Risk of Shareholder Value Dilution from Stock Option Exercises
First written in FY2016. 4 of 10 entries say "Worsened", first in FY2018-Q1. Latest entry: FY2026-H1.
Generation Pass moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2017: 37 of 68 companies on the "Worse" side.
53 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「1. Details of the stock option plan: Not applicable. 2. Status of other subscription rights: Not applicable.」
The company disclosed that there were no applicable matters concerning the stock option plan or other stock acquisition rights for the interim period. It also disclosed the issuance of 48,000 shares through the exercise of stock acquisition rights. - FY2025MitigatedAnnual report
「Of the 4th series of stock acquisition rights, 106,000 shares lapsed on 31 October 2024 because the rights became unvested.」
A total of 106,000 shares underlying the 4th series of stock acquisition rights lapsed, leaving 53,000 shares outstanding at the end of the period. Exposure to dilution from potential shares decreased from the amount previously disclosed. - FY2025-H1SoftenedAnnual report
「1. Details of the stock option plan: Not applicable. 2. Status of other subscription rights: Not applicable.」
The company disclosed that there were no applicable matters concerning the stock option plan or other stock acquisition rights for the interim period. - FY2022-Q3WorsenedAnnual report
「The number of stock acquisition rights was 1,590, and the class, terms and number of shares underlying the stock acquisition rights were 159,000 common shares.」
The 4th series of stock acquisition rights was issued, creating 159,000 new potential shares and again increasing exposure to share-value dilution. - FY2021MitigatedAnnual report
「At a meeting of the Board of Directors held on 28 January 2021, the company acquired the 2nd and 3rd series of stock acquisition rights without consideration, in accordance with the offering regulations, because the conditions for exercising the rights were no longer satisfied, and cancelled all of them.」
All of the 2nd and 3rd series of stock acquisition rights were cancelled, eliminating exposure to share-value dilution from outstanding potential shares. - FY2019WorsenedAnnual report
「As of the end of October 2019, the number of shares underlying the stock options was 271,200, and the potential dilution ratio was 3.28% of the 8,264,440 issued shares.」
Potential shares increased from the previously disclosed 211,500 to 271,200, and the potential dilution ratio rose from 2.55% to 3.28%. - FY2018WorsenedAnnual report
「As of the end of October 2018, the number of shares underlying the stock options was 211,500, and the potential dilution ratio was 2.55% of the 8,264,440 issued shares.」
Potential shares increased from the previously disclosed 198,700 to 211,500, and the potential dilution ratio rose to 2.55%. - FY2018-Q2RestatedAnnual report
「Stock acquisition rights issued during the second-quarter accounting period were as follows.」
A total of 1,987 stock acquisition rights, underlying 198,700 common shares, were actually issued, with the exercise period stated as 1 February 2021 to 31 January 2023. - FY2018-Q1WorsenedAnnual report
「The total number of shares deliverable upon exercise of these stock acquisition rights is 200,000 common shares. If the number of shares granted in respect of these stock acquisition rights is adjusted under 3. (1) below, the total will be the adjusted number of shares granted multiplied by the number of stock acquisition rights.」
Following the resolution to issue performance-linked paid stock acquisition rights in March 2018, a potential 200,000 shares deliverable were newly disclosed, increasing exposure to share-value dilution. - FY2016First statedAnnual report
「As of the end of October 2016, the number of shares underlying the stock options was 31,200, and the potential dilution ratio was 0.37% of the 8,246,040 issued shares.」
The disclosure shows 31,200 shares underlying stock options and a potential dilution ratio of 0.37%, identifying dilution of share value upon exercise as a risk.