Case Study: Flock Safety reduces equity tax burden with Secfi

Flock Safety saves $320,000 in taxes with Secfi

Flock Safety employees faced potential major tax burdens and the risk of missing out on significant gains from their stock options as the company's valuation increased ahead of a potential IPO. The challenge was to exercise their options strategically without a large personal cash outlay. Secfi offered its expertise and non-recourse financing service to help employees navigate these decisions.

Secfi's solution provided financing so employees could exercise their options early, reducing their future tax liability by establishing a lower cost basis. Using a specific employee scenario, Secfi illustrated that exercising early with their help could lead to a potential gain of $1.43 million, a $320,000 improvement over waiting until after the IPO, by qualifying for favorable long-term capital gains tax rates.

Flock Safety