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STOCK-BASED COMPENSATION (Tables) | 12 Months Ended
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Dec. 31, 2022
Share-Based Payment Arrangement [Abstract] |
Schedule of Stock Options Activity | Stock option activity for the period from July 28 to December 31, 2022 (Successor Period) was as follows:
| Number of Common Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (in years) |  | Aggregate intrinsic Value (in thousands)
Balance as of July 28, 2022 (Successor) | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Granted | 20,452,155 |  | 9.50 |  |  | 8.3 |  | — |
Exercised | — |  |  | — |  |  | $ | — |  |  | — |
Forfeited | — |  |  | — |  |  | $ | — |  |  | — |
Balance as of December 31, 2022 (Successor) | 20,452,155 |  | 9.50 |  |  | 8.3 |  | 39,118 |
Exercisable as of December 31, 2022 (Successor) | 4,451,538 |  | 4.17 |  |  | 7.5 |  | 21,816 |
Vested and expected to vest as of December 31, 2022 (Successor) | 20,452,155 |  | $ | 9.50 |  |  | 8.3 |  | $ | 39,118 |
Stock option activity for the period from January 1 to July 27, 2022 (Predecessor Period) was as follows:
| Number of Common Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (in years) |  | Aggregate intrinsic Value (in thousands)
Outstanding as of January 1, 2022 (Predecessor) | 800,000 |  | $ | 41.10 |  |  | 9.1 |  | $ | 16,456 |
Granted | — |  |  | — |  |  | — |  |  | — |
Exercised | — |  |  | — |  |  | — |  |  | — |
Forfeited | 25,200 |  | $ | 41.10 |  |  | 8.6 |  | $ | 639 |
Vested | — |  |  | — |  |  | — |  |  | — |
Outstanding as of July 27, 2022 (Predecessor) | 774,800 |  | $ | 41.10 |  |  | 8.5 |  | $ | 19,659 |
Stock option activity for the year ended December 31, 2021 (Predecessor Period) was as follows:
| Number of Common Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (in years) |  | Aggregate intrinsic Value (in thousands)
Outstanding as of January 1, 2021 (Predecessor) | — |  |  | $ | — |  |  | — |  |  | $ | — |
Granted | 800,000 |  | 41.10 |  |  | 9.1 |  | 16,456 |
Exercised | — |  |  | — |  |  | — |  |  | — |
Forfeited | — |  |  | — |  |  | — |  |  | — |
Vested | — |  |  | — |  |  | — |  |  | — |
Outstanding as of December 31, 2021 (Predecessor) | 800,000 |  | $ | 41.10 |  |  | 9.1 |  | $ | 16,456 |
Schedule of Valuation Assumptions, Stock Options | The fair value of stock option awards was determined on the grant date using the Monte Carlo simulation model for Founder Awards and the Hull-White lattice pricing model was used for replacement awards based on the following weighted-average assumptions:
| Period from July 28 to December 31, 2022
| Successor
| Founder Awards | Replacement Awards
Risk-free interest rate (1) | 2.87% - 2.92% | 2.79% - 2.80%
Expected term (years) (2) | 4.7 - 9.9 | N/A
Exercise multiple (3) | N/A | 2.30 |
Expected stock price volatility (4) | 39.77% - 44.76% | 50.00 | %
Dividend yield (5) | N/A | N/A
(1)The risk-free rate is based on U.S. Treasury securities with maturities equivalent to the expected term. (2)The expected term for founder awards is based on the assumption that the options are exercised after 50% of the period between the later of the vest date and exercise price achievement date and the end of the contractual term. (3)The exercise multiple is selected from the commonly used exercise multiple range of 2.0x to 2.5x assuming on average the options holders would exercise the options when the ratio of underlying stock price to the exercise price reaches 2.3x. (4)For founder awards, the expected stock price volatility is the median historical volatility of Waldencast’s volatility peer group with a look-back period equal to the contractual term using daily stock prices; for replacement awards, the expected stock price volatility is estimated by adjusting the observed equity volatility for leverage. (5)Waldencast has not paid any dividends historically and does not plan to declare dividends in the foreseeable future and therefore assumed a dividend yield of zero. The fair value of stock option awards was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:
| Period from January 1 to July 27, 2022 |  | Year ended December 31, 2021
| Predecessor
Risk-free interest rate (1) | — |  |  | 0.68 | %
Expected term (years) (2) | — |  |  | 6.2
Expected stock price volatility (3) | — |  |  | 43.00 | %
Dividend yield (4) | — |  |  | N/A
Common stock per share value | — |  |  | $ | 38.68 |
(1)The risk-free rate is based on U.S. Treasury securities with maturities equivalent to the expected term. (2)The expected term is the estimated length of time the grants are expected to be outstanding before it is exercised or terminated. This number is calculated as the midpoint between the requisite service period and the contractual term of the award, as the Company does not have any historical data that would provide a reasonable basis to estimate the expected term for the option. (3)The expected price volatility is based on the average of the historical volatility of comparable public companies over a period consistent with the expected term. (4)The Predecessor historically made distributions to its shareholder but the Company does not plan to declare dividends in the foreseeable future and therefore assumed a dividend yield of zero.
Schedule of Restricted Stock Activity | Restricted stock activity for the period from July 28 to December 31, 2022 (Successor Period) was as follows:
| Shares |  | Weighted Average Grant Date Fair Value per Share
Outstanding as of July 28, 2022 (Successor) | — |  |  | $ | — |
Granted | 3,173,364 |  | 9.16 |
Vested | (370,945) |  |  | 10.00 |
Forfeited | — |  |  | — |
Outstanding as of December 31, 2022 (Successor) | 2,802,419 |  | $ | 9.16 |
Predecessor Restricted Stock activity for the period from January 1 to July 27, 2022 (Predecessor Period) was as follows:
| Shares |  | Weighted Average Grant Date Fair Value per Share
Outstanding as of January 1, 2022 (Predecessor) | 243,307 |  | $ | 38.68 |
Granted | 1,754 |  | 68.19 |
Exercised | — |  |  | — |
Forfeited | 10,219 |  | 38.68 |
Vested | — |  |  | — |
Outstanding as of July 27, 2022 (Predecessor) | 234,842 |  | $ | 38.90 |
The Company’s Restricted Stock activity for the year ended December 31, 2021 (Predecessor Period) was as follows:
| Shares |  | Weighted Average Grant Date Fair Value per Share
Outstanding as of January 1, 2021 (Predecessor) | — |  |  | $ | — |
Granted | 243,307 |  |  | 38.68 |
Exercised | — |  |  | — |
Forfeited | — |  |  | — |
Vested | — |  |  | — |
Outstanding as of December 31, 2021 (Predecessor) | 243,307 |  |  | $ | 38.68 |

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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 -Topic 718 -SubTopic 10 -Subparagraph (f)(2) -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
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