Katapult Holdings, Inc.KPLT

Katapult Holdings, Inc. Stock Compensation Disclosure

10-KFiled Mar 11, 20263 min read
STOCK-BASED COMPENSATION
As of December 31, 2025, the Company has two stock incentive plans, the Cognical Holdings, Inc. 2014 Stock Incentive Plan, (“Katapult 2014 Plan”) and the Katapult Holdings, Inc. 2021 Stock Incentive Plan, (“Katapult 2021 Plan”).
Katapult 2014 Plan
In accordance with the Katapult 2014 Plan, the board of directors could grant equity awards to officers, employees, directors and consultants for common stock. The Katapult 2014 Plan has specific vesting for each stock option grant allowing vesting of the options over one to four years. No equity awards have been granted under the Katapult 2014 Plan since October 2020 and no new equity awards are expected to be granted under the Katapult 2014 Plan.
Stock Options
A summary of the status of the stock options under the Katapult 2014 Plan as of December 31, 2025, and changes during the year is presented below:
Number of
Shares		Weighted- Average
 Exercise Price		Weighted-Average
 Remaining
 Contractual Term
 (In Years)		Aggregate
Intrinsic Value
Balance - December 31, 2024256,689 $6.96 4.4$415 
Granted— — 
Exercised(1,500)4.75 
Forfeited— — 
Expired— — 
Balance - December 31, 2025255,189 $6.97 3.4$350 
The total intrinsic value of stock options exercised during the year ended December 31, 2025 was $17 thousand.

Katapult 2021 Plan
On June 9, 2021, the approved Katapult 2021 Plan became effective.
In accordance with the Katapult 2021 Plan, directors may issue equity awards, including restricted stock awards (“RSAs”), restricted stock unit award, and stock options to officers, employees, directors and consultants to purchase common stock. The awards granted are subject to either service-based and/or performance-based vesting conditions. Restricted stock units (“RSUs”) are equity awards granted to employees that entitle the holder to shares of common stock when the awards vest. RSUs are measured based on the fair value of the Company’s common stock on the date of grant. Awards granted under the Katapult 2021 Plan generally vest over one to four years. As of December 31, 2025, there were 273,853 RSAs available for future issuance under the Katapult 2021 Plan.

The following tables summarizes the Company’s RSA activity under the Katapult 2021 Plan during the year ended December 31, 2025:
Stock OptionsRestricted Stock Units
Number of OptionsWeighted- Average Exercise PriceWeighted-Average Remaining Contractual Term (In Years)Aggregate Intrinsic ValueSharesWeighted- Average Grant Date Fair Value
Balance - December 31, 202413,865 $261.25 6.5$— 264,812 $22.83 
Granted — —98,540 9.59 
Exercised / Vested— —(216,130)21.92 
Forfeited(13,865)261.25 (31,464)12.58 
Balance - December 31, 2025— N/AN/AN/A115,758 $16.04 

Stock-Based Compensation Expense—Stock-based compensation expense of $3.7 million and $5.8 million was recognized for the years ended December 31, 2025 and 2024, respectively. Stock-based compensation expense is included in operating expenses in the consolidated statements of operations and comprehensive income (loss).

As of December 31, 2025, there was $1.4 million of unrecognized compensation costs. This amount is expected to be recognized over a weighted-average period of 0.9 years. The total fair value of vested RSUs as of their respective vesting dates was $2.2 million.

Historical Timeline

Fiscal YearFiled
2025Mar 11, 2026Showing above
2024Mar 28, 2025
2023Apr 24, 2024
2022Mar 9, 2023
2021Mar 15, 2022

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.

Other Available Disclosures

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