Connor Daly’s Post

Transcript

Hi there and welcome back to another new year worth feature updates. I'm Connor and the creator of Know Your Worth, and today I'm going to be talking about stock options. Stock options are actually the reason I created and Know Your Worth. I was so frustrated that I couldn't find any financial tools that would actually let me value and track these options correctly. So let me show you how Know Your Worth does it. So let's go over. Let's create a new account. We're going to create a private equity account. So let's say we work for a company called Acme Corp. And their current share price is $100 and that that valuation came from January 1st of this year. So now there's a couple different types of equity that you can have in a company, but the most common ones for regular employees are common stock and options. And those options will either convert into common stock or preferred stock, usually common stock. So let's say you have some options. Let's say we have 100 or 100. We got him on January 1st, 2022 for a price of $50.00. So it in the last two years the stock has doubled, which is amazing. And we'll say those those options become common stock. And so now we can also we can add some vesting information. So let's say you have a four year vesting cycle with the one year Cliff. So we could say it mess monthly starting on our grant date. Vests over 48 months with a 12 month Cliff with the 25% left. So it's very customizable. We allowed for a lot of situations. And we're going to set that up. And we can now see Acme Corp. Here we go. So your options aren't actually worth anything until the price of the stock changes. So that's why we see 000. This is not our Cliff. This is actually when the new valuation comes in on January 1st of this year. And then you can see the dotted line is where the future is because, you know, we mentioned that we were testing these options. So the solid line is what we've accrued today and that's what this balance is. But we also show you the balance you can project out into the future. And so if we look at this details tab, we can actually see some fine grained information about our options, what they're worth today and what they will be worth when they finish vesting. And also some other things that are helpful to see how much money you've already invested in exercising these options, how much you're going to have to pay to exercise them in the future, and your current return on exercise. So let's add some other valuations to make this a little more interesting. So we got our stocks on January 1st, 2022. So let's say June 1st, 2022, let's say the stock went up to $60. So now we can see some jumps. Now we actually see the Cliff. So this is where we unlock our initial. First tranche of shares and then the value, you know gradually goes up as we invest more overtime than when the new valuation goes up from 60 to 100. We see a real big jump in the value and we can also track our exercises. So right now we have 6868 vested shares out of 100. So let's say we exercised 20 of them. On let's say March 1st, 2023. Oops. Not 20 to 30/2/2023. So now you're going to start to see a little bit of like some weird jumps. And this is with the reason that actually options are like really hard to value. You have to take into account whether or not you have exercised them or not. So. You actually have to pay an exercise price to to get access to your options. So we actually keep track of all this for you. So you've invested $1000. Now you only have 4000 remaining. So the future value, it used to be $5000, but now it's 6000 because we're counting that 1000. We've taken into account the 1000 you've already invested. And so I just have really appreciated being able to actually have these numbers and have detailed accounting of all my options and what they're worth. I find it super useful. If you have stock options, I think you will too. So if you're interested in testing this out, I would love if you signed up for a free trial and Know You're Worth. We're currently running a promotion where our early access users are going to lock in $7.00 pricing per month for the lifetime of their use of Know Your Worth, and we're super excited about this product. We'd love to see you try it and if you have any feedback, let me know what you think. I'd love to make any improvements that you suggest and really listen to everything you have to offer. Thank you so much.