14.

Debt & Equity Instruments

Which of the following would preclude a freestanding financial instrument from being equity-classified under ASC 815-40

Select one:

a.

An exercise contingency based on the issuers achievement of a revenue target

b.

A requirement to settle the contract in unregistered shares of the issuer

c.

An adjustment to the exercise price for a dividend distribution to holders of underlying shares

d.

All of the these

e.

A warrant that allows the holder to elect net cash-settlement