TALKSTUFF STAFF STOCK OPTIONS TUTORIAL

1] Determine market values of TS

TOTAL ASSETS LESS TOTAL LIABILITIES DEVIDED BY NO. OF COMMOM STOCK
TA – TL/NO. OF STOCK
EXAMPLE
TOTAL ASSETS, [Inclusive of Servers, furniture, Cars, Generators etc]
TOTAL LIABILITIES [Unpaid invoices, IOU]
=N= 80,000,000 – =N=15,000,000/1,000,000
=N=65,000,000/1,000,000
=N= 6.5 per share

2] Determine annual salary of staff

EXAMPLE
Staff A earns =N= 25,000 monthly
Annual pay is 25,000 * 12
=N=300,000 yearly

3] Decide the portion you can pay

EXAMPLE 25%
i.e. 75% to be utilized for stock purchase
75% of =N= 300,000
=N=225,000
4] Determine the no. of years this gap applies
EXAMPLE 2 years
i.e. =N=225,000 * 2 =N= 450,000

5] Work out stock options for N450,000

=N=450,000 value of stock valued at =N= 6.50 each
To determine no. of stock to be issued, divide by the share price
= 450,000/6.5 = 69,230 shares
= 69,230/1,000,000 * 100 = 6.923
6.9% of Talkstuff shares