Reload feature

A reload feature automatically grants additional stock options whenever an option holder exercises previously granted options using an entity's shares to satisfy the exercise price. New stock options granted under this feature have the same expiry date as the old options.

If a stock option contains a reload feature, do not include it in the estimate of the fair value of options granted. Instead, it is to be accounted for as a new option grant.

Related Courses

Accounting for Stock-Based Compensation