Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued
as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair
value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside
investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such
as an initial public offering or a sale of our company given the prevailing market conditions and the nature and
history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.
Founded in 1949, Mutual Series has a long
history as deep
value investors with a very distinct style, searching aggressively for investment opportunities in undervalued stocks, merger arbitrage situations, corporate reorganizations and distressed securities.
Inspired by Graham's classic and with a long
history of discovering these great
value stocks — sometimes known
as «bargain issues» or «netnets» — author and
investor Jeroen Bos reveals: