Replies to post #25716 on Intellipharmaceutics International Inc. (IPCI)

[Samsa]

Amigo...you absolutely correct. while its a bonus in stock it is chargable against earnings. I was able to locate the exact detail in a previous 20f here;

The Company has in place a stock option plan (the “ Option Plan ”) for the benefit of certain officers, directors, employees and consultants of the Company, including the Named Executive Officers (as described in greater detail in Item 6.E below). Named Executive Officers have been issued options under such plan. The Company has also granted performance-based options to Dr. Isa Odidi and Dr. Amina Odidi pursuant to a separate option agreement, which was negotiated at the same time as their employment agreements. These options vest upon the Company attaining certain milestones relating to FDA filings and approvals for Company drugs, such that 276,394 options vest in connection with each of the FDA filings for the first five Company drugs and 276,394 options vest in connection with each of the FDA approvals for the first five Company drugs.

As I have been saying its paybale for the first 5 drug approvals. this is in addition to the performance bonus

In addition, the Company entered into a separate acknowledgement and agreement with Drs. Isa and Amina Odidi dated October 22, 2009 to
be bound by the performance-based stock option agreement dated September 10, 2004 pursuant to which Drs. Isa and Amina Odidi are entitled to purchase up to 2,763,940 of the Company’s common shares. These options vest upon the Company attaining certain milestones related to the FDA filings and approvals for Company drugs. The options are exercisable at a price of U.S.$3.62 per share and expire on September 10, 2014. As of the date hereof, 1,658,364 of these options have vested and are exercisable. These options were not granted under the Option Plan.
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It was this option that was extended until 2018. so these are still in play. the list of others who are also entiled to the bonus which gets to the total was; John Allport 250,000 shares, Rampertab, 40,000 shares and Shameze 60,000 shares. one would have to assume that his bonuses were passed onto Penna.

so, these are costs that as seen in the last annual cost us 1.2 million as charge against earnings for Keppra. this year we will see the charge for Seroquel as well as Gluchophage. I do have not a problem if the option was based off commercialization but I do have a problem whne its based on approval and then the drug can not be partnered. at this point I feel they need to abandon the other drugs. they should know by now if they have a partner lined up.