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Complex instruments, clear answers
Technical Accounting & Valuation
Convertible notes, warrants and equity awards drive many restatements at small public companies. We get the accounting right the first time and document it so it holds up under audit.
What’s included
- Derivative liability valuationFair value of embedded conversion features and warrants using Black-Scholes and binomial lattice models.
- Debt and equity classificationAnalysis under ASC 470-20, ASC 480 and ASC 815-40 for convertibles, preferred stock and warrants.
- Stock-based compensationGrant-date fair value, expense schedules and disclosures under ASC 718.
- Revenue and leasesASC 606 contract reviews and ASC 842 lease schedules and journal entries.
- Business combinationsPurchase accounting support under ASC 805 for acquisitions and reverse mergers.
- Position memosWritten accounting memos that cite the guidance and give your auditor a clear trail.
Questions
Common questions
Which model do you use, Black-Scholes or binomial?
It depends on the instrument. Black-Scholes fits plain warrants. Path-dependent features such as resets, down-round protection or variable conversion prices usually call for a binomial lattice.
Can you review accounting another firm already prepared?
Yes. We review existing conclusions and models and tell you in writing whether we agree and why.
How fast can you turn around a valuation?
For a typical convertible note or warrant, about one to two weeks after we receive the agreements and market data.
Have a filing date or a tax deadline coming up?
Tell us the date. We will tell you what it takes to meet it, in one free 30-minute call.