Form 4: CarParts.com CTO Reports Equity Changes

CarParts.com's Chief Technology Officer, Kals Subramanian, reported the vesting of restricted stock awards and subsequent share dispositions for tax obligations.

Summary

• Kals Subramanian, Chief Technology Officer of CarParts.com, Inc. (PRTS), reported transactions related to Restricted Stock Awards (RSAs).
• On January 2, 2026, 41,666 shares of common stock vested from an RSA granted on January 2, 2025, under the CarParts.com, Inc. 2016 Equity Incentive Plan. This represents one-third of the total shares subject to that RSA.
• Also on January 2, 2026, 50,000 shares of common stock vested from another RSA granted on January 2, 2025, under the same plan. This represents fifty percent of the total shares subject to that RSA.
• On January 5, 2026, a total of 30,929 shares (14,058 + 16,871) were disposed of by the Company to satisfy tax withholding obligations in connection with the net settlement of the vested RSAs, at a reported price of $0.5 per share.
• Following these transactions, Kals Subramanian beneficially owns 285,356 shares of CarParts.com, Inc. common stock directly.

Sentiment

Score: 6

Explanation: The filing reports routine vesting of restricted stock awards and subsequent share dispositions for tax obligations, reflecting standard compensation practices for an executive. This is a neutral event, indicating continued executive alignment but no new strategic or operational developments.

Positives

• The vesting of 91,666 shares (41,666 + 50,000) of Restricted Stock Awards indicates continued executive retention and alignment of management interests with shareholder value.
• The transactions were made pursuant to a Rule 10b5-1 plan, indicating a structured and pre-arranged approach to equity management.

Negatives

• 30,929 shares were disposed of at a reported price of $0.5 per share to cover tax withholding obligations, reducing the executive's direct beneficial ownership.

Future Outlook

The remaining shares from the first RSA will vest in equal installments on each of the next two anniversaries of the grant date (January 2, 2025). The remaining shares from the second RSA will vest in equal installments each quarter thereafter through the second anniversary of the grant date (January 2, 2025), subject to continued service to the Company through such dates.

Industry Context

This filing is a routine disclosure of executive compensation and equity management, common across all publicly traded companies. It does not provide specific insights into broader industry trends or the competitive landscape.

Related Party Transactions

• The transactions involve the vesting of Restricted Stock Awards granted to Kals Subramanian, an executive officer, by CarParts.com, Inc. under its 2016 Equity Incentive Plan, and subsequent share dispositions to cover tax obligations. These are standard compensation-related dealings between an executive and the company.

Stakeholder Impact

• Shareholders gain transparency into executive compensation and equity ownership, which aligns executive incentives with company performance.

Next Steps

• Remaining shares from the first RSA (granted Jan 2, 2025) will vest in equal installments on the next two anniversaries of the grant date.
• Remaining shares from the second RSA (granted Jan 2, 2025) will vest in equal installments each quarter through the second anniversary of the grant date.

Key Dates

Recommendation

This Form 4 filing details routine vesting of restricted stock awards and subsequent share dispositions for tax purposes by a key executive. Such transactions are standard compensation events and do not typically indicate a change in the company's fundamental outlook or warrant a significant shift in investment strategy based solely on this report. Therefore, a 'hold' recommendation is appropriate as this filing alone does not present new information to alter an existing investment thesis.

Keywords

CarParts.com, PRTS, Kals Subramanian, Chief Technology Officer, SEC Form 4, Insider Transaction, Restricted Stock Awards, RSA Vesting, Equity Incentive Plan, Stock Ownership