Provided valuation services for equity-based payments to non-employees

Provided valuation services for equity-based payments to non-employees

An early-stage client engaged Stout to assist with annual valuations of equity awards issued to a service provider. The client provides a self-regulated exchange for financial institutions to meet funding and liquidity needs and notably provides a transactions-based interest rate benchmark as a replacement for LIBOR.These non-employee share-based awards were contingent upon the completion of a specific developmental milestone.

Due to the asymmetrical nature of these awards, Stout first determined the current enterprise and equity value of the company and then utilized a Monte Carlo analysis to run simulations of future equity values in order to estimate the expected distribution value and fair value for these unique awards. Our analysis was performed pursuant to ASC 505, Equity - Equity-Based Payments to Non-Employees.