Let's say I take a piece of paper, tell you that it's worth $20 and give it you. And then you drop it.
Did you lose $20?
That's a closer analogy to SBC than losing cash.
Did you lose $20?
That's a closer analogy to SBC than losing cash.
Do you owe me $20?
This is the closest to what SBC is.
If the options are exercised, you're liable for that expense. It's a delay on the payment of the 20 dollars helping cash flow, and tax code yadda yadda, but you can't pretend that handing out vouchers for money to employees doesn't mean you're not liable for the money from an outsider assessing your financials.