Lightwave Logic Inc (LWLG)

[walterc]

It is quite possible that Marcelli followed a cashless option procedure which I have seen in many of my other start up investments. where the part that was shown as a sale was in fact a cancellation of the options .You net them off. They are cancelled from an accounting perspective, but the transaction gets reported to the SEC as a sale. The proceeds of the cancellation is used to ‘pay’ for the shares that go to the options holder. The money from the options cancellation is then reported to the IRS as ordinary income, so the option holder has to pay tax on that. Thus, there are significant costs to doing a cashless option (fewer net shares and an ordinary income tax hit)
[. this may have happened here as well