Regarding stock-based compensation, the SEC also focuses on:
 
• The significant factors, assumptions, and methodologies used to determine the fair value of the underlying common stock
 
• Whether a contemporaneous valuation by an unrelated valuation specialist was performed
 
• The valuation range determined by various methodologies and the combination or weighting of those methods
 
• The significant factors contributing to the difference between the fair value as of the date of each grant and the estimated IPO price range
 
• Explanations of why or whether marketability discounts, illiquidity discounts, and common stock discounts (due to preferential rights of preferred stock) were used
 
• Determination of comparable companies used