What was the exercise price for total options at Batteries Plus Bulbs as of December 31, 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
ion expense included in the Company's consolidated statements of net income was $529 and $421 for the years ended December 31, 2024 and 2023, respectively.
The following table summarizes the option activity during 2024 and 2023, and the call option value and exercise price for service and performance options at December 31, 2024 and 2023.
| Service Options | Weighted Option Fair Value | Performance Options | Weighted Option Fair Value | Total Options | Exercise Price | |
|---|---|---|---|---|---|---|
| Balance at December 31, 2022 | 212,177 | $ 7.08 | 110,643 | $ 0.85 | 322,820 | $ 119.97 |
| Granted | 38,000 | 1,500 | 39,500 | |||
| Exercised | (15,617) | - | (15,617) | |||
| Forfeited | (4,700) | (11,333) |
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the exercise price for total options as of December 31, 2023, was $124.47. This figure represents the price at which employees can purchase shares of Batteries Plus Bulbs stock under the company's stock option plan. The options are part of the 2016 Equity Incentive Plan, which provides certain management and key employees with incentive-based awards.
The stock option plan includes both service-based and performance-based options. Service-based options vest annually over a defined service period, while performance-based options vest based on achieving a predetermined value target and the occurrence of a cash distribution to the majority shareholder. The exercise price is a key factor for employees when deciding whether to exercise their options, as they will only do so if the current market value of the stock exceeds this price.
The table also provides a summary of option activity during 2023 and 2022, detailing the number of service and performance options outstanding, granted, exercised, and forfeited. This information gives a comprehensive view of the company's stock option activity and its potential impact on the company's financial statements. For a prospective franchisee, understanding the company's compensation structure, including stock options, can provide insights into the overall financial health and management incentives within the Batteries Plus Bulbs organization.