Product-specific Q&A

1. What is included in the Management Tool?

2. How can I purchase the Tool?

3. How do I Install the Tool?

4. How does the Tool compute the expense for each Period?

5. How did you verify that your calculations are correct?

6. How do I import the option historical data?

7. What is the initial cost? Are there any additional costs?

8. Can multiple people use the product concurrently?

9. Can I share your templates?

ASC 718 (formerly FAS123 & FAS123r) Q&A

10. Why do I need to expense option grant valuations?

Tool Requirements Q&A

11. What do I need to use the Tool?

12. What if I need additional help?

13. How do I install the Tool?

Product-specific Q&A

1. What is included in the Management Tool?

The ASC 718 (formerly FAS123r) Management Tool includes a rich Excel template with software to prevent user error and complete documentation. The Tool uses a set of formulas to compute the expense rate and to apportion the expense over the service life of each grant. You may enter a period-by-period forfeiture rate and we also provide an expected to actual adjustment for each period to compute the expense as required by ASC 718.

2. How can I purchase the model?

The model is purchased from our website using PayPal and is available for immediate download. We're sorry but once you have downloaded the file, refunds will not be possible.

3. How do I Install the model?

We provide two installation methods: Windows Installer and Self-Extracting Zip file. If you have Windows XP or later, we recommend using the Windows Installer option (you can also install the Microsoft Installer software on Windows 2000 and NT 4.0 platforms).

The Self-Extracting Zip file is an executable that can be run on any Windows platform. You simply run the executable the same as any executable (.EXE file) from Window Explorer and the Zip file will prompt you to select a directory to install ('Extract To:'). You press the 'Start' button and files and directories are simply copied to the directory you select.

After installation on either method, a directory is created that contains the template file and documentation. Simply read the documentation PDF and you are ready to use the model.

Our Tool requires Microsoft® Office 2000 or later and can run on any Windows-based computer certified for use with the Office software. We recommend that you have at least 100MB of available disk space to store computations and backup data.

You may install the model on a server or multiple PC's/laptops but the model is only licensed for a single grantor (legal entity or company). Bulk licensing is available for CPA and Consulting firms. Contact sales@procognis.com for details.

4. How does the Tool compute the expense for each period?

The Tool takes the data entered for each grant (each workbook allows up to 500 grants and you may create as many workbooks as you need to track your options) and using the entered option grant valuation, evenly divides the expense over the service life of the grant. The system creates new sheet for each year using the grant information provided (we compute the years required based on the service life and starting period for each grant) and the system determines whether the grant has apportioned service life in each period.

The Tool tallies the grants with apportioned service life in each period for each year and the totals are summed together. The expected forfeiture adjustment is then deducted against this total and you can enter an adjustment to correct the expected forfeitures to actual forfeitures for each period to produce the expense for each period for all years.

5. How did you verify that your calculations are correct?

The FAS123r Management Tool uses well-known computational methods and all of the key computations can be confirmed in the visible data. The output was tested against numerous data inputs and produced the expected numbers. The output is detailed enough to verify that the numbers are correct and the computation is valid.

6. How do I import the option historical data?

Simply enter the information in the table by following the in-cell information and the provided documentation. Each grant takes inputs including the grant name, inception date, number of options, service term and starting period (month and year). You also enter the expected forfeiture rate for each period and you may optionally adjust the expected forfeiture rate to actuals for each period. These inputs are used to compute the resulting values for each grant and for the overall aggregate computations.

7. What is the initial cost? Are there any additional costs?

The base product is $299 (US Dollars). You purchase by online payment with PayPal.

The license is per Company or legal entity that grants stock-based contracts (option 'grantor'). CPA firms, consulting firms or other entities that have business relationships with companies that issue stock options and that wish to use our products for their customers will need to purchase a license for each grantor. Please contact our sales team for more details and pricing for license packs or bulk licenses.

There are no ongoing maintenance costs. Once you have purchased the Tool, you own the license for it. Ongoing technical support services are on a per-incident basis with no support contract required.

We're sorry but returns cannot be accepted after the transaction has been completed.

8. Can multiple people use the product concurrently?

Yes. Any data created with our software can be accessed or created by anyone with access to the software. However, the license is for one company and grantor so any use within the license is permitted.

You may install the model on a server or multiple PC's/laptops but the model is only licensed for a single legal entity or company (grantor).

9. Can I share your templates?

No. Our templates are proprietary. By purchasing the Tool, you have been granted a license to use them for one company and grantor. If you have multiple subsidiaries, each must purchase a separate license.

ASC 718 (formerly FAS123 & FAS123r) Q&A

10. Why do I need to expense option grant valuations?

ASC 718 requires that the compensation expense be recorded net of the expected forfeitures. You need a means to compute your expense for all of your option grants that are still vesting (or otherwise still in their service life). You will need to support your forfeiture conclusion and using actual option forfeit and exercise behavior can be used to develop an appropriate value to meet this requirement (please see our Forfeiture & Expected Life Tool).

Tool Requirements Q&A

11. What do I need to use the Tool?

The Forfeiture & Expected Life Tool is based on an Excel template using embedded code. You will need Excel 10.0 or greater (Office XP or greater). You will also need to set Medium Macro security to allow Macros to run on each workstation. Disk space required will depend on the number of grants saved on the system. Each workbook will require approximately 1MB and the base installation will require about 2MB.

12. What if I need additional help?

Technical support is available via email on a per-incident basis. If you encounter technical issues, simply email us at support@procognis.com. We will make every effort to resolve your technical issues.

13. How do I install the Tool?

Simply run the Installer file or the Executable you downloaded following the PayPal transaction. The installation software will ask you where you would like to install the files on your hard drive or network. Both applications default to installing the software in the current directory (where you saved the installation file). After installation is complete, a shortcut will be created on your desktop that will link to the working template file.

For the Windows Installer version, should you want to delete the installation, you should use the Add/Remove programs feature in the Control Panel or simply use the Remove option when re-running the installer.