I received a very similar explanation before from someone at Lightwave. As I understand it insiders can buy and sell worry free if there are no definite short/mid term catalysts. Insiders always have inside information, that alone does not inhibit any other public company that I'm aware of. While the LSS has been involved for 3 years most of that time they've been waiting, like us.
Bovi has been working on setting up the program to allow buying/selling for quite some time. We haven't had a real insider buy in about 4 years. Though we haven't had a sell either. They've created a problem because if anyone at Lightwave were to make a sizable purchase the stock would run on that event alone.