What is the name of the equity incentive plan used by Amerispec Inspection Services?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
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The Company accounts for stock-based awards in accordance with ASC 718 - Stock Compensation ("ASC 718"). ASC 718 requires compensation costs related to share-based payments, including profits interest units ("Units") and other equity awards, to be measured based on the grant date fair value of the award.
The Company issued certain time and performance vesting Units pursuant to the TCB Services Management, LLC Equity Incentive Plan (the "Equity Plan"). The Company has accounted for the Units within its consolidated financial statements as the Unit holders are providing services directly related to the Company and its subsidiaries. The aggregate number of units that may be issued or transferred under the Equity Plan is 2,000 Units. Units granted under the plan have been allocated into two groups based on their vesting criteria: time vesting and performance vesting Units.
Time vesting Units are equity classified awards, vest over a 5-year period and will vest 20% on each anniversary date of the date of grant. The Company recognizes compensation expense over a straight-line period of 5 years and has recorded compensation expense of approximately $96,000 and $51,000 for the year ended December 31, 2024 and period ended December 31, 2023. This expense is included in Salaries and wages on the statements of comprehensive loss.
Performance vesting Units are equity classified awards, and vest subject to a liquidation event in which a return amount greater than two times is achieved by the equity
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, the equity incentive plan is named the "TCB Services Management, LLC Equity Incentive Plan" (the "Equity Plan"). This plan allows for the issuance or transfer of up to 2,000 units. These units are classified into two groups based on their vesting criteria: time vesting and performance vesting Units.
Time vesting Units are equity classified awards that vest over a 5-year period, with 20% vesting on each anniversary of the grant date. Amerispec Inspection Services recognizes compensation expense over a straight-line period of 5 years, recording approximately $96,000 in compensation expense for the year ended December 31, 2024, and $51,000 for the period ended December 31, 2023. This expense is included in Salaries and wages on the statements of comprehensive loss.
Performance vesting Units are equity classified awards that vest subject to a liquidation event where equity holders achieve a return amount greater than two times their investment, provided the participant's continuous service has not terminated prior to such vesting date. As of December 31, 2024 and 2023, a liquidation event was not considered probable, and therefore, no compensation expense has been recorded based on this criterion. Class B Units issued with the equity incentive plan are nonvoting.