Mister Car Wash Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation (Tables)

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Schedule of Estimated Grant-date Fair Value of Stock-based Awards Using Black-Scholes Option Pricing Model Assumptions

The following table presents, on a weighted-average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant date fair value of stock purchase rights granted under the 2021 ESPP during the periods presented:


	Six Months Ended June 30,
	2022
Expected volatility	34.33% - 52.72%
Risk-free interest rate	0.07% - 1.54%
Expected term (in years)	0.49 - 0.50
Expected dividend yield	None

Summary of Stock Option Activity

A summary of the Company’s stock option activity during the period presented is as follows:


	Time Vesting Options			Performance Vesting Options			Total Number of Stock Options			Weighted-Average Exercise Price
Outstanding as of December 31, 2021		18,513,356			12,239,595			30,752,951		$	2.01
Granted		412,703		-				412,703		$	12.31
Exercised		(1,882,265	)		(1,206,077	)		(3,088,342	)	$	0.98
Forfeited		(198,939	)	-				(198,939	)	$	7.29
Outstanding as of June 30, 2022		16,844,855			11,033,518			27,878,373		$	2.24
Options vested or expected to vest as of June 30, 2022		16,304,373			11,033,518			27,337,891		$	6.74
Options exercisable as of June 30, 2022		12,596,452			11,033,518			23,629,970		$	1.14

Schedule of Weighted Average Grant Date Fair Value of Stock Options

The number and weighted-average grant date fair value of stock options during the period presented are as follows:


	Number of Stock Options				Weighted-Average Grant Date Fair Value
	Time Vesting Options			Performance Vesting Options	Time Vesting Options		Performance Vesting Options
Non-vested as of December 31, 2021		5,266,469		-	$	3.45	$	-
Non-vested as of June 30, 2022		4,248,403		-	$	3.68	$	-
Granted during the period		412,703		-	$	4.89	$	-
Vested during the period		(1,231,830	)	-	$	3.14	$	-
Forfeited/canceled during the period		(198,939	)	-	$	3.19	$	-

Summary of Restricted Stock Activity

The following table summarizes the Company’s RSU activity since December 31, 2021:


	Restricted Stock Units			Weighted-Average Grant Date Fair Value
Unvested as of December 31, 2021		1,683,077		$	15.14
Granted		1,126,748		$	12.28
Vested		(457,372	)	$	15.00
Forfeited		(94,797	)	$	15.03
Unvested as of June 30, 2022		2,257,656		$	13.75

Summary of Stock-Based Compensation Expense

Total stock-based compensation expense, by caption, recorded in the unaudited condensed consolidated statements of operations and comprehensive income for the periods presented is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Cost of labor and chemicals	$	2,029	$	31,442	$	3,900	$	31,442
General and administrative		3,950		171,789		7,598		172,099
Total stock-based compensation expense	$	5,979	$	203,231	$	11,498	$	203,541

Total stock-based compensation expense, by award type, recorded in the unaudited condensed consolidated statements of operations and comprehensive income for the periods presented is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Time Vesting Options	$	1,947	$	964	$	3,867	$	1,274
Performance Vesting Options		-		201,985		-		201,985
RSUs		3,692		282		6,918		282
2021 ESPP		340		-		713		-
Total stock-based compensation expense	$	5,979	$	203,231	$	11,498	$	203,541

Time Vesting Options [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Schedule of Estimated Grant-date Fair Value of Stock-based Awards Using Black-Scholes Option Pricing Model Assumptions

The following table presents, on a weighted-average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant date fair value of Time Vesting Options granted under the 2014 Plan and 2021 Plan during the periods presented:


	Six Months Ended June 30,
	2022		2021
Expected volatility	35.63% - 35.87%		40.83% - 44.75%
Risk-free interest rate	2.96% - 3.34%		0.9% - 1.19%
Expected term (in years)		6.0	6.43 - 6.5
Expected dividend yield	None		None

Performance Vesting Options [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Schedule of Estimated Grant-date Fair Value of Stock-based Awards Using Black-Scholes Option Pricing Model Assumptions

The following table presents, on a weighted-average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant date fair value of Performance Vesting Options granted under the 2014 Plan during the periods presented:


	Six Months Ended June 30,
	2022	2021
Expected volatility	-	60.00%
Risk-free interest rate	-	0.63%
Expected term (in years)	-	5.2
Expected dividend yield	-	None