What is the Supply & Score of Provision?

A shop full of shelves that keeps giving, and the shop keeps the score. Provision accumulates on one side and the count is held by the other. What arrives with a price attached is provision whatever it is called.

Provision → Folio 5

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sweat equity provision intellectual property assignment

Converting Unpaid Sweat Equity Into Early Convertible Notes

Unpaid sweat equity converts into convertible notes by quantifying unbilled labor as corporate debt that automatically converts to equity during future funding.

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accumulation advance rate compression senior debt capacity

Measuring Senior Debt Capacity Loss When Founder Notes Convert Under Restructuring Mandates

Senior debt capacity drops after founder note conversion because lenders reprice risk upward when the subordinate loss-absorbing buffer disappears.

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enterprise valuation baseline borrowing base deficiency collateral ineligibility exclusions

Senior Debt Covenants and Operational Working Capital Loss

Senior debt covenants restrict borrowing capacity via automated formulaic triggers when operating working capital declines, shifting treasury control to lenders.

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common shares common equity dilution preferred share issuance

Founder Capital Note Conversion Principles

Early capital notes convert into preferred equity through valuation caps or discounts, trading debt liabilities for preferred shares during priced venture rounds.

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conversion price per share common stock down round restructuring

Convertible Debt Conversion Discount Mechanics Repricing Unstated Sweat Equity Contributions In Early Venture Recapitalizations

Convertible debt discounts lower share conversion prices, expanding noteholder equity claims and diluting unpriced early labor during venture recapitalizations.

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equity recoupment ratio conversion cap deferred compensation

How Convertible Note Preference Terms Subordinate Uncompensated Early Founder Contributions

Convertible note preferences convert debt into senior shares, forcing exit proceeds to pay investor capital before uncompensated early founder labor receives value.

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common stock common equity allocation warrant coverage

Early Venture Sweat Equity Valuation Before Debt Issuance

Early venture sweat equity must be formally priced and converted into common shares before debt issuance to prevent creditor covenants from erasing founder value.

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cap table cleanup pre-emptive rights substituted function

Resolving Operational Deadlock When Historical Contributors Enforce Strict Contractual Boundaries Across Early Stage Ventures

Operational deadlock breaks when ventures audit early contract defects, leverage statutory employee reclassifications, and execute structured equity buyouts.

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discretionary initiative explicit terms startup formalization

Preserving Discretionary Initiative During Early Team Restructuring

Restructuring converts open discretionary contribution into contracted duties, causing contributors to withhold unmeasured labor once informal standing ends.

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psychological contract breach cap table clean-up original issue discount

Designing Incentive Parity When Sweat Equity Converts Into Debt Instruments

Sweat equity converts to debt through subordinated notes paired with springing warrants, balancing downside principal recovery against long-term equity growth.

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accrued interest protective provisions preference stack

Resolving Seniority Disputes Between Legacy Convertible Note Holders and Incoming Preferred Equity Investors

Seniority disputes settle by amending debt notes into shadow preferred stock, aligning early conversion pricing while granting liquidation preference parity.

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minority shareholder dispute legal release title clean up

Converting Accrued Sweat Equity Obligations into Priced Common Equity Grants

Converting accrued sweat equity into priced common equity requires formal liability recognition, tax-aligned grant structures, and complete legal releases.

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compromise consideration option pool institutional equity investment

Clearing Deferred Contributor Debt Before Institutional Equity Investment

Clearing deferred contributor debt requires formal conversion to common equity or executed cash compromise agreements before institutional financing closes.

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debt conversion uniform commercial code liquidation preference

Mechanics of Structural Subordination in Founder Loans Facing Senior Venture Capital Preferences

Structural subordination forces founder loans at parent entities behind subsidiary debts and senior preferred liquidation preferences during venture cash exits.

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cap table hygiene capital preservation series a dilution

Liquidation Seniority Adjustments for Contributor Debt During Series A Dilution

Contributor debt converts into junior equity or subordinated notes during Series A financing when institutional investors condition capital on senior liquidation rank.

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sweat equity qualified equity financing conversion triggers

Deferred Compensation Conversion Triggers in Early Stage Equity Structures

Early compensation conversion triggers extinguish accrued wage debt through predetermined financing milestones, replacing informal scores with defined equity.

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vesting acceleration statutory safe harbor unbilled hours

Managing Tax Liabilities When Uncompensated Founder Labor Converts Into Early Company Equity

Uncompensated founder labor converts into taxable ordinary income upon equity issuance unless structured as an intellectual property contribution under Section 351.

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common stock fair value corporate balance sheet cleanup liquidation preference

Calculating Deferred Salary Conversion Rates Prior To Venture Capital Investment

Unpaid salary converts to pre-money equity via discounted debt notes or direct stock releases to eliminate balance sheet debt before capital pricing.

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convertible debt equity conversion unstated terms

Formalizing Early Unpaid Labor Through Deferred Debt Instruments

Early unpaid labor becomes an enforceable corporate liability when documented as subordinated deferred promissory notes with stated repayment triggers.

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loss aversion opportunity cost reservation wage

Residual Contribution Disputes Driven by Asymmetric Risk Assessment in Early Dynamic Equity Splits

Dynamic equity models trigger contribution disputes when mathematical formulas price logged inputs without capturing asymmetric exposure to venture collapse.

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structural boundaries pre-financing operational friction

Valuing Early Architectural Decisions Against Daily Execution Hours Before Financing

Early architectural decisions are valued at market replacement cost while daily hours accumulate as deferred sweat equity to establish pre-financing parity.

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foregone compensation unvested share forfeiture direct capital

Equity Split Metrics for Early Stage Founding Partners

Dynamic equity metrics distribute early ownership by weighting contributed capital, uncompensated labor, and vesting milestones against operational risk.

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section 108 debt discharge debt conversion valuation discount penalty

Managing Convertible Operational Debt Instruments During Co-Founder Departures and Tax Elections

Operational convertible debt held by departing co-founders requires formal conversion or forgiveness to prevent sudden tax liabilities and cap table encumbrances.

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unliquidated obligations contribution logging enterprise valuation

Quantifying Variable Sweat Equity Multipliers Before Seed Valuation Events

Variable sweat equity multipliers convert unpaid market-rate wages into equity using milestone-decaying ratios before institutional seed valuation events.

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capitalization structure provision sweat equity

Early Uncompensated Labor Allocation Models in Startup Founding

Early uncompensated startup labor functions as an unpriced social exchange that destabilizes capitalization tables unless converted to dynamic vesting equity.

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convertible promissory notes intellectual property assignment historical contribution

Evaluating Debt Conversion Mechanics for Historical Uncompensated Contribution Split Conflicts in Venture Ownership

Converting historical uncompensated venture contributions into structured convertible debt formalizes past sweat equity into market-priced preferred shares.

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sweat equity vesting schedule restricted stock purchase

Structuring Equity Vesting Recalibration Schedules After Extended Unpaid Operational Roles

Equity recalibration converts uncompensated operational service into forward vesting compression, milestone grants, or debt notes with full wage releases.

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tax withholding cliffs venture capital dilution employment amendments

Determining Fair Market Rates for Deferred Founder Compensation

Determining fair market deferred compensation requires pegging executive market replacement rates on corporate ledgers through documented promissory notes.

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priority demotion insider claimant status statutory wage priority

Statutory Priority Demotions and Judicial Recharacterization Risks in Founder Backpay Liquidation Claims

Statutory wage caps and judicial recharacterization push insider founder backpay claims from fourth priority status into junior equity pools.

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constructive receipt cap table leverage accord and satisfaction

Converting Accrued Sweat Equity Into Enforceable General Unsecured Debt

Sweat equity converts to enforceable unsecured debt through settlement agreements and mutual releases that substitute actionable claims for promissory notes.

Provision

Supply & Score

Six fields, each writing its own terms