BluBØX’s earliest contributors came on board as independent contractors working entirely for equity. They signed work contracts whereby they vested in the equity that they received over a period of 4 years. The contract provided that they would gradually become eligible to earn cash as time went by and the company’s cash flow allowed. Cash payments have not yet started for most of them.
Some job positions could not be filled on an equity-only basis. 6 individuals were hired as employees and earn both cash and equity. The equity also vests over 4 years. This group anticipates an evolution of its compensation scheme to mostly or only cash when the company’s cash flow allows.
The cost of providing cash compensation for all “non-equity” hours that are or were worked in the past has been accounted for in the plan.