Maintain your records
Record and review warrants
Record warrant quantities, strike prices, and expiration dates and understand their treatment in Cap Table ownership and exit models.
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Record the warrant terms
Choose Warrant in the security form. Enter the holder, quantity, strike price, issuance date, and expiration where applicable. Review the supporting agreement and attach it to the record.
A warrant is a distinct instrument. Do not use an employee option merely to make a different lifecycle menu available, because employee-option classification and plan treatment would misdescribe the record.
Review ownership and plan treatment
Warrants contribute to the app’s fully diluted count, while an unexercised warrant is not an issued share certificate. Warrants do not draw from equity-plan reserves.
The exit model accounts for warrant strike prices when calculating economic participation. A warrant’s fully diluted quantity alone is not a promise of cash proceeds at every sale value.
Record exercises and cancellations
Use Lifecycle actions on the warrant to record a cash exercise or dated cancellation. An exercise issues a linked share certificate at the warrant’s strike price and reduces the remaining rights in one save. Deleting that certificate undoes the exercise; the original warrant remains available for historical reporting.
Unexercised rights stop contributing to fully diluted ownership and exit proceeds after the expiration date. They remain included in snapshots on or before that date. An expired warrant remains available for review, recording an earlier exercise, or correcting its terms after a documented extension.
Recognize unsupported warrant events
Cashless exercise and bespoke conversion ratios are not modeled. Reconcile those events separately. Warrants do not use employee vesting schedules or draw from equity-plan reserves.