RE:RE:RE:RE:RE:RE:Bad news/ Good newsTorontojay wrote: lscfa wrote: I'm not sure about that. Anyone know how to value these damn phantom shares?
| $US | Fair value liability | Expensed to SG&A | No of Shs o/s | Vested | Ending Sh pr |
| Jun30/20 | 4,699,000 | 4,308,000 | 1,042,000 | 601,000 | 9.60 |
| Mar31/20 | 4,593,000 | (697,000) | 1,328,000 | 0 | 4.76 |
| Dec31/19 | 5,290,000 | | 1,350,000 | 0 | 6.20 |
| | | | | | |
| $US | Fair value liability | Expensed to SG&A | No of Shs o/s | Vested | Ending Sh pr |
| Jun30/21 (e) | | | 571,000 | 700,000 | |
| Mar31/21 | 7,808,000 | 2,465,000 | 951,000 | 0 | 10.12 |
| Dec31/20 | 5,344,000 | | 985,000 | 0 | 7.76 |
| | | | | | |
donmayne wrote: If the share price closes at a low at the end of Q2, will that reverse all the phantom share charges for the prior three quarters? That would amount to .075 per share boost to quarterly income.
That phantom share plan was a bad plan poorly executed. It has cost the company by the wild volatility that it generates in the earnings. It was so short sighted not to have abandoned that plan and replaced it with a better plan that provides an equivalent incentive.
In any event, I expect a reversal of phantom share expenses will boost Q2s income.
The amount that will end up in sga in q2 would be:
(market price - grand date price)* 701,000 + number of outstanding options that have not vested * (market price -grand date price) * the amount that should be appropriately amortized for that year.
This should read:
(market price - grant price)* 700,000 +
(Market price - grant price)* unvested options* the amount that should be amortized for that quarter.
it is typical to use a straight line declining method which implies that a 2 year vesting schedule would be amortized by 1/2 per year or 1/2*1/4= 1/8 per quarter. In the case of Viemed, if there are 2 years left then we are allowed to amortize 12.5% per quarter until the maturity date is reached.