Adjustments to the Common shares numbers: currently there are 23.8M shares outstanding. However, there are a lot of warratns and options in the money. I've included the paragraph from the 10-Q below.
I'm going to assume all these will be issued and exercised, even though all of them have not been if we get the numbers we are talking about.
In sum, one million shares to Intel at $10 each.
400K to DRAM manufactures at $10 each.
500K to "Bus Driver" Tate and the President at $10 each.
531K to employees at $10 each.
So we must add 2.4 million to the shares outstanding. Thus, we should use 26.2 million as the shares outstanding in our calculations.
If the price hits $510, Tate and the President will make $250M or $125M each on average!!! Holy Shit!!!
Likewise the employees will make $265M.
Employees as of 9/99: 166
Assume as of 12/99 : 200
Then each employee makes on average, $1.3 Million
Double Holy Shit!!!!
I'm in the wrong job!!!!
From the 12/99 10-Q dated 2/11/00:
4. Contingent Warrants, Common Stock Equivalents, and Options
In January 1997, the Company granted a warrant to Intel Corporation for the
purchase of 1,000,000 shares of Rambus common stock (the "Intel warrant") at an
exercise price of $10.00 per share. The warrant will become exercisable only
upon the achievement of certain milestones by Intel relating to shipment volumes
of Rambus-based chipsets (the "Intel milestones"). At the time that the
achievement of the milestones becomes probable, a charge will be made to the
statement of operations based on the fair value of the warrant.
In October 1998, the Company's Board of Directors authorized an incentive
program in the form of warrants on a total of up to 400,000 shares of Rambus
common stock to be issued to various Rambus Direct DRAM partners upon the
achievement of certain product qualification and volume production targets. The
warrants, to be issued at the time the targets are met, will have an exercise
price of $10.00 per share and a life of five years. They will vest and become
exercisable on the same basis as the Intel warrant, which will result in a
charge to the statement of operations based on the fair value of the warrants at
the time the achievement of the Intel milestones becomes probable. As of
December 31, 1999, a total of 60,000 of these warrants had been issued.
In the fourth quarter of fiscal 1999, the Company granted to its Chief
Executive Officer and to its President a combined total of 500,000 Common Stock
Equivalents (CSEs) and to its employees approximately 531,000 options to
purchase Rambus common stock for $10.00 per share. These CSEs and options will
vest based upon the achievement of key indicators of success for Rambus,
including shipment volumes of Rambus-based chipsets, which will result in a
charge to the statement of operations based on the fair value of the CSEs and
options at the time achievement becomes probable. |
