Liquidmetal Technologies Inc (LQMT)

[technichart]

I assume he will be taxed at ordinary income on any appreciation in share price over his cost basis for any warrants he converts. Those taxes become due in the year in which the warrants are exercised and could make for a large tax liability the longer he waits as the stock appreciates. Anticipating appreciation in price, one would want to exercise any warrants as soon as possible to reduce tax exposure. Once converted, further appreciation will be taxed as capital gains once the shares are sold snd at a much lower rate.