InterDigital Inc (IDCC)

[Corp_Buyer]

"Cash is also a balance sheet item that converts to a P&L item when handed out" ... you got me thinking about that. Hmmmmm, I do see our point. However, the way GAAP statements are constructed, cash is the bottom line of the CF, which then accumulates on the BS and readers of financial statements know cash as the "connecting point".

If we made a new "connecting" point between the financial statements for ISO, then it seems to me it might create a lot of confusion when folks read the P&L and have to then figure out how much of it is cash vs. stock pay, a very confusing result, it seems to me. Rather, it seems that the cleanest presentation is as is done currently, with cash pay on the P&L and stock pay on the Balance Sheet. Investors should recognize both forms of pay.

Consider this example: If an employee loaned money to the company i.e. received a debt instrument in the company (assume zero interest for simplicity), then you would not consider that as negative wages, would you? Of course not, because the loan is documented as a BS transaction, until it is repaid or whatever acutally happens to it.

... Corp_Buyer