What was the weighted average remaining contractual life in years for Benihana shares 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 weighted average remaining contractual life for shares outstanding at December 31, 2020, was 4.98 years. This information pertains to stock options and similar equity instruments issued by The ONE Group Hospitality, Inc., Benihana's parent company. The figure represents the average length of time remaining until these outstanding stock options or shares expire, based on a weighted calculation considering the number of shares and their individual expiration dates.
For a prospective Benihana franchisee, this data point is unlikely to have a direct impact on their day-to-day operations. However, it provides insight into the financial structure and management of Benihana's parent company. Understanding the terms and conditions of outstanding equity can help potential investors assess the company's financial health and potential future liabilities.
Specifically, the FDD states that at December 31, 2020, the exercisable shares had a weighted average remaining contractual life of 4.68 years. This indicates the average time remaining before the options that employees or stakeholders currently hold the right to exercise will expire. The intrinsic value of shares outstanding at that time was $1,454 (in thousands), while the intrinsic value of exercisable shares was $1,112 (in thousands).