Simple Agreement For Future Equity Ifrs

SAFE requires the company to provide a variable number of shares based on an unknown future price cycle (discount) or valuation cap. This would generally lead you to the codification of accounting standards (“ASC”) 480-10-14, which speaks of a variable number of shares for a fixed or mostly fixed amount of money. However, this guidance does not apply, as the count of future preferred shares may be worth much more than the initial investment or should never be issued. . . .

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