SaaS
Warrant Issuance to Venture Debt Lender
Recording the fair value of warrants issued to a lender as part of a venture debt package.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Debt Discount (Contra-Liability) | Contra-Liability (+) | 30,000.00 | - |
| APIC — Warrants | Equity (+) | - | 30,000.00 |
💡 Accountant's Note
Warrants given to lenders are a form of additional compensation. Their fair value is a debt discount that is amortized to interest expense over the loan term using the effective interest rate method.
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