Carta Support Request - Using the previous day's close price for the Fair Market Value

Question

Can you please help us to configure our Financial Reporting Module to pull the previous day’s close price for the fair market value instead of the current day’s close price? Our board uses the previous day’s close price when granting options. Currently, Carta is pulling in the close price of the grant date (so there is a mismatch in our exercise prices and our fair market values. We want the Exercise Price and the Fair Market Value to be equal for every option).

Answer

The reports for a public company are designed to use the share price as of the grant date. However, it is possible to input a custom FMV to calculate expense. Unfortunately, this would have to be a manual process. Here's a support article on how to input custom assumptions.

Please note that when uploading a custom FMV, any other values that you do not want to change should be blank. Specifically if a custom fair value is inputted, then the other variables (expected term, FMV, interest rate, etc.) would be ignored.

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