Expected Term

FAS 123R Standard

MITI Solution

"The Expected term of... share options or similar instruments, "including a discussion of the method used to incorporate "the contractual term" of the instruments and "employees expected post-vesting employment termination behavior also would be factored" into the fair value (or calculated value) of the instrument.

FAS 123R para. A31

Montgomery Investment Technology, Inc. (MITI) applies multiple analytical approaches to calculate an accurate and justifiable expected term, consistent with FAS 123R and SEC SAB 107 guidelines. Some of the techniques used are illustrated below.