ID you asked "What happens when they sell say 1.5 million warrants does that then become a profit rather than an expense??" Do mean if 1.5 million options are exercised? If so then at what price?
To answer this question we need to make certain assumptions Between March and April approx 500,000 options were exercised. There are as of April 15th 5.1 million, there we can expect warrants to run out within 10-12 months. The important question is at what price? Any prices above the average price used to set up the accrual would lead to some reduction in profitability. Any price less than that average would be positive on the reported eps. If you chose your time horizon properly then this is something that shall pass with the company coming out stronger and more profitable. If not then in the long run we shall all be dead anyway.
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