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Technology Stocks : IFLY - travel sales on the web pure play
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To: blankmind who wrote (3830)1/9/1999 9:44:00 PM
From: simarx   of 4761
 
Issuing Stock is different than issuing Options when it comes to expenses:

Very simple formula:

The price minus the basis on the day it is issued is the expense on the options. (Stock price on that day is 5, options are 4 than you have a $1 expense.)

For straight stock issuance, it is valued at the price the time the stock was issued. 100 shares issued (restricted or not) when the price is at 5 is $500. The $500 is taxable income to the receiver and an expense to the issuer. Though the bottom line is effected, the cash flow remains the same. Some companies will show a large loss but actually be cash flow positive. These are good things to look for in a companies financials.

IFLY is clear.
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