How does Grantd deal with vesting events and grants that expired or been sold?

Understanding Grant Lifecycle

Equity grants move through various stages during their lifetime:

Granted - Initial award, unvested
Vesting - Shares/options become exercisable over time
Vested - Full ownership achieved
Exercised - Options converted to shares (if applicable)
Sold - Shares liquidated
Expired - Options lapse unused (if applicable)

Grantd tracks grants through each of these stages to maintain accurate portfolio analysis and historical records.

Active vs. Inactive Status

Active Holdings

Active holdings include:

Unvested grants - Future vesting events scheduled
Vested but unexercised options - Available for exercise
Owned shares - Shares held in portfolio
Partially vested grants - Some vested, some unvested

These holdings:

Appear in current portfolio analysis
Factor into concentration calculations
Drive tax projections and scenarios
Generate alerts and notifications

Inactive Holdings

Holdings become inactive when:

Options expire unused - Passed expiration date without exercise
Shares are fully sold - Complete liquidation
Grants are forfeited - Cancelled due to termination or other reasons

How Vesting Events are Tracked

Scheduled Vesting

When you set up a grant with a vesting schedule:

Grantd tracks all future vesting dates
Multi-year projections account for scheduled vesting
Vesting events appear in timeline visualizations
Alerts can be set for upcoming vesting dates

Vesting Types Supported

Linear Vesting

Even distribution over vesting period
Example: 25% per year over 4 years

Cliff + Linear

Initial cliff period followed by regular vesting
Example: 1-year cliff, then monthly vesting for 3 years

Custom Vesting

Irregular vesting schedules
Performance-based vesting milestones
Any unique vesting arrangement

As Vesting Occurs

When shares vest:

RSUs: Automatically convert to owned shares
Options: Become exercisable
Tax impact: Triggered for RSUs, not for options
Portfolio updates: Concentration and value recalculated

Managing Exercised Options

When Options are Exercised

The grant record updates to reflect:

Exercise date and price paid
Number of shares acquired
Tax basis established
Remaining unexercised options (if partial exercise)

Tracking Post-Exercise Shares

After exercise, shares are tracked as:

Owned Shares - Full tracking of acquisition details
Cost Basis - For future capital gains calculations
Holding Period - Short-term vs. long-term treatment
Current Value - Market value updates

Handling Sold Shares

Recording Sales

When shares are sold, you can record:

Sale Date - When transaction occurred
Sale Price - Price per share received
Number of Shares Sold - Full or partial position
Tax Impact - Capital gains/losses calculated

Partial vs. Complete Sales

Partial Sales

Remaining shares stay active in portfolio
Concentration updates based on reduced position
Cost basis tracking for remaining shares

Complete Sales

Position fully liquidated
Historical record maintained
Capital gains/losses recorded
Removed from active portfolio analysis

Expired Options

When Options Expire

Options that reach expiration without being exercised:

Out-of-the-Money Options - No intrinsic value, expire worthless
In-the-Money Options - Potential value lost if not exercised
Administrative Lapses - Missed exercise deadlines

How Grantd Handles Expirations

Before Expiration:

Expiration reminder alerts available
Exercise priority scores may increase
Dashboard notifications of approaching deadlines

After Expiration:

Grant marked as expired
Removed from active portfolio
Historical record maintained
No tax deduction for expired options (for employee)

Historical Record Keeping

Grantd maintains records of:

Original grant details - Date, quantity, strike price, vesting schedule
Vesting history - When shares vested
Exercise transactions - Dates, quantities, prices
Sale transactions - Dates, quantities, proceeds
Expiration events - Options that lapsed

This historical data supports:

Multi-year tax planning and reporting
Audit trail for financial advisors
Understanding patterns in equity compensation decisions
Long-term portfolio performance analysis

Data Organization

Active Portfolio View

Your current portfolio displays:

All unvested grants (with vesting schedules)
All vested but unexercised options
All owned shares (not yet sold)
Current values and concentrations

Historical Transactions

Past events are organized by:

Transaction type (vesting, exercise, sale, expiration)
Date ranges
Specific grants or holdings
Tax year (for reporting purposes)

Best Practices for Record Management

Regular Updates

Keep records current by:

Recording exercises promptly after execution
Updating sales as they occur
Confirming vesting events happened as scheduled
Noting any forfeited or cancelled grants

Documentation

Maintain supporting documentation:

Grant agreements and summaries
Exercise confirmations
Brokerage statements showing sales
Tax forms (W-2s, 1099-Bs)

Annual Review

Conduct yearly reviews to:

Verify all vesting events recorded
Confirm expired options properly marked
Reconcile shares owned with brokerage statements
Update any missed transactions

Integration with Tax Calculations

Historical transaction data flows into:

Multi-year tax projections - Past exercises inform future planning
Cost basis tracking - Accurate capital gains calculations
Holding period determination - Short-term vs. long-term treatment
AMT credit tracking - Prior year AMT creates future credits

Alerts for Critical Events

Set up alerts to avoid missing important deadlines:

Vesting Reminders

Notification before shares vest
Prepare for tax withholding (RSUs)
Plan exercise strategy (options)

Expiration Reminders

Warning before options expire
Configurable advance notice (e.g., 30 days, 90 days)
Ensure valuable options aren't accidentally forfeited