FAQs Archive - Page 2 of 11

Q: What is allocation percentage?

Sellers in our Standard Deals are assigned an allocation order . This order is set on a first-come, first-serve basis. However, in certain cases, shareholders are assigned an allocation percentage . The allocation percentage determines how much of each subsequent dollar committed by investors to the deal goes to each seller. Let's walk through an example. There are three sellers in a deal: John, Jane, and Alex. After coming to an agreement amongst themselves, the sellers decide they want to be allocated according to the following percentages: • John: 50% • Jane: 30% • Alex: 20% This means that for every $100 committed by investors in the deal, John will be allocated $50, Jane $30, and Alex $20. These percentages hold until one of the sellers in the deal has their order filled, at which point the remaining orders will be filled proportionally based on the remaining percentages. Therefore, if John's order is completely filled, then Jane will receive $3 of every $5 committed by investors (30% : 20%) and Alex will receive $2 of every $5 (20% : 30%).

Q: Can I choose what options/shares to sell?

Yes, before completing a transaction, you can choose from which grant or share certificate the shares are sold.

Q: Why do I need to provide my SSN?

We collect this information to verify your identity and to help the government fight the funding of terrorism and money-laundering activities, as required by US law.

Q: How secure is my personal information and identity at IPOGO?

We take many precautions, including 256-bit encryption, to ensure that your data is safe. Please read more about our privacy policy.

Q: How is my sale treated for tax purposes?

The transaction is viewed as a disposition (sale) of the shares in the year we transact. Outside tax attorneys have vetted our tax treatment and have provided a memo, which is included in the documentation you would receive from us. Let’s use an example. Let’s say you exercise your options at $1 per share and hold the shares for over one year. In 2015, you transact with us at $5 per share, and in 2016 the company goes public at $10 per share. In 2015, you would report the income on the transaction and pay taxes on $4 per share ($5 - $1). You would be taxed at the long-term capital gains rate since you held the shares for at least one year. *Please note that we cannot provide tax advice. Consult your financial or tax advisor for more specific details and confirmation of your situation.

Q: Will my company know about my sale?

Yes. The company will be informed only after we have determined that there is sufficient demand in the marketplace (or, if necessary for your company, sooner, with your express permission). We inform the company so as to ensure that transactions are in accord with company share transfer policies. Notification mitigates the risk that the transaction will not be recognized by the company.

Q: What happens if IPOGO goes away?

We will engage a back-up manager to step into the platform's role as fund manager in the unlikely event IPOGO becomes insolvent. The back-up manager would ensure orderly administration of the fund and distribution of its assets.

Q: What does the process look like if the company has a ROFR?

If we are conducting a share transfer and the company has a Right of First Refusal (ROFR), which is the company's right to purchase the shares from the shareholder on the same terms as our offering, we will work with the company to facilitate the transaction. The company will either decide to waive the ROFR, let it expire, or purchase the shares directly from you on the same terms. Typical ROFR periods are 30 days but it is dependent on the company.

Q: What documents are needed to complete my sale?

We’ll send you a short list of documents and information we need to review for our standard diligence. The purpose of our diligence is meant to answer two questions: Do you own your shares? What needs to happen in order for you to sell your shares to a third party? Typically, these documents include your Stock Certificate (if your company issues one), a signed Option Exercise Notice, and/or a signed Shareholders Agreement. We will not ask you for sensitive company information. We will review your ownership documents to (i) verify your ownership and (ii) verify that your participation on our platform does not create any issues in respect of agreements you have in place with the company.

Q: Does the company need to waive its ROFR as part of the deal?

Yes, if the company has a ROFR, the ROFR would need to be waived or the company would need to not exercise its right in order to complete a share transfer.

What is allocation percentage?

By minixpower|2021-01-10T23:30:41+00:00January 10, 2021|Shareholder - Transaction Process|

Sellers in our Standard Deals are assigned an [...]

0

Can I choose what options/shares to sell?

By minixpower|2021-01-10T23:30:04+00:00January 10, 2021|Shareholder - Transaction Process|

Yes, before completing a transaction, you can choose [...]

0

Why do I need to provide my SSN?

By minixpower|2021-01-10T23:29:43+00:00January 10, 2021|Shareholder - Transaction Process|

We collect this information to verify your identity [...]

0

How secure is my personal information and identity at IPOGO?

By minixpower|2021-01-10T23:28:50+00:00January 10, 2021|Shareholder - Transaction Process|

We take many precautions, including 256-bit encryption, to [...]

0

How is my sale treated for tax purposes?

By minixpower|2021-01-10T23:28:08+00:00January 10, 2021|Shareholder - Transaction Process|

The transaction is viewed as a disposition (sale) [...]

0

Will my company know about my sale?

By minixpower|2021-01-10T23:27:14+00:00January 10, 2021|Shareholder - Transaction Process|

Yes. The company will be informed only after [...]

0

What happens if IPOGO goes away?

By minixpower|2021-01-10T23:25:59+00:00January 10, 2021|Shareholder - Transaction Process|

We will engage a back-up manager to step [...]

0

What does the process look like if the company has a ROFR?

By minixpower|2021-01-10T23:24:35+00:00January 10, 2021|Shareholder - Transaction Process|

If we are conducting a share transfer and [...]

0

What documents are needed to complete my sale?

By minixpower|2021-01-10T23:24:31+00:00January 10, 2021|Shareholder - Transaction Process|

We’ll send you a short list of documents [...]

0

Does the company need to waive its ROFR as part of the deal?

By minixpower|2021-01-10T23:23:12+00:00January 10, 2021|Shareholder - Transaction Process|

Yes, if the company has a ROFR, the [...]

0