SHAREHOLDERS' EQUITY (DEFICIT) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| SHAREHOLDERS' EQUITY (DEFICIT) | 11.SHAREHOLDERS’ EQUITY (DEFICIT) Park Dental Partners, Inc. shares are comprised of 100 million Common shares, and 5 million Preferred shares. All stock has a par value of $0.0001 per share. As of June 30, 2026, only Common shares are outstanding. Each holder of common stock and certain restricted shares is entitled to one vote for each share of Common stock and restricted share awards held. Restricted stock units granted commencing in June 2026 do not carry voting rights unless and until settled in shares of common stock. In connection with the Company's initial public offering completed on December 4, 2025, the Company issued warrants to the underwriter’s representative to purchase up to 92,100 shares of common stock at an exercise price of $15.60 per share. On July 13, 2026, the underwriters exercised all outstanding warrants on a cashless basis. As a result, the Company issued 22,483 shares of common stock to the underwriters. There were no outstanding warrants remaining subsequent to the exercise. The following table summarizes unrestricted common shares outstanding:
Restricted shares (“RSs”) — Restricted Park Dental Partners, Inc. shares issued prior to our initial public offering (“IPO”) vested 25% upon the closing of our public offering on December 4, 2025, with the remaining awards vesting at the rate of 6.25% each calendar quarter over the subsequent 12 quarters. In the event of a change in control, the restricted shares shall vest immediately upon the change in control. As it relates to awards issued prior to the IPO, the Company treats each vesting tranche as a separate award, and recognizes compensation cost for each tranche independently over its specific vesting period. This approach results in accelerated compensation expense recognition, as earlier-vesting tranches are recognized more quickly than later-vesting tranches. Subsequent to our IPO we have changed our accounting policy regarding the vesting of restricted share awards. As a result of this policy change, share based compensation related to those awards granted after our IPO is recognized using the straight-line recognition method. Restricted stock awards granted after the IPO and before June 2026 vest at the rate of 25% annually over four years. Beginning in June 2026, the Company granted restricted stock units (“RSUs”), which also vest at the rate of 25% annually over four years. Share-based compensation expense for these post-IPO awards is recognized on a straight-line basis over the applicable requisite service period. We believe this method is preferable, as it results in the Company recognizing the total grant-date fair value of the award ratably as compensation expense over the vesting period. The following table summarizes activity in unvested restricted stock awards and RSUs for the six months ended June 30, 2026:
The following table summarizes the mix of unvested restricted stock awards and restricted stock units outstanding as of June 30, 2026:
Unrecognized compensation expense related to outstanding restricted stock awards and restricted stock units at June 30, 2026 was approximately $11,214. Unrestricted Stock Grant —There were no unrestricted stock grants made during the three and six months ended June 30, 2026 and 2025. Employee Stock Purchase Plan (“ESPP”) — The Company maintains an Employee Stock Purchase Plan that allows eligible employees to purchase shares of common stock at a discount through payroll deductions over offering periods. The ESPP was approved in 2025, and up to 250,000 shares of common stock are reserved for issuance under the plan. No shares were issued under the ESPP during the three and six months ended June 30, 2026 and 2025. Subsequent to June 30, 2026, the Company issued 28,019 shares of common stock at $17.71 per share under the ESPP for the offering period ended June 30, 2026. |
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