Replies to post #402 on IZEA Inc. (IZEA)

[zenvesting]

Dr. Frost has owned this stock for years, at least since this S-1 filed on 11/10/2011 when he declared a 6.4 % interest. Go to page 51 of this S-1 filing:
http://www.sec.gov/Archives/edgar/data/1495231/000152153611000384/q1100233_s1-izea.htm

Also, you are not following GAAP accounting methods when you count all the shares reserved for issuance under the incentive plan as "fully diluted", only shares that have actually been awarded AND are "in the money" are counted as "fully diluted" by GAAP.

Lastly, when I referred to the options not being 100% dilutive, I was referring to the cash the employee will pay to exercise the option, it's a bit of an abstract interpretation of "dilution", but if the financier or employee is paying more cash per share to the company than I paid for my shares, I don't consider that activity completely dilutive to my position.

But anyway, back to my original point, this is all pretty minor compared to how the company comes through with their next round of financing, which should be soon, per page 11 of their 9/7/2012 Prospectus:
"If we cannot obtain needed financing by the end of February 2013, we may have to curtail our operations, sell some of our assets or take any of a variety of corporate or financing actions that may dilute your financial interest or the value of your common stock."