Wave Systems Corp. (fka WAVXQ)

[rwk]

player

"You cannot spin the option premium as the same balance as the purchase of shares. If you did, there would no such thing as hedging using the derivative instruments"

A hedge can be constucted from any number of items, including other shares, futures and options. That something could be construed as a derivative or hedge does not mean it does not show up on balance sheets. Look at IFRS ....


The "service to the company" has been handsomely rewarded through salaries and bonuses.

Had SKS not been awarded warrants, he would have demanded more salary and bonus. Thus there is an implicit cost base to the warrants of forgone cash payments. I won't get into an argument with anyone concerning the validity of these payments.


Show me where you can take a loss on your taxes for options/warrants you are awarded that expire worthless.

You can't, but that just makes the risk of accepting warrants in lieu of cash payments that much larger. A straw man argument on your part in any case.

Making up your own definitions may work in some places, not here.

You're the one who's stretching here, not me.