InvestorsHub Logo
Followers 8
Posts 229
Boards Moderated 0
Alias Born 09/29/2015

Re: vator post# 657105

Tuesday, 12/19/2023 11:21:41 AM

Tuesday, December 19, 2023 11:21:41 AM

Post# of 708878
"I expect them to grant themselves large bonuses by year end that they will be required to pay taxes on next year."

Correct me if I'm wrong, but my understanding is that when you get free stock bonuses granted, there is a way to avoid paying tax from their own pocket until they exercise/sell them.

One way to do is getting the amount of shares subtracted by the amount of shares equivalent to tax amount.
For example, if you get 100,000 shares grated at the price of $0.50 (which is around $50,000 worth) and the expected tax was 40% to granted bonuses ($20,000 or 40,000 shares), then what they get for exercisable share Qty would be 60,000 shares. It means they are granted 100,000 shares, but what they actually get for exercisable shares are 60,000 shares. At this moment, they don't pay any money from the own pocket next year for this granted 60,000 shares because tax was already pre-paid by the shares at the time of grant date. It's like tax-free 60,000 shares for free while announced to be granted as 100,000 shares.

They pay tax only when they exercise these 60,000 shares at whatever price to realize short-term or long-term capital gain.

I believe that's the situation with NWBO management and in general for any company.
How can you pay tax from your own pocket the following year if you get the millions of shares as a bonus?
That's a lot of cash to pay for millions of shares if you are granted.
I am sure they will just reduce their exercisable shares by pre-tax shares as mentioned above, so getting millions of share bonuses themselves does not impact them to pay any tax from their own pocket for the following year.
Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent NWBO News