Risk of dilution to shareholder value from stock acquisition rights and share-based compensation
First written in FY2021. 6 of 10 entries say "Materialised", first in FY2022-Q1. Latest entry: FY2025.
The whole theme swung hardest in 2017: 37 of 68 companies on the "Worse" side.
- FY2025Decrease in outstanding potential sharesAnnual report
「The balance of unexercised rights at the fiscal year-end was 382,600 shares. During the fiscal year, rights for 87,400 shares were exercised and rights for 10,000 shares lapsed.」
While shares continued to be issued through the exercise of share acquisition rights, some rights also lapsed, reducing the year-end balance of unexercised rights from 480,000 shares to 382,600 shares. - FY2025-H1MaterialisedAnnual report
「Increase/(decrease) in total number of issued shares (shares) 87,400 / (Note) This increase resulted from the exercise of the first series of share acquisition rights.」
From 15 April to 24 April 2025, the first series of share acquisition rights was exercised, resulting in an increase of 87,400 issued shares and increases of ¥15 million each in stated capital and the capital reserve. - FY2024-Q2Resolution on the Issuance of Stock Acquisition RightsAnnual report
「At a meeting of its Board of Directors held on 22 May 2024, the Company resolved, pursuant to Articles 236, 238 and 240 of the Companies Act, to issue share acquisition rights to the Company's directors and employees and the directors and employees of its subsidiaries as follows. / The Company's common shares: 490,900 shares」
At a Board of Directors meeting held after the filing date, the Company resolved to issue share acquisition rights for 490,900 shares. As there is no indication that the rights have been exercised or that the shares have been issued, this is recorded as an issuance resolution rather than realised dilution. - FY2023Decrease in potential shares and continued issuanceAnnual report
「As of 31 October 2023, the number of potential shares represented by these stock acquisition rights was 93,400, equivalent to approximately 0.6% of the total number of shares issued.」
Although the number of potential shares decreased from 219,200 at the end of the previous fiscal year to 93,400, stock acquisition rights representing 125,800 shares were exercised and 5,500 restricted shares were issued during the current fiscal year, so issuance that could result in dilution continued. - FY2023-Q3MaterialisedAnnual report
「This was mainly attributable to a ¥15 million increase in share capital and a ¥14 million increase in capital surplus associated with the issuance of new shares and exercise of stock acquisition rights, and other factors, including a ¥492 million increase in retained earnings resulting from the difference between a ¥914 million increase in retained earnings from quarterly profit attributable to owners of the parent and a ¥421 million decrease in retained earnings due to dividends.」
During the cumulative third-quarter period under review, new shares were issued and stock acquisition rights were exercised, reflected as increases of ¥15 million in share capital and ¥14 million in capital surplus. The potential dilution from share issuance continued to materialise. - FY2023-Q2MaterialisedAnnual report
「This was mainly attributable to a ¥15 million increase in share capital and a ¥14 million increase in capital surplus associated with the issuance of new shares and exercise of stock acquisition rights, and other factors, including a ¥132 million increase in retained earnings resulting from the difference between a ¥554 million increase in retained earnings from quarterly profit attributable to owners of the parent and a ¥421 million decrease in retained earnings due to dividends.」
During the cumulative period under review, new shares were actually issued and stock acquisition rights were exercised, reflected as increases of ¥15 million in share capital and ¥14 million in capital surplus. The potential for dilution from share issuance remains ongoing. - FY2022MaterialisedAnnual report
「As of 31 October 2022, the number of potential shares represented by these stock acquisition rights was 219,200, equivalent to approximately 1.5% of the total number of shares issued.」
During the current fiscal year, stock acquisition rights representing 226,200 shares were exercised, reducing the number of potential shares from 445,400 to 219,200. At the same time, the exercise resulted in an actual increase in the number of shares issued. - FY2022-Q3MaterialisedAnnual report
「Change in total number of shares issued (shares) 22,000 / (Note) Increase resulting from the exercise of stock acquisition rights.」
During the third-quarter accounting period, 22,000 shares were added through the exercise of stock acquisition rights, and the issuance of shares that could result in dilution of share value continued. - FY2022-Q1MaterialisedAnnual report
「Pursuant to a resolution of the Board of Directors dated 27 January 2022, the Company issued 9,894 new shares on 25 February 2022 as restricted stock compensation.」
The actual issuance of restricted stock resulted in an increase in the number of issued shares associated with share-based compensation. - FY2021First statedAnnual report
「As of 31 October 2021, the number of potential shares represented by these stock acquisition rights was 445,400, equivalent to approximately 3.0% of the total number of shares issued.」
The Company describes the potential dilution of existing shareholders' value through the exercise of stock acquisition rights and the issuance of restricted stock.