"Finally, with the underserved stock option awards, is there a predetermined price to buy the shares and if so, what is that price, and is there an expiration date? "
You talking about these?
"Annual Stock Option Awards — The Compensation Committee approved stock option awards under the Plan relating to one million shares of common stock to each independent director and 500,000 shares of common stock to each of the non-independent director and the Company's Senior Vice President, Clinical Sciences and Portfolio Management."
First off, it's funny the LE describes himself as "the non-independent director" versus his proper management title. Like it's a disguise :o)
Different kinds of options get different tax and accounting treatments...too complicated for me. But I do remember that the SEC had something to say about the BIG deal back in the early part of the last decade involving the creation of the Class B (approved by a majority of shareholders comprised of members of both families) and the options that KM and LE granted themselves at the time.
First they filed the 2010 Equity Incentive Plan dated 12/29/10 on 2/2/11, plainly hoping to push the effective date back into 2010.
Suitable for framing: https://www.sec.gov/Archives/edgar/data/1355250/000135525011000003/form8k.htm
Then they filed a Preliminary Information Statement on 2/8/11 that described the above. The SEC dropped em a note....
Who approved it, by what share counts, what were the circumstances under which the vote took place and even what the heck happened to that reverse split you guys voted on a little while ago? And lots more. But to your question:
"We note that with respect to a stock option granted to a person possessing more than 10%
of the total combined voting power of all classes of stock, the exercise price may not be
less than110% of the fair market value on the date of the grant. Since Dr. Menon and Mr.
Ehrlich each own more than 10% of the combined voting power, please confirm the
exercise price for the options granted to them met or exceeded the 110% requirement. In
this regard, we note the closing price for your common stock in the “pink sheets” for
December 29, 2010 was apparently $0.10 per share and that 110% of this closing price
would equal $0.11 per share. We also note your Form 8-K filed on February 2, 2010
indicates the exercise price for the options as $0.10 per share." https://www.sec.gov/Archives/edgar/data/1355250/000000000011009146/filename1.pdf
As a result the boys had to bump the exercise up a penny to 11 cents. More of an embarrassment than anything else. I guess my point is that your question about price is a good one. In my opinion they aren't likely to establish a price for the options ahead of the grant and when they do it will be a bare minimum above the then market price. There will be a legally required vesting period (a year or two before exercise) and a holding period for the stock...again, just guessing based on a minimum of experience with such things.
Fear not, it'll all be spelled out in the grant filing. At least it should be. Or in the Form 4s if the jokers file them. Harness has been the most reliable in this regard. LE and the boys on the block are already light a couple filings.