My husband joined a startup company (a qualified small business) and early exercised stock options. After 3 years, the startup company was acquired by a bigger startup company (which was not a qualified small business at that time) and the stock options from the first startup company were substituted by the second startup company's stock options. We hold the substituted stock options for 3 more years and sold them this year. Not sure whether we are still eligible for the Qualified Small Business Stock Exemption. Can anyone advise? Thanks a lot!
