Liquidmetal Technologies Inc (LQMT)

[chipboarder]

Not so true….to exercise the option requires the stockholder to pay the company the 7cent per share which works out to $70,000 cash on a million shares. On top of that the tax on the paper gain from 7 cents to the 10 cent market value is also due That would amount to another $10,000 also payable in a quarterly 1040-ES filing. The exercise nets $20,000.

Far better to sit on the options unril the price rises more significantly unless they will expire soon.

Typical drill is to exercise the options and sell 30-40% to cover the taxes and purchase costs and sit on the remaining shares purchased at an advantageous price.