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Microcap & Penny Stocks : INSP Investors Research

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To: howsmydrivingal who started this subject	8/6/2002 1:43:54 PM
From: howsmydrivingal	of 787

Options expense. Bosstl - Aug. 20 Option Related Expense by: kenpet_1 Long-Term Sentiment: Strong Buy 08/04/02 03:56 pm Msg: 423855 of 424324 Just wanted to know what expense you were referring to regarding the Aug. 20 option pricing. Higher the price - higher the expense. Here is the info I have from sec filing. According to the filing it seems that they are avoiding the expense by waiting 6 months + 1 day for option pricing. May be I am missing something. Any insight? We believe that we will not incur any compensation expense solely as a result of the transactions contemplated by the Offer because: . we will grant the New Options no earlier than the first business day that is six months and one day after the date that we accept and cancel the Eligible Options tendered for exchange, and . the exercise price of all the New Options will equal the market value of the shares of common stock on the date we grant the New Options. If we were to grant the New Options on any date that is earlier than six months and one day after the date we cancel the Eligible Options accepted for exchange, we would be subject to onerous accounting charges. We would be required for financial reporting purposes to treat the New Options as variable awards. This means that we would be required to record the non-cash accounting impact of decreases and increases in our share price as a compensation expense for the New Options issued under this Offer. We would have to continue this variable accounting for these New Options until they were exercised, forfeited or terminated. The higher the market value of our shares, the greater the compensation expense we would have to record. By deferring the grant of the New Options for six months and one day, we believe we will not have to treat the New Options as variable awards. messages.yahoo.com

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