How do I record Stock Options?

Seraf enables users to record stock options (shares of stock granted to you which you have the option to buy at a later date) and the details behind them, including the exercise price, expiration date, and vesting schedule. Users can then record transactions for options grant, options vesting and options exercise.

You'll first need to add an options round followed by the appropriate transactions for your options. Keep in mind that you will not see any shares or value associated with your options until they are exercised. In the meantime, the company with which your options are associated will remain in your current portfolio until they are exercised. Set a reminder for the expiration date to be sure you don't miss the opportunity to exercise your options.

Record a stock option round

• Add a company, if the company is not yet in your account. 
• Add a round and complete the following:
  • Select the Company with which the options are associated
  • Enter the Closing Date for when you received the options
  • Enter "Options" for the Security Type
  • Enter the Exercise Price Per Share 
  • Enter the Expiration Date (optional)
  • Select the Vesting Schedule (optional)
  • Add any relevant notes in the Memo field
  • Click “Save and Add Transaction"

Next, add one or more options-related transactions. 

Add an Options Grant Transaction

• Add a transaction
• Select the Company to which the options apply
• Select the Round of Investment to which the options apply 
• Select "Options Grant" as the Transaction Type
• Enter the Date
• Enter the Shares
• Enter the Share Price
• Select the Vesting Schedule (optional)
• Enter the Expiration Date (optional)
• Enter notes in the Memo field (optional)
• Click "Save"

Enterprise accounts will need to Update Calculations in order to see the updated records.

Once updated, you will not see any shares or value associated with your options until they are exercised. However, you will see the company and the options round listed in Current Investments and within the company record. 

Add an Options Vesting Transaction

Recording the vesting of your options is a manual entry. Seraf does automatically record when your options are vested. This entry is optional and is primarily for your own reference and record-keeping. 

• Add a transaction
• Select the Company to which the options apply
• Select the Round of Investment to which the options apply 
• Select "Options Vesting" as the Transaction Type
• Enter the Date
• Enter the Shares
• Enter notes in the Memo field (optional)
• Click "Save"

Enterprise accounts will need to Update Calculations in order to see the updated records.

Once updated, you will not see any shares or value associated with your options until they are exercised. You can see the number of options listed on the Investment tab of the company record.

Add an Options Exercise Transaction

• Add a transaction
• Select the Company to which the options apply
• Select the Round of Investment to which the options apply 
• Select "Options Exercise" as the Transaction Type
• Enter the Date
• Enter the Shares
• Enter the Share Price
• Enter the Amount
• Enter the Share Certificate # (optional)
• Indicate if the investment is 1244 Qualified (optional)
• Check the Exit Transaction box if you are exercising all of your options in this particular options round. If you are only exercising a portion of your options, be sure the Exit Transaction box is not selected since you still retain options in the round.
• Enter notes in the Memo field (optional)
• Click "Save"

Enterprise accounts will need to Update Calculations in order to see the updated records.

Once updated, you will see the relevant number of options exercised into shares of Common Stock along with the cost basis and current value. You will see them listed in Current Investments and within the company record on the Investment tab. Any options not yet exercised will also be visible in the company record.

*Important notes about recording options:

• When options are exercised, the system will automatically create a Common Stock round with a share price of 1 to reflect the shares received. 
• If your options exercised into a different class of stock, you can record a new round for the proper security and then record a stock swap transaction into that new round from the Common Stock round, to best reflect your current holding.
• If you'd like to revalue your common shares, the default Common Stock round share price and date cannot be modified, so you can enter a new valuation to best reflect the value of your holdings.