The SEC filing is not for an additional financing event. The filing relates to grants for hbars to Hedera employees, founders, contractors, advisors, and certain early service providers. Those grants provide for the recipient to receive coins in the future, typically over a four-year period. Our view is that the coins released under these grants should not be viewed as securities at the time they are delivered. However, there is uncertainty about the characterization of hbars before they are delivered, and it remains possible that hbars will be deemed to be securities even at the time of delivery. In addition, the grants themselves are contracts for the future delivery of coins and may be viewed as investment contracts. Because of the uncertainty, to ensure the grants are compliant under either outcome, we have decided to treat the grants as we would need to if the SEC were to view the grants and/or the hbars as securities. That includes ensuring that each of the grants falls within a securities law exemption, and filing the associated forms. The dollar value of the grants reflected in the SEC filing is based on the “fair market value” of the grant. Because there is not currently a market for hbars, we used the $0.12 price from our last round of financing.
Articles in this section
- Why did Hedera file a form with the SEC about an offering of almost $700M?
- How many coins are allocated to founders, employees and others as compensation?
- Does Hedera consider the SAFT proceeds to be income?
- Does Hedera consider Simple Agreement for Future Tokens (SAFTs) and/or hbars to be securities?
- What is the lockup period for institutional investors?
- What is the lockup period for the founders?
- What is the current and year one valuation based on the token distribution metrics?
- Did you launch a crowdsale?
- What were the investment terms?
- What was the minimum and maximum investment?