The employee stock options have a strike of 21 Cents end have a maturity till 9/2027. Right now there are round about 3M offered to the directors. In case Berman finds a buyer for the company he would get more options as incentive. But i think the calculation with the incentive plan for the stock options includes an error.
The last 10K stated:
"Equity Compensation Plan
Up to 15,000,000 shares of common stock are reserved for issuance under our 2014-2015 Stock Incentive Plan (“the Plan”)." From this 15M, 7.7M are available for Options."
Now to my point: The RS in the year 2021 affected all stocks, options and warrants and the Authorized Shares. Lets have a look at their 8k for the RS at 3/2021:
"Capitalization. The Company is authorized to issue 1,400,000,000 shares of Common Stock and 100,000,000 shares of preferred stock. As a result of the Reverse Stock Split, the Company will be authorized to issue 14,000,000 shares of Common Stock. As a result of the Reverse Stock Split, there will be approximately 8,482,574 shares of Common Stock outstanding (subject to adjustment due to the effect of rounding fractional shares into whole shares), based on the ratio of the Reverse Stock Split of 1-for-100 from the current 848,257,427 shares of Common Stock issued and outstanding. The Reverse Stock Split will not have any effect on the stated par value of the Common Stock or preferred stock. All outstanding options and warrants will be given effect to reflect the 1 for 100 Reverse Stock Split. If the Reverse Stock Split would result in less than one whole share for the holder, the Company will round such Reverse Split Shares to a minimum of one whole share.
The Reverse Stock Split will not affect the Company’s authorized preferred stock. There are 20,000,000 outstanding shares of the Company’s preferred stock. After the Reverse Stock Split, the Company’s authorized preferred Stock of 100,000,000 shares will remain unchanged."
So only the preferred shares are excluded, not the commons and options. From my point of view the original incentive plan needs to be adjusted for the RS as well. so the 15M shares becoming 150K. In the time the Incentive plan was created (2014/2015) the company had 1,4B authorized shares, so the relation between AS 1,4B to 15M incentive shares is different as to AS 14M to 15M incentive shares. And we could see they used the 15M Incentive shares in their 10K before the RS for example in the 10-K from 2020 you find the 15M incentive shares at page 17. So i think we could challenge this topic with their auditor. I dont like to be scamed again here. I know they have a S8 from 10/13/2022 i will digin deeper into this one too.If someone has the original incentive plan i would appriciate to have a look on it.
