What was the intrinsic value (in thousands) of Benihana stock options outstanding at December 31, 2020?
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 of outstanding stock options at December 31, 2020, was $1,454 thousand. The number of shares outstanding at that date was 1,707,008, with a weighted average exercise price of $3.37 and a weighted average remaining contractual life of 4.98 years.
Additionally, the FDD states that the number of exercisable shares at December 31, 2020, was 1,443,675, with a weighted average exercise price of $3.57 and a weighted average remaining contractual life of 4.68 years. The intrinsic value of these exercisable shares was $1,112 thousand.
These figures reflect the value that option holders would realize if they exercised their options at that time, based on the difference between the market price of the stock and the exercise price of the options. For a prospective Benihana franchisee, this information provides insight into the company's stock option structure and potential dilution, which could affect the value of their investment.