VOLATILITY TOOL

We offer the Volatility Tool to compute volatility for use with the ASC 718 (formerly FAS123r) option valuation models. The Volatility Tool can be used by any company (large public accelerated filer to non-public companies) to compute the volatility input. The Volatility Tool can even be used by investors looking for a powerful way to analyze historical stock pricing trends.

Note, PCAOB has released a Q&A to help auditors deal with the ASC 718 auditing standards. See the news release on the PCAOB website. The Q&A specifically identifies inputs such Volatility and Expected Term for more rigorous auditor scrutiny including testing the underlying data for the Volatility input. Our Tool can be used by both the company and auditing firms to validate the Volatility computation.

The Volatility Tool takes historical stock pricing data and computes the volatility based on the input data files. The Volatility Tool allows for up to four historical volatility computations to track your company's stock volatility and up to three competitor companies.

The Volatility Tool is specifically tailored to read the Yahoo!® Finance historical quotes files so that you can use freely available stock data. Our demo describes this product in detail and what it can do for you. If you need a sector index volatility computation, we offer a time-saving service to calculate volatility based on NASDAQ sector indexes. This service is particularly useful for non-public companies or other entities who lack historical stock data. See the Volatility Sector Service page for more information.

We offer two versions of the Tool for your volatility estimation: the Standard Edition and the Advanced Edition. The Standard Edition is available for a purchase price of $349 and our Advanced Edition is available for $599 and are both available for immediate download.

The Standard Edition computes volatility on a calendar year basis and is suited for calender year-end companies who only update their assumptions annually. The Advanced Edition allows the user to choose between a calendar year computation and an annual computation with user-specified dates.

In the Advanced Edition, partial years can be annualized (unlike the Standard Edition). The Advanced Edition can be used by all companies, even those with non-calendar year ends (other than December 31), and/or those companies who update their assumptions quarterly and need to consider the impact of partial years. Please see the FAQ for information about the Volatility Tool. Also, please see the Whitepaper for more information on the new requirements.

Feel free to contact us at sales@procognis.com if you have any questions about this Tool.

We also provide consulting services to assist with ASC 718 implementation. This includes helping companies develop their assumptions for expected volatility, term and forfeitures, and assisting in the determination of the expense to be recorded by period. Please contact us at consulting@procognis.com for details.

The Volatility Tool is $599 (Advanced Edition) for download. All amounts are in US dollars.

The Volatility Tool - Standard Edition is available for $349 for download. All amounts are in US dollars.

Example Screenshot from our Volatility Tool (Advanced Edition):

Example Screenshot from our Volatility Tool (Standard Edition):

Note: Excel 2002 (Office XP) or later is required to run the Volatility Tool. Excel 2000 has an issue with the file open function.