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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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We are a pure start-up and we just raised $6M and I want guidance

Customer Question

We are a pure start-up and we just raised $6M and I want guidance on classifying costs related to closing the financing i.e what can be charged against the proceeds and what has to be charged to P&L. thanks
Submitted: 7 years ago.
Category: Tax
Expert:  RD replied 7 years ago.
Is $6 M loan taken by you? What is the loan for?
IS your question related to closing costs for the loan?
Customer: replied 7 years ago.
It is not a loan, it is a Series A capital financing. My question concerns costs associated with the funding i.e legal costs for company and investor, appraisal for FMV of common stock, success fee as % of capital raised, I want to know what I can apply against the proceeds and what I have run through the P&L. Thanks