Thank you for sharing the idea in a concise article.
According to TIKR, the number of shares keeps increasing the past 2 half year periods . I understand that prior to that, probably shares were increasing bc of the IPO. However, TIKR doesn't show any SBC, so I am not sure where the continuous increase in shares comes from. More specifically, I wonder why for the half year periods ending March '24 and Sept '23 number of weighted diluted shares increased 2% and 3% respectively given that they are consistently profitable.
First off - as i mentioned there has been a listing and subsequent uplisting which both increased the share count, but the capital raised has not been used.
Q1 2022 174m shares were outstanding
Q2 2022 191m shares - raised at a valuation of 1750/share (40-45x earnings) - Tokyo Pro list
Q2 2023 201m shares - raised at a valuation of 1200/share (30x earnings) - Tokyo Growth uplist
There have been no meaningful share issuance outside of this. However, what you would be seeing is the movement in diluted shares which have not yet been issued. These are stock options that are issued once per year to a multitude of their employees with an 8 year vesting time frame. Importantly, these amounts are brought to account via. a reserve (equity) and provision (liability) already.
They are certainly no cause for concern and help drive retention of their employees
Thanks, much appreciated 👍
Thank you for sharing the idea in a concise article.
According to TIKR, the number of shares keeps increasing the past 2 half year periods . I understand that prior to that, probably shares were increasing bc of the IPO. However, TIKR doesn't show any SBC, so I am not sure where the continuous increase in shares comes from. More specifically, I wonder why for the half year periods ending March '24 and Sept '23 number of weighted diluted shares increased 2% and 3% respectively given that they are consistently profitable.
Do you have a view on that?
Hi
First off - as i mentioned there has been a listing and subsequent uplisting which both increased the share count, but the capital raised has not been used.
Q1 2022 174m shares were outstanding
Q2 2022 191m shares - raised at a valuation of 1750/share (40-45x earnings) - Tokyo Pro list
Q2 2023 201m shares - raised at a valuation of 1200/share (30x earnings) - Tokyo Growth uplist
There have been no meaningful share issuance outside of this. However, what you would be seeing is the movement in diluted shares which have not yet been issued. These are stock options that are issued once per year to a multitude of their employees with an 8 year vesting time frame. Importantly, these amounts are brought to account via. a reserve (equity) and provision (liability) already.
They are certainly no cause for concern and help drive retention of their employees