Chung pulled the same game as he did back in 2014
On August 16, 2017, the Company and Tony Chung, the Company’s former Chief Financial Officer, entered into a Separation Agreement and General Release pursuant to which Mr. Chung resigned as an officer and employee of the Company (the “Tony Chung Separation Agreement”). The Tony Chung Separation Agreement provided for the payment of severance compensation to Mr. Chung in the form of a continuation of his base annual salary of $240 (subject to tax withholdings) for a period of 12 months and reimbursement for COBRA healthcare coverage for a period of 12 months. In addition, it provided for the accelerated vesting of 247,650 of the unvested stock options held by Mr. Chung as of the separation date and the extension of the exercise period of his options until the first anniversary of the date of the Tony Chung Separation Agreement. This resulted in a total of 2,889,749 stock options being exercisable by Mr. Chung as of the separation date and resulted in an additional $89 of stock-based compensation expense during both the three and nine months ended September 30, 2017. In connection with the Tony Chung Separation Agreement, Mr. Chung and the Company granted each other mutual general releases subject to customary exceptions. As of September 30, 2017 and December 31, 2016, the Company had accrued liabilities totaling $231 and $0, respectively, relating to the Tony Chung Separation Agreement.
$231 means $231,000. That's the accrued liability for the cost of the option price (paid by the company). If one look back all the option price granted for the past years, one can figure out how many shares he sold.
With that being said, this is not as bad as it sounds. This simply means Chung sold his personal shares (mostly bought last Nov) and utilize those fund to exercise his options. This way it will count as Capital gain vs Income.
