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Thread: Help double checking my math with issuing shares of my company...

  1. #1
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    Help double checking my math with issuing shares of my company...

    Hi all!

    can you take a look at what I did here... I am issuing shares to one of our shareholders and want to make sure I am accurate.

    thanks in advance!

    Does the below make sense?

    total ownership to this person is 18.95% of outstanding shares.
    on Jan 1 2017 we issued him 272,520 shares or 6% with warrants for the others as 1/3 on jan 1 2018 and the remaining on Jan 1 2019.

    are the percentages below and total amount of shares accurate? thanks!

    18.95 total
    272,520.00 6% Jan 1 2017
    401,967.00 6.475% Jan 1 2018
    401,967.00 6.475% Jan 1 2019
    1,076,454.00 18.95%

  2. #2
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    Note that I have no idea what you mean by "...with warrants for the others as 1/3 on jan 1 2018 and the remaining on Jan 1 2019."

    But leaving that aside, the short answer is NO, your numbers do not add up. You can tell that just at a glance. How can 6.475% of the shares be as high as ~400,000 shares if 6% is only around 270,000 shares? The first of those numbers is like 150% the value of the second! (and that would be around 9%, not 6.475%)

    Since this is the algebra section, let's let the variable "S" stand for the total available number of company shares. If 6% of the shares is supposedly 272,520, then what that's saying is:

    S*0.06 = 272,520

    or in other words, S = 272,520/0.06 = 4,542,000 is the total number of available shares, and this dude is owed 18.95% of that number.

    So in 2018, he should get S*0.06475 = 294,094.5 shares
    So in 2019, he should get S*0.06475 = 294,094.5 shares

    In total you are giving him 272,520 + 294,094.5 + 294,094.5 = 860,709 shares

    Check the answer:
    Is this 18.95% of the total? Well, 860,709/4,542,000 = 0.1895. So, yes, this works out.

  3. #3
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    Quote Originally Posted by j-astron View Post

    In total you are giving him 272,520 + 294,094.5 + 294,094.5 = 860,709 shares

    Check the answer:
    Is this 18.95% of the total? Well, 860,709/4,542,000 = 0.1895. So, yes, this works out.

    THANK YOU!!!!

    much appreciated

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