What is the weighted average exercise price per share for outstanding options of Management Recruiters?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
k options outstanding at December 31, 2019, and changes during the years ended December 31, 2021 and December 31, 2020:
| | Number of shares underlying options | Weighted average exercise price per share | Weighted average grant date fair value | |--------------------------------|----------------------------------------|-------------------------------------------------|-------------------------------------------| | Outstanding, December 31, 2019 | 29,165 | $ 7.20 | $ 3.76 | | Forfeited | (12,083) | 8.76 | 4.34 | | Outstanding, December 31, 2020 | 17,082 | 6.10 | 3.36 | | Exercised | (4,166) | 8.04 | 4.34 | | Outstanding, December 31, 2021 | 12,916 | 5.47 | 2.98 | | 50 | | | |
The following table summarizes our non-vested stock options outstanding at December 31, 2019, and changes during the years December 31, 2021 and December 31, 2020:
| | Weighted average | | | | | |-------------------------------|--------------------|--------------------|-----------------------|--|--| | | Number of shares underlying options | exercise price per share | Weighted average grant date fair value | | | | Non-vested, December 31, 2019 | 5,417 | $ 5.48 | $ 3.01 | | | | Vested | (3,229) | 5.47 | 2.98 | | | | Non-vested, December 31, 2020 | 2,188 | 5.50 | 3.05 | | | | Vested | (2,188) | 5.50 | 3.05 | | | | Non-vested, December 31, 2021 | - | - | - | | | The following table summarizes information about our outstanding stock options, and reflects the intrinsic value recalculated based on the closing price of our common stock of $20.16 on December 31, 2021:
| shares | Weighted | remaining | Aggregate | |
|---|---|---|---|---|
| underlying | average exercise | contractual | intrinsic | |
| options | price per share | life (years) | value | |
| Outstanding | 12,916 | $ 5.47 | 6.23 | $ 189,765 |
| Exercisable | 12,916 | 5.47 | 6.23 | 189,765 |
At December 31, 2021, there was unrecognized stock-based compensation expense totaling approximately $1.3 million relating to non-vested restricted stock grants that will be recognized over the next four years.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the weighted average exercise price per share for outstanding options varies depending on the year. The data is presented in table format within Item 21, which covers the company's financial statements. For instance, as of December 31, 2019, the weighted average exercise price was $7.20 per share. By December 31, 2020, this figure had decreased to $6.10 per share. Further decreasing, the weighted average exercise price per share as of December 31, 2021, was $5.47. The weighted average exercise price per share remained at $5.47 as of December 31, 2022, and December 31, 2023.
These figures reflect the average price that holders of stock options would need to pay to exercise their right to purchase Management Recruiters' shares. The weighted average takes into account the number of shares underlying each option, providing a more accurate representation of the overall cost to exercise these options. It's important to note that these options are part of Management Recruiters' equity incentive plans, which aim to align the interests of employees and shareholders.
A prospective franchisee should understand that these stock options are not directly related to the franchise opportunity itself. However, they do provide insight into the company's overall financial health and its approach to employee compensation and incentives. Understanding these details can help a franchisee assess the stability and management practices of Management Recruiters as a franchisor.
It is also worth noting that the FDD includes details about restricted shares and other stock-based compensation plans, such as the share purchase match program. These programs further illustrate how Management Recruiters incentivizes its employees and directors, which can be a positive indicator of the company's commitment to its team.