Part 6.2: Chapter 21 - Share-Based Compensation & EPS

d) Poshmark's share-based compensation plan is comprised of restricted stock options and units. e) In January 2021, the Company’s stockholders approved the 2021 Employee Stock Purchase Plan (ESPP) Plan. Under the 2021 ESPP, the Company will make one or more offerings to its employees to purchase shares under the ESPP. The first offering will begin and end on dates to be determined by the plan administrator. As of the date of this Annual Report on Form 10-K, no offering periods have commenced. The Company has initially reserved 2,000,000 shares of Class A common stock for issuance under the 2021 ESPP. The reserve will automatically increase on January 1st of each calendar year for a period of up to ten years, commencing on January 1, 2022, and ending on (and including) January 1, 2031, in an amount equal to the lesser of (1) 1% of the total number of shares of Class A and Class B common stock outstanding on December 31st of the preceding fiscal year, (2) 3,000,000 shares of Class A common stock, and (3) a number of shares determined by our compensation committee. f) Poshmark has a capital structure consisting of convertibles that can cause potential dilution. The first picture is a clip from the 10K showing the amount of reedemablle perferred stock over the years of 2018-2020. g) The basic EPS for 2020 was .32; which was a great increase from the previous year that was operating in the negatives. The diluted EPS was only .1 less than the basic at .22 in 2020.