As part of our RIF, we extended the exercise window for the terminated employees from 90 days to 1 year. Nothing else changed. I believe this is a Type 1 stock modification, but would there be any incremental expense if nothing else changed?
RIF stock modification
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There might be incremental expense because the expected term immediately after the modification date will be longer. The expected term immediately before the modification date would be 90 days, and the expected term immediately after would be 1 year. The volatility and risk free rate immediately before and after the modification date would also be different as they are pegged to the expected term.