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Share-Based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Share-based Payment Arrangement, Outstanding Award, Activity, Excluding Option | A summary of the status of the Class B common units award activity for the years ended December 31, 2020. 2019 and 2018 is presented in the table below. The number of Class B common units that vested during the years ended December 31, 2020, 2019 and 2018 was 929,160, 1,496,521 and 1,814,594, respectively. There were 0, 0 and 2,813 units forfeited in the years ended December 31, 2020, 2019 and 2018 respectively.
|  | Granted Units |  |  | Vested Units |  |  | Non-vested units |
Balance as of January 1, 2018 |  |  | 12,814,203 |  |  |  | 9,891,696 |  |  |  | 2,922,507 |
Granted |  |  | 1,317,768 |  |  |  | — |  |  |  | 1,317,768 |
Vested |  |  | — |  |  |  | 1,814,594 |  |  |  | (1,814,594 | )
Forfeiture |  |  | (2,813 | ) |  |  | (2,813 | ) |  |  | — |
Balance as of December 31, 2018 |  |  | 14,129,158 |  |  |  | 11,703,477 |  |  |  | 2,425,681 |
Granted |  |  | — |  |  |  | — |  |  |  | — |
Vested |  |  | — |  |  |  | 1,496,521 |  |  |  | (1,496,521 | )
Forfeiture |  |  | — |  |  |  | — |  |  |  | — |
Balance as of December 31, 2019 |  |  | 14,129,158 |  |  |  | 13,199,998 |  |  |  | 929,160 |
Granted |  |  | — |  |  |  | — |  |  |  | — |
Vested |  |  | — |  |  |  | 929,160 |  |  |  | (929,160 | )
Forfeiture |  |  | — |  |  |  | — |  |  |  | — |
Balance as of June 10, 2020 |  |  | 14,129,158 |  |  |  | 14,129,158 |  |  |  | — |
Conversion to common stock upon Business Combination |  |  | (14,129,158 | ) |  |  | (14,129,158 | ) |  |  | — |
Balance as of December 31, 2020 |  |  | — |  |  |  | — |  |  |  | — |
Schedule of Share-based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions |
|  | Class B1(b) |  | Class B2(a) |  | Class B2(b) |  | Class B2(c) |  | Class B2(d)
Grant Date |  | January 31, 2016 |  | December 1, 2016 |  | November 22, 2017 |  | March 15, 2018 |  | August 6, 2018
Equity Valuation Date |  | January 31, 2016 |  | January 31, 2016 |  | December 31, 2017 |  | December 31, 2017 |  | August 6, 2018
Volatility |  | 45% |  | 45% |  | 40% |  | 40% |  | 40%
Term |  | 4.92 |  | 4.92 |  | 3.00 |  | 3.00 |  | 2.40
Risk Free Rate |  | 1.3% |  | 1.3% |  | 2.0% |  | 2.0% |  | 2.7%
Exit Date |  | December 31, 2020 |  | December 31, 2020 |  | December 31, 2020 |  | December 31, 2020 |  | December 31, 2020
DLOM—Common |  | 13% |  | 13% |  | 18% |  | 18% |  | 14%
Grant Date Fair Value |  | $0.75 |  | $0.57 |  | $2.85 |  | $2.85 |  | $4.00
Share-based Payment Arrangement, Expensed and Capitalized, Amount | During the years ended December 31, 2020, 2019 and 2018, share based compensation expense related to the Class B plan was allocated to cost of services, general and administrative, selling and marketing, research and development, generally based on the functional responsibilities of the awarded unit holders of Open Lending, LLC (except the $2.2 million share-based compensation expense due to accelerated vesting in relation to the Business Combination, which was recognized fully in general and administrative) in the accompanying consolidated statements of operations and comprehensive income as follows:
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (in thousands) |
Cost of services |  | $ | 123 |  |  | $ | 100 |  |  | $ | 108 |
General and administrative |  |  | 2,425 |  |  |  | 1,798 |  |  |  | 2,275 |
Selling and marketing |  |  | 81 |  |  |  | 62 |  |  |  | 153 |
Research and development |  |  | 46 |  |  |  | 24 |  |  |  | 36 |
Total |  | $ | 2,675 |  |  | $ | 1,984 |  |  | $ | 2,572 |
The unrecognized share-based compensation expense at December 31, 2020 was as follows:
|  | Unrecognized Expense |  |  | Weighted Average Amortization Period |
|  | (in thousands) |
Restricted stock |  | $ | 2,952 |  |  |  | 3.58 |
Stock options |  |  | 3,094 |  |  |  | 4.00 |
Total unrecognized share-based compensation expense |  | $ | 6,046 |  |  |  | 3.85 |
Share-based Payment Arrangement, Activity | The following table provides information related to the incentive stock options and restricted stock awards granted during the year ended December 31, 2020:
|  | Restricted Stock Units |  |  | Stock Options |
|  | Number of Awards |  |  | Weighted Average Fair Value at Grant Date |  |  | Number of Awards |  |  | Weighted Average Exercise Price |
Outstanding as of December 31, 2019 |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Granted |  |  | 109,920 |  |  |  | 28.20 |  |  |  | 199,764 |  |  |  | 33.56 |
Vested/Exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding as of December 31, 2020 |  |  | 109,920 |  |  | $ | 28.20 |  |  |  | 199,764 |  |  | $ | 33.56 |
Share-based Payment Arrangement, Option, Activity | The aggregate intrinsic value of outstanding stock options at December 31, 2020 was as follows:
|  | Intrinsic Value of Stock Options |
|  | (in thousands) |
Vested and exercisable |  | $ | — |
Unvested |  |  | 280 |
Total outstanding |  | $ | 280 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Company estimated the fair value of each stock option on the date of grant using a Black–Scholes option-pricing model, applying the following assumptions:
Grant date |  |  | 12/30/2020 |
Strike price |  | $ | 33.56 |
Expected life(a) |  |  | 6.25 |
Weighted average time to vest(b) |  |  | 2.50 |
Expected dividend yield(c) |  |  | — |
Expected volatility rate(d) |  |  | 50.00 | %
Risk-free interest rate(e) |  |  | 0.55 | %
Weighted average option grant date fair value |  | $ | 15.51 |
(a). | The expected life was estimated using the “Simplified Method” which utilizes the midpoint between the vesting date and the end of the contractual term. The Company used the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options.
(b). | The weighted average time to vest was calculated using the “Simplified Method” by applying 25% to each vesting years.
(c). | At the grant date, no dividends were expected to be paid over the contractual term of the stock options granted, based on the Company’s dividend policy, resulting in the use of a zero dividend rate.
(d). | The expected volatility rate was based on the average of implied and observed historical volatility of comparable companies.
(e). | The risk-free interest rate was interpolated from the five-year and seven-year Constant Maturity Treasury rate published by the United States Treasury as of the date of the grant.

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- Definition Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14.F) -URI http://asc.fasb.org/extlink&oid=115993241&loc=d3e301413-122809 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5047-113901 + Details
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- Definition Tabular disclosure of activity for outstanding award under share-based payment arrangement excluding share and unit options and nonvested award. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of activity for award under share-based payment arrangement. Includes, but is not limited to, outstanding award at beginning and end of year, granted, exercised, forfeited, and weighted-average grant date fair value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
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- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
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