InterDigital Inc (IDCC)

[0nceinalifetime]

Actually Jim, that explanation is wrong:

"Dishfan gave a good explanation to Loop in this post.

http://www.investorshub.com/boards/read_msg.asp?message_id=1035192 "

Dishfan said that if accounting rules change and require options to be expensed, then previously granted options would not be affected. This is being used as a reason why shareholders are being asked to approve 5 million more shares now rather than wait until next year (so they can get the new shares in under the gun and not have to expense them).

Of course, this explanation does not hold water because the options are not expensed when they are approved by shareholders but when they are granted to insiders. Since there are already enough shares approved to last well over a year or two the approval of 5 million more options now (instead of next year) will not reduce the number of options that must be expensed.

The only way to achieve that would be to actually grant (give away) the options at an accelerated rate, kind of a drastic measure to take just to make the books appear more profitable.

Funny how people can twist the truth to fool the less savvy.

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