How many performance options for Batteries Plus Bulbs were forfeited in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
As of December 31, 2023 and 2022, under the 2016 Plan, a total of approximately 100,810 and 110,643 performance-based options were outstanding, respectively, which vest upon an achievement of a realization value. As this value has not been achieved and management is not certain that it is probable as of December 31, 2023, no expense has been recognized for those awards.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the company tracks outstanding performance-based options under its 2016 Equity Incentive Plan. As of December 31, 2023, there were approximately 100,810 performance-based options outstanding. In the previous year, as of December 31, 2022, there were approximately 110,643 performance-based options outstanding.
Comparing the number of outstanding performance-based options between December 31, 2022, and December 31, 2023, indicates a decrease of 9,833 options (110,643 - 100,810 = 9,833). This decrease suggests that 9,833 performance-based options were forfeited or otherwise removed from the outstanding options during 2023. These options vest upon achieving a specific realization value, and since this value was not achieved, no expense was recognized for these awards as of December 31, 2023.
For a prospective franchisee, this information highlights the incentive structure for Batteries Plus Bulbs' management and key employees. The vesting of these options is tied to specific performance targets and the distribution of cash to the majority shareholder. The fact that a significant number of options were forfeited in 2023 could indicate challenges in meeting these performance targets. A potential franchisee might want to inquire about the specific performance targets associated with these options and the reasons why they were not met, to better understand the company's financial performance and future expectations.