loan Advances will be issued with an original issue discount of $500,000. In connection with the entry into the loan agreement, with respect to the Initial Term Loan Advance, the Company issued to the Lender a warrant (the “Warrant”) to purchase 1,000,000 shares (the “Warrant Shares”) of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”). The Warrant will be exercisable for a period of five years from the date of issuance at a per-share exercise price equal to $2.00, subject to certain adjustments as specified in the Warrant. If the Company seeks and obtains the Second Term Loan Advance in accordance with the terms of the Loan Agreement, the Company will issue another Warrant to the Lender to purchase 1,000,000 shares of the Company’s Common Stock at a per-share exercise price equal to $2.00 and otherwise on the same terms and conditions as the Warrant issued with respect to the Initial Term Loan Advance. The Warrant also provides for customary shelf and piggyback registration rights with respect to the Warrant Shares. The effective interest rate on the Initial Term Loan Advance of $5.5 million was 17.9%. The Company incurred debt issue issuance costs of approximately $165,000 in connection with this loan and recorded a discount of $500,000. As of December 31, 2022 the Company had $4.2 million outstanding on the note net of debt discounts and debt issuance costs. A portion of the note was attributed to the warrants for 1,000,000 shares of the Company’s stock which at the time of issuance had been valued at $799,000 using the Black-Scholes model. As of December 31, 2022, the fair value of the warrant was determined to be approximately $551,000, which is remeasured each reporting period with changes in its value recorded as a change in fair value of warrants on the condensed consolidated statement of operations. The loan requires the Company to make 30 monthly payments of $183,333 beginning on April 30, 2023, with the last payment due September 30, 2025. On January 6, 2023, the Company notified its Agent and Lender that it was not in compliance with the Consolidated Quarterly Net Revenue Covenant (as defined in the Loan Agreement) for the calendar quarter ended December 31, 2022. On February 22, 2023, the Company and JGB executed an amendment to the Loan Agreement (the “Amendment”) and on February 27, 2023, the Company repaid $2.0 million of the loan to JGB. On February 22, 2023 the Company and the Agent executed an amendment to the Loan Agreement (the “First Amendment”), which, among other things, (i) the Company agreed to repay the principal amount of the term loan to the Agent in the following installments: (A) $2 million on February 23, 2023, (B) $1 million on August 22, 2023 and (C) the entire remaining principal balance and all accrued but unpaid interest which remained at the original loan rate of 8.0% (including the Original Issue Discount, as defined in the Amendment) on August 22, 2024; (ii) the Agent agreed to withdraw the Notice of Default and not exercise its purported rights and remedies thereunder; (iii) the Lender may elect, at any time and from time to time, to convert any outstanding portion of the outstanding term loan into shares of the Company’s common stock at a conversion price of $0.50 per share; (iv) removed the “Cash Minimum” covenant of which the Company had to maintain unrestricted, unencumbered Cash (as defined in the Loan Agreement) of at least $2,000,000; (v) removed the EBITDA (as defined in the JGB Loan Agreement) covenant of which the Company had to maintain at least the applicable EBITDA Target (as defined in the JGB Loan Agreement) for each calendar quarter; (vi) removed the revenue covenant in which the Company had to maintain consolidated quarterly net revenue of at least $75 million each calendar quarter and (vii) provided a lien to JGB in the Company’s claims for trademark infringement against Volkswagen Group of America, Inc. pursuant to the lawsuit currently pending in the United States District Court for the District of New Jersey and captioned as Onyx Enterprises Int’l, Corp v. Volkswagen Group of America, Inc., and all proceeds and products thereof and United States District Court for the District of Massachusetts and captioned as Onyx Enterprises International Corp. v. ID Parts LLC, and all proceeds and products thereof (collectively, the “Volkswagen Trademark Claims”), provided that the Company can secure the Permitted Litigation Indebtedness (as defined in the Amendment) on the terms described in the Amendment. In connection with the First Amendment, the Company and the Agent entered into an Amended and Restated Intellectual Property and Security Agreement (the “A&R Security Agreement”) which amended and restated that certain Intellectual Property and Security Agreement, dated as of October 21, 2022. The A&R Security Agreement removed the exclusion of the Volkswagen Trademark Claims from the Agent’s security interest in the Company’s intellectual property. The First Amendment was accounted for as a debt extinguishment in accordance with ASC 470, which resulted in the Initial Term Loan Advance being derecognized and the convertible notes that were issued as a result of the First Amendment being recorded at fair value with the difference resulting in a $879,045 loss on debt extinguishment for the three months ended March 31, 2023 and nine months ended September 30, 2023. On June 16, 2023, the Company executed a Second Amendment to the JGB Loan Agreement (the “Second Amendment”). Pursuant to the Second Amendment, the Company borrowed an additional $700,000 with an original discount on such additional loan of $100,000. In accordance with the terms of the Second Amendment, the Company shall repay the loan in equal weekly installments of $50,000 commencing on July 7, 2023; provided, however, that in the event the Company receives gross proceeds of at least $2,000,000 from any debt or equity financing following the effective date of the Second Amendment, then the Company shall repay an amount equal to $950,000 on the outstanding balances under the JGB Loan Agreement. On July 14, 2023, the Company repaid all the outstanding JGB notes of $4.2 million plus accrued interest of $0.1 million. Thereafter, JGB attempted to exercise its put right on all of the warrants issued in connection with the JGB notes, however, the Company has not paid the $350,000 to JGB for the exercise of the put right on such warrants as of September 30, 2023, which is accrued on the balance sheet and was recorded as a loss on extinguishment of warrants on the statement of operations partially offset by the derivative value of the warrants of $33,000 at the time of the attempted exercise of the put right. March 2023 Convertible Notes and Warrants On March 6, 2023 (the “Initial Closing Date”), PARTS iD, Inc., a Delaware corporation (the “Company”), entered into a Note and Warrant Purchase Agreement (the “March Purchase Agreement”) whereby the Company agreed to issue and sell to certain investors in a private placement, (a) an aggregate principal amount of up to $10 million in junior secured convertible promissory notes (the “March Convertible Notes”) and (i) an aggregate of up to two million warrants to purchase the Company’s common stock at an exercise price of $0.50 per share (the “March Warrants”), in one or more closings pursuant to the terms of the March Purchase Agreement. All the disinterested directors of the Company’s Board of Directors, as well as the disinterested directors of the Audit Committee, reviewed and approved the terms of the March Purchase Agreement, March Convertible Notes and March Warrants. As of the Initial Closing Date, the Company issued and sold (a) an aggregate principal amount of $2,900,000 of March Convertible Notes and (ii) an aggregate of 580,000 March Warrants, of which $2,650,000 of March Convertible Notes and 530,000 March Warrants were purchased by entities affiliated with certain directors, officers, and beneficial owners of the Company. At the time of issuance, the fair value of the March Warrants was determined to be $158,000 using the Black-Scholes model. As of September 30, 2023, the fair value of the March Warrants was determined to be de-minimis, and accordingly, the decrease in their value was recorded as a change in fair value of warrants on the condensed consolidated statement of operations. The March Convertible Notes accrue interest at 7.75% per annum, compounded semi-annually and such interest may be paid at the option of the Company either in cash or common stock. Upon the Company’s sale and issuance of equity or equity-linked securities pursuant to which the Company receives aggregate gross proceeds of at least $3 million (a “Qualified Equity Financing”), the March Convertible Notes are mandatorily convertible into shares of such equity securities sold in the Qualified Equity Financing. The Company may, at its option, redeem the March Convertible Notes (including the outstanding principal and any accrued but unpaid interest thereon) for cash, in full or in part, if the March Convertible Notes have otherwise not been converted within 180 days of the date of issuance. In addition, upon a Change of Control (as defined in the March Convertible Notes) of the Company, the March Convertible Notes shall be repaid in full at or before the closing of such transaction in cash. The March Convertible Notes are strictly subordinated to the (i) senior secured indebtedness incurred or owed by the Company pursuant to the JGB Loan Agreement; and (ii) the Permitted Litigation Indebtedness (as defined in the JGB Loan Agreement). Subject to the subordination provisions described above the March Convertible Notes are secured by a junior security interest in all the Company’s rights, title, and interest in and to all the Company’s assets. The March Convertible Notes mature on March 6, 2025. The March Warrants will expire after 5 years from the date of issuance and may not be exercised on a cashless basis. The March Warrants provide that a holder of March Warrants will not have the right to exercise any portion of its March Warrants, if such holder, together with its affiliates, and any other party whose holdings would be aggregated with those of the holder for purposes of Section 13(d) or Section 16 of the Exchange Act would beneficially own in excess of 4.99%, of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that each holder may increase or decrease the Beneficial Ownership Limitation by giving notice to the Company, with any such increase not taking effect until the sixty-first day after such notice is delivered to the Company but not to any percentage in excess of 9.99%; provided that any holder of the Warrants that beneficially owns in excess of 19.99% of the number of shares of the Common Stock outstanding on the issuance date of the Warrants shall not be subject to the Beneficial Ownership Limitation. The March Convertible Notes and the March Warrants were issued by the Company in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and have not been registered under the Securities Act. As of September 30, 2023, the Company had $2.8 million outstanding on the March Convertible Notes, net of debt discounts. May 2023 Convertible Notes and Warrants On May 19, 2023, the Company issued to certain investors, in a private placement (i) unsecured convertible promissory notes in the aggregate principal amount of $1,000,000 (the “May Convertible Notes”) and (ii) an aggregate of 2,083,333 warrants (the “May Warrants”) to purchase shares of the Company’s Class A common stock at an exercise price of $0.48 per share. Lev Peker, the Chief Executive Officer and a director of the Company purchased an aggregate principal amount of $750,000 May Convertible Notes and received an aggregate of 1,562,500 May Warrants in this offering. All the disinterested directors of the Company’s Board of Directors, as well as the disinterested directors of the Audit Committee, reviewed and approved the terms of the May Convertible Notes and May Warrants. The Company allocated the proceeds from the private placement between the May Convertible Notes and the May Warrants by applying the relative fair value methodology. The Company allocated $578,704 to the May Convertible Notes and $421,296 to the May Warrants. As of September 30, 2023, the Company had approximately $653,000 outstanding on the May Convertible Notes, net of discounts. The May Convertible Notes accrue interest at 7.75% per annum compounded semi-annually and mature on May 19, 2025 (the “Maturity Date”). Effective on the Maturity Date, if the convertible notes have not otherwise been repaid by the Company in accordance with the terms and conditions set forth therein, then at the option of the purchasers, the outstanding balance of the convertible notes (including any accrued but unpaid interest thereon) (the “May Note Amounts”) shall convert into that number of fully paid and nonassessable shares of the Company’s common stock at a conversion price equal to the respective May Note Amounts (as defined in the May Convertible Notes) divided by the conversion price (as defined in the May Convertible Notes). The Company may prepay the May Note Amounts at any time prior to the Maturity Date. The May Convertible Notes are strictly subordinated to the (i) senior secured indebtedness incurred or owed by the Company pursuant to the JGB Loan Agreement and (ii) Permitted Litigation Indebtedness (as defined in the JGB Loan Agreement). The May Warrants will expire after 5 years from the date of issuance and may not be exercised on a cashless basis. The warrants provide that a holder of May Warrants will not have the right to exercise any portion of its warrants, if such holder, together with its affiliates, and any other party whose holdings would be aggregated with those of the holder for purposes of Section 13(d) or Section 16 of the Exchange Act would beneficially own in excess of 4.99%, of the number of shares of the Company’s common stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that each holder may increase or decrease the Beneficial Ownership Limitation by giving notice to the Company, with any such increase not taking effect until the sixty-first day after such notice is delivered to the Company but not to any percentage in excess of 9.99%; provided that any holder of the May Warrants that beneficially owns in excess of 19.99% of the number of shares of the Common Stock outstanding on the issuance date of the May Warrants shall not be subject to the Beneficial Ownership Limitation. June 2023 Convertible Notes and Warrants On June 14, 2023, the Company entered into a Note and Warrant Purchase Agreement whereby the Company agreed to issue and sell to an investor in a private placement, (i) an unsecured convertible promissory note in the aggregate principal amount of $250,000 (the “June Convertible Note”) and (ii) a warrant (the “June Warrant”) to purchase an aggregate of 694,444 shares of the Company’s Class A common stock (the “Common Stock”), at an exercise price of $0.36 per share. The June Convertible Note accrues interest at 7.75% per annum, compounded semi-annually. The June Convertible Note matures on June 14, 2025. At maturity, if the June Convertible Note has not otherwise been repaid by the Company, then at the option of the purchaser, the outstanding balance of the June Convertible Note, including any accrued but unpaid interest thereon, shall convert into that number of fully paid and nonassessable shares of the Company’s Common Stock at a Conversion Price (as defined in the June Convertible Note). The Company may prepay the June Note Amount at any time prior to the Maturity Date. The Company allocated the proceeds from the private placement between the June Convertible Note and the June Warrants by applying the relative fair value methodology. The Company allocated $144,342 to the June Convertible Note and $105,658 to the June Warrants. As of September 30, 2023, the Company had approximately $160,000 outstanding on the June Convertible Note, net of discounts. The June Convertible Note is strictly subordinated to the (i) senior secured indebtedness incurred or owed by the Company pursuant to the JGB Loan Agreement and (ii) Permitted Litigation Indebtedness (as defined in the Loan Agreement). The June Warrant will expire after 5 years from the date of issuance and may not be exercised on a cashless basis. The June Warrant provides that the holder will not have the right to exercise any portion of the June Warrant, if the holder, together with its affiliates, and any other party whose holdings would be aggregated with those of the holder for purposes of Section 13(d) or Section 16 of the Exchange Act would beneficially own in excess of 4.99%, of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that the holder may increase or decrease the Beneficial Ownership Limitation by giving notice to the Company, with any such increase not taking effect until the sixty-first day after such notice is delivered to the Company but not to any percentage in excess of 9.99%; provided that the holder of the June Warrant that beneficially owns in excess of 19.99% of the number of shares of the Common Stock outstanding on the issuance date of the June Warrant shall not be subject to the Beneficial Ownership Limitation. July 2023 Convertible Notes and Warrants On July 13, 2023, the Company entered into a Note and Warrant Purchase Agreement (the “July Purchase Agreement”) The July Convertible Notes issued to the non-insider purchaser accrues interest at 7.75% per annum, compounded semi-annually. Effective on the maturity date, if the July Convertible Notes have not otherwise been repaid by the Company, then at the option of the purchasers, the outstanding balance of the July Convertible Notes, including any accrued but unpaid interest thereon (the “July Note Amounts”), shall convert into that number of fully paid and nonassessable shares of the Company’s Common Stock. Upon the Company’s sale and issuance of equity or equity-linked securities pursuant to which the Company receives aggregate gross proceeds of at least $10.0 million (an “Equity Financing”), the Company shall repay the Note Amounts in cash. In addition, upon a Change of Control (as defined in the July Convertible Notes) of the Company, the July Convertible Notes shall be repaid in full at or before the closing of such transaction in cash. The Convertible Notes are strictly subordinated to the Lind Senior Notes (described below) and are secured by a junior security interest in all the Company’s right, title, and interest in and to all the Company’s assets. The July Convertible Notes mature on July 13, 2024. The July Warrants will expire after 5 years from the date of issuance and the July Warrants issued to the non-insider Purchaser may be exercised on a cashless basis. The July Warrants provide that a holder of July Warrants will not have the right to exercise any portion of its July Warrants, if such holder, together with its affiliates, and any other party whose holdings would be aggregated with those of the holder for purposes of Section 13(d) or Section 16 of the Exchange Act would beneficially own in excess of 4.99%, of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that each holder may increase or decrease the Beneficial Ownership Limitation by giving notice to the Company, with any such increase not taking effect until the sixty-first day after such notice is delivered to the Company but not to any percentage in excess of 9.99%; provided that any holder of the July Warrants that beneficially owns in excess of 19.99% of the number of shares of the Common Stock outstanding on the issuance date of the July Warrants shall not be subject to the Beneficial Ownership Limitation. The July Convertible Notes and the July Warrants were issued by the Company in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. The July Purchase Agreement provides for customary shelf registration rights with respect to the shares of Common Stock underlying the July Convertible Notes and July Warrants. The July Warrants were valued at $2.4 million at issuance using the Black-Scholes model. The Company allocated the proceeds from the July Convertible Notes and the July Warrants by applying the relative fair value methodology. The Company allocated $1.4 million to the July Warrants, which were recorded in shareholders’ equity and as a discount on the notes that will be amortized over the life of the notes. As of September 30, 2023, the outstanding balance related to the July Convertible Notes was $2.1 million, net of discounts. On July 13, 2023, the Company used proceeds from the July Convertible Notes and the Lind Financing (as described below) to repay JGB and the JGB Loan Agreement was thereby terminated upon the receipt by JGB of a payoff amount of $4,318,444 which included the outstanding principal balance due under the JGB Loan Agreement, accrued but unpaid interest thereon and the Agent’s legal fees and other expenses. The payoff amount paid by the Company in connection with the termination of the JGB Loan Agreement was made pursuant to a payoff letter. As a result, the JGB Loan Agreement, together with all documents and agreements executed in connection therewith, have terminated and all liens associated therewith have been released. Lind Financing On July 14, 2023 the Company entered into a Securities Purchase Agreement with Lind Global Fund II LP (the “Lind Purchase Agreement”). The Lind Purchase Agreement provides for loans in an aggregate principal amount of up to $10 million under various tranches (the “Lind Financing”). As of the Initial Closing Date, Lind funded $3.75 million (less commitment fees) to the Company out of the $4.75 million “First Funding Amount” (as defined in the Lind Purchase Agreement) and Lind funded the remaining $1.0 million (less commitment fees) 5 business days after the Company (i) having a registration statement declared effective by the SEC for the registration of the shares of the Company’s Class A common stock (the “Common Stock”) issuable upon conversion of the Lind Note (as defined below) and the Lind Warrant (as defined below) and (ii) the receipt of Stockholder Approval (as defined in the Lind Purchase Agreement), if required. In consideration for the First Funding Amount, the Company issued and sold to Lind, in a private placement, (A) a senior secured convertible promissory note in the aggregate principal amount of $5,367,500 (the “Lind Note”) and (B) 12,837,838 warrants to purchase the Company’s Common Stock at an exercise price of $0.50 per share (subject to certain adjustments) (the “Lind Warrant”). The Company concluded that the proceeds from the Note should be allocated based on the relative fair values of the Note and the Warrant. The Lind Warrant was valued at $3.7 million on the issue date using the Black-Scholes method. The fair value of the Note is deemed to be the residual value arrived at by subtracting the $0.6 million original issue discount, the $1.1 million fair value of the conversion feature that was deemed to be a bi-furcated embedded derivative and valued on the issuance date using a Monte-Carlo Simulation Model, and the $0.5 million in debt issuance costs. The net proceeds were allocated between the Note and the Warrant based on relative fair value basis. The Company allocated $2.3 million to the Lind Warrant, which was recorded in shareholders’ equity and as a discount on the Lind Note that will be amortized over the life of the note. In addition, the Company booked an additional $2.2 million of debt issuance costs and debt discounts related to the relative fair value allocations and recorded amortization of $0.4 million during the third quarter of 2023. As of September 30, 2023, the outstanding balance related to the Lind Note was $4.8 million, net of $3.6 million unamortized discounts. At any time while the Lind Note is outstanding and subject to certain conditions, including no event(s) of default has occurred, being satisfied as set forth in the Lind Purchase Agreement, the Company may deliver a written notice to Lind (an “Additional Funding Request”) requesting an increase in the amount of funding provided by Lind to the Company under the Lind Note, and such Additional Funding Request shall be equal to no less than $1.0 million and shall not exceed $5.25 million (the “Additional Funding Limit”). Events of default include but are not limited to having market capitalization of less than $6.0 million for ten (10) consecutive days, the Company’s intention not comply with a conversion request, default on any payment of any amount of principal or interest, not having sufficient number of shares of Common Stock authorized, reserved and available for issuance to satisfy the conversion in full of the Lind note, or failure to observe or perform any other covenant, condition or agreement contained in any transaction document. Within 7 business days of receiving the Additional Funding Request, Lind shall give a written response to the Company (an “Investor Response”) that provides that Lind has elected (in its sole and absolute discretion) to (i) advance the full requested amount, (ii) advance an amount less than the full requested amount or (iii) not advance any of the requested amount. In addition, Lind may, in its sole discretion and without any action by the Company, deliver written notice to the Company (an “Investor Funding Notice”) of its election to advance up to an aggregate of $2.0 million of increased funding to the Company. Any such increased funding amounts directed by Lind shall count toward the Additional Funding Limit. On August 2, 2023 (the “Effective Date”), the Company and Lind entered into an amendment to the Lind Purchase Agreement to have the remaining $1.0 million (less commitment fees) of the First Funding Amount (as defined in the Lind Purchase Agreement) payable in two tranches: (i) $500,000 (less a $15,000 commitment fee) on the Effective Date and (ii) $500,000 (less a $15,000 commitment fee) within 5 business days of the Company (A) having a registration statement declared effective by the SEC for the registration of the shares of the Company’s Common Stock issuable upon conversion of the notes and warrants issued to Lind pursuant to the Lind Purchase Agreement and (B) the receipt of Stockholder Approval (as defined in the Lind Purchase Agreement). On August 18, 2023, the Company and Lind entered into a second amendment to the Lind Purchase Agreement to have the second $500,000 tranche described above payable within 5 business days upon the later of (i) the Company having filed the preliminary proxy statement for the receipt of Stockholder Approval (as defined in the Lind Purchase Agreement) and (ii) the effective date of the second amendment. The Lind Note does not bear any interest and matures on July 14, 2024. Following the date that is sixty (60) days after the earlier to occur of (A) the date the Registration Statement is declared effective by the SEC or (B) the date that any shares issued pursuant to the Lind Note may be immediately resold under Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”), the Company may repay all, but not less than all, of the then outstanding principal amount of the Lind Note, subject to a 5% premium. If the Company elects to prepay the Lind Note, Lind has the right to convert up to 33 1/3% of the principal amount of the Lind Note at the Conversion Price (as defined below) into shares of the Company’s Common Stock. The Lind Note is convertible, at the option of Lind, into shares of the Company’s common stock at price per share equal to the lower of $0.50 or 90% of the average of the 3 lowest daily VWAPs (as defined in the Note) during the 20 Trading Days (as defined in the Note) prior to conversion. As collateral for the obligations under the Lind Purchase Agreement, the Company has granted to Lind a senior security interest in all of Company’s right, title, and interest in, to and under all of Company’s property (inclusive of intellectual property), subject to certain exceptions, as set forth in the LLC Guarantor Security Agreement (as defined in the Lind Purchase Agreement) and the Security Agreement (as defined in the Lind Purchase Agreement). The Lind Warrant will expire after 5 years from the date of issuance and may be exercised on a cashless basis. The Lind Warrant provides that Lind will not have the right to exercise any portion of the Lind Warrant, if, together with its affiliates, and any other party whose holdings would be aggregated with those of the holder for purposes of Section 13(d) or Section 16 of the Securities Exchange Act of 1934, as amended, would beneficially own in excess of 4.99%, of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that the Beneficial Ownership Limitation by shall automatically increase to 9.99% if Lind, together with its affiliates, owns in excess of 4.99% of the Company’s outstanding Common Stock. The Lind Purchase Agreement provided for customary shelf and piggyback registration rights with respect to the shares of Common Stock underlying the Lind Note and the Lind Warrant. On July 28, 2023, the Company filed a resale registration statement on Form S-3 (the “Resale S-3”) to register the shares of Common Stock underlying the Lind Note and Lind Warrant. The Resale S-3 was declared effective by the SEC on August 7, 2023. On August 21, 2023, the Company filed a definitive proxy statement to obtain the Stockholder Approval (as defined in the Lind Purchase Agreement). On October 5, 2023, the Company held a Special Meeting of Stockholders and obtained the requisite votes for the Stockholder Approval. Placement Agent Warrant On July 14, 2023, in consideration for its services in respect of the Lind Financing described above, the Company also issued to Titan Partners Group LLC, a division of American Partners, LLC (the “Placement Agent”) warrants to purchase 536,570 shares of the Company’s Common Stock at an exercise price per share of $0.625 (the “Placement Agent Warrant”). These warrants were valued at $148,000 using the Monte-Carlo Simulation Model. The Placement Agent Warrant has a 5-year term. In addition, the Company paid the Placement Agent a commission of $285,000. The Placement Agent Warrant also provides for customary demand and piggyback registration rights with respect to the shares of Common Stock underlying the Placeme

Shareholders_ Deficit

Shareholders’ Deficit	9 Months Ended
	Sep. 30, 2023
Shareholders’ Deficit [Abstract]
Shareholders’ Deficit	Note 6 – Shareholders’ Deficit Preferred Stock As of September 30, 2023, 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 September 30, 2023 and December 31, 2022, no Common Stock As of September 30, 2023, and December 31, 2022, the Company had 37,838,931 and 34,825,971, respectively, shares of Class A common stock outstanding. As of September 30, 2023 and December 31, 2022, the Company had reserved 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. EIP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Equity Incentive Plan 2,935,496 3,212,078 c. 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 d. Warrants Reserve: Shares reserved for warrants issued to investors 25,470,279 1,000,000 Total shares reserved for future issuance 31,199,357 7,005,660

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 7 Commitments and Contingencies As of September 30, 2023, there were no material changes to the Company’s legal matters and other contingencies disclosed in Note 7 of the “Notes to Consolidated Financial Statements” included in our Annual Report on 2022 Form 10-K for the year ended December 31, 2022.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2023
Share-Based Compensation [Abstract]
Share-Based Compensation	Note 8 – Share-Based Compensation During the three months ended September 30, 2023 and 2022, selling, general and administrative expenses included $575,299 and $915,007 of share-based compensation expense, respectively. During the nine months ended September 30, 2023 and 2022, selling general and administrative expenses included $1,689,867 and $1,601,848 of share-based compensation expense, respectively. During the three months ended September 30, 2023 and 2022, the Company capitalized $326,780 and $435,238, respectively, of share-based compensation expense associated with awards issued to consultants who are directly associated with and who devote time to our internal-use software. During the nine months ended September 30, 2023 and 2022, the Company capitalized $1,114,610 and $1,291,572, respectively, of share 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 September 30, 2023, of the 4,904,596 shares of Class A common stock reserved for issuance under the 2020 EIP in the aggregate, 2,935,496 shares remained available for issuance. The 2020 EIP provides for the grant of stock options, restricted stock, restricted stock units (“RSUs”), 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 nine months ended September 30, 2023: Restricted Weighted Unvested balance on January 1, 2023 1,053,445 $ 4.67 Granted - $ - Vested (276,582 ) $ 1.02 Forfeited (173,364 ) $ 5.81 Unvested balance on September 30, 2023 603,499 $ 5.98 As of September 30, 2023, approximately $0.4 million of unamortized share-based compensation expense was associated with outstanding RSUs, which is expected to be recognized over a remaining weighted average period of 0.18 years. Performance-Based Restricted Stock Units The following table summarizes the activity related to PSUs during the nine months ended September 30, 2023: PSU Type Balance at Granted Forfeited Balance at Net revenue based 495,200 - 230,000 265,200 Weighted average grant date fair value $ 8.00 $ - $ 6.71 $ 9.12 Cash flow based 123,800 - 57,500 66,300 Weighted average grant date fair value $ 2.44 $ - $ 2.35 $ 2.52 Total 619,000 - 287,500 331,500 As of September 30, 2023, the performance criteria included in the PSUs plan are unlikely to be achieved, and accordingly, the Company has no accrual of share-based compensation expenses associated with the outstanding PSUs. The weighted average period of 0.32 years was remaining before the expiration of outstanding PSUs. 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 September 30, 2023, no shares had been issued under the 2020 ESPP.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Taxes [Abstract]
Income Taxes	Note 9 – Income Taxes Deferred tax assets and liabilities are recognized based on temporary differences in financial statements and income tax carrying values using rates in effect for years such differences are to reverse. Due to uncertainties surrounding the Company’s ability to generate future taxable income and consequently realize such deferred income tax assets, a full valuation allowance has been established. The disclosures regarding deferred tax assets included in our 2022 Form 10-K continue to be accurate for the three and nine months ended September 30, 2023. The Company does not currently anticipate any significant increase or decrease in 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.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Note 10 – Subsequent Events On October 6, 2023, the Company entered into a definitive Restructuring Support Agreement (the “RSA”) to restructure the Company’s indebtedness with certain of its trade vendors (the “Consenting Vendors”). Pursuant to the terms and conditions of the RSA, the Company agreed to pay to each holder of a (i) Vendor Claim (as defined in the RSA), an amount equal to 55% of such total Vendor Claim consisting of (A) 12.5% of such Vendor Claim (the “Initial Payment”) on the earlier to occur of (X) two business days following the Company’s receipt of the Restructuring Funds (as defined in the RSA) and (Y) December 15, 2023, and (B) the remaining 42.5% of such Vendor Claim paid monthly over 36 months; and (ii) a Convenience Claim (as defined in the RSA), an amount equal to 65% of such Convenience Claim (A) with respect to a Consenting Vendor, no later than two business days after the Company makes the Initial Payment and (B) with respect to an Additional Consenting Vendor (as defined in the RSA), on the later of (X) two business days after the Company makes the Initial Payment and (Y) five business days after such Additional Consenting Vendor’s execution of an Accession Letter (as defined in the RSA). The RSA will terminate automatically upon the earliest occur of (i) payment of the full amount of the Agreed Vendor Claim (as defined in the RSA) to each Consenting Vendor and (ii) the mutual written consent of the Company and the Consenting Vendors holding at least 80% of the Total Vendor Claim Amount (as defined in the RSA). On October 9, 2023, Lind Global Partners II, L.P. converted $230,000 of debt into 1,703,704 shares of the Company’s stock at $0.135 per share. The conversion price was based on the three lowest VWAPS during the twenty Trading Days prior to the conversion. On October 20, 2023, the Company entered into a Note Purchase Agreement whereby the Company agreed to issue and sell to Sanjiv Gomes, the Company’s Chief Information Officer, in a private placement, an unsecured promissory note in the aggregate principal amount of $1,000,000 (the “Unsecured Note”). The Unsecured Note bears interest at the rate of 7.75% per annum, compounded semi-annually, and matures on October 20, 2024. The Unsecured Note is unsecured and is strictly subordinated in right of payment to the prior payment in full of all of the (i) indebtedness owed by the Company to Lind pursuant to the Lind Purchase Agreement and (ii) litigation funding provided by the Funder pursuant to the Funding Agreement. The Unsecured Note also provides that the Company and Mr. Gomes intend for the Unsecured Note to be an emergency loan advance to bridge the Company to a possible debtor-in-possession financing facility and for such advance to be included as part of that facility (if and when applicable). The Company failed to meet its obligations under the terms of the Lind Agreement and Lind Note after the balance sheet date. In October, the Company did not have sufficient authorized shares to fulfill its obligations to issue shares upon request from the Lind Note and Lind Warrant, which is deemed to be an event of default. Upon occurrence of the event of default, the Company is liable to, among other remedies available to the investor, pay 110% of the outstanding principal amount of the Lind Note resulting in a payoff of $5.3 million or convert, at the request of the investor, all or a portion of the outstanding principal amount into shares of Common Stock at the lower of (i) the then-current Conversion Price (as defined in the Lind Note) and (ii) 80% of the average of the three (3) lowest daily VWAPs during the 20 trading days prior to the delivery by Lind of the applicable notice of conversion. The Company does not currently have sufficient amount of authorized shares of Common Stock to have the outstanding principal balance of the Lind Note convert into, and the Lind Warrant exercised into, shares of the Company’s Common Stock. On October 25, 2023, Lind Global Partners II, L.P. converted $201,500 of debt into 1,707,627 shares of the Company’s stock at $0.118 per share. The conversion price was based on the three lowest VWAPS during the twenty Trading Days prior to the conversion. On October 27, 2023 the Company received written notice from the NYSE American LLC indicating that the Company is not in compliance with the continued listing standard set forth in Section 1003(f)(v) of the NYSE American Company Guide (“Section 1003(f)(v)”) because the shares of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”) have been selling for a substantial period of time at a low price per share. The Notice has no immediate effect on the listing or trading of the Company’s Common Stock and the Common Stock will continue to trade on the NYSE American under the symbol “ID” with the designation of “.BC” to indicate that the Company is not in compliance with the NYSE American’s continued listing standards. Additionally, the Notice does not result in the immediate delisting of the Company’s Common Stock from the NYSE American. Pursuant to Section 1003(f)(v), the NYSE American staff (the “Staff”) determined that the Company’s continued listing is predicated on effecting a reverse stock split of its Common Stock or demonstrating sustained price improvement within a reasonable period of time, which the Staff determined to be no later than April 27, 2024. The Notice further stated that as a result of the foregoing, the Company has become subject to the procedures and requirements of Section 1009 of the NYSE American Company Guide, which could, among other things, result in the initiation of delisting proceedings, unless the Company cures the deficiency in a timely manner. The NYSE American may also accelerate delisting action in the event that the Company’s Common Stock trades at levels viewed by the Staff to be abnormally low. The Company intends to monitor the price of its Common Stock and consider available options if its Common Stock does not trade at a consistent level likely to result in the Company regaining compliance by April 27, 2024. The Company’s receipt of the Notice does not affect the Company’s business, operations or reporting requirements with the Securities and Exchange Commission. On October 30, 2023, the Company entered into an interim officer engagement agreement (the “Engagement Agreement”) with SRV Partners, LLC, a Delaware limited liability company (“SRVP”). Pursuant to the Engagement Agreement, Arkady A. Goldinstein was appointed as the interim Chief Financial Officer of the Company, effective November 1, 2023. Mr. Goldinstein also assumed on an interim basis the duties of Principal Financial Officer and Principal Accounting Officer of the Company. On November 2, 2023, the Company entered into a Note Purchase Agreement whereby the Company agreed to issue and sell to 2642186 Ontario Inc. (“Ontario”), in a private placement, a junior secured promissory note in the aggregate principal amount of $1,000,000. The note bears interest at the rate of 7.75% per annum, compounded semi-annually, and matures on November 2, 2024. The note is (A) secured by a junior security interest in any potential proceeds from the Company’s currently pending litigation matters (i) in the District of Massachusetts and captioned as Parts iD, Inc. v. ID Parts, LLC (Case No. 1:20-cv-1253-RWZ) and (ii) in the District of New Jersey and captioned as Onyx Enterprises, Int’l Corp. v. Volkswagen Group of America, Inc. (Case No. 20-9976) (collectively, the “Litigation”) and (B) strictly subordinated in right of payment to the prior payment in full of all of the Litigation funding provided by the Funder pursuant to the Funding Agreement. The note also provides that the Company and Ontario intend for the note to be an emergency loan advance to bridge the Company to a possible debtor-in-possession financing facility and for such advance to be included as part of that facility (if and when applicable). On November 3, 2023, Lind Global Partners II, L.P. converted $161,500 of debt into 1,682,291 shares of the Company’s stock at $0.0965 per share. The conversion price was based on the three lowest VWAPS during the twenty Trading Days prior to the conversion. On November 30, 2023, PARTS iD, Inc., a Delaware corporation (the “Company”) entered into a Purchase and Sale of Future Receivables Agreement (the “Riverside Agreement”) with Riverside Capital NY (“RCNY”). Pursuant to the terms of the Riverside Agreement, the Company agreed to sell, and RCNY agreed to purchase, the Company’s right, title and interest in and to $1,469,700 of the Company’s future receivables, for a purchase price of $1,065,000. Pursuant to the terms of the Riverside Agreement, the Company agreed to pay RCNY $15,400 each day until such time as RCNY has been repaid. Also on November 30, 2023, the Company also entered into a Standard Merchant Cash Advance Agreement (the “Wave Agreement”) with WAVE ADVANCE INC (“WAVE”). Pursuant to the terms of the Wave Agreement, the Company agreed to sell, and WAVE agreed to purchase, the Company’s right, title and interest in and to $1,518,000 of the Company’s future receivables, for a purchase price of $1,100,000. Pursuant to the terms of the Wave Agreement, the Company agreed to pay RCNY $15,400 each day until such time as WAVE has been repaid. The Riverside Agreement and the Wave Agreement each provides for the grant of a junior security interest in the future receivables and other related collateral under the Uniform Commercial Code in accounts and proceeds, subordinated to the indebtedness incurred under that certain Securities Purchase Agreement, dated as of July 14, 2023, by and between the Company and Lind Global Fund II LP, as amended.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2023
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The unaudited condensed 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, 2022 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 unaudited condensed 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 credit losses, depreciation, inventory valuation, valuation of deferred income tax assets and the capitalization and recoverability of software development costs.
Stock Compensation	Stock Compensation Compensation expense related to stock option awards and restricted stock units granted to certain employees, directors and consultants is based on the fair value of the awards on the grant date. If the service inception date precedes the grant date, accrual of compensation cost for periods before the grant date is based on the fair value of the award at the reporting date. In the period in which the grant date occurs, cumulative compensation cost is adjusted to reflect the cumulative effect of measuring compensation cost based on fair value at the grant date rather than the fair value previously used at the service inception date or any subsequent reporting date. Forfeitures are recorded as they occur. The Company recognizes compensation cost related to time-vested options and restricted stock units with graded vesting features on a straight-line basis over the requisite service period. Compensation cost related to performance-vesting options and performance-based units, where a performance condition or a market condition that affects vesting exists, is recognized over the shortest of the explicit, implicit, or defined service periods. Compensation cost is adjusted depending on whether the performance condition is achieved. If the achievement of the performance condition is probable or becomes probable, the full fair value of the award is recognized. If the achievement of the performance condition is not probable or ceases to be probable, then no compensation cost is recognized or amounts previously recognized are reversed.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that expose the Company to a concentration of credit risk principally include cash and accounts receivable balances. The Company has significant cash balances at financial institutions which throughout the year regularly exceed the federally insured limit of $250,000. Any loss incurred or lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows. The Company manages accounts receivable credit risk through its policy of limiting extensions of credit to customers. Substantially all customer orders are paid by credit card at the point of sale.
Going Concern	Going Concern These condensed consolidated financial statements have been prepared in accordance with GAAP assuming the Company will continue as a going concern. The going concern assumption contemplates the realization of assts and satisfaction of liabilities in the normal course of business. We have operated with a negative working capital model since our inception. The Company has a working capital deficiency of approximately $47 million. We continue to face macro-economic headwinds and the resulting declining revenue and profitability, which increased the working capital deficit, and resulted in the use of approximately $8.4 million in cash from operating activities, of which $2.4 million was attributable to changes in working capital during the nine months ended September 30, 2023. With this, substantial doubt exists about the Company’s ability to continue as a going concern within one year from the date of the issuance of these condensed consolidated financial statements. The accompanying condensed consolidated financial statements have been prepared assuming we will continue to operate as a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business, and does not reflect any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from uncertainty related to our ability to continue as a going concern. To address liquidity concerns, the Company is pursuing additional financing and continues to restructure and optimize its operations including moderating capital investments, improving gross margin, reducing expenses, and renegotiating vendor payment terms. In addition, to address its liquidity needs, the Company recently obtained an aggregate of approximately $14 million from the sale and issuance of convertible notes and warrants (as discussed below). In addition, the Company obtained additional financing in October and November 2023. See Note 10 – Subsequent Events for more information. Additionally, management is implementing cost saving initiatives to reduce operating costs and plans to continue to implement further cost saving initiatives where appropriate. The Company’s plans are dependent on conditions and factors, many of which are outside of the Company’s control. There can be no assurance that the Company will be successful in implementing its plans or that it will be able to generate positive cash flow from operations in any future period, nor can there be any assurance that it will be able to raise additional capital. The result of such inability, whether individually or in the aggregate, will adversely impact the Company’s financial condition and could cause the Company to curtail or cease operations or to pursue other strategic alternatives, including commencing a case under the U.S. Bankruptcy Code. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Liquidity and Capital Resources” below for additional details. PARTS iD has also retained Canaccord Genuity Group, Inc. (“Canaccord”) as its financial advisor and DLA Piper LLP (US) as its legal counsel to assist in evaluating potential strategic alternatives. There can be no assurance that the evaluation of strategic alternatives will result in any potential transaction, or any assurance as to its outcome or timing. PARTS iD has not set a timetable for completion of the process and does not intend to disclose developments related to the process unless and until PARTS iD executes a definitive agreement with respect thereto, or the Board of Directors otherwise determines that further disclosure is appropriate or required.
Accounts Receivable	Accounts Receivable Accounts receivable balances include amounts due from customers. The Company periodically reviews its accounts receivable balances to determine whether an allowance for credit losses is necessary based on an analysis of past due accounts, historical occurrences of credit losses, existing economic conditions, and other circumstances that may indicate that the realization of an account is in doubt. As of September 30, 2023 and December 31, 2022, the Company determined that an allowance for credit losses was not necessary. On September 11, 2023, the Company entered into a Purchase and Sale of Future Receivables Agreement (the “Riverside Agreement”) with Riverside Capital NY (“RCNY”). Pursuant to the terms of the Riverside Agreement, the Company agreed to sell, and RCNY agreed to purchase, the Company’s right, title and interest in and to $700,000 of the Company’s future receivables, for a purchase price of $500,000. Pursuant to the terms of the Riverside Agreement, the Company agreed to pay RCNY $35,000 each week until such time as RCNY has been repaid. Additionally, on September 11, 2023, the Company also entered into a Standard Merchant Cash Advance Agreement (the “WAVE Agreement”) with WAVE ADVANCE INC (“WAVE”). Pursuant to the terms of the WAVE Agreement, the Company agreed to sell, and WAVE agreed to purchase, the Company’s right, title and interest in and to $700,000 of the Company’s future receivables, for a purchase price of $500,000. Pursuant to the terms of the WAVE Agreement, the Company agreed to pay WAVE $35,000 each week until such time as WAVE has been repaid.
Inventory	Inventor Inventory consists of purchased goods that are immediately available-for-sale and are stated at the lower cost or net realizable value, determined using the first-in, first-out method. Merchandise-in-transit directly from suppliers to customers is recorded in inventory until the product is delivered to the customer. As of September 30, 2023, and December 31, 2022, merchandise-in-transit amounted to $258,935 and $957,735, respectively. The risk of loss is transferred from the supplier to the Company at the shipping point. Since the purchased goods are immediately shipped directly from suppliers to customers the Company deemed that an inventory reserve for obsolete or slow-moving goods was unnecessary.
Other Current Assets	Other Current Assets Other current assets include advances to vendors amounting to $2,584,464 and $1,796,680 as of September 30, 2023, and December 31, 2022, respectively, which are included in prepaid expenses and other current assets on the condensed consolidated balance sheets.
Website and Software Development	Website and Software Development The Company capitalizes certain costs associated with website and software developed for internal use in accordance with ASC 350-50, Intangibles – Goodwill and Other – Website Development Costs, Intangibles – Goodwill and Other – Internal Use Software,
Intangible Assets	Intan ible Assets Intangible assets consist of indefinite-lived domain names and are stated at cost less impairment losses, if any. The Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. When such events occur, the Company compares the carrying amount of the asset to the undiscounted expected future cash flows related to the 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 asset. The Company has determined that there were no triggering events in the nine months ended September 30, 2023 and 2022, and no impairment charges were necessary. During the nine months ended September 30, 2023, the Company sold its Onyx.com domain name for $250,000.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is calculated on a straight-line basis over the estimated useful lives of the assets as follows: Asset Class Estimated useful lives Video and studio equipment 5 years Website and internally developed software 3 years Computer and electronics 5 years Vehicles 5 years Furniture and fixtures 5 years Leasehold improvements Lesser of useful life or lease term
Accounts Payable	Accounts Payable Accounts payable as of September 30, 2023, consisted of amounts payable to vendors of $33.2 million and credit card payable of $2.2 million payable to a credit card company. As of December 31, 2022, accounts payable consisted of amounts payable to vendors of $33.1 million and $3.3 million credit card payable to the same credit card company mentioned above.
Revenue Recognition	Revenue Reco nition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps: (i) identifies contracts with customers; (ii) identifies performance obligation(s); (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligation(s); and (v) recognizes revenue when (or as) the Company satisfies each performance obligation. The Company recognizes revenue on product sales through its website as the principal in the transaction as the Company has concluded it controls the product before it is transferred to the customer. The Company controls products when it is the entity responsible for fulfilling the promise to the customer and takes responsibility for the acceptability of the goods, assumes inventory risk from shipment through the delivery date, has discretion in establishing prices, and selects the suppliers of products sold. Sales discounts earned by customers at the time of purchase and taxes collected from customers, which are remitted to governmental authorities, are deducted from gross revenue in determining net revenue. Allowances for sales returns are estimated and recorded based on historical experience and reduce product revenue, inclusive of shipping fees, by expected product returns. Allowances for sales returns at September 30, 2023 and December 31, 2022, were $243,099 and $549,250, respectively. The Company has two types of contractual liabilities: (a) amounts received from customers prior to the delivery of products are recorded as customer deposits in the accompanying condensed consolidated balance sheets and are recognized as revenue when the products are delivered, which amounted to $815,527 and $3,098,119 at September 30, 2023 and December 31, 2022, respectively, and (ii )
Cost of Goods Sold	Cost of Goods Sold Cost of goods sold consists of the cost of product sold to customers, plus shipping and handling costs and shipping supplies, net of vendor rebates.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. The Company incurred $0.5 million in advertising costs during the three months ended September 30, 2023, and $7.3 million during the three months ended September 30, 2022. For the nine months ended September 30, 2023, advertising costs were $2.1 million and $26.5 for the nine months ended September 30, 2022.
Income Taxes	Income Taxes The Company is a C corporation for U.S. federal income tax purposes. Accordingly, the Company accounts for income taxes in accordance with the provisions of ASC 740, Income Taxes ASC 740 also provides guidance on the accounting for uncertain tax positions recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Based on the Company’s evaluation, management concluded that there are no significant uncertain tax positions requiring recognition in the Company’s condensed consolidated financial statements. The Company files U.S. federal and State of New Jersey state tax returns and had no unrecognized tax benefits at September 30, 2023 and December 31, 2022. The Company’s policy for recording interest and penalties associated with audits is to record such expenses as a component of income tax expense. There were no amounts accrued for penalties or interest as of or during the nine months ended September 30, 2023 and 2022. Management is currently unaware of any issues under review that could result in significant payments, accruals, or material deviations from its filing positions.
Loss Per Share	Loss Per Share For the three and nine months ended September 30, 2023 and 2022, basic net loss per common share was determined by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. For purposes of calculating diluted net loss per common share, the denominator includes both the weighted average common shares outstanding and the number of common stock equivalents if the inclusion of such common stock equivalents would be dilutive. Dilutive common stock equivalents potentially include performance-based stock units, unvested restricted stock units, and warrants using the treasury stock method. For all periods presented, there is no difference in the number of shares used to compute basic and diluted net loss per common share due to the Company’s net loss.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326),
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 in Ukraine. The Company’s ability to maintain adequate liquidity for its operations is dependent upon several factors, including its revenue and earnings, the impacts of COVID-19 and Russian-Ukraine conflict on macroeconomic conditions, and its ability to take further cost savings and cash conservation measures if necessary. The Russian-Ukraine conflict could have a material adverse effect upon the Company.
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, 2022 (our “2022 Form 10-K”).

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2023
Summary of Significant Accounting Policies [Abstract]
Schedule of Property and Equipment are Stated at Cost Less Accumulated Depreciation	Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is calculated on a straight-line basis over the estimated useful lives of the assets as follows: Asset Class Estimated useful lives Video and studio equipment 5 years Website and internally developed software 3 years Computer and electronics 5 years Vehicles 5 years Furniture and fixtures 5 years Leasehold improvements Lesser of useful life or lease term

Property and equipment (Tables)

Property and equipment (Tables)	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consists of the following as of: September 30, December 31, Website and software development $ 53,943,353 $ 50,697,486 Furniture and fixtures 854,818 851,926 Computers and electronics 1,015,853 1,015,853 Vehicles 325,504 325,504 Leasehold improvements 300,673 300,673 Video and equipment 176,903 176,903 Total - Gross 56,617,104 53,368,345 Less: Accumulated depreciation (46,329,596 ) (40,452,572 ) Total - Net $ 10,287,508 $ 12,915,773

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2023
Leases [Abstract]
Schedule of Office Spaces and an Equipment Lease	The Company has lease arrangements for office spaces and an equipment lease. These leases expire at various dates through 2025. As of and Operating Lease Expense – 3 months ended September 30, 2023 $ 91,106 Operating Lease Expense – 9 months ended September 30, 2023 $ 287,958 Additional Lease Information: Weighted average remaining lease term-operating leases (in years) 1.50 Weighted average discount rate-operating leases 7 % Future minimum lease payments under non-cancellable leases as of September 30, 2023, were as follows: October 1, 2023 to December 31, 2023 $ 170,502 January 1, 2024 to December 31, 2024 276,358 January 1, 2025 to September 30, 2025 197,940 Sub-total 644,800 Less: Portion representing interest (88,409 ) Total future minimum lease payments 556,391 Less: Current portion of lease obligations (310,177 ) Long-term portion of lease obligations $ 246,214

Shareholders_ Deficit (Tables)

Shareholders’ Deficit (Tables)	9 Months Ended
	Sep. 30, 2023
Shareholders’ Deficit [Abstract]
Schedule of Shares of Class A Common Stock for Issuance	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. EIP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Equity Incentive Plan 2,935,496 3,212,078 c. 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 d. Warrants Reserve: Shares reserved for warrants issued to investors 25,470,279 1,000,000 Total shares reserved for future issuance 31,199,357 7,005,660

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Compensation [Abstract]
Schedule of Summarizes the Activity Related to RSUs	The following table summarizes the activity related to RSUs during the nine months ended September 30, 2023: Restricted Weighted Unvested balance on January 1, 2023 1,053,445 $ 4.67 Granted - $ - Vested (276,582 ) $ 1.02 Forfeited (173,364 ) $ 5.81 Unvested balance on September 30, 2023 603,499 $ 5.98
Schedule of Summarizes the Activity Related to PSUs	The following table summarizes the activity related to PSUs during the nine months ended September 30, 2023: PSU Type Balance at Granted Forfeited Balance at Net revenue based 495,200 - 230,000 265,200 Weighted average grant date fair value $ 8.00 $ - $ 6.71 $ 9.12 Cash flow based 123,800 - 57,500 66,300 Weighted average grant date fair value $ 2.44 $ - $ 2.35 $ 2.52 Total 619,000 - 287,500 331,500

Organization and Description _2

Organization and Description of Business (Details)	9 Months Ended
	Sep. 30, 2023
Organization and Description of Business [Abstract]
Description of business	PARTS iD has a product portfolio comprised of approximately 18 million SKUs, when fully available, an end-to-end digital commerce platform for both digital commerce and fulfillment, and a virtual shipping network comprising over 2,500 locations, approximately 4,500 active brands, and machine learning algorithms for complex fitment industries such as vehicle parts and accessories.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Summary of Significant Accounting Policies (Details) [Line Items]
Cash balances	$ 250,000		$ 250,000
Working capital	47,000,000		47,000,000
Decreased in working capital			8,400,000
Cash from operating activities			2,400,000
Liquidity needs			14,000,000
Merchandise-in-transit amounted	258,935		258,935		$ 957,735
Other Assets, Miscellaneous, Current	2,584,464		2,584,464		1,796,680
Domain name			250,000
Allowances for sales returns	243,099		243,099		549,250
Products are delivered	815,527		815,527		3,098,119
Revenue			3,567,138		3,414,019
Advertising costs	500,000	$ 7,300,000	2,100,000	$ 26,500,000
Riverside Agreement [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Interest receivable	700,000		700,000
Purchase price			500,000
Amount of credit offering			35,000
WAVE ADVANCE INC [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Interest receivable	700,000		700,000
Purchase price			500,000
Amount of credit offering			35,000
Accounts Payable [Member]
Summary of Significant Accounting Policies (Details) [Line Items]
Vendors accounts payable			33,200,000		33,100,000
Credit card payable	$ 2,200,000		$ 2,200,000		$ 3,300,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - Schedule of Property and Equipment are Stated at Cost Less Accumulated Depreciation	9 Months Ended
	Sep. 30, 2023
Video and studio equipment [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Website and internally developed software [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Computer and electronics [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Vehicles [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Furniture and fixtures [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Leasehold improvements [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Leasehold improvements	Lesser of useful life or lease term

Property and equipment (Details

Property and equipment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation of property and equipment	$ 1,899,995	$ 2,113,695	$ 5,877,025	$ 6,210,590

Property and equipment (Detai_2

Property and equipment (Details) - Schedule of Property and Equipment - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 56,617,104	$ 53,368,345
Less: Accumulated depreciation	(46,329,596)	(40,452,572)
Total - Net	10,287,508	12,915,773
Website and software development [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	53,943,353	50,697,486
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	854,818	851,926
Computers and electronics [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	1,015,853	1,015,853
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	325,504	325,504
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	300,673	300,673
Video and equipment [Member]
Property, Plant 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	9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)
Leases [Abstract]
Operating Lease Expense - net	$ 91,106	$ 287,958
Additional Lease Information:
Weighted average remaining lease term-operating leases (in years)	1 year 6 months	1 year 6 months
Weighted average discount rate-operating leases	7%	7%
Future minimum lease payments under non-cancellable leases as of September 30, 2023, were as follows:
October 1, 2023 to December 31, 2023	$ 170,502	$ 170,502
January 1, 2024 to December 31, 2024	276,358	276,358
January 1, 2025 to September 30, 2025	197,940	197,940
Sub-total	644,800	644,800
Less: Portion representing interest	(88,409)	(88,409)
Total future minimum lease payments	556,391	556,391
Less: Current portion of lease obligations	(310,177)	(310,177)
Long-term portion of lease obligations	$ 246,214	$ 246,214

Debt (Details)

Debt (Details) - USD ($)

9 Months Ended

Sep. 15, 2023

Aug. 22, 2023

Aug. 18, 2023

Aug. 08, 2023

Jul. 14, 2023

Jul. 13, 2023

Jun. 16, 2023

Jun. 14, 2023

May 19, 2023

Mar. 06, 2023

Feb. 27, 2023

Feb. 23, 2023

Feb. 22, 2023

Sep. 30, 2023

Sep. 15, 2023

Oct. 25, 2023

Oct. 09, 2023

Sep. 29, 2023

Aug. 31, 2023

Apr. 30, 2023

Dec. 31, 2022

Debt (Details) [Line Items]

Aggregate principal amount

$ 2,900,000

Original issue discount

$ 500,000

Purchase to warrants (in Shares)

2,083,333

530,000

33,000

Warrants exercisable

5 years

Exercise price per share (in Dollars per share)

$ 0.36

$ 0.48

$ 0.5

$ 2

Effective interest rate amount

$ 5,500,000

Debt issuance costs

165,000

Loan discount

500,000

Loan outstanding

$ 4,200,000

Issuance cost

799,000

Fair value of warrant

$ 1,150,000

551,000

Maturity date

Sep. 30, 2025

Loan rate

8%

Cash

$ 2,000,000

Net revenue

$ 75,000,000

Loss on debt extinguishment

$ 879,045

Additional borrowed loan

$ 700,000

Discount on loan

100,000

Loan installment payment

50,000

Gross proceeds

2,000,000

Repayment of loan amount

$ 950,000

Repaid outstanding amount

$ 4,200,000

Warrant amount

$ 350,000

Aggregate warrants (in Shares)

580,000

Convertible notes

$ 2,650,000

Fair value of warrant

158,000

Accrue interest, percentage

7.75%

Aggregate gross proceeds

$ 3,000,000

Warrants, description

The March Warrants provide that a holder of March Warrants will not have the right to exercise any portion of its March Warrants, if such holder, together with its affiliates, and any other party whose holdings would be aggregated with those of the holder for purposes of Section 13(d) or Section 16 of the Exchange Act would beneficially own in excess of 4.99%, of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that each holder may increase or decrease the Beneficial Ownership Limitation by giving notice to the Company, with any such increase not taking effect until the sixty-first day after such notice is delivered to the Company but not to any percentage in excess of 9.99%; provided that any holder of the Warrants that beneficially owns in excess of 19.99% of the number of shares of the Common Stock outstanding on the issuance date of the Warrants shall not be subject to the Beneficial Ownership Limitation.

Convertible notes, net of debt discounts outstanding

$ 2,800,000

Convertible notes

$ 8,777,632

$ 4,203,282

Warrants amount

$ 421,296

Percentage of common stock outstanding

4.99%

Percentage in excess of warrant

9.99%

Warrant description

The June Warrant will expire after 5 years from the date of issuance and may not be exercised on a cashless basis. The June Warrant provides that the holder will not have the right to exercise any portion of the June Warrant, if the holder, together with its affiliates, and any other party whose holdings would be aggregated with those of the holder for purposes of Section 13(d) or Section 16 of the Exchange Act would beneficially own in excess of 4.99%, of the number of shares of the Company’s Common Stock outstanding immediately after giving effect to such exercise (the “Beneficial Ownership Limitation”); provided, however, that the holder may increase or decrease the Beneficial Ownership Limitation by giving notice to the Company, with any such increase not taking effect until the sixty-first day after such notice is delivered to the Company but not to any percentage in excess of 9.99%; provided that the holder of the June Warrant that beneficially owns in excess of 19.99% of the number of shares of the Common Stock outstanding on the issuance date of the June Warrant shall not be subject to the Beneficial Ownership Limitation.

Convertible promissory notes

$ 3,250,000

Aggregate warrant amount (in Shares)

7,738,094

Exercise price per share (in Dollars per share)

$ 0.42

Excess percentage

4.99%

Warrant issued

$ 2,400,000

Net discounts

2,100,000

Payoff amount

$ 4,318,444

Aggregate principal amount

5,367,500

Less commitment fees

3,750,000

First funding amount

4,750,000

Lind funded remaining amount

1,000,000

Warrants to purchase

$ 12,837,838

Common stock exercise price (in Dollars per share)

$ 0.5

Warrants valued amount

$ 3,700,000

Fair value

1,100,000

Amortization

400,000

Unamortized discounts

3,600,000

Additional funding amount

1,000,000

Exceed amount

5,250,000

Aggregate value increased funding amount

$ 2,000,000

Lind purchase agreement description

the Company and Lind entered into an amendment to the Lind Purchase Agreement to have the remaining $1.0 million (less commitment fees) of the First Funding Amount (as defined in the Lind Purchase Agreement) payable in two tranches: (i) $500,000 (less a $15,000 commitment fee) on the Effective Date and (ii) $500,000 (less a $15,000 commitment fee) within 5 business days of the Company (A) having a registration statement declared effective by the SEC for the registration of the shares of the Company’s Common Stock issuable upon conversion of the notes and warrants issued to Lind pursuant to the Lind Purchase Agreement and (B) the receipt of Stockholder Approval (as defined in the Lind Purchase Agreement).

Second described payable

$ 500,000

Premium percentage

5%

Lind note Description

If the Company elects to prepay the Lind Note, Lind has the right to convert up to 33 1/3% of the principal amount of the Lind Note at the Conversion Price (as defined below) into shares of the Company’s Common Stock. The Lind Note is convertible, at the option of Lind, into shares of the Company’s common stock at price per share equal to the lower of $0.50 or 90% of the average of the 3 lowest daily VWAPs (as defined in the Note) during the 20 Trading Days (as defined in the Note) prior to conversion.

Warrant expiration period

5 years

Excess percentage

4.99%

Warrants shares (in Shares)

536,570

Price per share (in Dollars per share)

$ 0.625

Warrant valued amount

$ 148,000

$ 526,955

Warrant term

5 years

Commission amount

$ 285,000

Conversion price per share (in Dollars per share)

$ 0.118

$ 0.135

Litigation on expense

$ 1,500,000

Outstanding percentage

2%

Underwriting fee

$ 50,000

Funding origination fee

3%

Service fee amount

$ 1,500

Minimum [Member]

Debt (Details) [Line Items]

Convertible note

$ 1,400,000

Ownership limitation increase percentage

4.99%

Maximum [Member]

Debt (Details) [Line Items]

Warrant

2,300,000

Ownership limitation increase percentage

9.99%

Warrant [Member]

Debt (Details) [Line Items]

Purchase to warrants (in Shares)

1,000,000

Accrue interest, percentage

19.99%

Convertible notes

$ 105,658

Convertible notes, net of discounts

$ 653,000

Purchase of warrants shares (in Shares)

694,444

Warrants expire term

5 years

Excess percentage

9.99%

Loan Agreement [Member]

Debt (Details) [Line Items]

Aggregate principal amount

$ 11,000,000

Monthly payments of amount

$ 183,333

Principal amount

$ 1,000,000

$ 2,000,000

Conversion price (in Dollars per share)

$ 0.5

Initial Term Loan [Member]

Debt (Details) [Line Items]

Effective interest rate

17.90%

JGB [Member]

Debt (Details) [Line Items]

Loan repaid

$ 2,000,000

Accrued interest

100,000

Convertible Notes and Warrants [Member]

Debt (Details) [Line Items]

Principal amount

$ 250,000

1,000,000

Purchaser accrues interest percentage

7.75%

Conversion of Convertible Notes [Member]

Debt (Details) [Line Items]

Aggregate gross proceeds

$ 10,000,000

Conversion of debt

$ 300,000

$ 250,000

Conversion of debt into shares (in Shares)

1,515,151

1,082,250

Conversion price per share (in Dollars per share)

$ 0.198

$ 0.231

$ 0.198

Conversion percentage

90%

90%

Lind Note [Member]

Debt (Details) [Line Items]

Principal amount

$ 6,000,000

Private Placement [Member]

Debt (Details) [Line Items]

Convertible notes

$ 578,704

Convertible notes, net of discounts

160,000

Lind Note [Member]

Debt (Details) [Line Items]

Net discounts

$ 4,800,000

Class A Common Stock [Member]

Debt (Details) [Line Items]

Common stock, par value per share (in Dollars per share)

$ 0.0001

Common Stock [Member]

Debt (Details) [Line Items]

Purchase to warrants (in Shares)

1,000,000

Exercise price per share (in Dollars per share)

$ 2

Excess percentage

19.99%

Lind Purchase Agreement [Member]

Debt (Details) [Line Items]

Aggregate principal amount

10,000,000

First tranches [Member]

Debt (Details) [Line Items]

Aggregate principal amount

$ 5,500,000

Second tranche [Member]

Debt (Details) [Line Items]

Aggregate principal amount

5,500,000

Fair Value Methodology [Member]

Debt (Details) [Line Items]

Convertible notes

144,342

Black-Scholes model [Member]

Debt (Details) [Line Items]

Original issue discount

$ 600,000

Purchase to warrants (in Shares)

1,000,000

Debt issuance costs

$ 2,200,000

$ 500,000

Director [Member]

Debt (Details) [Line Items]

Purchase to warrants (in Shares)

1,562,500

Principal amount

$ 750,000

Chief Executive Officer [Member]

Debt (Details) [Line Items]

Aggregate principal amount

$ 1.1

Convertible Notes Payable [Member]

Debt (Details) [Line Items]

Accrue interest, percentage

7.75%

Delaware Corporation [Member]

Debt (Details) [Line Items]

Aggregate principal amount

$ 10,000,000

Mr. Peker [Member]

Debt (Details) [Line Items]

Aggregate principal amount

$ 1,100,000

Shareholders_ Deficit (Details)

Shareholders’ Deficit (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Shareholders’ Deficit [Line Items]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued
Preferred stock, shares outstanding
Class A Common Stock [Member]
Shareholders’ Deficit [Line Items]
Common stock, share outstanding	37,838,931	34,825,971

Shareholders_ Deficit (Detail_2

Shareholders’ Deficit (Details) - Schedule of Shares of Class A Common Stock for Issuance - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
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
EIP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Equity Incentive Plan	2,935,496	3,212,078
ESPP reserve: Shares reserved for future issuance under the stockholder approved Parts iD, Inc. 2020 Employee Stock	2,043,582	2,043,582
Warrants Reserve: Shares reserved for warrants issued to investors	25,470,279	1,000,000
Total shares reserved for future issuance	31,199,357	7,005,660

Shareholders_ Deficit (Detail_3

Shareholders’ Deficit (Details) - Schedule of Shares of Class A Common Stock for Issuance (Parentheticals)	Sep. 30, 2023 shares
Schedule of Shares of Class A Common Stock for Issuance [Abstract]
Common shares to former Onyx shareholders	750,000

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Compensation [Line Items]
Selling, general and administrative expenses		$ 575,299	$ 915,007	$ 1,689,867	$ 1,601,848
Amount of capitalized		$ 326,780	$ 435,238	$ 1,114,610	$ 1,291,572
Common stock reserved for issuance (in Shares)		750,000		750,000
Class A Common Stock [Member]
Share-Based Compensation [Line Items]
Common stock reserved for issuance (in Shares)		4,904,596		4,904,596
Remain available for issuance shares (in Shares)		2,935,496		2,935,496
Issuance of common stock shares (in Shares)	2,043,582
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation [Line Items]
Unamortized stock based compensation expense				$ 400,000
Phantom Share Units (PSUs) [Member]
Share-Based Compensation [Line Items]
Weighted average period				3 months 25 days

Share-Based Compensation (Det_2

Share-Based Compensation (Details) - Schedule of Summarizes the Activity Related to RSUs	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Schedule of Summarizes the Activity Related to RSUs [Abstract]
Restricted Stock Units, Unvested balance at beginning of the period | shares	1,053,445
Weighted Average Grant Date Fair Value, Unvested balance at beginning of the period | $ / shares	$ 4.67
Restricted Stock Units, Granted | shares
Weighted Average Grant Date Fair Value, Granted | $ / shares
Restricted Stock Units, Vested | shares	(276,582)
Weighted Average Grant Date Fair Value, Vested | $ / shares	$ 1.02
Restricted Stock Units, Forfeited | shares	(173,364)
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	$ 5.81
Restricted Stock Units, Unvested balance at ending of the period | shares	603,499
Weighted Average Grant Date Fair Value, Unvested balance at ending of the period | $ / shares	$ 5.98

Share-Based Compensation (Det_3

Share-Based Compensation (Details) - Schedule of Summarizes the Activity Related to PSUs	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Share-Based Compensation (Details) - Schedule of Summarizes the Activity Related to PSUs [Line Items]
Balance Beginning	619,000
Granted
Forfeited	287,500
Balance Ending	331,500
Net revenue based [Member]
Share-Based Compensation (Details) - Schedule of Summarizes the Activity Related to PSUs [Line Items]
Balance Beginning	495,200
Granted
Forfeited	230,000
Balance Ending	265,200
Weighted average grant date fair value [Member]
Share-Based Compensation (Details) - Schedule of Summarizes the Activity Related to PSUs [Line Items]
Balance Beginning (in Dollars per share) | $ / shares	$ 8
Granted (in Dollars per share) | $ / shares
Forfeited (in Dollars per share) | $ / shares	6.71
Balance Ending (in Dollars per share) | $ / shares	$ 9.12
Cash flow based [Member]
Share-Based Compensation (Details) - Schedule of Summarizes the Activity Related to PSUs [Line Items]
Balance Beginning	123,800
Granted
Forfeited	57,500
Balance Ending	66,300
Weighted average grant date fair value [Member]
Share-Based Compensation (Details) - Schedule of Summarizes the Activity Related to PSUs [Line Items]
Balance Beginning (in Dollars per share) | $ / shares	$ 2.44
Granted (in Dollars per share) | $ / shares
Forfeited (in Dollars per share) | $ / shares	2.35
Balance Ending (in Dollars per share) | $ / shares	$ 2.52

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)				9 Months Ended
	Nov. 02, 2024	Oct. 20, 2024	Nov. 30, 2023	Sep. 30, 2023	Nov. 03, 2023	Nov. 02, 2023	Oct. 27, 2023	Oct. 25, 2023	Oct. 20, 2023	Oct. 09, 2023	Dec. 31, 2022
Subsequent Events [Line Items]
Description of vendor				(i) Vendor Claim (as defined in the RSA), an amount equal to 55% of such total Vendor Claim consisting of (A) 12.5% of such Vendor Claim (the “Initial Payment”) on the earlier to occur of (X) two business days following the Company’s receipt of the Restructuring Funds (as defined in the RSA) and (Y) December 15, 2023, and (B) the remaining 42.5% of such Vendor Claim paid monthly over 36 months; and (ii) a Convenience Claim (as defined in the RSA), an amount equal to 65% of such Convenience Claim (A) with respect to a Consenting Vendor, no later than two business days after the Company makes the Initial Payment and (B) with respect to an Additional Consenting Vendor (as defined in the RSA), on the later of (X) two business days after the Company makes the Initial Payment and (Y) five business days after such Additional Consenting Vendor’s execution of an Accession Letter (as defined in the RSA).
Vendor percentage				80%
Debt								$ 201,500		$ 230,000
Common stock (in Shares)								1,707,627		1,703,704
Exercise price per share (in Dollars per share)								$ 0.118		$ 0.135
Secured convertible promissory notes						$ 1,000,000			$ 1,000,000
Investor percentag				110%
Outstanding principal amount				$ 5,300,000
Average lowest daily percentage				80%
Class A common stock [Member]
Subsequent Events [Line Items]
Common stock (in Shares)				37,838,931							34,825,971
Subsequent Event [Member]
Subsequent Events [Line Items]
Debt					$ 161,500
Common stock (in Shares)					1,682,291
Exercise price per share (in Dollars per share)					$ 0.0965
Subsequent Event [Member] | Class A common stock [Member]
Subsequent Events [Line Items]
Common stock, par value (in Dollars per share)							$ 0.0001
Forecast [Member]
Subsequent Events [Line Items]
Accrue interest rate	7.75%	7.75%
Forecast [Member] | PARTS iD, Inc. [Member]
Subsequent Events [Line Items]
Interest receivable			$ 1,469,700
Purchase price			1,065,000
Amount of credit offering			15,400
WAVE ADVANCE INC [Member] | Forecast [Member]
Subsequent Events [Line Items]
Interest receivable			1,518,000
Amount of credit offering			15,400
Purchase price			$ 1,100,000