Wednesday, December 01, 2021 8:11:40 AM
And any of us with half a brain would have done the same thing.
As Info US Tax Law Taxes Options as INCOME who knows what the income tax will be next year.
All gains going forward on 500k Shares after that are taxed as Long Term Capital Gains.
He Didn’t wait until May, he knows how many NDA’s are out there, I’ve always said that there is buyout in the cards, he didn’t wait until May. I'm not saying it will happen but it may and one needs to prepare.
High probability that tax rates will be going up next year, so it was a good move, let's keep the same rates and use $100 all cash buyout number.
500,000 shares $100 buyout 50 Million added to his salary taxed at 37% 18,500,000 in tax to Uncle Sam.
500,000 shares $100 buyout already covered the nut on 240k shares so the remaining 260k shares are taxed at 20%. 26 Million bucks long term cap 5.2 Million. So he saved 17% on 26 Million = 4.4 Million dollars.
I know everyone wants to hold the line and not sell forever but we all have our number.
Again here is the logic, do not confuse Options with Warrants they are 2 different things.
How the Move went down and where the money went, Not In His Pocket.
Compensatory stock options are not taxed on the receipt of the option as long as the option is priced at fair market value however When you exercise it, any spread is taxable as ordinary income.
Round Numbers
So basically what happened he obtained 500,000 shares and it cost him 240,000 cashless warrants shares, He Netted 260k shares bottom line the shares he owned increased 260,000. The Company recieved $650k from his options the stock he sold was cashless so he gets the difference between what it was when awarded and what he sold it for on the street.
500,000 shares Transaction code M - Exercise or conversion of derivative security exempted pursuant to Rule 16b-3
If he waited until May 2022 and did not exercise them he would loose them.
From here out profit no matter what will be taxed as long term cap gains.
Round Numbers
500k shares at $14.66 = 7.3 Million added to his income 37% tax is 2.7 Million in taxes Divide that by 14.50 per share is 186,000 sold for for the tax man, so he sold 240k total,,, remember that the Company receives 650k from him divide by 14.50 = 44827 Add 186,000 and 44,827= 230,827. Close enough for me. (looks like the difference between what it was when awarded and he sold it for on the street)
Xster smokin calculator don't let the naysayers try and freak you out.
Here it comes but X we will never sell,,,,, then they freak when it drops a few % points. We All Have Our Price.
His share count went down 240k in the event of the buyout all would have been factored in, basically held down the outstanding share count by 240k. This is what happens when a company rockets up and took a long time to do so.
Remember to Trust But Verify, I did.
Your post is more of a Ready Fire Aim Thing.
Recent LWLG News
- Lightwave Logic and Polariton to Jointly Showcase Packaged Electro-Optic Polymer Modulators at the European Conference on Optical Communications • PR Newswire (US) • 09/24/2024 08:05:00 PM
- Lightwave Logic Receives 2024 Industry Innovation Award for Hybrid PIC/Optical Integration Platform at the European Conference on Optical Communications (ECOC) • PR Newswire (US) • 09/24/2024 12:31:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/09/2024 08:00:09 PM
- LIGHTWAVE LOGIC APPOINTS FORMER DUPONT EXECUTIVE THOMAS CONNELLY, JR. TO BOARD OF DIRECTORS • PR Newswire (US) • 09/09/2024 12:31:00 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 08/13/2024 08:58:16 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/12/2024 08:30:07 PM
- Lightwave Logic Provides Second Quarter 2024 Corporate Update • PR Newswire (US) • 08/12/2024 12:31:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/09/2024 08:14:43 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 08/09/2024 08:10:18 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 08/09/2024 08:08:25 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 08/06/2024 04:15:14 AM
- Form S-3/A - Registration statement under Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 07/31/2024 09:05:40 PM
- Lightwave Logic Invited to Present at 2024 European Conference on Optical Communications • PR Newswire (US) • 07/30/2024 12:31:00 PM
- Form S-3 - Registration statement under Securities Act of 1933 • Edgar (US Regulatory) • 07/26/2024 09:07:10 PM
- Lightwave Logic Appoints Industry Veteran Yves LeMaitre to Board of Directors • PR Newswire (US) • 07/23/2024 12:31:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/22/2024 08:47:34 PM
- Lightwave Logic Reaffirms Commercialization Timeline Presented at the 2024 Annual Shareholder Meeting • PR Newswire (US) • 06/03/2024 12:31:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/24/2024 08:01:14 PM
- Lightwave Logic and Advanced Micro Foundry (AMF) Partner to Accelerate Development of Silicon Photonics Modulators Using Electro-Optic Polymers • PR Newswire (US) • 05/21/2024 12:31:00 PM
- Lightwave Logic Provides First Quarter 2024 Corporate Update • PR Newswire (US) • 05/13/2024 12:31:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/10/2024 08:41:09 PM
- Lightwave Logic Demonstrates Thought Leadership with Critical Contributions to Global Integrated Photonics Industry Roadmap • PR Newswire (US) • 04/16/2024 12:31:00 PM
- Lightwave Logic Secures New Patent for Diamondoid Non-linear Optical Chromophore Patent to Improves Material Robustness • PR Newswire (US) • 04/01/2024 12:31:00 PM
- Lightwave Logic EO Polymer Achieves World-Class Performance of 400Gbps with Plasmonic Mach Zehnder Modulator • PR Newswire (US) • 03/28/2024 12:31:00 PM
- Lightwave Logic Demonstrates World-Class 200Gbps Heterogeneous Polymer/Silicon Photonic Modulator Results • PR Newswire (US) • 03/25/2024 12:31:00 PM
Lingerie Fighting Championships Signs Broadcast Deal With Maybacks Global Entertainment • BOTY • Sep 26, 2024 9:00 AM
Maybacks Global Entertainment and Lingerie Fighting Championships Enter Into Broadcast And Revenue Sharing Agreement • AHRO • Sep 26, 2024 8:30 AM
North Bay Resources Commences Operations at Bishop Gold Mill, Inyo County, California; Engages Sabean Group Management Consulting • NBRI • Sep 25, 2024 9:15 AM
CEO David B. Dorwart Anticipates a Bright Future at Good Gaming Inc. Through His Most Recent Shareholder Update • GMER • Sep 25, 2024 8:30 AM
Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • BLOZF • Sep 24, 2024 8:50 AM
Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • INTV • Sep 24, 2024 8:45 AM