Company: CRCT
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001828962-25-000075
Chunk: 44

Company: Cricut, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 which is expected to be recognized over a weighted-average period of 2.7 years. The total unrecognized compensation expense related to unvested PRSUs that are not probable of vesting was $200.1 million as of March 31, 2025.

15

2021 Equity Incentive PlanIn March 2021, the Company’s 2021 Equity Incentive Plan became effective. The 2021 Equity Incentive Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to our employees, directors and consultants and our parent and subsidiary corporations’ employees and consultants. As of March 31, 2025, 49,926,182 shares of Class A common stock were reserved for issuance under this plan including shares reserved for previously granted awards discussed below as well as shares reserved for issuance of future awards under the plan.A summary of the Company’s service-based RSU activity under the 2021 Equity Incentive Plan is as follows:Number ofRSUsWeighted-AverageGrant DateFair Value(per share)Outstanding at December 31, 202411,251,503 $9.86 Granted4,127,500 $5.24 Dividend equivalent grants194,658 — Vested(1,059,881)$10.82 Forfeited / cancelled(142,507)$11.89 Outstanding at March 31, 202514,371,273 $8.45  The Company has granted PRSUs under the 2021 Equity Incentive Plan to certain employees of the Company that represent shares potentially issuable in the future. In July 2024, the Company granted PRSUs by which the first tranche of 30% and the second tranche of 70% will vest upon the Company achieving certain adjusted operating income targets during any four consecutive quarters of the respective performance periods, subject to employees remaining with the Company through the vesting date. The performance periods for the first and second tranches is 4 and 5 years, respectively. Adjusted operating income means GAAP operating income adjusted to exclude stock-based compensation expense and payroll expense specifically related to these PRSU awards.In 2022, the Company granted PRSUs that vest in two equal tranches subject to the Company achieving certain cumulative adjusted earnings per share over eight quarters at any point during the 5-year