What was the intrinsic value in thousands of dollars for Benihana shares exercisable at December 31, 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
n expense for the year ended December 31, 2021 included $0.4 million of employer payroll taxes associated with stock option and restricted stock units ("RSU") activity and $0.3 million of compensation costs for the vesting of market condition-based stock options and RSUs.
Stock Option Activity
Changes in outstanding stock options during the years ended December 31, 2021 and 2020 were as follows:
| Shares | Weighted average exercise price | Weighted average remaining contractual life | Intrinsic value (thousands) |
|---|
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the intrinsic value for shares exercisable at December 31, 2022, was $3,811 thousand. The number of shares exercisable at this date was 1,187,352, with a weighted average exercise price of $3.43 and a weighted average remaining contractual life of 2.84 years.
This information is relevant to potential franchisees as it provides insight into the company's stock options and their potential value. Understanding the intrinsic value and the terms associated with exercisable shares can help franchisees assess the financial health and potential incentives offered by Benihana.
It's important to note that the intrinsic value is just one aspect of the overall financial picture. Prospective franchisees should consider other factors, such as the company's overall financial performance, market conditions, and the terms of the franchise agreement, before making a decision.