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To: Jdaasoc who wrote (40086)4/17/2000 9:47:00 AM
From: Dave B  Read Replies (2) | Respond to of 93625
 
John,

Any comments on $7 per shares quarterly loss like dot com and management and employees were rewarded with total of 1M warrants @ $10 to as part of payroll expenses.

I don't know enough about accounting practices to know what the alternatives were for accounting for something like this, nor have I looked into exactly who the options were given to. If they were given to employees, I'd say (as a resident of Silicon Valley) that after 10 years of struggling to get this company going (usually with reduced paychecks), they probably deserved them. Could they have been accounted for differently? I don't know, but at least this way it's easy to separate them out and help everyone understand that it's a one-time charge. If they had accounted for them over time, it would have been harder to separate out the charge rather than having it look like a slow bleed.

But this is hypothetical on my part. I know nothing about the specifics.

Dave

Dave