I agree with you on the insider point with regard to Lefar.

It's nothing short of amazing to me that the guy in charge, the CEO, apparently had a very poor understanding of overall dilutive effect of the convertible debt financing for the firm, and moreover his own equity stake.

He's been there for a year, and is apparently just now figuring this out.

Had he known, he would have already been issued the 1M incremental options in a normal fashion, and/or it would have already been negotiated into his comp plan terms.

Instead, it's quite obvious what's going on here, given the immediately reactive nature of addtional options granted in response to the more formalized dilution disclosure post-debt conversion shares. The timing of the new options illustrates this point quite well.

He spent over 50K in legal fees negotiating his comp/benefits package. And that $50K in legal time failed to uncover that he would need an additional 1M options? His attorneys have some explaining to do.

Just smells real bad to me.

I am fine with giving him more options, I even like that if it gets his ass in gear.

What I don't like the reactive nature of immediately fixing his equity position right now. His attorneys should have known it would end up this way, the CFO should have known it would end up this way, and most importantly LEFAR himself should have known it would end up this way.

He apparently didn't know enough, else it would have been dealt with differently. And that's quite frankly, less than impressive.