Part 6: Chapter 21 - Share based Compensation and Earnings per Share

a) Description of the share-based compensation plan: Poshmark grants share-based awards consisting of restricted stock units and stock options. In 2011, the Company adopted the 2011 Stock Option and Grant Plan (the Plan). The Plan provides for the granting of stock options and restricted shares to employees and non-employees (consultants) of the Company. Options granted under the Plan may be either incentive stock options or non-qualified stock options. Incentive stock options (ISO) may be granted only to the Company’s employees (including officers and directors who are also employees). Non-qualified stock options (NSO) may be granted to the Company’s employees and consultants. The first picture shows the depicting of Poshmark's equity compensation plans approved by stockholders. b) Due to the novelty of Poshmark there is only one grant date of December 31st, 2020. c) The requisite service period for the grant is defined as the change in control transaction or the effective date of a Qualified IPO. Stock-based compensation related to remaining time-based service after the qualifying event will be recorded over the remaining requisite service period using the accelerated attribution method. Because no qualifying event has occurred within Poshmark yet, they have not recognized any stock-based compensation expense for the RSU's. In the period in which the qualifying event is probable, we will record a cumulative one-time stock-based compensation expense determined.