Setonian: I would bet they get them based on the prevailing pps too so if they are owed $1000, they get enough options at "5 cents" to sell at 3 cents to get the $1000. Heck, they can get more options until hell freezes over, the shareholders don't vote for them, the BOD gives them away like Halloween candy, IMO.
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.