Capshare will track all historical exercises within the system. This article provides a step by step walk through of exercising an option in Capshare.
Recording an exercise of vested shares:
STEP 1. Enter the shareholder name in the blue search bar up top to navigate to their page.
STEP 2. Click on the ‘Certificate ID’ in the first column of the table. (In this case OG-2 in the ID column). You can also find the certificate view by searching for its ID in the blue search box.
STEP 3. Once you’re on the certificate view, click the Actions button on the right side. Select “Exercise” from the bottom of the drop down box.
STEP 4. Enter the date, number of shares, and any other relevant information in the pop-up that appears.
STEP 5. You’re done! The common shares will automatically be created and the remaining outstanding portion of the option will be adjusted accordingly. (If you hover over the exercise you can edit the details or delete it.)
Recording an early exercise of unvested shares:
If you want to record an early exercise the steps are the same as the steps above. You only need to mark the option as early exercisable first. That can be done under two sections:
Once you make the option early exercisable, simply record an exercise like normal, and the option to exercise unvested shares will appear:
Notes: Most shareholders prefer to file an 83(b) election after an early exercise. You can issue them pre-filled out elections directly in Capshare: How to issue 83(b) forms to your shareholders
If you’re recording a net/cashless exercise, record the exercise with the lower number of shares, then record a repurchase for the shares used to pay for the exercise under that same Actions menu.