TRCPA: If option shares are used to pay salaries (or part of), it is "cheaper" for the company since they can't sell shares directly to the market, using option route saves them the discount on shares required through a third party. I don't think the original option price is a factor, options priced at 5 cents and sold at 4 cents gives tax credit plus any "loss" can be made up via bonuses. Besides, in my $1000 example, more shares of 5 cent options would be exercised to get the $1000 of 4 cent shares if that's the market pps.
Cash is King until further notice!!!
My comments on companies are usually my opinion of long term success (years). The PPS may go up or down greatly in the meantime depending on the number of greedy suckers with money.