Stock Option Modification

Question

I wanted to know if Carta would be able to calculate ASC 718 Stock comp related to stock option modifications? For example, if we have an employee stock option and the employee intends to leave, but we want her options to continue to vest post-termination since she will continue to consult with us after she leaves. Will Carta be able to calculate the stock option accounting related to this type of modification?

Answer

Thanks for reaching out to us. If the terms of the options are the same, then as per ASU 2018-07, non-employees grants will be expensed in the same way as employee grants, you would just need to change the relationship of the employee to consultant on Carta.

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